Nucor (NUE) closed the most recent trading day at $166.57, moving +1.36% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. Meanwhile, the Dow experienced a rise of 1.35%, and the technology-dominated Nasdaq saw a decrease of 0.26%.
The stock of steel company has risen by 10.75% in the past month, leading the Basic Materials sector's gain of 4.55% and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Nucor in its upcoming release. The company is predicted to post an EPS of $2.09, indicating a 71.31% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.79 billion, showing a 10.07% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.15 per share and a revenue of $32.6 billion, indicating changes of -8.43% and +6.06%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Nucor. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.35% upward. Nucor is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Nucor currently has a Forward P/E ratio of 20.17. This signifies a premium in comparison to the average Forward P/E of 15.63 for its industry.
Also, we should mention that NUE has a PEG ratio of 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Steel - Producers industry had an average PEG ratio of 0.81.
The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Nucor Corporation (NUE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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