Nucor Was Just Upgraded to Buy by UBS With $190 Price Target - 24/7 Wall St. S&P 5006,557.80 -0.66% Dow Jones46,408.80 -0.15% Nasdaq 10023,919.40 -1.15% Russell 20002,522.09 -0.49% FTSE 1009,996.20 -1.19% AI Portfolio Follow 24/7 Wall St. on Google Nikkei 22553,122.00 -1.38% Stock Market Live March 26, 2026: S&P 500 (SPY) Slips on Oil Again Investing Nucor Was Just Upgraded to Buy by UBS With $190 Price Target By Joel SouthPublished Mar 26, 11:04AM EDT Quick Read Nucor (NUE) was upgraded to Buy by UBS wi ...

Nucor (NUE) ended the recent trading session at $160.62, demonstrating a +1.29% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 1.15%. On the other hand, the Dow registered a gain of 1.38%, and the technology-centric Nasdaq increased by 1.38%. Coming into today, shares of the steel company had lost 11.91% in the past month. In that same time, the Basic Materials sector lost 16.03%, while the S&P 500 lost 5.69%. Analysts and investors alike will ...

Key Takeaways Nucor forecasts Q1 EPS of $2.70-$2.80, up sharply from Q4 2025 earnings levels. Nucor expects higher steel mill earnings on better pricing and volumes, with products segment gains. NUE repurchased 0.7M shares and returned about $250M via buybacks and dividends year to date. Nucor Corporation (NUE) has released its earnings guidance for the first quarter of 2026, indicating higher profitability supported by improved performance across its core operating segments, especially the steel mills. The ...

Nucor Announces Guidance for the First Quarter of 2026 Earnings Accessibility StatementSkip NavigationCHARLOTTE, N.C., March 19, 2026 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced guidance for its first quarter ending April 4, 2026. Nucor expects first quarter earnings to be in the range of $2.70 to $2.80 per diluted share. Nucor reported fourth quarter 2025 net earnings of $1.64 and adjusted earnings of $1.73, both per diluted share. Prior year first quarter net earnings were $0.67 and adju ...

Nucor Corporation (NUE) stands as the largest steel producer and recycler in the United States. Headquartered in Charlotte, North Carolina, the company operates across steel mills, steel products, and raw materials, manufacturing everything from sheet and structural steel to finished components such as joists, girders, and tubing. Unlike traditional blast-furnace steelmakers, Nucor relies on a scrap-based electric arc furnace (EAF) model, a production approach that offers greater operational flexibility wh ...

Company Performance - Nucor's stock closed at $163.48, reflecting a -1.32% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.61% [1] - Over the past month, Nucor's shares have depreciated by 12.26%, compared to the Basic Materials sector's loss of 3.27% and the S&P 500's loss of 2.25% [1] Earnings Forecast - Nucor is expected to report an EPS of $2.84, indicating a significant 268.83% increase from the same quarter last year [2] - The consensus estimate projects revenue of $8.71 billion, reflecting an 11.2% rise from the equivalent quarter last year [2] Full Year Estimates - For the full year, earnings are projected at $11.83 per share and revenue at $35.16 billion, showing increases of +53.44% and +8.2% respectively from the previous year [3] - Recent changes to analyst estimates suggest optimism regarding Nucor's business and profitability [3] Valuation Metrics - Nucor's Forward P/E ratio is currently 14.01, which is a premium compared to the industry average Forward P/E of 12.68 [6] - The company has a PEG ratio of 0.59, while the industry average PEG ratio is 0.46 [6] Industry Context - The Steel - Producers industry, part of the Basic Materials sector, has a Zacks Industry Rank of 196, placing it in the bottom 20% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Financial Performance - Nucor reported consolidated net earnings of $1.74 billion, or $7.52 per diluted share, in 2025, a decrease from $2.03 billion, or $8.46 per diluted share, in 2024[220]. - Net earnings for 2025 were $1.74 billion, or $7.52 per diluted share, down from $2.03 billion, or $8.46 per diluted share in 2024, representing a decrease of 14.3%[242]. - Gross margins decreased to $3.85 billion (12%) in 2025 from $4.10 billion (13%) in 2024[227]. - Profit sharing costs decreased to $256 million in 2025 from $298 million in 2024 due to decreased profitability[229]. Sales and Revenue - Total net sales to external customers increased by 6% from $30.73 billion in 2024 to $32.49 billion in 2025, with an average sales price per ton decreasing by 2% from $1,241 to $1,221[223]. - Steel mills segment net sales increased by 7% to $20.00 billion in 2025, driven by a 7% increase in outside steel shipments[224]. - Steel products segment net sales increased by 2% to $10.33 billion in 2025, with a 9% increase in volumes offset by a 6% decrease in average sales price per ton[225]. - Raw materials segment net sales increased by 13% to $2.16 billion in 2025, primarily due to increased average sales price and volumes at DJJ's brokerage operations[226]. Operational Efficiency - Operating rates at Nucor's steel mills increased to 83% in 2025 from 76% in 2024, reflecting modest domestic steel demand growth[204]. - Total accounts receivable turned approximately every five weeks, and inventories turned approximately every ten weeks in both 2025 and 2024[250]. - Steel mills and steel products segments had utilization rates of 82% and 61% respectively in Q4 2025[260]. Capital Expenditures and Investments - Capital expenditures increased to $3.42 billion in 2025 from $3.17 billion in 2024, driven by ongoing construction projects[256]. - Capital expenditures are projected to decrease to approximately $2.5 billion in 2026[268]. - Nucor's investment practice focuses on highly liquid securities with short maturities, minimizing the impact of interest rate changes on investment securities[261]. Liquidity and Financial Position - Cash and cash equivalents and short-term investments decreased to $2.70 billion as of December 31, 2025, from $4.14 billion as of December 31, 2024[244]. - The current ratio improved to 2.9 at year-end 2025 compared to 2.5 at year-end 2024, reflecting a stronger liquidity position[249]. - Total contractual obligations as of December 31, 2025, amounted to $16.5 billion, with long-term debt comprising $6.9 billion[265]. Shareholder Returns - Nucor returned approximately $1.2 billion to stockholders in 2025 through dividends and share repurchases, maintaining a commitment to return a minimum of 40% of net earnings[253]. - Nucor paid aggregate dividends of $2.20 per share in 2025, an increase from $2.16 per share in 2024[264]. - Nucor returned approximately $1.22 billion to stockholders in 2025 through dividends and share repurchases[264]. Risk Management - The company is exposed to commodity price risk, particularly for scrap, steel, and natural gas, and aims to negotiate favorable prices to maintain gross margins[286]. - Nucor's exposure to foreign currency risk is primarily through operations in Canada, Europe, and Mexico[263]. - A hypothetical 10% change in natural gas prices could negatively impact pre-tax earnings by $7 million, while a 25% change could result in a $17 million impact[288]. - The company continuously monitors market risks and develops strategies to manage them effectively[284]. Debt and Interest - As of December 31, 2025, Nucor's funded debt to total capital ratio was 24.4%[259]. - Interest expense decreased to $170 million in 2025 from $228 million in 2024, while interest income decreased to $111 million from $258 million[235]. - Approximately 24% of Nucor's long-term debt consisted of variable-rate instruments as of December 31, 2025[261]. - Nucor's long-term debt composition includes 24% variable-rate instruments and 76% fixed-rate instruments as of December 31, 2025[285].

Core Viewpoint - Nucor's recent earnings report indicates a mixed performance with earnings per share missing estimates while revenues exceeded expectations, raising questions about future trends leading up to the next earnings release [2][6]. Financial Performance - Nucor reported Q4 2025 earnings of $1.64 per share, an increase from $1.22 year-over-year, but below the Zacks Consensus Estimate of $1.82. Adjusted earnings were $1.73 per share [2]. - Net sales reached approximately $7.69 billion, reflecting an 8.6% year-over-year increase and surpassing the Zacks Consensus Estimate of $7.68 billion [2]. Operating Figures - Total sales tons for steel mills in Q4 were 4,602,000 tons, a 0.5% increase year-over-year but an 8% decrease from the prior quarter, missing the estimate of 4,927,000 tons [3]. - Overall operating rates at steel mills were 82% in Q4, down from 85% in the previous quarter but up from 74% in Q4 2024 [3]. Segment Highlights - The Steel Mills segment earned $516 million, down from the previous quarter due to lower volumes and margin compression [4]. - The Steel Products segment reported earnings of $230 million, lower sequentially due to reduced volumes and higher average costs [4]. - The Raw Materials segment delivered $24 million, down from the prior quarter, affected by scheduled outages at direct reduced iron facilities [4]. Financial Position - Cash and cash equivalents were approximately $2.26 billion at the end of the quarter, a decrease of 36.5% year-over-year [5]. - Long-term debt stood at roughly $6.9 billion, an increase of 21.6% [5]. - Nucor repurchased about 0.7 million shares of its common stock during the quarter [5]. Outlook - The company expects Q1 2026 earnings to rise across all segments, with the Steel Mills segment anticipated to see the largest increase due to higher volumes and prices [6]. - The Steel Products segment is projected to record higher earnings mainly from increased volumes, while the Raw Materials segment is also expected to see earnings growth [6]. Estimate Trends - In the past month, there has been a flat trend in fresh estimates for Nucor [7]. VGM Scores - Nucor has an average Growth Score of C, a Momentum Score of B, and a Value Score of B, placing it in the second quintile for the value investment strategy [9]. Zacks Rank - Nucor holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns from the stock in the upcoming months [10].

Core Insights - The article discusses the expertise of Vladimir Dimitrov, CFA, who has a background in strategy consulting focused on brand and intangible asset valuation, particularly in technology, telecom, and banking sectors [1]. Group 1: Professional Background - Vladimir Dimitrov has worked with some of the largest global brands in various sectors, indicating a strong professional network and experience [1]. - He graduated from the London School of Economics, which adds credibility to his analytical skills and knowledge base [1]. Group 2: Investment Philosophy - The focus is on identifying reasonably priced businesses that possess sustainable long-term competitive advantages, suggesting a value-oriented investment approach [1].

Core Insights - President Trump's new 10% universal tariff is impacting global markets and could squeeze margins for companies reliant on overseas manufacturing [1] - Companies with domestic supply chains are less exposed to import tariffs, providing them with a structural advantage as global trade costs increase [2] Company-Specific Insights - Tesla's localized manufacturing footprint reduces its exposure to cross-border tariffs and enhances control over production costs amid volatile global supply chains [3] - Nucor Corp., a domestic steel producer, benefits from its majority U.S.-based production, making it less reliant on imported materials and strengthening its competitive position against global competitors [4] Market Trends - As tariff uncertainty alters the global trade landscape, there is a growing investor preference for companies with supply chains closer to home, making domestic manufacturing a significant competitive advantage [5]