Company Overview - Nucor Corporation's shares are experiencing a decline, with a drop of more than 5% noted on Thursday and continuing into Friday [1][2]. Industry Analysis - UBS has downgraded Nucor and other steel companies, including Commercial Metals Company and Steel Dynamics, indicating a shift from Buy to Neutral for Nucor and Steel Dynamics, and from Buy to Sell for Commercial Metals [2]. - The entire steel industry has been downgraded by UBS, citing a less compelling risk-reward profile that is now more balanced [2]. Technical Analysis - The stock has found support around the $130 level, which had previously served as support in January and May 2023 [3]. - Successful traders recognize that price levels that have previously acted as support often continue to do so due to psychological factors among investors [4][5]. - The phenomenon of seller's remorse can maintain support levels, while nervous buyers can lead to price rallies as they compete to purchase shares [5].

Dividend and Share Repurchase - Nucor Corporation increased its regular quarterly cash dividend to 55 cents per share from 54 cents, marking its 207th consecutive quarterly cash dividend [1] - The company has increased its regular or base dividend for 52 consecutive years since 1973 [1] - Nucor repurchased approximately 2.5 million shares of its common stock at an average price of $156.07 per share during the third quarter [2] Financial Performance and Outlook - Nucor ended the third quarter with cash and cash equivalents of $4,262.8 million [2] - The company anticipates consolidated net earnings for the fourth quarter of 2024 to be lower than the third quarter [2] - The expected decline in earnings is attributed to reduced profitability in the steel mills segment due to lower average selling prices and volumes [3] - Earnings in the steel products division are also expected to fall in the fourth quarter due to similar factors [3] - The raw materials segment's earnings are predicted to improve sequentially, excluding the impairment charge taken during the third quarter of 2024 [3] Stock Performance and Industry Comparison - Nucor's shares have lost 15.5% in value over the past year, compared to the industry's 13.8% decline [2] Industry Rankings and Peer Performance - Nucor currently carries a Zacks Rank 5 (Strong Sell) [4] - Carpenter Technology Corporation (CRS) carries a Zacks Rank 1 (Strong Buy) and has seen its shares soar 177.8% in the past year [5] - DuPont de Nemours, Inc. (DD) carries a Zacks Rank 2 (Buy) and has rallied roughly 17.1% in the past year [6] - CF Industries Inc. (CF) carries a Zacks Rank 1 and has rallied around 16.8% in the past year [8]

Core Points - Nucor Corporation announced an increase in its regular quarterly cash dividend to $0.55 per share, marking its 207th consecutive quarterly cash dividend [1] - The company has increased its regular dividend for 52 consecutive years, starting from its first dividend payment in 1973 [1] Company Overview - Nucor and its affiliates are manufacturers of steel and steel products, operating in the United States, Canada, and Mexico [2] - The range of products includes carbon and alloy steel in various forms, as well as fabricated concrete reinforcing steel, metal building systems, and utility structures [2] - Nucor is recognized as North America's largest recycler and also brokers ferrous and nonferrous metals, pig iron, and hot briquetted iron [2]

Core Viewpoint - The bullish stance on Nucor Corporation (NYSE: NUE) was established in April 2021, anticipating increased demand for steel products due to President Biden's infrastructure development spending [1]. Group 1: Company Analysis - Nucor Corporation's stock was trading around $100 in April 2021, indicating a significant entry point for investors [1]. - The company is expected to benefit from infrastructure spending, which is projected to create strong demand for steel products [1]. Group 2: Analyst Background - The analyst, Dilantha De Silva, has over 10 years of experience in the investment industry and focuses on small-cap stocks often overlooked by Wall Street [1]. - Dilantha is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI), showcasing a strong professional background [1].

Core Insights - Greenwave Technology Solutions, Inc. is poised to benefit from the upcoming Nucor Corporation steelmaking facility in Lexington, North Carolina, which has an annual processing capacity of 430,000 tons, primarily from recycled materials [1] - The company is one of North Carolina's largest suppliers of recycled steel, operating five facilities and utilizing advanced shredding technology [2] - Greenwave anticipates a significant shift in revenue sources, projecting that 75% of its revenue will come from domestic sales in 2025, up from 41% in the previous four years, driven by changes in trade policies [3] Company Positioning - Greenwave operates 13 recycling facilities and has established strong relationships with industry leaders such as Nucor Corporation, positioning itself to capitalize on increasing domestic demand for sustainable metals [4][5] - The company plays a critical role in supplying raw materials for essential infrastructure projects and U.S. military applications, highlighting its importance to national security [5] Market Dynamics - The South Atlantic Region is experiencing a surge in construction projects, supported by federal investments, which is driving demand for recycled metals [3] - Greenwave's focus on sustainability aligns with the growing emphasis on domestically sourced metals, which are vital for the U.S. defense and infrastructure sectors [3]

Core Viewpoint - Nucor's recent earnings report shows a significant decline in earnings and revenues year-over-year, with expectations for continued challenges in the upcoming quarter [2][3][8]. Financial Performance - Nucor reported earnings of $1.05 per share for Q3 2024, down from $4.57 in the same quarter last year. Adjusted earnings per share were $1.49, exceeding the Zacks Consensus Estimate of $1.40 [2]. - Net sales were approximately $7.4 billion, a decrease of 15.2% year-over-year, but above the Zacks Consensus Estimate of $7.2 billion [3]. - Total sales tons to outside customers for steel mills were 4,607,000 tons, a slight increase of 0.6% year-over-year, surpassing the estimate of 4,446,000 tons. The average sales price per ton fell by 15% [4]. Segment Performance - Earnings from the steel mills unit dropped 65% year-over-year due to lower average selling prices [5]. - The steel products division saw a 61% decline in earnings year-over-year, attributed to reduced prices and lower volumes [5]. - The raw materials segment's earnings decreased by 192% due to a non-cash impairment charge [6]. Financial Position - Cash and cash equivalents were around $4.26 billion at the end of the quarter, down 27.3% year-over-year. Long-term debt was approximately $5.68 billion, a decrease of 14.1% [7]. - The company repurchased about 2.5 million shares at an average price of $156.07 per share during the quarter [7]. Outlook - Nucor anticipates that consolidated net earnings for Q4 2024 will be lower than in Q3 2024, primarily due to reduced profitability in the steel mills segment and lower volumes [8][9]. - The raw materials segment's earnings are expected to improve sequentially, excluding the impairment charge taken in Q3 2024 [9]. Market Sentiment - There has been a downward trend in estimates for Nucor, with a consensus estimate shift of -30.35% [10][11]. - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations for below-average returns in the coming months [13]. Industry Comparison - Nucor is part of the Zacks Steel - Producers industry, where competitor Steel Dynamics has gained 6.4% over the past month despite reporting a year-over-year revenue decline of 5.4% [14]. - Steel Dynamics is expected to post earnings of $1.59 per share for the current quarter, reflecting a change of -39.1% from the previous year [15].

Group 1: UPS Overview - UPS is currently experiencing a turnaround, with operating profit falling to $5.5 billion in the first nine months of 2024 from approximately $6.7 billion in the same period of 2023, and operating margin declining to 8.4% from 10.1% [3] - Despite recent struggles, UPS has seen improvements, with third-quarter operating profit rising to about $2 billion from $1.3 billion in the same quarter of 2023, and operating margin increasing to 8.9% from 6.4% [4] - UPS has a strong dividend history, having increased its dividend annually for 15 consecutive years, and currently offers an attractive 4.9% dividend yield [5] Group 2: Nucor Overview - Nucor is one of the largest steelmakers in North America, known for its diversified business model that includes both bulk steel and higher-margin specialty products [5] - In the third quarter of 2024, Nucor's revenue dropped 8% sequentially from the second quarter and 15% compared to the third quarter of 2023, reflecting the cyclical nature of the steel industry [6] - Nucor is recognized as a Dividend King, having increased its dividends annually for at least 50 years, demonstrating exceptional management in a highly cyclical industry [7] Group 3: Investment Considerations - Both UPS and Nucor are currently trading approximately 20% below their respective 52-week highs, presenting potential opportunities for long-term investors [8]

Nucor has made strategic investments worth about half its market cap over the past eight years.There's been plenty of talk among investing pundits about who could end up being the winners and losers this election season. Companies in some sectors will likely be favored over others depending on the next U.S. president and the makeup of Congress.But one is company set up to win regardless of who wins in the upcoming election is Nucor (NUE 1.21%). North America's largest steel and steel products company has ta ...

Core Insights - Nucor Corporation is the largest steel producer and scrap recycler in the US, operating primarily through its steel mill operations [1] Company Overview - Nucor Corporation is a manufacturer of steel and steel products, with three major segments, the largest being its steel mill operations [1] Industry Context - The company is positioned as a leader in the steel industry, indicating a strong market presence and operational capacity [1]

Group 1 - The article discusses the investment analysis approach of Michael Del Monte, highlighting his macro-value-oriented strategy and cross-industry analysis expertise [1] - Michael Del Monte has over 5 years of experience as a buy-side equity analyst and previously worked in professional services for over a decade across various industries including Oil & Gas, Information Technology, and consumer discretionary [1] - The article emphasizes the importance of making investment recommendations based on comprehensive industry analysis rather than focusing solely on individual companies [1]