Core Viewpoint - Nucor Corporation (NUE) has experienced a significant decline in share price, losing 22.4% over the past six months, which is worse than the Zacks Steel Producers industry's decline of 17.2% due to a combination of demand slowdown and oversupply in the steel market [1][8]. Group 1: Stock Performance - NUE is currently trading at a 27% discount to its 52-week high of $203 reached on April 9, 2024 [3]. - The stock has been trading below the 200-day simple moving average (SMA) since May 22, 2024, indicating a bearish trend [1]. - The Zacks Consensus Estimate for 2024 earnings has been revised downward, with a projected decline of approximately 44.4% year-over-year [11]. Group 2: Market Conditions - U.S. steel prices have sharply declined from $1,200 per short ton at the beginning of 2024 to below $800 per short ton in March 2024, influenced by reduced demand and increased imports [8][9]. - The current prices are hovering around $700 per short ton, with expectations of continued pressure on profitability due to weak manufacturing and construction activities [9][10]. Group 3: Company Strategy and Financials - Nucor is investing $6.5 billion in eight major growth projects through 2027 to enhance production capacity and maintain its position as a low-cost producer [4]. - The company has spent $5.8 billion on acquisitions since 2020, including the recent acquisition of Southwest Data Products and Rytec Corporation, aimed at expanding its product portfolio [5]. - Nucor returned over $1.7 billion to shareholders through dividends and share repurchases in the first half of 2024, maintaining a commitment to return at least 40% of annual net earnings to shareholders [7]. Group 4: Valuation and Outlook - Despite the decline in share price, NUE is trading at a forward 12-month earnings multiple of 13.16X, which is a 45.7% premium to the peer group average of 9.03X [12]. - The company is advised to be held for now, as its expansion efforts may drive profitability, but it faces challenges from weaker steel prices and declining earnings estimates [16][17].

Investors in Nucor Corporation (NUE) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2024 $65 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also me ...

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It isn't easy earning the title of Dividend King. It's even more impressive, and interesting, when a company does it in a cyclical industry.With 50 consecutive annual dividend increases a company earns the title Dividend King. Nucor (NUE -3.04%) has increased its dividend each year for 51 consecutive years. That alone should make this company of interest to a lot of investors, but there's one more factor that you need to understand -- Nucor operates in the highly cyclical steel industry. Here's why that's s ...

Nucor TodayNUENucor$161.53 -1.81 (-1.11%) 52-Week Range$140.07▼$203.00Dividend Yield1.34%P/E Ratio9.50Price Target$191.29Add to WatchlistNucor NYSE: NUE is a basic materials firm that manufactures steel and steel products. It is the 14th largest firm in the metals and mining industry. Nucor is underperforming its industry so far this year, with a total return of -6.1%. The SPDR S&P Metals & Mining ETF NYSEARCA: XME has provided a total return of 3.6%.Nucor released Q2 2024 earnings on July 22, 2024. Let's r ...

Financial Data and Key Metrics Changes - Nucor generated earnings of $2.68 per diluted share in Q2 2024, down approximately 23% from the previous quarter, with year-to-date earnings at $6.14 per diluted share [9][20] - The company reported net earnings of $645 million for Q2, a decline of roughly 40% in pre-tax earnings from the Steel Mill segment compared to the prior quarter [20][21] - Cash from operations for the first half of 2024 was around $2 billion, with total leverage at less than 1.2 times trailing 12-month EBITDA and cash on hand at approximately $5.4 billion [20][23] Business Line Data and Key Metrics Changes - The Steel Mill segment's pre-tax earnings were $645 million, significantly impacted by lower realized pricing, particularly in sheet mills [20][21] - The Steel Products segment delivered pre-tax earnings of $441 million, down about 14% from the first quarter, despite an increase in shipments [21] - The Raw Materials segment produced pre-tax earnings of approximately $39 million, with softer volumes and pricing but lower operating expenses offsetting these challenges [21] Market Data and Key Metrics Changes - The overall market for steel is experiencing a decline, with expectations of a 1% drop in annual demand [25][34] - There has been an increase in imports year-over-year, contributing to margin pressure across several product categories [25][26] - Certain end markets, such as construction related to semiconductors and data centers, remain healthy, providing opportunities for Nucor [25][26] Company Strategy and Development Direction - Nucor is focused on long-term growth through investments in core steelmaking operations and expansion into steel-adjacent businesses [10][15] - The company is advancing its "Expand Beyond" strategy, targeting high-margin businesses with strong growth potential, including recent acquisitions in overhead doors and data center infrastructure [11][12][13] - Nucor plans to ramp up capital expenditures significantly over the next two years, with a focus on enhancing product capabilities rather than merely increasing capacity [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the domestic steel industry's challenges, particularly regarding unfair trade practices and increased imports from Mexico and Canada [17][18] - The outlook for Q3 2024 anticipates lower consolidated earnings, primarily due to declining realized pricing across major product categories [25][26] - Despite current challenges, management remains optimistic about the company's positioning and the resilience of certain markets [25][26] Other Important Information - Nucor repurchased approximately 2.9 million shares for $500 million during the quarter, reflecting its commitment to returning capital to shareholders [9][23] - The company is investing in new technologies to enhance scrap segregation and recovery rates while reducing its carbon footprint [14][15] - Moody's revised Nucor's senior unsecured credit outlook from stable to positive, indicating confidence in the company's financial health [9][23] Q&A Session Summary Question: Customer feedback on the weekly CSP introduced in April - Management noted positive feedback from customers regarding the CSP, which aims to provide transparent pricing and reduce speculative buying [28][30][32] Question: Directional expectations for shipments in Q3 - Management expects stable order entry rates and a relatively flat demand picture for the back half of the year, despite some higher-priced inventory [33][34] Question: Update on raw material strategy - Management highlighted ongoing investments in low-copper shred and the goal of minimizing embodied carbon in finished products [36][39][40] Question: Risks associated with upcoming elections - Management expressed uncertainty about potential changes in administration but emphasized the company's diverse customer base and long-term investment strategy [47][49] Question: Demand from the IIJA and other legislation - Management indicated that while the CHIPS Act is driving demand, the infrastructure bill's impact is still in early stages [80][81] Question: Update on Brandenburg's utilization rate - Management confirmed that Brandenburg is expected to achieve full run-rate capabilities by the end of 2024, despite current market conditions [82][84]

SECOND QUARTER 2024 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO July 23, 2024 2 FORWARD-LOOKING STATEMENTS Certain statements made in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The words "anticipate," "believe," "expect," "intend," "may," "project," "will," "should," "could" and similar expressions are intended t ...

Nucor Corporation (NUE) reported earnings of $2.68 per share in the second quarter of 2024, down from earnings of $5.81 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $2.31.The company recorded net sales of $8,077.2 million, down around 15% year over year. The figure beat the Zacks Consensus Estimate of $7,607.7 million. Operating FiguresTotal sales tons to outside customers for steel mills in the second quarter were 4,617,000 tons, down 3% year over year. The figure lagged ou ...

Nucor (NUE) reported $8.08 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 15.2%. EPS of $2.68 for the same period compares to $5.81 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $7.61 billion, representing a surprise of +6.17%. The company delivered an EPS surprise of +16.02%, with the consensus EPS estimate being $2.31.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...

Monday, July 22nd, 2024The sell-off we saw mid-last week appears to be addressed today. Even though major market indices are still below where they were, say, Thursday morning, the roughly -5% down-tick became a buying opportunity for a plurality of investors today. The Dow gained +127 points, +0.32%, while the S&P 500 gained +1.08%. The Nasdaq built back  from a week ago, +280 points or +1.58%, while small-caps once again felt their oats: the Russell 2000 grew +1.72% to a session high as of the close.We we ...