Nucor (NUE) Registers a Bigger Fall Than the Market: Important Facts to Note

Core Viewpoint - Nucor's stock has experienced significant declines recently, with expectations of poor earnings performance in the upcoming report, indicating a challenging outlook for the company and the steel industry overall [1][2][3]. Group 1: Stock Performance - Nucor's shares closed at $115.78, down 1.85% from the previous trading day, underperforming the S&P 500's loss of 0.09% [1]. - Over the last month, Nucor's stock has decreased by 20.39%, significantly worse than the Basic Materials sector's decline of 7.73% and the S&P 500's loss of 0.29% [1]. Group 2: Earnings Expectations - Analysts expect Nucor to report earnings of $0.90 per share, reflecting a year-over-year decline of 71.52% [2]. - The consensus estimate for revenue is $6.7 billion, which is a decrease of 13% compared to the same quarter last year [2]. Group 3: Annual Forecast - For the entire year, Zacks Consensus Estimates predict earnings of $8.47 per share and revenue of $30.33 billion, indicating declines of 52.94% and 12.62%, respectively, from the previous year [3]. Group 4: Analyst Estimates and Stock Ratings - Recent changes to analyst estimates for Nucor are crucial as they reflect short-term business trends, with positive revisions seen as a good sign for the company's outlook [3][4]. - The Zacks Rank system currently rates Nucor as 5 (Strong Sell), with a 0.54% decrease in the consensus EPS projection over the past 30 days [5]. Group 5: Valuation Metrics - Nucor is trading at a Forward P/E ratio of 13.92, which is a premium compared to its industry's Forward P/E of 11.85 [6]. - The Steel - Producers industry, part of the Basic Materials sector, has a Zacks Industry Rank of 215, placing it in the bottom 15% of over 250 industries [6].