Nucor (NUE) Exceeds Market Returns: Some Facts to Consider

Core Viewpoint - Nucor's recent stock performance and upcoming earnings report are critical for investors, with expectations of a decline in earnings per share but a slight increase in revenue compared to the previous year [2][3]. Group 1: Stock Performance - Nucor's stock closed at $124.68, reflecting a +1.75% increase, outperforming the S&P 500's gain of 0.55% [1] - Over the past month, Nucor shares have increased by 2.01%, which is below the Basic Materials sector's gain of 4.58% and the S&P 500's gain of 6.29% [1]. Group 2: Earnings Expectations - Analysts expect Nucor to report earnings of $2.21 per share, representing a year-over-year decline of 17.54% [2]. - For the full year, the Zacks Consensus Estimates project earnings of $7.88 per share, indicating a decrease of 11.46% from the previous year [3]. Group 3: Revenue Projections - The consensus estimate for Nucor's revenue in the upcoming earnings report is $8.28 billion, which is an increase of 2.55% from the prior-year quarter [2]. - For the full year, revenue is projected to be $31.48 billion, reflecting a growth of 2.43% compared to the previous year [3]. Group 4: Analyst Projections and Stock Ratings - Recent shifts in analyst projections for Nucor are important for understanding business trends, with upward revisions indicating positive sentiment towards the company's operations [4]. - The Zacks Rank system, which evaluates estimate changes, currently ranks Nucor at 3 (Hold), with no changes in the EPS estimate over the last 30 days [6]. Group 5: Valuation Metrics - Nucor's Forward P/E ratio is 15.54, which is higher than the industry's average Forward P/E of 10.69 [7]. - The company has a PEG ratio of 0.78, compared to the Steel - Producers industry's average PEG ratio of 0.94 [7]. Group 6: Industry Overview - The Steel - Producers industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [8].