Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Nucor Shares Slide, Earnings Forecast Signals Further Decline

EditorVenkatesh Jartarkar
Published 10/20/2023, 03:15 AM
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
US500
-
NUE
-
1YMH25
-

Nucor Corporation (NYSE: NYSE:NUE) closed the latest trading day at $143.75, marking a 0.94% decrease from the previous session. This move underperformed the S&P 500's daily loss of 0.85%, as well as the Dow and Nasdaq's losses of 0.75% and 0.96%, respectively. Over the past month, Nucor's shares have declined by 6.62%, lagging behind the Basic Materials sector's loss of 6.34% and the S&P 500's loss of 3.02%. As per InvestingPro data, the company's 1 Month Price Total Return is -7.19%, and over a three-month period, it stands at -13.13%.

The Zacks Consensus Estimates project Nucor to report earnings of $4.18 per share on October 24, 2023—a year-over-year decline of 35.69%. Revenue is predicted to be $8.51 billion, down 18.99% from the same quarter last year. Full-year earnings and revenue are projected at $17.63 per share and $34.4 billion, respectively, indicating year-over-year declines of -38.76% and -17.13%. Interestingly, according to InvestingPro data, the company's P/E Ratio is 6.62 and the adjusted P/E Ratio for LTM2023.Q2 is 7.0, indicating a potentially undervalued stock.

Nucor is part of the Steel - Producers industry with a Zacks Industry Rank of 156, carries a Zacks Rank of #3 (Hold), and trades at a Forward P/E ratio of 8.23—slightly below the industry average—despite a downward shift in Zacks Consensus EPS estimate by 2.73%. This suggests that investors are cautious about the company's future performance amid challenging market conditions.

InvestingPro Tips highlights that Nucor yields a high return on invested capital and has a strong earnings history that should allow management to continue dividend payments. The company has raised its dividend for 13 consecutive years and operates with a high return on assets. These factors, combined with a market cap of 35.75B USD as per InvestingPro data, show Nucor as a strong player in the Metals and mining industry.

For more tips like these, investors can explore the InvestingPro product which includes a total of 21 additional tips. These insights can provide a deeper understanding of the company's performance and potential growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.