Latest news with #NUE
Yahoo
3 days ago
- Business
- Yahoo
Nucor Corporation (NUE): A Bull Case Theory
We came across a bullish thesis on Nucor Corporation (NUE) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on NUE. Nucor Corporation (NUE)'s share was trading at $108.94 as of 29th May. NUE's trailing and forward P/E were 19.20 and 14.14 respectively according to Yahoo Finance. A steel rod, bent and contoured to the exact specifications of the company. Nucor stands out as a vertically integrated steel producer operating through three synergistic segments—steel mills, steel products, and raw materials—underpinned by its control of critical inputs, including 3.5 million metric tons of direct reduced iron (DRI) and 18 million tons of recycled scrap annually. This integration enables tight cost control and reliable supply chains. The company's strategic focus on high-value products like insulated panels, overhead doors, and custom racking systems has driven meaningful margin expansion, further bolstered by premium-branded offerings such as ECONIQ™ and AEOS™, which meet growing demand in low-carbon and seismic-resistant construction markets. Nucor's operational flexibility is a core strength, with nearly all production relying on electric arc furnaces (EAFs) that offer rapid scalability and deliver 60–70% lower carbon emissions compared to traditional blast furnaces. Its micro mill strategy and regional footprint enhance both cost efficiency and environmental performance. The company's unique decentralized culture, with just 200 employees at headquarters overseeing over 32,000 teammates, empowers plant-level decision-making and incentivizes performance, driving innovation and responsiveness. This structure supports its aggressive capex-driven growth strategy—$11.8 billion deployed over the past three years, with 63% allocated to capacity expansion and 37% to acquisitions. These investments target fast-growing sectors such as data centers, renewable energy, and automated warehousing, positioning Nucor for long-term structural advantage. The company's integrated model, flexible operations, and disciplined capital deployment collectively support a compelling narrative of margin growth, sustainable production leadership, and strategic evolution in key demand verticals. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of their of Sanofi (SNY). Since our coverage, the stock is up 4.7%. Nucor Corporation (NUE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held NUE at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Why Nucor (NUE) Outpaced the Stock Market Today
Nucor (NUE) closed the most recent trading day at $122.32, moving +1.59% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%. Shares of the steel company have depreciated by 0.07% over the course of the past month, underperforming the Basic Materials sector's gain of 3.65% and the S&P 500's gain of 4.61%. The investment community will be paying close attention to the earnings performance of Nucor in its upcoming release. The company's upcoming EPS is projected at $2.21, signifying a 17.54% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.28 billion, reflecting a 2.55% rise from the equivalent quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.88 per share and revenue of $31.48 billion. These totals would mark changes of -11.46% and +2.43%, respectively, from last year. Investors should also take note of any recent adjustments to analyst estimates for Nucor. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% increase. At present, Nucor boasts a Zacks Rank of #3 (Hold). Looking at its valuation, Nucor is holding a Forward P/E ratio of 15.27. This expresses a premium compared to the average Forward P/E of 10.44 of its industry. Investors should also note that NUE has a PEG ratio of 0.76 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Steel - Producers industry was having an average PEG ratio of 0.95. The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nucor Corporation (NUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Jim Cramer on Live Nation Entertainment (NUE): 'Big Time Winner on Our Hands'
We recently published a list of Jim Cramer Talked About These 13 Stocks. In this article, we are going to take a look at where Nucor Corporation (NYSE:NUE) stands against other stocks that Jim Cramer discusses. A caller asked if they should buy Nucor Corporation (NYSE:NUE) stock for their retirement portfolio. Here's what Mad Money's host had to say: 'You know, Nucor's a very… let me just go over this for a second. Nucor sells at a price that looks very cheap, but if we have a recession, people keep dumping this stock. I want you to own this for the long term. I think it would be a terrific situation, but don't expect it to turn up anytime soon because people, so many people think we're going into recession.' A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse. Nucor (NYSE:NUE) makes and distributes various steel products to buyers across North America. The company is also involved in creating and handling raw materials used in steel production and other industrial uses. In April, appearing on Squawk on the Street, Cramer remarked: 'I got concerned about Nucor bought back a lot of stock high. I mean buybacks, if not done with precision can really make it so that you don't have enough cash. But Nucor's a great company. So is RH.' Overall, NUE ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NUE and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Nucor Trades at Premium Valuation: Buy, Sell or Hold the Stock?
Nucor Corporation NUE is currently trading at a forward price/earnings of 13.31X, a roughly 22% premium to the Zacks Steel Producers industry average of 10.9X. NUE is trading at a premium to Steel Dynamics, Inc. STLD and a discount to United States Steel Corporation X. Image Source: Zacks Investment Research The NUE stock has seen a 32.5% decline in its share price over the past year. The downside reflects the choppiness in the steel space underpinned by the softness in U.S. steel prices, which has led to a downward revision in NUE's earnings estimates. NUE has outperformed the industry's 36.5% decline while underperforming the S&P 500's rise of 10%. Among its major U.S. steel-making peers, Steel Dynamics has lost 1.1%, while United States Steel has gained 9.3%, over the same period. Image Source: Zacks Investment Research Technical indicators show that NUE has been trading below the 200-day simple moving average (SMA) since Nov. 7, 2024. The stock also slipped below its 50-day SMA yesterday after breaking above that level a day before. Following a death crossover on June 20, 2024, the 50-day SMA continues to read lower than the 200-day SMA, indicating a bearish trend. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 for NUE has been revised downward over the past 60 days. The consensus estimate for the second quarter of 2025 has also been revised down over the same time Zacks Consensus Estimate for 2025 earnings is currently pegged at $7.88, suggesting a year-over-year decline of roughly 11.5%. Earnings are also expected to decline roughly 17.5% in the second quarter. Image Source: Zacks Investment Research The market appears to have priced NUE's shares higher despite its bleak earnings trajectory. NUE's premium valuation may not present a compelling value proposition at these levels. Let's take a look at the stock's fundamentals. Nucor remains committed to boosting production capacity, which should drive profitable growth and strengthen its position as a low-cost producer. The company has already commissioned some of its growth projects with Gallatin and Brandenburg mills, showing strong production and shipment performance. NUE is investing $6.5 billion in eight major growth projects through 2027. These include the Apple Grove, WV, sheet mill (the largest project), the Lexington, NC, rebar micro mill, and the galvanizing line at the Berkeley County sheet company has been focusing on growth through strategic acquisitions over the past several years. The recent acquisition of Southwest Data Products expanded its growing portfolio of solutions for data center customers. The buyout of Rytec Corporation will also allow Nucor to further expand beyond core steelmaking businesses into related downstream businesses. Adding high-performance doors is expected to create cross-selling opportunities with other Nucor businesses and significantly expand its product portfolio for the commercial space. Nucor is maximizing its returns to shareholders by leveraging its strong balance sheet and cash flows. It ended first-quarter 2025 with strong liquidity, including cash and cash equivalents and short-term investments of around $4 billion. The company amended and restated its revolving credit facility on March 11, 2025, to increase the borrowing capacity to $2.25 billion from $1.75 billion and to extend its maturity date to March 11, 2030. NUE returned around $2.7 billion to its shareholders through dividends and share repurchases last year and $429 million in the first quarter. The company, in December 2024, raised its quarterly dividend to 55 cents per share from 54 cents. Nucor has increased its regular dividend for 52 straight years since it started paying dividends in 1973. It remains committed to returning at least 40% of annual net earnings to its shareholders. NUE offers a dividend yield of 1.8% at the current stock price, higher than 1.5% for Steel Dynamics and 0.5% for United States Steel. Its payout ratio is 36% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of 7.9%. Backed by strong financial health, the company's dividend is perceived to be safe and reliable. U.S. steel prices declined sharply last year due to a slowdown in end-market demand and oversupply after a strong run in late 2023 that extended into early 2024. Benchmark hot-rolled coil (HRC) prices tumbled more than 40% last year from $1,200 per short ton at the start of 2024. The downside was due to a combination of factors, including an oversupply of steel exacerbated by increased imports, reduced demand from key industries and economic uncertainties. Sluggish industrial production and construction activities also contributed to the decline. A slowdown in global automotive production curtailed steel consumption in this key end-market last year. The construction sector in the United States experienced a slowdown due to high interest rates, which dampened steel demand. Elevated borrowing costs and inflation took a bite out of the residential construction industry. Manufacturing activities also weakened amid softening demand for goods and higher borrowing costs. The Trump administration's imposition of a 25% tariff on all steel imports into the United States led to a rally in HRC prices that continued till late April. However, HRC prices have fallen below the $900 per short ton level of late, impacted by the macroeconomic softness, weakening demand in key markets and rising steel output. Prices are likely to remain under pressure over the near term, given the weak manufacturing and construction backdrop and a challenging demand environment. Lower average realized selling prices hurt the company's top line in the first quarter. Weaker year-over-year prices are likely to weigh on NUE's performance. Nucor benefits from its actions to expand its production capabilities and grow its business through strategic acquisitions. Its efforts to boost production capacity through several growth projects should drive profitability. Despite these positives, NUE remains exposed to the underlying challenges in the steel industry. The recent pullback in steel prices cast a pall on the company's prospects. Its stretched valuation also might not offer an attractive entry point at this time. Holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report Nucor Corporation (NUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
11-05-2025
- Business
- Globe and Mail
Here's an Unexpected Artificial Intelligence Winner You Probably Weren't Thinking About
Artificial intelligence (AI) is a new technology that is really built atop old technologies. In fact, it can't operate without a few very basic products and services. For example, if the power goes out AI doesn't operate. But more to the point, AI has to live somewhere and Nucor (NYSE: NUE) provides the things that are needed to build the structures that house AI. Here's why this unloved company could get an AI boost in the years ahead. What is artificial intelligence? Artificial intelligence may sound fancy, but it is really just a computer program. That's important to remember because computer programs have to run on computers, which is why Nvidia is such a hot stock. It makes the chips that function as AI's brain. But there's so much more going on here than just chips. For example, Dominion Energy recently highlighted that in the second half of 2024 it experienced an 88% surge in capacity demand for connections directly related to data centers. That's basically where AI lives. But step back and think about that for one second. In order for AI to have a home two things need to happen. First, a data center has to be built. And second, electricity infrastructure has to be created to provide power to that data center. Both of those things are products that need steel, which is what Nucor provides. In fact, Nucor has specific divisions that make building components for data centers, and the structures that support electric power lines. NUE data by YCharts Why investors should consider Nucor Nucor's shares are down around 30% from their 52-week highs. The stock is clearly unloved today on Wall Street, given that it is currently in its own personal bear market. That isn't shocking, however, given that steel is a cyclical industry. What's notable about this fact, however, is that this is the time when long-term investors should be most interested in a cyclical stock, not when it is flying high. A big reason why Nucor is so attractive is that its business model has proven incredibly resilient over time. The best evidence of that is the company's status as a Dividend King, with five decades of annual dividend increases behind it. That requires a strong business model that gets executed well in both good markets and bad. Nucor actually views bad markets as an opportunity to invest in its business so it comes out the other side of an industry downturn a better company. It can do this because it has a very strong balance sheet, with a modest debt-to-equity ratio of 0.4 times and a debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio of only around 2 times. But the big benefit is that when the steel market eventually recovers as it always has before, Nucor produces higher highs and higher lows with regard to its earnings. That is actually a specific company goal. Now add in the tailwind that is likely to come from AI and this story starts to sound pretty compelling. Nucor is out of favor on Wall Street but is investing to become a better business, with $3 billion in capital investments planned in 2025 and projects that will come online through to 2027. And it is likely to see continued business strength from the needs of one of the hottest sectors on Wall Street, AI and all that goes into supporting that industry. Don't sleep on Nucor or you could miss your opportunity Nucor's stock momentum actually turned for the better in April, with the stock now off of its lows. There's still time to jump on this Dividend King steel company, but you'll need to act quickly. Although AI isn't the only thing supporting Nucor's business, it is an important strength right now. When the rest of the company's end markets start to turn for the better, AI could be the super charger that takes the stock to new highs. Should you invest $1,000 in Nucor right now? Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor 's total average return is907% — a market-crushing outperformance compared to163%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 5, 2025
