Recent Stock Performance and Q3 Earnings Insights
Nucor Corporation (NUE), established in 1905 and based in Charlotte, North Carolina, stands as a prominent player in the steel manufacturing and recycling sector. With a market cap of $35.7 billion, Nucor is widely recognized for its commitment to innovative and eco-friendly steel solutions. The company operates a comprehensive network of advanced facilities, producing various steel products such as sheet, plate, bars, and structural steel.
Over the past 52 weeks, Nucor’s shares have declined 3.5% and are down 12.7% year-to-date, trailing the broader S&P 500 Index ($SPX), which has rallied nearly 31% in the last year and 25.2% in 2024.
Nucor Vs. Industry Competitors
In comparison, NUE has also underperformed relative to the VanEck Steel ETF (SLX), which has climbed 3.2% over the past year.
Q3 Earnings Report and Future Expectations
Nucor’s shares fell 1.4% following the release of its Q3 earnings on October 21. The company disclosed an 8% sequential and 15% year-over-year drop in net sales, totaling $7.44 billion. This drop was primarily due to decreased average sales prices and slightly lower shipment volumes.
Looking forward, Nucor anticipates Q4 net earnings per diluted share to decrease from $1.05 in Q3, a forecast driven by softer pricing and volumes in both the steel mills and products segments, somewhat counterbalanced by improved performance in the raw materials segment.
For the current fiscal year, ending in December, analysts predict Nucor Corporation’s EPS to decline 52.7% year over year to $8.52. The company’s earnings surprise record is varied, with three beats in the last four quarters alongside one miss.
Analyst Ratings and Price Targets
Among the 12 analysts monitoring NUE stock, the consensus rating is a “Moderate Buy.” This comprises seven “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This outlook has remained relatively stable in recent months. On October 29, Argus analyst John Eade lowered NUE’s price target to $160 from $165 while keeping a “Buy” rating, viewing recent weaknesses as an opportunity for investment, given the company’s solid financial record.
The average price target of $174.60 suggests a 14.9% upside based on Nucor’s current stock price. In contrast, the highest target of $240 indicates a notable potential growth of 58%.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information in this article is for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
