Nucor Corporation (NUE), based in Charlotte, North Carolina, manufactures and sells steel and steel products. Valued at $32.4 billion by market cap, the company’s products include carbon and alloy steel, steel joints, steel deck, cold-finished steel, steel grinding balls, steel bearing products, and metal building systems. Nucor also brokers ferrous and nonferrous metals, pig iron, HBI, and DRI, supplies ferro-alloys, and processes ferrous and nonferrous scrap.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and NUE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the steel industry. Nucor’s strengths lie in its integrated manufacturing process and diverse product portfolio, including steel mills, trading, and rebar distribution. Its vertical integration boosts efficiency, cuts costs, and enhances revenue. Strategic equity investments further expand its operational reach and market advantages.
Despite its notable strength, NUE slipped 16.8% from its 52-week high of $170.52, achieved on Nov. 6, 2024. Over the past three months, NUE stock has gained 13.8%, outperforming the S&P 500 Index’s ($SPX) 8.2% gains during the same time frame.
In the longer term, shares of NUE rose 21.6% on a YTD basis, outperforming SPX’s YTD gains of 11.1%. However, the stock climbed 1.6% over the past 52 weeks, underperforming SPX’s solid 18.9% returns over the last year.
To confirm the bullish trend, NUE has been trading above its 200-day moving average since early July. However, despite the positive price momentum, the stock is trading below its 50-day moving average recently.
On Jul. 28, NUE shares closed down marginally after reporting its Q2 results. Its EPS of $2.60 missed Wall Street expectations of $2.62. The company’s revenue was $8.5 billion, exceeding Wall Street forecasts of $8.4 billion.
NUE’s rival, Steel Dynamics, Inc. (STLD) shares lagged behind the stock, with a 16.4% uptick on a YTD basis, but outpaced the stock with 22.1% gains over the past 52 weeks.
Wall Street analysts are bullish on NUE’s prospects. The stock has a consensus “Strong Buy” rating from the 14 analysts covering it, and the mean price target of $158.58 suggests a potential upside of 11.8% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
