Beyond analysts' top -and-bottom-line estimates for Nucor (NUE), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
Nucor (NUE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Nucor (NUE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The automotive demand recovery, strength in non-residential construction and a rebound in steel prices should enable the Zacks Steel Producers industry to thrive. NUE, STLD and X are set to gain from favorable industry fundamentals.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
When taking a long-term view, Nucor Corporation emerges as one of the best steel producers in the U.S. The stock is attractively priced for long-term investors, who are willing to take advantage of cyclical fluctuations. In addition to short-term market risks, there are also certain idiosyncratic risks that NUE investors should keep in mind.
The best time to buy companies that operate in cyclical industries is often when those industries are facing cyclical downturns. The problem is that you need to make sure you are buying the best of the best, especially if you are a long-term income-focused investor.
The steel stocks in the basic materials sector have been benefactors of President Trump's steel and aluminum tariffs. However, U.S. Steel's 26.5% year-to-date (YTD) performance as of Mar 28, 2025, may be caused by more than just tariff benefits, especially when peers like Nucor Co. NYSE: NUE and Steel Dynamics Inc. NASDAQ: STLD are only up 4.5% and 8.7% YTD, as of Mar 28, 2025, respectively.
The surge in U.S. steel prices, driven by tariffs, has created a favorable landscape for American steel producers like NUE, STLD and X.
Nucor's low-cost, sustainable steel production and strong domestic focus position it as a resilient player in the U.S. steel market. Despite a 30% stock drop, Nucor's innovative EAF technology and diversified product portfolio ensure cost efficiency and market adaptability. Nucor's valuation metrics, including a P/E GAAP of 15.49 and strong profitability, make it attractive compared to peers.
The primary reason for NUE's predicted decline in profitability in the first quarter is weaker selling prices.
While NUE's actions to grow through capacity expansion and acquisitions bode well, weak steel selling prices weigh on its prospects.