While NUE gains on its actions to grow through acquisitions and capacity expansion, weak steel prices weigh on its prospects.
Seeing as steel production is likely to increase in the U.S., it may be a worthy topic of which stock is the better investment at the moment between United States Steel (X) and Nucor (NUE).
I am upgrading NUE shares to a BUY rating with a price target of $152/share, driven by supportive tariffs and strong market outlooks across key industries. Nucor may not be significantly impacted by tariffs as most of its steel exports are high-value-added products as opposed to commoditized steel. Nucor's long-term growth may be supported by multiple megatrends, including nearshoring, data center construction, and power transmission.
President Trump's recent tariff announcement on steel and aluminum imports has sparked a stock market rally among domestic metal producers, including Cleveland-Cliffs NYSE: CLF, Nucor Corporation NYSE: NUE and Alcoa Corporation NYSE: AA. Investor optimism regarding reduced foreign competition has fueled these gains.
Leon Topalian, Nucor CEO, joins 'Closing Bell Overtime' to talk the impact of steel tariffs
While tariff chatter dominates headlines, JPMorgan analyst Bill Peterson sees bigger implications for steel stocks beyond the political drama.
United States President Donald Trump is doubling down on imposing tariffs on goods entering the country, this time targeting a 25% tax on all steel and aluminum imports.
Shares of steel and aluminum producers, including Cleveland-Cliffs (CLF) and Nucor (NUE), advanced Monday after President Donald Trump said that he would be implementing a 25% tariff on imports of the two metals.
Now that steel and aluminum are the next targets for Trump tariffs, Steel Dynamics and Century Aluminum may offer early entries. The post Trump Tariffs Target Steel, Aluminum Imports; Nucor, Alcoa Jump, STLD Flashes Buy Signal appeared first on Investor's Business Daily.
Subscribers to Schaeffer's Weekend Trader options recommendation service received this NUE commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters.
Investors have had to deal with a lot of uncertainty lately in the stock market as President Trump has rolled out the latest rounds of tariffs, targeting goods traded with China, Mexico, and Canada first. These policies have created a common view for investors that leans on inflation coming back and domestic business demand falling off a cliff.
Nucor Corp (NYSE: NUE) is pushing up this morning after the United States announced its first batch of tariffs against China, Mexico, and even its lifelong ally, Canada. Over the weekend, President Donald Trump raised tariffs by 10% on all imports from China and about 25% each on Mexico and Canada.