Valued at $29.5 billion by market cap, Nucor Corporation (NUE) engages in the manufacture and sale of steel and steel products. Founded in 1905, the Charlotte, North Carolina-based company operates in three segments: steel mills, steel products, and raw materials.
Companies worth $10 billion or more are generally described as "large-cap stocks," Nucor Corporation fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the Steel industry. NUE is a major player in providing its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico.
However, the steel giant seems to be in deep waters. It has fallen 35.5% from its 52-week high of $203, recorded on Apr. 9, last year. NUE stock has fallen marginally in the past three months, outperforming the iShares U.S. Basic Materials ETF’s (IYM) 5% decline in the same time frame.
Over the longer term, NUE has declined 6.9% over the past six months and 28.5% over the past 52 weeks. In comparison, IYM dropped 6.2% over the past six months and 6.7% over the past 52 weeks, outperforming the stock.
While NUE has been trading below its 200-day moving average since early-November, it has been trading above its 50-day moving average since early-February, with some fluctuations.
NUE stock declined marginally following a disappointing Q4 earnings release on Jan. 27. The company reported net sales of $7.1 billion. However, its EPS came in at $1.22, surpassing the Wall Street estimates by 90.6%.
NUE’s rival, Commercial Metals Company (CMC), has also been under pressure recently, declining 10.6% over the past six months and 16% over the past 52 weeks.
Among the 13 analysts covering the NUE stock, the consensus rating is a “Moderate Buy.” The mean price target of $154.18 implies a potential upside of 17.8% from the current market prices.
