Nucor Corporation (NUE), founded in 1905 and headquartered in Charlotte, North Carolina, is a leading force in the steel manufacturing and recycling industry. With a market cap of $35.7 billion, Nucor is renowned for its innovative and sustainable steel solutions. The company operates an extensive network of advanced facilities, producing a diverse range of steel products, including sheet, plate, bars, and structural steel.
Shares of Nucor have declined 3.5% over the past 52 weeks and dropped 12.7% on a YTD basis, significantly lagging behind the broader S&P 500 Index ($SPX), which rallied nearly 31% over the past year and 25.2% in 2024.
Narrowing the focus, NUE has underperformed the VanEck Steel ETF (SLX), which has climbed 3.2% over the past year.
Nucor’s shares declined 1.4% following the release of its Q3 earnings on Oct. 21, as the company reported an 8% sequential and 15% year-over-year drop in net sales to $7.44 billion, attributed to lower average sales prices and marginally reduced shipment volumes.
Looking ahead, the company expects Q4 net earnings per diluted share to decrease from $1.05 in Q3, primarily due to softer pricing and volumes in the steel mills and steel products segments, partially offset by improved performance in the raw materials segment.
For the current fiscal year, ending in December, analysts expect Nucor Corporation’s EPS to decline 52.7% year over year to $8.52. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 12 analysts covering NUE stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration has been consistent over the past months.
On Oct. 29, Argus analyst John Eade lowered NUE’s price target to $160 from $165 but maintained a “Buy” rating, citing recent weakness as a rare buying opportunity given its strong track record and solid financial position.
The mean price target of $174.60 represents a 14.9% premium to NUE’s current price levels. The Street-high price target of $240 suggests an ambitious upside potential of 58%.
