Here’s why you should add Nucor (NUE) stocks to your portfolio
Nucor CompanyNUE’s action looks promising at the moment. The steel giant is benefiting from strong demand in its end markets and rising domestic steel prices. We are positive about the outlook for the company and believe the time has come for you to add the stock to the portfolio as it looks promising and is poised to build on its momentum.
Nucor has a Zacks Rank # 2 (Buy) and VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank # 1 (Strong Buy) or 2, offer the best opportunities. investment for investors.
Let’s take a look at the factors that make Nucor an attractive choice for investors right now.
Nucor’s shares are up 114.3% year-to-date against its industry’s 29.6% rise. It also outperformed the 22.3% rise in the S&P 500 over the same period.
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Revisions to earnings estimates have the biggest impact on stock prices. Over the past two months, Zacks’ consensus estimate for Nucor for the current year has risen by about 7.2%. The consensus estimate for the fourth quarter of 2021 has also been revised upwards by 11.2% over the same period.
Solid growth prospects
Zacks’ consensus estimate for current year earnings for Nucor is currently set at $ 22.82, reflecting expected year-over-year growth of 583.2%. In addition, profits are expected to grow 463.4% in the fourth quarter.
Superior return on equity (ROE)
ROE is a measure of a company’s efficiency in using shareholder funds. Nucor’s 12-month ROE is 40.1%, above the industry level of 33.6%.
Nucor is benefiting from the continued strength of the non-residential construction market. He also sees strong demand in the automotive market despite the current semiconductor crisis. The company is also witnessing the strength of heavy equipment and improving conditions in the energy markets. Higher demand stimulates its shipments.
The company is also benefiting from rising steel prices. Its average selling price jumped 86% year-on-year in the third quarter. Rising domestic steel prices are acting as a catalyst for Nucor’s steel mill unit.
Steel prices in the United States have reached record highs this year after plunging to multi-year lows triggered by the pandemic in August 2020. The strong rebound was driven by strong end-market demand, market conditions. tight supply and higher costs of raw materials.
The company’s profits increased year-over-year in the third quarter of 2021, thanks to strong demand and higher steel prices. The third quarter marked the highest quarterly profit in its history.
Nucor, in its third quarter appeal, said it envisions a continuation of strong fourth quarter results, with profits potentially exceeding the record high set in the third quarter. The company expects strong demand in most end-use markets to continue in 2022. Nucor expects profitability in the steel mill segment to improve in the fourth quarter on a sequential comparison basis on further profit growth at its sheet and plate factories.
Actions to consider
Some other top-ranked actions to consider in the basic materials space include Nutrien Ltd. RNT, AdvanSix Inc. ASIX and Intrepid Potash, Inc. IPI, each sporting a Zacks Rank # 1. You can see The full list of today’s Zacks # 1 Rank stocks here.
Nutrien has an expected profit growth rate of 212.2% for the current year. Zacks’ consensus estimate for NTR’s current year earnings has been revised 10.6% up in the past 60 days.
Nutrien has beaten Zacks’ consensus estimate for gains in three of the past four quarters while missing once. It has a surprise earnings for the last four quarters of about 73.5% on average. NTR has grown by about 40% in one year.
AdvanSix has a projected profit growth rate of 196.9% for the current year. ASIX’s consensus estimate for the current year has been revised up 6.8% over the past 60 days.
AdvanSix beat Zacks’ consensus estimate for earnings for each of the past four quarters, averaging 46.9%. ASIX has grown by around 114% in one year.
Intrepid Potash has a projected profit growth rate of 244.7% for the current year. The consensus estimate for the current year of the IPI has been revised upward by 3.3% in the last 60 days.
Intrepid Potash has beaten Zacks’ consensus estimate for gains in three of the past four quarters while missing once. It has a surprise profit over the last four quarters of around 132.9% on average. IPI shares have jumped about 170% in a year.
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