(NUE) Nucor - Ratings and Ratios

Nucor Corporation is a diversified steel manufacturing company with a robust presence in North America, operating through three primary segments: Steel Mills, Steel Products, and Raw Materials. The companys Steel Mills segment is a significant producer of various steel products, including hot-rolled, cold-rolled, and galvanized sheet steel, as well as plate steel and structural steel products. Nucors Steel Products segment offers a broad range of value-added products, such as steel joists, steel decks, and metal building systems, catering to the construction and infrastructure sectors. The Raw Materials segment is crucial in supporting the companys steel production, providing essential inputs like direct reduced iron and ferro-alloys.

Nucors business model is characterized by its vertically integrated operations, allowing the company to exert control over its supply chain and manage costs effectively. The companys ability to produce a wide range of steel products and its presence in various markets, including the United States, Canada, and Mexico, contribute to its revenue diversification. Additionally, Nucors focus on innovation and sustainability is reflected in its investments in new technologies and processes aimed at reducing its environmental footprint.

Analyzing Nucors technical data, the stocks recent price action indicates a potential breakout, with the last price at $122.32 exceeding the 20-day and 50-day simple moving averages (SMA20 and SMA50) of $114.57 and $115.18, respectively. However, the stock remains below its 200-day simple moving average (SMA200) of $132.13, suggesting a longer-term downtrend. The average true range (ATR) of 3.93 indicates moderate volatility. Considering the fundamental data, Nucors market capitalization stands at $25.034 billion, with a price-to-earnings (P/E) ratio of 19.13 and a forward P/E of 14.08, suggesting a relatively attractive valuation. The return on equity (RoE) of 6.56% is modest but indicates a stable return on shareholders equity.

Based on the technical and fundamental data, a forecast for Nucor Corporation can be constructed. Given the recent price action and the stocks position relative to its moving averages, a potential short-term target could be the $130 level, representing a 6.3% increase from the current price. However, the stocks longer-term trend remains bearish, as indicated by its position below the SMA200. Fundamental factors, including the companys diversified product portfolio and its focus on sustainability, are likely to support the stock in the long term. Assuming a continued recovery in the steel industry and Nucors ability to maintain its operational efficiency, a 12-month target price of $140-$150 could be achievable, representing a 14%-23% increase from the current price.