Will Nucor continue to go ballistic in June?
 | By Vlad Skutelnik | Macroaxis Story |
Why analysts lower the company buy or sell consensus to Hold? Nucor Average Assets are expected to significantly increase based on the last few years of reporting. The last year's Average Assets were at 18.27 Billion. The current year Interest Coverage is expected to grow to 16.89, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are expected to decline to about 2.5 B. Next fiscal quarter end is expected on 30th of June 2020. As many investors are getting exited about Power Stocks, it is fair to digest Nucor. I will look into some reasons why it is still possible for the company to generate above average margins and lots of cash flow. Analysts have now less confidence in the stock as compared to a month ago. The current buy or sell recommendation of 8 analysts is Hold. Nucor secures a last-minute Real Value of $41.7 per share. The latest price of the firm is $43.1. At this time the firm appears to be fairly valued. This module forecasts the value of Nucor from analyzing the firm fundamentals such as Return On Equity of 8.48 , Current Valuation of 16.19 B and Profit Margin of 3.57 as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend to purchase undervalued stocks and to get rid of overvalued stocks since at some point entities prices and their ongoing real values will merge together.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Nucor has performance score of 2 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 1.0464, which conveys that Nucor returns are very sensitive to returns on the market. as market goes up or down, Nucor is expected to follow. Although it is extremely important to respect Nucor price patterns, it is better to be realistic regarding the information on equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By analyzing Nucor technical indicators you can presently evaluate if the expected return of 0.1707% will be sustainable into the future. Nucor right now secures a risk of 4.96%. Please verify Nucor Value At Risk, and the relationship between Jensen Alpha and Skewness to decide if Nucor will be following its current price movements. What is the right price you would pay to acquire a share of Nucor Corp? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.
What is happening with Nucor Corp this year
Annual and quarterly reports issued by Nucor Corp are formal financial statements that are published yearly and quarterly and sent to Nucor stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Nucor Corp often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Nucor Corp Gross Profit
Nucor Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Nucor Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Nucor Corp Gross Profit growth over the last 10 years. Please check Nucor Corp's gross profit and other fundamental indicators for more details.
Detailed Outlook On Nucor Corp
Average experts consensus on Nucor has changed. Analysts have now less confidence in the organization as compared to a month ago. The current buy or sell recommendation of 8 analysts is Hold. This firm has 4.44 B in debt with debt to equity (D/E) ratio of 0.42 which is OK given its current industry classification. The company has Current Ratio of 3.47 demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The modest gains experienced by current holders of Nucor may encourage investors to take a closer look at the firm as it closed today at a share price of 42.21 on 2,210,090 in trading volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in April. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 4.96. This high volatility is attributed to the latest market swings and not so good earning reports for some of the Nucor partners. Nucor preserves 4.62 of cash per share. Nucor is selling for under 43.10. That is 3.83% increase. Day high is 43.17. Nucor Net Income Per Employee is rather stable at the moment. Moreover, Nucor Earnings Before Interest Taxes and Depreciation Amortization USD is rather stable at the moment. Taking everything into account, we believe that at this point Nucor is fairly valued with very low probability of bankruptcy within the next 2 years. Our actual 'Buy vs. Hold vs. Sell' recommendation on the firm is Cautious Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Nucor Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.