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Nucor (NYSE:NUE) Tanks After Q4 Outlook Disappoints
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Nucor (NYSE:NUE) Tanks After Q4 Outlook Disappoints

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Nucor shares are under pressure today after low pricing and volumes led to a dismal financial outlook from the company.

Shares of steel and steel products producer Nucor (NYSE:NUE) are under pressure today after the company’s financial outlook for the fourth quarter failed to impress investors.

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Nucor is experiencing lower pricing and volumes across all of its business segments. The impact of lower pricing is expected to be substantial at its sheet and plate mills. Further, a moderation in average selling prices is expected to result in decreased earnings in the company’s Steel Products segment.

Added to this, a combination of low raw material prices and planned outages at facilities is seen adversely impacting earnings in the company’s Raw Materials segment.

As a result, the company expects EPS for the fourth quarter in the range of $2.75 and $2.85. In comparison, Nucor had posted an EPS of $4.57 in the third quarter. The company is slated to report its fourth-quarter results on January 29. Analysts expect Nucor to deliver an EPS of $3.19 on revenue of $7.49 billion for the quarter. In the comparable year-ago period, Nucor’s EPS of $4.89 had exceeded the Street’s estimates by a wide margin of $0.73.

Is Nucor a Good Stock to Buy?

Overall, the Street has a Moderate Buy consensus rating on Nucor. Following a nearly 10% rise in the company’s share price over the past month, the average NUE price target of $169.33 implies the stock may be approaching fair valuation levels.

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