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Freedom Broker moved its rating on the company to buy on Friday. This follows a recent earnings report where the company showed it can keep profits high by using recycled scrap metal instead of more expensive raw iron ore.
While this specific firm is smaller than the major global banks, the move reflects a growing view that the company is well-positioned to supply the steel needed for new data centers and power grid upgrades. The average price target across all analysts now sits at about $301, which is roughly 6 percent higher than where the stock trades today.
Source: Freedom Broker
After Nucor reported its October results, we updated our fair value and raised our quality score to 4.1. We now rate the company more highly for its growth potential and for the profit it makes on its invested money. We have added the modernization of the power grid to the growth drivers we track, following the expansion of the utility tower business. We also added the company's investment in fusion energy to our analysis and reset our expectations for the number of shares the company will buy back.
Orders for US-made capital goods, which are items like machinery and equipment that businesses use to produce other things, increased in September. Shipments of these products also picked up speed, suggesting that industrial activity remained steady through the third quarter.
This is a good sign for Nucor because it is the largest steel producer in North America. When factories and construction firms buy more equipment, they need more steel to build it. This data supports the idea that demand for Nucor's products is holding up well even as the broader economy faces high interest rates.
Source: Reuters
Nucor reported earnings of $5.80 per share, which was just a few cents shy of what analysts expected but well above the $5.04 it earned last quarter. Revenue reached $11.25 billion, coming in higher than the $10.84 billion Wall Street predicted. The results show the company is successfully moving more steel even as it manages the costs of expanding its production lines.
This performance supports the idea that Nucor can stay highly profitable during periods of heavy infrastructure and manufacturing growth. Its ability to grow earnings by 15 percent compared to the previous quarter suggests its flexible mini-mills are capturing more value from the current market than traditional rivals. For long-term owners, the focus remains on whether this high demand for domestic steel can hold steady through the next year.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Nucor is scheduled to release its latest financial results after trading ends today. Analysts expect the company to report earnings of about $5.84 per share on revenue of roughly 10.84 billion dollars. For a long-term owner, the focus should be on how well the company is managing its costs as it expands production. We will be watching for updates on demand from infrastructure projects and data centers, which have been key drivers for Nucor's higher-margin steel products lately.
Management consistently clears the bar they set for themselves, often by a wide margin. This pattern shows they have a firm handle on their costs even as steel prices shift.
| Expectation | |
|---|---|
| EPS | $5.88 |
| Revenue | $10.33B |