Nucor stock holds as KeyBanc maintains Sector Weight rating

Published 28/01/2025, 14:18
Nucor stock holds as KeyBanc maintains Sector Weight rating

The analyst's commentary highlighted that the muted but potentially conservative guidance for the first quarter of 2025 suggests a cautious outlook. Gibbs' reiteration of the Sector Weight rating indicates that KeyBanc views Nucor 's stock as fairly valued at the current levels, considering the company's performance and market position. However, InvestingPro's Fair Value analysis suggests the stock may be slightly undervalued at its current price of $121.97, trading at a P/E ratio of 11.76. For comprehensive insights and access to the detailed Pro Research Report covering Nucor and 1,400+ other US stocks, consider an InvestingPro subscription. However, InvestingPro's Fair Value analysis suggests the stock may be slightly undervalued at its current price of $121.97, trading at a P/E ratio of 11.76. For comprehensive insights and access to the detailed Pro Research Report covering Nucor and 1,400+ other US stocks, consider an InvestingPro subscription.

The analyst's commentary highlighted that the muted but potentially conservative guidance for the first quarter of 2025 suggests a cautious outlook. Gibbs' reiteration of the Sector Weight rating indicates that KeyBanc views Nucor's stock as fairly valued at the current levels, considering the company's performance and market position. However, InvestingPro's Fair Value analysis suggests the stock may be slightly undervalued at its current price of $121.97, trading at a P/E ratio of 11.76. For comprehensive insights and access to the detailed Pro Research Report covering Nucor and 1,400+ other US stocks, consider an InvestingPro subscription.

However, these segment outperformances were somewhat mitigated by higher Corporate/Eliminations costs, likely a reflection of increased enterprise profitability. Despite these gains, Nucor's fourth-quarter EBITDA of $746 million showed a quarter-over-quarter decrease of 14% from the third quarter's $864 million, and a 45% drop from the fourth quarter of the previous year's $1.35 billion.

The analyst's commentary highlighted that the muted but potentially conservative guidance for the first quarter of 2025 suggests a cautious outlook. Gibbs' reiteration of the Sector Weight rating indicates that KeyBanc views Nucor's stock as fairly valued at the current levels, considering the company's performance and market position.

In other recent news, Nucor Corporation (NYSE:NUE) reported Q4 earnings per share of $1.22, significantly surpassing analyst estimates of $0.77. The company's revenue was also above expectations, coming in at $7.08 billion, compared to the forecasted $6.81 billion. However, net earnings attributable to Nucor stockholders were $287 million in Q4, a decrease from $785 million in the same quarter of the previous year.

For the full year 2024, the company reported net earnings of $2.03 billion on revenue of $30.73 billion. Looking ahead, Nucor expects Q1 2025 earnings in its steel mills and steel products segments to mirror Q4 levels, though anticipates lower earnings in its raw materials segment and higher corporate costs.

Despite a decrease in earnings, the company continued to reward its stockholders, returning approximately $2.74 billion in 2024 through share repurchases and dividend payments. These developments are part of recent news surrounding Nucor Corporation.

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