Wall St futures flat amid US-China trade jitters; bank earnings in focus
Investing.com - Wells Fargo has reduced its price target on Nucor (NYSE:NUE) to $140.00 from $146.00 while maintaining an Equal Weight rating on the steel producer’s stock. The company, currently valued at $32.8 billion, trades at $142.80 with a P/E ratio of 25.9x.
The price target adjustment follows Nucor’s lower-than-expected guidance, which Wells Fargo analyst Timna Tanners noted has negatively impacted the firm’s 2026 earnings estimates for the company. According to InvestingPro data, four analysts have recently revised their earnings estimates downward, though the company maintains a GOOD overall financial health score.
Nucor management guided third-quarter earnings per share of $2.05-$2.15 on Wednesday, falling short of Bloomberg consensus estimates of $2.59 and Wells Fargo’s projection of $2.62.
The steel producer indicated earnings would decline quarter-over-quarter across all three of its operating segments, with Wells Fargo describing the extent of the drop as "surprising" given $120 per ton rebar price increases in June and July, beam price strength, and competitor Steel Dynamics’ solid mid-quarter guidance issued Monday.
Nucor cited lower steel mill volumes and squeezed margins in both its mill and fabrication segments as factors contributing to the weaker outlook.
In other recent news, Nucor Corporation announced its expectations for third-quarter earnings to range between $2.05 and $2.15 per diluted share, a decrease from the $2.60 reported in the second quarter of 2025 but an increase from $1.05 in the same period last year. The company anticipates lower earnings across its steel mills, steel products, and raw materials segments. Freedom Broker upgraded Nucor’s stock rating from Hold to Buy, raising the price target to $174.00, influenced by positive developments in the U.S. steel market. Additionally, UBS raised its price target for Nucor to $169 from $147, maintaining a Buy rating due to confidence in the durability of Section 232 tariffs. Wells Fargo initiated coverage of Nucor with an Equal Weight rating and a price target of $145.00. In other developments, Nucor’s Board of Directors declared a regular quarterly cash dividend of $0.55 per share, marking the company’s 210th consecutive payout. These updates reflect the ongoing dynamics within the steel market and Nucor’s strategic positioning.
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