Nucor’s Stock Rises 27% in 2024—But Can It Catch Up to the Market?
Nucor Corporation (NUE), a major US steel producer with a market value of around $34 billion, has seen mixed stock market performance recently. While its shares climbed 27.4% year-to-date, they lagged behind broader market gains over the past year in the stock market. Analysts now show renewed confidence in the company after a recent upgrade from Wells Fargo.
Nucor specialises in producing a wide range of steel products through its integrated operations. Despite its strong market position, the company’s stock has struggled compared to peers in the stock market. Over the last year, NUE rose just 1.1%, while the S&P 500 Index (SPX) surged 13.7% and the VanEck Steel ETF (SLX) gained 13.6%.
Analysts remain largely positive about Nucor’s prospects. Of the 14 covering the stock, 11 rate it a 'Strong Buy', one a 'Moderate Buy', and two a 'Hold'. The average price target of $167.92 suggests a 12.9% upside from current levels in the stock market, while the highest target of $182 implies a potential 22.4% gain.
Wells Fargo recently upgraded Nucor from 'Equal weight' to 'Overweight', signalling stronger expectations in the stock market. However, earnings forecasts point to a decline, with diluted EPS projected to drop 11.5% year-over-year to $7.88 for the current fiscal year.
Nucor’s stock has outperformed the S&P 500 in 2024 but remains behind sector peers over the past year in the stock market. The latest analyst upgrades reflect optimism, though earnings are expected to weaken. Investors will watch whether the company can close the gap with broader market and industry gains in the stock market.
