Nucor (NUE) Moves 4.8% Higher: Will This Strength Last?
Nucor (NUE) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term.
Nucor (NUE) shares soared 4.8% in the last trading session to close at $122.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.7% gain over the past four weeks.
NUE’s shares popped after it was mentioned positively on CNBC. NUE also received a boost after it was added to Investor’s Business Daily's Leaderboard portfolio.
This steel company is expected to post quarterly earnings of $7.68 per share in its upcoming report, which represents a year-over-year change of +473.1%. Revenues are expected to be $10.45 billion, up 98.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Nucor, the consensus EPS estimate for the quarter has been revised 3.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NUE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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