Nucor Corporation (NUE: NYE), the largest US steel producer, could be one of the beneficiaries of President Biden’s proposed tariffs on Chinese steel and aluminum.
Stock Target Advisor’s Analysis on Nucor:
Stock Target Advisor rates Nucor as a ‘Buy’ with a target price of $169, bearing in mind a projected price change of -12.34% over a span of 12 months. Our analysis derives this prognosis from 10 positive signals and 4 adverse signals. The average analyst target price for Nucor over one year is pegged at $192.83, pointing towards a bullish stock outlook.
Our review of Nucor’s financial performance highlights its strong risk-adjusted returns, positive cash flow, potent free cash flow, commendable return on assets, return on invested capital, significant market capitalization, and robust gross profit to asset ratio. The company’s dividend growth and dividends returned further accentuate its investment viability.
How Does Nucor Compare Within the Steel Sector?
While the steel sector’s average analyst rating is ‘Buy’, our rating for the sector lies at ‘Neutral’, considering the average one-week and one-month returns for stocks within the sector. Nucor’s historical performance with its consistent quarterly and annual results highlights its stable revenue, net income, profit margin, and EBIT margin.
Conclusion:
As President Biden stands before union steelworkers in Pittsburgh, Pennsylvania, he echoes his promise: “US Steel has been an iconic American company for more than a century, and it should remain totally American.” Nucor, with its steel spine and unwavering commitment, exemplifies the resilience of American industry. If Biden’s tariffs come to fruition, Nucor could indeed become the steal of the steel sector.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
