Nucor (NUE) Plummets on Earnings Miss

NUE investors were likely spooked this afternoon by Barrons's report: "Nucor Corporation shared fourth-quarter guidance Thursday that was below what Wall Street had expected, citing anticipated declines within its steel mills and raw materials segments." For more coverage, read the full article here. On the back of this news, Nucor sank -8.1% to a price of $135.9. Are the markets overreacting?

Nucor Corporation manufactures and sells steel and steel products. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 8.57 and an average price to book (P/B) ratio of 1.86. In contrast, Nucor has a trailing 12 month P/E ratio of 25.2 and a P/B ratio of 3.6.

At today's price of $135.9 per share, Nucor is 10.44% away from its target price of $123.05, and on average, analysts give the stock a rating of hold. 4.2% of the company's shares are linked to short positions, and 82.5% of the shares are owned by institutional investors.

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