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Nucor (NUE) shares rallied 3.5% in the last trading session to close at $188.48. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.3% loss over the past four weeks.

Nucor's stock surged as the company unveiled its first-quarter guidance, ending Mar 30, 2024, in the range of $3.55-$3.65 per share. The midpoint of the range indicates a 13.9% sequential improvement. This will be driven by an uptick in earnings in the steel mills segment fueled by higher average selling prices and volumes, notably in sheet mills.

This steel company is expected to post quarterly earnings of $3.83 per share in its upcoming report, which represents a year-over-year change of -13.9%. Revenues are expected to be $8.11 billion, down 6.9% 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 2.5% 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Nucor is a member of the Zacks Steel - Producers industry. One other stock in the same industry, Commercial Metals (CMC), finished the last trading session 1.4% higher at $53.93. CMC has returned -3.5% over the past month.

Commercial Metals' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.89. Compared to the company's year-ago EPS, this represents a change of -38.2%. Commercial Metals currently boasts a Zacks Rank of #3 (Hold).

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