Nucor(NUE) ZACKS·2025-02-14 23:16Group 1: Tariff Impact and Stock Performance - President Trump's 25% tariff on imported steel has increased investor interest in domestic steel producers, particularly Nucor (NUE) and United States Steel (X) [1] - Following the implementation of tariffs, United States Steel and Nucor stocks experienced gains of +4% and +6% respectively in February [2] - Despite recent gains, both companies have underperformed compared to the broader market over the past year [2] Group 2: Financial Outlook for United States Steel - United States Steel's total sales are projected to rise by 2% in fiscal 2025 and by an additional 6% in fiscal 2026, reaching 1.73 per share, down from 32.26 billion [6] - Nucor's EPS is forecasted to drop by 14% in fiscal 2025 but is expected to spike by 43% in fiscal 2026 to $10.99 per share [6] - EPS estimates for fiscal 2025 and fiscal 2026 have decreased by 8% and 2% respectively in the last month [6] Group 4: Valuation Comparison - Nucor trades at 17.2X forward earnings, which is closer to the industry average of 12.3X, while United States Steel trades at a premium of 19.4X despite a less favorable earnings outlook [7] - This valuation disparity highlights Nucor's more attractive earnings potential compared to United States Steel [7] Group 5: Investment Ratings - United States Steel has a Zacks Rank 5 (Strong Sell) due to declining earnings estimate revisions, indicating a greater reliance on protective policies [9] - Nucor holds a Zacks Rank 3 (Hold), suggesting that while its earnings potential is compelling, better buying opportunities may still arise [9]