NEW YORK (TheStreet) -- Shares of Nucor Corp. (NUE) are higher by 3.38% to $57.50 in late morning trading on Wednesday, after the company issued guidance for the 2014 third quarter that was above analysts' expectations.
The steel and steel products manufacturer said it's expecting earnings per share for the quarter ending Oct. 4 to be between 70 cents and 75 cents per diluted share.
Analysts polled by Thomson Reuters are expecting Nucor to report earnings of 61 cents per share for the 2014 third quarter.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Additionally, on Monday, Nucor announced its plan to purchase the privately held Gallatin Steel Co. for approximately $770 million, in order to expand its presence in the energy market, the purchase will make Nucor America's largest steelmaker by capacity, MarketWatch reports.
Separately, TheStreet Ratings team rates NUCOR CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NUCOR CORP (NUE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 13.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- NUCOR CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NUCOR CORP reported lower earnings of $1.52 versus $1.59 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.52).
- Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NUE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.65 is high and demonstrates strong liquidity.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, NUCOR CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full analysis from the report here: NUE Ratings Report
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