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Trade: Nucor leads the industries, sectors, and screens

By SumOfSome | June 12, 2007

After each set of bi-weekly screens, I will select one stock which sticks out based on various indicators.  This week’s selection is Nucor Corp. (Ticker:NUE) at $62.66/share on open.

Screen Recommendation: Following in the steps of my last pick, I am again choosing a stock from The Street’s All Around screen.  With three screens showing 10-week return averages that are 18.02%, 10.04% higher than the S&P, I am starting to become a believer in this screen.

Analyst Ratings: MSN’s analyst report and Yahoo’s Star Analysts report a hold rating, while CNN’s analyst ratings show NUE as Overweight. Briefing’s Analyst Upgrades/Downgrades show one recent upgrade and one market perform.

Technical Indicators: Looking at various moving averages as found on BarChart, we see favorable short, medium, and long-term trends of a medium magnitude.  The RSI graph shows NUE has hovered in a medium range for some time, being neither overbought nor oversold.  These indicators may change after the recent dip in NUE’s price.

Sector and Industry Performance: Looking at Clearstation’s Industry and Sector views shows that Basic Materials is one of the leading sectors in the market right now over a 13 week period.  Within materials, the Iron and Steel industry is 3rd over a 13 week period, posting 16% gains.

On Sale: NUE took a hit after weak sales for this quarter.  However, they still feel their year-end outlook is on target.  Hopefully this hit in price translates to a good buy-point.

This pick should capitalize on the current sector and industry strengths of the market, and is supported by our strongest performing screen so far. 

Topics: NUE, Ticker, Trade, Trade Opinion | No Comments »