Nucor Corporation (NYSE: NUE) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at KeyCorp upgraded shares of Nucor Corporation (NYSE: NUE) from Sector Weight to Buy today. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has secured a consensus one-year price target of $62.25, higher than the opening price of $60.88, a difference of 10.19 percent. Nucor Corporation stock has a 52-week high of $68.00. Share prices sometimes get a boost to the upside when analysts upgrade a stock.
Shares of Nucor Corporation (NYSE: NUE) opened at $60.88 yesterday trading between $60.54 and $61.54, and last traded at $61.07, which represents an increase of $0.78 from the previous closing price.
Nucor Corporation (NYSE: NUE) currently has a market cap of 19.45B.
Nucor Corporation (NYSE: NUE) Average Daily Trading Volume
287,761 shares traded hands yesterday, 64 percent below the norm, out of a total float 317,529,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re considering.
Nucor Corporation (NYSE: NUE) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Nucor Corporation (NYSE: NUE) have ranged from $33.90 – 68.00, and the stock now has a 50-day MA of $62.23 and 200-day MA of $53.31. Today’s last price is 10.19%% below the 52 week high of $68.00.
Earnings growth is a crucial factor to research when investing in stocks and investors look for companies that have been successful at growing their earnings by at least 25% over 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.