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 in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.
Analysts at Vetr Inc. upgraded shares of Nucor Corporation (NYSE: NUE) from Hold 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 spoken on the company recently, and the company has secured a consensus one-year price target of $62.76, above the opening price of $61.45. Nucor Corporation stock has a 52-week high of $68.00. Share prices sometimes get a jump to the upside when analysts upgrade a stock.
Shares of Nucor Corporation (NYSE: NUE) opened at $61.45 yesterday and traded in a range between, $61.12 and $61.79, and last traded at $61.50, a jump of $0.28 over the previous closing price.
Nucor Corporation (NYSE: NUE) now has a market cap of 19.59B.
Nucor Corporation (NYSE: NUE) Average Daily Trading Volume
The stock’s average daily volume is 3,203,820 shares out of a total float 317,529,000 and some 298,963 shares crossed the trading desk yesterday, 73 percent lower than the average. 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.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.
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 traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Nucor Corporation (NYSE: NUE) now has a 50-day MA of $62.30 and 200-day MA of $53.53. It has traded in a 52-week range between $33.90 – 68.00 and today’s last price is 9.56%% lower than the 52 week high of $68.00.
Earnings growth is a critical factor to consider when investing in stocks and investors watch for companies that have increased their earnings at least 25% or more over the past 3 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.