Nucor Stock Set to Snap 6-Day Rally Ahead of Earnings

Analysts and options traders remain bearish

Digital Content Manager
Apr 20, 2022 at 12:04 PM
facebook twitter linkedin

Steel concern Nucor Corporation (NYSE:NUE) is down 1.8% at $168.71 today, pacing for its first daily loss in seven, as investors prepare themselves for the company's first-quarter earnings report, due out before the open tomorrow, April 21. During the past two years, Nucor stock's post-earnings reactions have been mixed. The stock settled higher after four of these past eight reports, averaging a 2.4% swing regardless of direction. This time around, the options pits are pricing in a 5.6% swing for NUE. 

Speaking of options pits, Nucor's are relatively quiet today, though a longer term look shows a preference for puts of late. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NUE sports a 10-day put/call volume ratio of 1.11, which stands higher than 91% of readings from the past 12 months. In other words, puts have rarely been more popular during this timeframe. 

Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.94 sits higher than all other annual readings. This means short-term options traders haven't been more put-biased in the past year. 

Analysts have also taken a bearish stance. Just one of the six in coverage calls NUE a "strong buy," while five say "hold." Additionally, short sellers have been piling on, up 8.7% in the last reporting period. Plus, the 12-month consensus price target of $132.94 is a 21.5% discount to current levels. 

This is surprising considering NUE's jaw-dropping 115.5% year-over-year lead, and recent jag of record highs, including one today at $173.00. The 20-day moving average has provided unwavering support for the equity's rally off its late-January lows, and sits well below Nucor's current share price. Plus, in 2022, NUE has added 48.2%. 

nue april 20


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!