Nucor Corporation (NUE) Shares Soar 14.99% on U.S. Steel Tariffs

Nucor Corporation (NUE) shares surged 14.99% intraday, reaching their highest level since March 2025, marking a three-day winning streak with a cumulative gain of 10.62%.

Over the past five years, the strategy of buying NUE shares after they reached a high and holding for one week resulted in a significant underperformance compared to the benchmark. The strategy's return was -0.66%, while the benchmark return was 49.45%. The excess return was -50.10%, and the CAGR was -0.28%. The strategy also had a high maximum drawdown of -41.09% and a Sharpe ratio of -0.01, indicating a high risk and negative returns.

BMO Capital recently upgraded Nucor Corporation from Market Perform to Outperform, citing a compelling valuation and significant upside potential from recently announced U.S. steel tariffs. The firm highlighted Nucor's multi-year organic growth strategy, which focuses on expanding both capacity and product capabilities. This strategy is expected to bolster profitability and free cash flow. BMO also raised its price target for Nucor to $145, noting several key investments, including a new sheet mill in West Virginia, rebar expansion projects, and added galvanizing capacity. The policy shift in steel tariffs under the Biden administration is seen as potentially beneficial to Nucor's growth trajectory.