NUE trade ideas
18-month from now perspective; I'll buy at $25Hi guys, check this out
Long-term prospects of EPS
In 2008 the stock reached a P/E ratio low of 5; with EPS of $6.01 in FY 2008 the stock price reached a low of 5*$6.01=$30. Today we are expecting the similar outcome to due a negative economic outlook for the short-term. In FY 2019 the company reached EPS of $4.14. Comparing to 2008 we expect the stock to reach a P/E ratio of 5, indicating that the stock price could tumble to 5*$4,14 = $20.7 and stabilize at that level. As the economic prospects rise, the P/E ratio is likely to reach the company’s average level around 12. Under the assumption that EPS growth back to previous levels (>$4.0) the stock price should bounce back to 12*$4 = $48.
Trading idea
Entry price: $25
Take profit: $40
Max expected holding period: 18-month
Profit: 60%
I`ll buy the stock as soon as it hits $25. The financial outlook of NUE looks decent and should sustain the COVID-crisis.
Long Idea - Metals25/Nov/2019 10:38 AM AUTHOR: Brandon Gum
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Whole sector looks like this rn.
Giving a deep stop for the time being.
RSI on all timeframes at inflection points
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Trump’s Trade War Is Good for These 3 Dividend StocksThe US v. China trade war is heating up.
Until recently, the nations appeared to be making progress.
That was until President Trump raised tariffs on $200 billion in Chinese imports from 10% to 25%.
The news sent the S&P 500 down 3% in the next two trading days. But not all stocks suffered.
That’s because some stocks actually benefit from tariffs.
I’ll show you why in a moment—and share a few stable, dividend-paying stocks set to benefit as this all plays out.
How Tariffs Work
A tariff is a tax on imported goods. Governments use them to make foreign goods less attractive and domestic goods more competitive.
Take steel, for example.
Last year, Trump slapped a 25% tariff on Chinese steel imports. At the time, Chinese steel cost $800 per ton. US steel cost $900.
Once the tariff went into effect, it raised the overall cost of Chinese steel for US buyers to $1,000 per ton.
As you’d expect, US automaker Ford Motor Company (F) buys a lot of steel. And before the tariff, it bought a lot of it from China because it was cheaper.
Now Ford buys from US companies like Nucor Corp. (NUE), the largest US steel maker.
Nucor loves the steel tariff. The company’s CEO said 2018—the year the tariffs went into effect—was “a record year for Nucor.”
Ford is less enthusiastic. The tariffs cost the car maker $750 million in 2018.
But that’s how US tariffs work. They help some domestic businesses. And hurt others.
In China, however, everyone is feeling the pressure.
A One-Sided Relationship
The US and China have the world’s two largest economies. And they trade a lot… $780-billion worth of goods in 2018.
Still, it’s a one-sided relationship. In 2018, the US bought $660-billion worth of Chinese goods. But China only bought $120-billion worth of US goods.
In other words, the US buys five times as much from China as China buys from the US. So Trump’s tariffs have put a lot of heat on China’s economy and financial markets.
The Shanghai Composite Index, a proxy for Chinese stocks fell a staggering 25.7% in 2018.
It was the worst year for Chinese stocks since the global financial crisis.
This makes sense: Modern-day America consumes more stuff than any country in history. So, US tariffs matter.
The tariffs make Chinese goods less competitive. So Chinese companies sell fewer goods to US buyers. This translates to lower overall sales, then lower earnings.
And that translates to lower stock prices for Chinese companies, as we just saw.
US stocks are not immune to trade war tensions either. However, they fell a mere 6.3% during the period that Chinese stocks dropped 25.7%.
That’s because it’s relatively easy for the US to find cheaper, non-Chinese replacements for tariffed goods. It’s a lot harder for China to find non-US buyers.
There’s simply no replacement for the endless buying power of American consumers. And remember, some US industries even benefit from tariffs…
Profiting from the Trade War
US companies that make products that compete with Chinese imports like steel, electronics, and automation equipment now have a major advantage.
The tariffs help them sell more, which means higher earnings and higher stock prices.
I’m always on the lookout for safe and stable dividend-paying stocks. When I find ones set to benefit from larger economic forces like a trade war, even better.
The American steel firm Nucor (NUE), which I mentioned earlier, is one of these companies. Nucor sells most of its steel in the US. And Trump’s tariffs have made its products more attractive to US buyers.
Nucor also boasts a 2.9% dividend yield on a low payout ratio—one of the most important indicators for dividend stocks. In short, a low payout ratio points to a stable divided.
American electronics companies like Hubbell Inc. (HUBB) also stand to benefit from the trade war.
High tariffs on cheap Chinese electronics make Hubbell’s products more competitive. The company also pays a 2.7% dividend yield on a low payout ratio. This means it’s a safe and stable stock for income investors.
The trade war should also boost US automation companies like Rockwell Automation, Inc. (ROK).
Rockwell benefits directly from US tariffs on Chinese automation equipment. Plus, the company has raised its dividend nine years in a row (which, again, is one of the key indicators the dividend is safe). With a low payout ratio, its dividend is secure.
These companies would do well even without a trade war. Their stocks are cheap. And they have strong underlying businesses that should continue to churn out profits.
That said, this trade war isn’t going away anytime soon. Last Friday, Trump followed through on his threat to raise tariffs to 25%. China is hitting back as I write…
This all bodes well for these companies.
Going short on NUCOROpening 2 sell orders on Nucors, risking 0.5% of capital each, the first with 1:1 R:R, the second 1:2 with optional trail stop if everything goes well
Reasons:
- Doji formation
- GAP to close
- Overbought
- Near SMA200, put SL over SMA200
NUE Forecast - US Steel Short Term Target +10%Trump's catalyzed US Steel markets from his wall. Confluence at the $60 mark for NUE short term target. Could hit target at second time based Fib projection if the volatility slows down.
Long @ 64.50 >> Mark my wordsWe are still in the bearish shark reracement. It has not yet hit the 50% FIB level.
Once @ 64.50 Long to the 50% FIB level of the Bullish Shark /61.8% Bullish Crab FIB Level.
Variety and assortmentif you look at my past publication, called: (A trend with Moving Average)
The name of the company was POSCO-(PKX) Industry: Basic Materials-Sector: Steel & Iron.
And this post is about Nucor-Corporation listed in the same Industry and Sector
What I want to expose?
Assortment and options, because I can put ideas that suit every investor and he can choose what suits him best,
because although it is true that they are listed in the same industry and do the same (Steel & Iron)
things like Beta, PE Ratio, Avg-Volume, Dividend Yield, Market cap and stock price are different
This is what can i do for you, I find variety and you decide based in your risk and other parameter
my charts are simple to understand, and my explanations about support and resistance are known to everyone (Investors and Traders)
68.16, 68.50 & 68.75 CALL (AGAIN )We Killin it on this side. I'm your signal providers favorite signal provider
Nucor Steel Breaking OutNucor is a leader in the U.S steel industry. Currently economies around the globe are undergoing synchronized growth. Steel prices rise as economic activity picks up because expansion coincides with increased construction activity. Two additional bullish events that could boost demand for steel are the passing our an infrastructure spending bill and tariffs on Chinese steel. Nucor has some of the most advanced manufacturing plants and is currently breaking out after a long period of consolidation.
Nucor - Subscribers Are Long - Congratulations If You Opened!Chart is showing a new breakout above the Blue resistance line. $XLB #Trading $NUE
