Nucor (NUE) Jumps After UBS Gives The Buy Signal

Shares of Nucor Corp. (NYSE: NUE) are up 8% today after UBS raised its rating on the steel maker from Neutral to Buy. UBS also introduced a 'short-term Buy' on Nucor, saying they will beat the Q2 consensus and guide higher.

UBS boosted Q2 and Q3 EPS estimates on Nucor to $1.81 and $1.94, versus $1.78 and $1.90.

UBS said the 18% drop in the S&P Steel Index in the past week is "excessive pessimism." UBS said robust North American steel sector earnings will remind investors of the group's attractiveness.

UBS also upgraded Steel Dynamics (Nasdaq: STLD) from Neutral to Buy, with a 'short-term Buy'. Steel Dynamics is up 10% today.

U.S. Steel (NYSE: X) remains UBS's top pick in the sector. U.S. Steel is up 10.7% today.

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