NUCOR CORP

56.46 -0.52 (-0.91%) Sell

NUE investors dump it for better alternatives

13 min read

NUCOR CORP has destroyed investor wealth on Tuesday. It lost -0.91% to close at 56.46. It is currently trading -19% below it's 52 week high of 70.18.

[Themes containing NUE]

Buy-and-Hold investors in NUE experienced a maximum drawdown of -14.88% over the last three months. It lost -11.09% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +11.09% for investors.

Trend

NUE has been underperforming the SP500 index in recent time, after having outperformed till 7 Dec, 2016. Over the last 2 years 11 months and 7 days, NUE outperformed the SP500 index on 51% days.

During the last three months NUE delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.7%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.05%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 7 Nov, 2018. The bullish trend returned +13.57% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -7.95% of investor capital.

NUE had 6 profitable and 6 loss making months over the last year. During the last year, NUE underperformed SP500 index on monthly return basis. NUE was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -8.06% compared to -7.28% returned by SP500 index in Oct 2018. NUE had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both NUE and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Finance is wholly different from the rest the economy.

NUE is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in NUE's volatility from 3 Oct, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that NUE has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in NUE derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than NUE. Therefore, SP500 must receive a lower allocation than NUE in your portfolio. SP500 index usually has shorter drawdown period than NUE.

Based on your interest in NUE you may find it interesting to know that DLPH, AMRH and APRN have all shown remarkable performance and qualify to be on every investor's watchlist.

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