Steel stocks are grabbing headlines after President Donald Trump’s bold move to double tariffs on most imported steel (HVM25) and aluminum (ALQ25) from 25% to 50%. The new levies kicked in on Wednesday, June 4. 

The White House says this is to stop other countries from dumping cheap steel and aluminum in the U.S., aiming to protect American producers. Almost every global trading partner is affected except the United Kingdom, which will continue to face the 25% tariff instead of the increased 50% tariff.

For steelmakers like Nucor (NUE), the reaction was quick: Shares are up nearly 10% in just the last five trading days. Analysts say these higher tariffs should help U.S. producers raise prices and in turn increase their profits, since foreign competition will pose less of a threat. This would be a big win for U.S. steelmakers. Investors should note that critics warn increased tariffs will raise costs for automakers, builders, and shoppers, among other groups. 

With Nucor heating up, can the momentum last? Or will this be another short-lived rally? Let’s find out.

Nucor’s Recent Financial Performance

Nucor (NUE) is a U.S.-basd producer of steel and steel products. For investors, it also stands out as a dividend stock. 

The company’s board recently announced its 208th consecutive dividend payment of $0.55 per share. This translates to an annual payout of $2.20 and a yield of 1.84%. The company has raised its regular dividend for 52 straight years, earning it a spot on the prestigious Dividend Kings list. 

Although shares are up nearly 10% in the last five days, they are down nearly 27% over the past 52 weeks. 

On April 28, Nucor reported Q1 net earnings attributable to stockholders of $156 million, or $0.67 per diluted share, with adjusted net earnings at $179 million, or $0.77 per share, after accounting for $29 million in one-time charges tied to facility closures. This compares to $287 million ($1.22 per share) in Q4 2024 and $845 million ($3.46 per share) in Q1 2024, highlighting the cyclical pressure steelmakers face as prices normalize. 

Net sales reached $7.83 billion, up 11% sequentially but down 4% year-over-year. 

CEO Leon Topalian summed up the quarter, saying, “Our healthy balance sheet and diverse product portfolio position us well, even in uncertain times.” Nucor ended Q1 with $4.06 billion in cash and short-term investments, and in March, upsized its credit facility to $2.25 billion, extending maturity to 2030. 

What Else Is Driving Nucor Forward

Nucor is spending $6.5 billion on eight big projects through 2027, with the Apple Grove, West Virginia sheet mill as the largest. Other key projects include a North Carolina rebar micro mill and a new galvanizing line at the Berkeley County, South Carolina sheet mill, all aimed at boosting production and meeting rising demand.

Nucor is also showing it cares about its shareholders. The company has bought back about 8% of its shares since starting its buyback program, spending over $3.18 billion. In the first quarter of 2025 alone, Nucor repurchased 2.3 million shares at an average price of $133.17, and there’s still $806 million left for future buybacks.

Analysts’ Confidence in NUE

Nucor is expecting its earnings to go up in the second quarter of 2025 for all parts of the business, with its steel mills expected to especially improve as prices for sheet and plate steel are higher.

The average estimate for Q2 earnings is $2.21 per share, and that’s expected to rise to $2.56 in the third quarter. For the whole year, analysts think Nucor will make $7.88 per share, which is a bit less than last year’s $8.90, but they’re looking for a big jump to $10.67 per share in 2026, which would be a 35% increase.

Thirteen analysts agree, giving Nucor a “Strong Buy” rating with an average price target of $147.18, which means they see about 25% upside potential.

Conclusion

Nucor’s fundamentals are strong, the dividend keeps growing, and the new tariffs are potentially a real tailwind for the business. If you’re looking for a stock with staying power and upside potential, NUE deserves a serious look. I expect shares to trend higher as demand and pricing catch up, though some short-term volatility is possible. 

Long term, Nucor stands out as a solid buy for investors who want growth, income, and exposure to a revitalized U.S. steel sector.