Two Materials Stocks at Risk of Significant Decline This Quarter
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy NUE?
Source: Benzinga
Nucor Corp Update: Nucor announced the promotion of Steve Laxton to president and COO, with the stock gaining approximately 12% over the past month, closing at $162.54 with an RSI of 70.1.
Ashland Inc Performance: Ashland reported disappointing quarterly results but maintained strong margins, with the stock rising about 15% recently, closing at $58.29 and an RSI of 71.4.
Momentum Indicators: Both Nucor and Ashland are identified as overbought stocks in the materials sector, with RSI values above 70, indicating potential caution for momentum-focused investors.
Market Context: The article highlights the importance of the RSI as a momentum indicator for traders, suggesting that these stocks may not perform as well in the short term despite recent gains.
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Analyst Views on NUE
Wall Street analysts forecast NUE stock price to fall
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 188.810
Low
168.00
Averages
179.00
High
200.00
Current: 188.810
Low
168.00
Averages
179.00
High
200.00
About NUE
Nucor Corporation is a manufacturer of steel and steel products, with operating facilities in the United States, Canada and Mexico. The Company also produces and procures ferrous and non-ferrous materials primarily for use in its steel manufacturing business. Its segments include steel mills, steel products and raw materials. Its products include carbon and alloy steel in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. The Company, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Software Stock Performance: Software stocks like Crowdstrike Holdings and ServiceNow rose over 4% and 3%, respectively, lifting the broader market and indicating a rebound in investor confidence in tech stocks, particularly amid rapid advancements in AI technology.
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See More
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- Chipmaker Rebound: Applied Materials (AMAT) reported Q1 adjusted EPS of $2.38, surpassing the consensus of $2.21, leading to a 10% stock price increase that helped lift the broader market, indicating strong recovery potential in tech stocks.
- Inflation Data Impact: The US January CPI rose 2.4% year-over-year, below the expected 2.5%, which may prompt the Fed to continue cutting rates, with the 10-year T-note yield falling to 4.05%, providing support for the market.
- Earnings Performance: Over two-thirds of S&P 500 companies have reported earnings, with 76% exceeding expectations, and Q4 earnings growth is projected at 8.4%, demonstrating corporate resilience and restoring market confidence.
- Market Sentiment Fluctuations: Despite the overall market rise, concerns over AI persist, putting pressure on certain stocks, particularly in tech and logistics, reflecting investor caution regarding future economic prospects.
See More
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- Market Pressure Intensifies: The S&P 500 index fell by 0.22% and the Nasdaq 100 by 0.23%, reflecting investor concerns about AI technologies potentially disrupting multiple sectors, leading to a depressed market sentiment and extending Thursday's sharp losses.
- Inflation Data Impact: The US January Consumer Price Index rose by 2.4% year-over-year, below the expected 2.5%, marking the smallest increase in seven months, which drove the 10-year Treasury yield down to a 2.25-month low of 4.05%, potentially prompting the Fed to continue cutting rates.
- Earnings Optimism: Over two-thirds of S&P 500 companies have reported earnings, with 76% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings.
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- Swift Market Reaction: Steel and aluminum producers fell by 5-6% in early trading as investors began to price in the potential for increased foreign competition and diminished domestic pricing power, indicating market sensitivity to policy changes.
- Impact of Tariff Protection: Tariffs have provided a cushion for U.S. producers, supporting margins and limiting cheaper imports; if rolled back, this cushion thins, potentially compressing profit margins.
- Potential Cost Relief Opportunity: While metal producers' stocks declined, this shift hints at potential benefits for automakers, machinery manufacturers, and construction firms, as lower steel and aluminum input costs could improve downstream margins.
- Significance of Policy Changes: Policy shifts can reshape entire sectors overnight, with tariffs having defined the earnings power of U.S. steel and aluminum companies in recent years, and any hint of reversal could introduce significant market volatility.
See More
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- Tariff Policy Shift: President Trump is considering reducing aluminum and steel tariffs, a potential policy change that has garnered significant market attention and is expected to positively impact the related industries.
- Industry Response: Following the news, aluminum and steel sector stocks rose on Friday, reflecting investor optimism regarding the potential tariff reductions, which could enhance corporate profitability.
- Market Impact: If tariffs are lowered, production costs may decrease, thereby improving the competitiveness of U.S. manufacturing, fostering economic growth, and creating job opportunities.
- Strategic Implications: This policy adjustment could not only enhance the domestic market environment but also influence international trade relations, particularly in negotiations with major aluminum and steel producing countries.
See More
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- Inflation Data Decline: The January Consumer Price Index (CPI) rose 2.4% year-over-year, below the expected 2.5%, indicating easing inflationary pressures that could influence the Federal Reserve's monetary policy decisions, thereby positively impacting market sentiment.
- Tariff Adjustments: President Trump plans to roll back some tariffs on steel and aluminum, causing shares of U.S. steelmakers like Nucor and Cleveland-Cliffs to drop in premarket trading, reflecting market sensitivity to policy changes and their potential impact on related industries.
- Strong Performance from Applied Materials: The semiconductor equipment maker reported sales and earnings that exceeded expectations, with shares jumping 10%, indicating robust industry demand that may attract more investor interest in the sector's growth potential.
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