United States Steel Vs Nucor Stock: Which is the Better Investment Amid Trump Tariffs

President Trump’s 25% tariff on imported steel has drawn investor interest in domestic steel producers, with the two largest being Nucor NUE and United States Steel X.Seeing as steel production is likely to increase in the U.S., it may be a worthy topic of which stock is the better investment at the moment. Trump’s Protective Policies  Vowing to protect and revitalize America’s steel industry, Trump’s steel tariffs against foreign importers led to a nice spike in United States Steel and Nucor stock this week.X and NUE are now up +4% and +6% in February, respectively. While it may be tempting to own X and NUE given the Trump administration's “protective” policies, it is noteworthy that they have noticeably lagged the broader market over the last year.Image Source: Zacks Investment Research                                                                   United States Steel & Nucor Outlook Based on Zacks estimates, United States Steel’s total sales are currently expected to rise 2% in fiscal 2025, with its top line projected to expand another 6% in FY26 to $17.07 billion. However, annual earnings are slated to decline 19% in FY25 to $1.73 per share versus EPS of $2.14 in 2024.United States Steel’s bottom line is projected to rebound and soar 98% to $3.42 per share next year. That said, FY25 and FY26 EPS estimates have now declined 26% and 8% over the last 30 days, respectively. This comes as United States Steel gave lower-than-expected guidance in its Q4 report last Tuesday despite surpassing top and bottom-line expectations.Image Source: Zacks Investment Research As for Nucor, its total sales are expected to dip 1% in FY25 but are projected to rebound and rise 6% in FY26 to $32.26 billion. Nucor’s EPS is forecasted to drop 14% this year but is projected to rebound and spike 43% in FY26 to $10.99 per share. Notably, Nucor’s FY25 EPS estimates have dipped 8% in the last month, with FY26 EPS estimates down 2%.Image Source: Zacks Investment Research X & NUE Valuation Comparison Making Nucor’s outlook more intriguing is that NUE trades at 17.2X forward earnings, which is closer to the Zacks Steel-Producers Industry average of 12.3X. Meanwhile, United States Steel trades at a noticeable premium to its peers at 19.4X despite having a less appealing earnings outlook than Nucor.   Image Source: Zacks Investment Research Bottom Line It does appear that United States Steel is in more need of Trump’s protective policies, with its stock landing a Zacks Rank #5 (Strong Sell) based on a very concerning trend of declining earnings estimate revisions. Although Nucor’s earnings potential remains compelling, NUE lands a Zacks Rank #3 (Hold) as better buying opportunities could still be ahead.  7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United States Steel Corporation (X): Free Stock Analysis Report Nucor Corporation (NUE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks