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BeefySignals Steel Rebound & AI Network Reset!
🔍 Recommended date: February 27, 2026

🥩 Stock: Nucor Corporation
💹 Ticker: NUE
💼 Sector: Basic Materials
🎯 Estimated return: 2.24% to 5.63%
📅 Date of maximum return: June 24, 2026 (117 days left)

What's the setup:

Technical Signal:
Our system detected a mean-reversion opportunity: the 12-day EMA crossed below the 20-day EMA while the asset has declined more than 5% over the past 15 days. This short-term bearish crossover within an otherwise strong trend often signals temporary exhaustion, creating a potential re-entry point before the next leg higher.

Recent Performance:
Nucor reported Q4 2025 EPS of $1.73, slightly below the $1.86 estimate, driven by seasonal softness and margin compression in steel mills. However, management issued optimistic Q1 2026 guidance across all three operating segments, projecting EPS of $2.55 to $3.28 for 2026 — a significant recovery trajectory. The stock jumped 6.6% following the earnings update in February.

Why It Matters:

• Strong 2026 recovery: EPS projected at $2.55 to $3.28 for 2026, up 43.85% from full-year 2025 EPS of $7.71
• Volume growth: 5% increase in steel mill shipments expected, with automotive segment market share gains
• Capital investment: $2.5 billion capex in 2026, with $800 million for maintenance — signaling long-term confidence
• Shareholder returns: Completed $3.59 billion buyback program, dividend raised
• Analyst support: 9 analysts rate "Buy" with consensus price target of $175.67 (current price approx. $194)
• Tariff tailwinds: US steel protective tariffs providing near-term pricing resilience
• Fortress balance sheet: Debt-to-equity of just 0.34, strongest credit profile in the steel industry

The Opportunity:
The short-term pullback appears to be seasonal noise rather than fundamental deterioration. With Q1 2026 guidance pointing to a meaningful earnings recovery and tariff support underpinning steel prices, this dip looks like a textbook mean-reversion setup in America's leading steel producer.

🥩 Stock: Arista Networks, Inc.
💹 Ticker: ANET
💼 Sector: Technology
🎯 Estimated return: 1.09% to 2.24%
📅 Date of maximum return: June 24, 2026 (117 days left)

What's the setup:

Technical Signal:
Our system flagged Arista after the stock declined more than 5% over the past 20 days, creating a potential oversold entry in a fundamentally dominant business. This type of pullback in a high-quality growth name often reflects broader market rotation or profit-taking rather than any change in business trajectory.

Recent Performance:
Arista delivered exceptional full-year 2025 results: revenue of $9 billion (up 28.6% year-over-year), non-GAAP EPS of $2.98 (up 28.4%), and gross margins of 64.6%. Q4 2025 non-GAAP EPS of $0.82 beat estimates with 24.2% year-over-year growth. The company has now raised its 2026 revenue growth outlook to account for accelerating demand in AI-focused Ethernet switching.

Why It Matters:

• Raised 2026 outlook: Revenue growth guidance upgraded on accelerating AI Ethernet demand
• Q1 2026 guidance: Revenue of $2.6 billion with operating margin near 46%
• Analyst EPS forecasts: $3.14 for 2026 (up 15.9%), $3.72 for 2027 (up 18.5%)
• Deep moat: Gross margins of 64.6% far above industry norms, net profit margin of 42.8%
• AI infrastructure leader: Dominant position in cloud and AI data center networking
• Significant upside: Trading approximately 25% below average analyst price target of $178.06
• Debt-free: Zero debt-to-equity ratio, generating $3.8 billion non-GAAP net income in 2025

The Opportunity:
A 5%+ pullback in a zero-debt, 40%+ margin business that just raised its 2026 growth outlook and trades 25% below analyst targets represents a rare discount in one of the most important AI infrastructure companies. The pullback looks like market noise, not a business problem.

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Regards,

The BeefySignals Team

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