+ Watch NUE
on My Watchlist
A domestic manufacturer of steel and steel products whose customers are located in the United States of America.
Steel cyclicals should all perform well over the next 5-10 years. Nucor is one of the best. I like the NG strategy for DRI. Always innovating.
company has cash and set itself up to make big profits when things turn around. They did it in 04 and they will do it again,
Housing and other construction will remain sleepy for some time. I expect growth but it will lag behind the broader economy no matter the rate of growth.
When, not if, construction picks up, this company will be gangbusters. Excellent managment of cash and people resources.
Strength of the dollar as a "safety" currency will hurt the US Steel market for a while and keep pressure on NUE's margins.
value + infrastructure investment = win.
Steel will make a rebound as construction kicks into gear and infrastructure spending begins to put pressure on commodities prices.
US recovery is in place, current (5/4/12) fears about the US are vastly overblown.
Below I've outlined a few reasons why I see Nucor as an attractive investment moving forward:? Nucor has a history of continuous innovation technologically, stylistically, and managerially.? Committed to high-quality steel products at competitive prices, the company still boasts strong financials. ? Positioned to rebound in a big way when construction improves. In fact, recent figures suggest higher-than-expected seasonal improvement, which may indicate the initial stages of an upward trend.? It is a well-managed, efficient company with a decentralized management structure that encourages autonomy and boosts morale. ? Nucor is the largest U.S. steelmaker; it benefits from being the main player in an oligopolistic market. The resultant pricing power is a sustainable competitive advantage.? Recent moves to become more vertically integrated should help the company’s long-term returns. ? American company with >50 years in the industry will benefit from nationalistic ideals now and into the future.
Going ahead of earnings call
15x FCF, reasonable debt load, and a superior dividend yield add up to a "buy" recommendation for this best-of-breed steelmaker.
The "Mad Money" host thinks Nucor is breaking out here. He suggests buying it.
The best run company in its industry. Low cost, happy employees and great management
Best in breed.
Dividend hikers to outperform stagflation.
Will pick up once the economy rebounds.
These guys take "adapt or die" to a new level. For producing a commodity, they consistently innovate (without a formal R&D dept, it is done in operations), find ways of reducing cost inputs with a long term vision (build out of their plant in Louisiana in height of recession which will have lower energy costs as it will use long term natural gas contracts), and employees have skin in the game via output+quality bonuses rather than pensions. Currently they are below their 2009 lows, a great company to buy now if you are a long term investor--waiting until the cycle has obviously turned will be an easier but less profitable time to buy.
Infrastructure, infrastructure, infrastructure. Demand for steel should increase as the coutry recovers from the recession and rebuilds its infrastructure which needs plenty of rebuilding.
Decent dividends make this stock look worthwhile to me. Furthermore I think that it is in a solid industry with a lot of growth to look forward to in the future. At its current price it seems like a steel. :)
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