Stock of the Day

September 20, 2019

Nucor (NUE)

$236.77
+$1.10 (+0.5%)
Market Cap: $53.67B

About Nucor

Nucor Corporation engages in manufacture and sale of steel and steel products. It operates in three segments: steel mills, steel products, and raw materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and engineered special bar quality products; and engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico. The Steel Products segment offers steel joists and joist girders, steel decks, and galvanized torque tubes for used in solar arrays, hollow structural section steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems, insulated metal panels, steel racking, overhead doors, and utility towers and structures for communications and energy transmission. This segment is also involved in the piling distribution business. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; processes ferrous and nonferrous scrap metal; and engages in the natural gas production and industrial gas business. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals. It markets its products through in-house sales force; and internal distribution and trading companies. Nucor Corporation was founded in 1905 and is headquartered in Charlotte, North Carolina.

Nucor Bull Case

Here are some ways that investors could benefit from investing in Nucor Co.:

  • The current stock price is around $237, which reflects a strong performance compared to its twelve-month high of $270.90.
  • Nucor Co. reported impressive quarterly earnings, with earnings per share (EPS) of $3.23, significantly exceeding analysts' expectations.
  • The company has shown robust revenue growth, with a year-over-year increase of 21.3%, indicating strong demand for its products.
  • Nucor Co. maintains a solid financial position, highlighted by a low debt-to-equity ratio of 0.30, suggesting lower financial risk and greater stability.
  • The firm offers a quarterly dividend of $0.56, translating to an annualized yield of 1.0%, providing a steady income stream for investors.

Nucor Bear Case

Investors should be bearish about investing in Nucor Co. for these reasons:

  • The stock has a relatively high beta of 1.88, indicating higher volatility compared to the market, which may pose risks for conservative investors.
  • Nucor Co.'s P/E ratio of 22.05 suggests that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • Insider selling has been observed, with executives selling a significant number of shares, which may raise concerns about the company's future prospects.
  • The current economic environment may impact demand for steel products, potentially affecting Nucor Co.'s revenue and profitability.
  • While the company has a strong current ratio of 2.90, any significant downturn in the market could challenge its liquidity and operational flexibility.
← Previous Stock of the DayNext Stock of the Day →

Recent News