Latest news with #NucorCorporation
Yahoo
3 days ago
- Business
- Yahoo
Nucor Corporation (NUE): A Bull Case Theory
We came across a bullish thesis on Nucor Corporation (NUE) on Business Model Mastery's Substack. In this article, we will summarize the bulls' thesis on NUE. Nucor Corporation (NUE)'s share was trading at $108.94 as of 29th May. NUE's trailing and forward P/E were 19.20 and 14.14 respectively according to Yahoo Finance. A steel rod, bent and contoured to the exact specifications of the company. Nucor stands out as a vertically integrated steel producer operating through three synergistic segments—steel mills, steel products, and raw materials—underpinned by its control of critical inputs, including 3.5 million metric tons of direct reduced iron (DRI) and 18 million tons of recycled scrap annually. This integration enables tight cost control and reliable supply chains. The company's strategic focus on high-value products like insulated panels, overhead doors, and custom racking systems has driven meaningful margin expansion, further bolstered by premium-branded offerings such as ECONIQ™ and AEOS™, which meet growing demand in low-carbon and seismic-resistant construction markets. Nucor's operational flexibility is a core strength, with nearly all production relying on electric arc furnaces (EAFs) that offer rapid scalability and deliver 60–70% lower carbon emissions compared to traditional blast furnaces. Its micro mill strategy and regional footprint enhance both cost efficiency and environmental performance. The company's unique decentralized culture, with just 200 employees at headquarters overseeing over 32,000 teammates, empowers plant-level decision-making and incentivizes performance, driving innovation and responsiveness. This structure supports its aggressive capex-driven growth strategy—$11.8 billion deployed over the past three years, with 63% allocated to capacity expansion and 37% to acquisitions. These investments target fast-growing sectors such as data centers, renewable energy, and automated warehousing, positioning Nucor for long-term structural advantage. The company's integrated model, flexible operations, and disciplined capital deployment collectively support a compelling narrative of margin growth, sustainable production leadership, and strategic evolution in key demand verticals. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of their of Sanofi (SNY). Since our coverage, the stock is up 4.7%. Nucor Corporation (NUE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held NUE at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Jim Cramer on Nucor Corporation (NUE): 'I'd Rather Wait for an Opportunity to Buy Nucor on Weakness Again'
We recently published a list of . In this article, we are going to take a look at where Nucor Corporation (NYSE:NUE) stands against other stocks that Jim Cramer discussed recently. The Mad Money host did not recommend buying Nucor Corporation (NYSE:NUE) but said that he would wait to buy the company 'on weakness,' as he commented: '… Higher tariffs by themselves are not a good enough reason to buy the stock. I do not recommend paying up here. I'd rather wait for an opportunity to buy Nucor on weakness again… So why hasn't Nucor been able to hold on to its gains from positive developments in the past? Simple. While tariffs on imported steel are certainly helpful, they're not the only thing that matters to this business… A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse. Nucor (NYSE:NUE) manufactures a wide range of steel products and raw materials, including sheet steel, structural components, and processed metals, while also engaging in metal trading, scrap processing, and industrial gas supply. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Jim Cramer on Nucor Corporation (NUE): 'I'd Rather Wait for an Opportunity to Buy Nucor on Weakness Again'
We recently published a list of . In this article, we are going to take a look at where Nucor Corporation (NYSE:NUE) stands against other stocks that Jim Cramer discussed recently. The Mad Money host did not recommend buying Nucor Corporation (NYSE:NUE) but said that he would wait to buy the company 'on weakness,' as he commented: '… Higher tariffs by themselves are not a good enough reason to buy the stock. I do not recommend paying up here. I'd rather wait for an opportunity to buy Nucor on weakness again… So why hasn't Nucor been able to hold on to its gains from positive developments in the past? Simple. While tariffs on imported steel are certainly helpful, they're not the only thing that matters to this business… A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse. Nucor (NYSE:NUE) manufactures a wide range of steel products and raw materials, including sheet steel, structural components, and processed metals, while also engaging in metal trading, scrap processing, and industrial gas supply. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Jim Cramer on Live Nation Entertainment (NUE): 'Big Time Winner on Our Hands'
We recently published a list of Jim Cramer Talked About These 13 Stocks. In this article, we are going to take a look at where Nucor Corporation (NYSE:NUE) stands against other stocks that Jim Cramer discusses. A caller asked if they should buy Nucor Corporation (NYSE:NUE) stock for their retirement portfolio. Here's what Mad Money's host had to say: 'You know, Nucor's a very… let me just go over this for a second. Nucor sells at a price that looks very cheap, but if we have a recession, people keep dumping this stock. I want you to own this for the long term. I think it would be a terrific situation, but don't expect it to turn up anytime soon because people, so many people think we're going into recession.' A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse. Nucor (NYSE:NUE) makes and distributes various steel products to buyers across North America. The company is also involved in creating and handling raw materials used in steel production and other industrial uses. In April, appearing on Squawk on the Street, Cramer remarked: 'I got concerned about Nucor bought back a lot of stock high. I mean buybacks, if not done with precision can really make it so that you don't have enough cash. But Nucor's a great company. So is RH.' Overall, NUE ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NUE and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
Is Nucor Corporation (NUE) Among the Top Commodity Producers With the Highest Upside Potential?
We recently compiled a list of the Top 15 Commodity Producers With the Highest Upside Potential. In this article, we are going to take a look at where Nucor Corporation (NYSE:NUE) stands against the other Commodity Producer stocks. Commodity producer stocks are shares of publicly listed firms that produce, explore, or distribute commodities. These businesses are frequently interested in metals, mining, agriculture, and energy. Commodity producer stocks are chosen by investors to obtain exposure to both the equity and commodities markets, potentially profiting from heightened interest in either. The commodity market is booming. According to a research report, the size of the global commodity services market was projected at $3.56 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.65% from 2025 to 2034, from $3.87 billion in 2025 to roughly $8.16 billion by 2034. Regionally, the commodity services industry is dominated by North America, while Asia Pacific is projected to grow at a quick pace. However, the World Bank's April 2025 Commodity Markets Outlook projects that global commodity prices will plummet, falling 12% in 2025 and further 5% in 2026 to their lowest level since 2020. The anticipated drop is being driven by slowing global economic growth and persistently high oil supply. This decline carries risks to economic growth in developing countries, with two-thirds likely to see setbacks, even though it may reduce short-term price pressures associated with rising trade barriers. Notwithstanding the drop, nominal prices will still be higher than they were before the pandemic. Ayhan Kose, the World Bank Group's Deputy Chief Economist and Director of the Prospects Group, stated: 'Commodity prices have whipsawed throughout the 2020s—plummeting with arrival of the COVID-19 pandemic, then surging to record highs after Russia's invasion of Ukraine, and then sinking again,' said Ayhan Kose, the World Bank Group's Deputy Chief Economist and Director of the Prospects Group. 'In an era of geopolitical tensions, surging demand for critical minerals, and more frequent natural disasters, that could become the new normal. Successfully navigating through repeated commodity prices swings will require developing economies to build fiscal space, strengthen their institutions, and improve investment climates to facilitate job creation.' On the other hand, Morgan Stanley, on February 21, highlighted that 2025 is anticipated to be a crucial year for commodity markets, influenced by supply fundamentals, inflation patterns, and dollar fluctuations. Inflation in the United States is still high, falling short of the Federal Reserve's 2% target in December with headline CPI readings of 2.9% and core CPI readings of 3.2%. After the U.S. presidential election, policy changes—particularly related to immigration, deficits, and tariffs—have raised inflation expectations. According to data from the University of Michigan, they rose from 2.8% to 3.3% in just one month. Commodity prices have generally been supported by these conditions. Since late September, the U.S. dollar has risen by almost 8%, in part because of growing interest rates and policy expectations. Global demand for commodities is usually pressured by a strong dollar, but if the currency stabilizes or depreciates, it may eliminate a significant obstacle. Although recent contango suggests sufficient short-term supply, a yield-adjusted perspective reveals markets in backwardation at about 4%, showing ongoing physical tightness. This suggests that inventories for essential commodities remain low, making the market more susceptible to demand shocks. Commodity performance in 2025 is supported by tight supply, high inflation, as well as potential dollar weakness. A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse. To collect data for this article, we examined companies operating in the commodity sector and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of May 1, 2025. To keep our list relevant, we have only included companies with a market cap of $10 billion and above. The following are the Commodity Producers with the Highest Upside Potential. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Analysts' Upside Potential as of May 01: 34.80% Nucor Corporation (NYSE:NUE) is a steel product manufacturer and one of the Best Commodity Stocks. The company's reportable segments include steel mills, steel products, and raw materials. The steel mills segment, which produces structural steel (wide-flange beams, beam blanks, H-piling, and sheet piling), plate steel, sheet steel (hot-rolled, cold-rolled, and galvanized), and bar steel products, accounts for the majority of its revenue. The firm uses electric arc furnaces, continuous casting, and automated rolling mills to produce steel, mostly from scrap steel and scrap steel alternatives. The primary customers of the steel mills segment are manufacturers, fabricators, and steel service centers in the US, Canada, and Mexico. In the first quarter of 2025, Nucor Corporation (NYSE:NUE)'s backlog grew significantly, with steel mill segments up more than 30% and steel products up almost 25%, showing solid demand going forward. To support its long-term growth strategy, the company reinvested close to $860 million in capital projects, some of which are projected to begin operations within the next two years. A positive earnings projection was given by the firm, which predicted much greater earnings in the second quarter due to stable shipment volumes and better realized pricing. It is anticipated that the effective execution of trade policies, such as the extension and reinstatement of Section 232 tariffs and provisional anti-dumping charges, will directly benefit Nucor Corporation (NYSE:NUE) and support the country's steel industry. The company has also built solid platforms in sectors like overhead doors and racking, expanding into high-growth markets through acquisitions and organic investments. These developments are anticipated to contribute to significant EBITDA growth in the years to come. Overall, NUE ranks 7th on our list of the Top Commodity Producers With the Highest Upside Potential. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NUE but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
