Latest news with #Nucor
Yahoo
5 hours 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
7 hours ago
- Business
- Yahoo
Better Dividend Stock: Nucor vs. Steel Dynamics
Nucor and Steel Dynamics are two of the largest steelmakers in North America. Both companies have strong dividend histories. Nucor is likely to be attractive to more conservative investors, while Steel Dynamics will interest dividend growth investors. 10 stocks we like better than Nucor › Nucor (NYSE: NUE) and Steel Dynamics (NASDAQ: STLD) have a lot of similarities, which makes sense, since Nucor alumni founded Steel Dynamics. That said, these two U.S. steelmakers are not interchangeable investments. Dividend investors considering stepping into the cyclical steel industry while it is dealing with some industry softness will want to carefully consider what Nucor and Steel Dynamics offer before buying either one. Here's a quick primer. From a big-picture perspective, Nucor and Steel Dynamics make steel. But the real story is how they make that steel, which is by using electric arc mini-mills. This technology uses electricity and scrap steel to make "new" steel. It is more flexible than older blast furnace technology, which uses iron ore and metallurgical coal to make primary steel. While blast furnaces can be highly profitable during industry upturns, their high operating costs mean they can bleed red ink during downturns. Electric arc mini-mills tend to have more consistent and reliable profit margins through the cycle. In other words, Nucor and Steel Dynamics have strong core operations. On top of this strong foundation, Nucor and Steel Dynamics have both built businesses selling fabricated steel products. They basically take the commodity steel they produce and turn it into higher-margin items with more reliable demand characteristics through the steel cycle. This makes them even more robust to the normal cyclical industry downturns that happen. When you hear the word cyclical, you should worry about dividend consistency. However, the strong fundamentals of Nucor and Steel Dynamics on the business side have proven highly valuable to dividend investors. Nucor is a Dividend King, with over 50 consecutive years of annual dividend increases behind it. Steel Dynamics, a much younger company, has increased its dividend annually for 14 straight years. So, despite operating in a volatile industry, they are reliable dividend stocks. That said, there is an important difference between the two on the dividend front. Nucor is a large company that moves slowly and deliberately. That includes on dividends. Over the past decade, its dividend has grown at around 4% a year on an annualized basis. That is faster than the historical growth rate of inflation, so the buying power of the dividend is increasing over time. However, this is a tortoise, not a rabbit. Steel Dynamics' dividend has grown at more than 10% a year. Compared to Nucor it is, indeed, a rabbit. That has a lot to do with Steel Dynamics' smaller size, since it is easier to grow a business when it is small than when it is large and mature. But Steel Dynamics is also a bit more aggressive, noting that it has just entered the aluminum market. Its aluminum business uses similar technology to its steel business, so this isn't a huge reach. But it shows clearly that Steel Dynamics is a far more aggressive business. Nucor and Steel Dynamics have similarly attractive steel businesses. So the core business isn't likely to be the differentiating factor for investors. And they both have solid dividend histories behind them, though being a Dividend King clearly gives Nucor some bragging rights. Nucor's yield is around 1.8% today, which is higher than Steel Dynamics' 1.5%, with both being higher than the S&P 500's smaller average of 1.3%. The real difference here, however, is likely to boil down to the dividend growth rate, combined with the aggressiveness of management. If you are a conservative income investor who likes to buy reliable dividend stocks when they are out of favor, Nucor is likely to be the better choice. Notably, Nucor's stock has fallen 40% from its 2024 highs, which is actually a pretty normal drawdown for the stock. Steel Dynamics, which has more attractive growth prospects for its business (because it is smaller and because it is working to expand into aluminum), is only down around 10% over the same span. But if you are looking for rapid dividend growth, Steel Dynamics may be worth a premium price. That said, either choice will leave you owning a well-run U.S. steelmaker. Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Reuben Gregg Brewer has positions in Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Better Dividend Stock: Nucor vs. Steel Dynamics was originally published by The Motley Fool
Yahoo
8 hours 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
9 hours ago
- Business
- Yahoo
Why Nucor Stock Jumped 10% This Week
New tariffs could drive steel prices higher. Nucor has invested billions to grow its earnings power. The steel company should see a surge in free cash flow as capital projects ramp up operations. 10 stocks we like better than Nucor › Not every investor wants to invest in a cyclical sector. But it can be an important addition to a well-diversified portfolio. Nucor (NYSE: NUE) is the largest pure-play steel and steel products company in North America. While it is most commonly thought of as more of an income stock than a growth stock, shares popped as much as nearly 12% at one point this week. The stock has now moved off a three-year low it hit in early April. That was aided by the 10% surge it has made this week as of early Friday morning, according to data provided by S&P Global Market Intelligence. This week's move came after President Donald Trump announced the doubling of steel tariffs to 50% and officially implemented that raised level on June 4. That could be a meaningful move for the leading domestic steel company. Nucor has poured more than $10 billion into growth investments over the past five years. Many of those projects are just beginning to contribute to earnings. Two important projects will also begin ramping up operations later this year. Its largest current project -- a new greenfield sheet mill in West Virginia -- is expected to complete construction by the end of next year. That makes it a good time to look at an investment in Nucor. It looks to be near the bottom of a free-cash-flow cycle with capital spending beginning to decrease in coming years as those investments start generating revenue. Nucor generated over $8 billion in free cash flow in 2022 and another $5 billion in 2023. It dropped to negative $495 million in the first quarter, though. That could mark a point close to the bottom if the U.S. economy continues to grow. The tariffs supporting steel prices will only reinforce the strength in Nucor's business. Investors may be sensing a turn for this cyclical stock with the tariff catalyst. That helps explain the outsize move in Nucor stock this week. Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Howard Smith has positions in Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Nucor Stock Jumped 10% This Week was originally published by The Motley Fool
USA Today
a day ago
- Business
- USA Today
Steel stocks: Is Nucor or Steel Dynamics the better buy under Trump's tariff moves?
Steel stocks: Is Nucor or Steel Dynamics the better buy under Trump's tariff moves? Show Caption Hide Caption Reaction from around the world as steel tariffs double "Strongly regret," and "unfair" were some of the reactions from trade partners around the world as the U.S. doubles tariffs on steel imports. Nucor (NYSE: NUE) and Steel Dynamics (NASDAQ: STLD) have a lot of similarities, which makes sense, since Nucor alumni founded Steel Dynamics. That said, these two U.S. steelmakers are not interchangeable investments. Dividend investors considering stepping into the cyclical steel industry while it is dealing with some industry softness will want to carefully consider what Nucor and Steel Dynamics offer before buying either one. Here's a quick primer. What do Nucor and Steel Dynamics do? From a big-picture perspective, Nucor and Steel Dynamics make steel. But the real story is how they make that steel, which is by using electric arc mini-mills. This technology uses electricity and scrap steel to make "new" steel. It is more flexible than older blast furnace technology, which uses iron ore and metallurgical coal to make primary steel. While blast furnaces can be highly profitable during industry upturns, their high operating costs mean they can bleed red ink during downturns. Electric arc mini-mills tend to have more consistent and reliable profit margins through the cycle. In other words, Nucor and Steel Dynamics have strong core operations. On top of this strong foundation, Nucor and Steel Dynamics have both built businesses selling fabricated steel products. They basically take the commodity steel they produce and turn it into higher-margin items with more reliable demand characteristics through the steel cycle. This makes them even more robust to the normal cyclical industry downturns that happen. Nucor and Steel Dynamics are reliable dividend stocks When you hear the word cyclical, you should worry about dividend consistency. However, the strong fundamentals of Nucor and Steel Dynamics on the business side have proven highly valuable to dividend investors. Nucor is a Dividend King, with over 50 consecutive years of annual dividend increases behind it. Steel Dynamics, a much younger company, has increased its dividend annually for 14 straight years. So, despite operating in a volatile industry, they are reliable dividend stocks. That said, there is an important difference between the two on the dividend front. Nucor is a large company that moves slowly and deliberately. That includes on dividends. Over the past decade, its dividend has grown at around 4% a year on an annualized basis. That is faster than the historical growth rate of inflation, so the buying power of the dividend is increasing over time. However, this is a tortoise, not a rabbit. Steel Dynamics' dividend has grown at more than 10% a year. Compared to Nucor it is, indeed, a rabbit. That has a lot to do with Steel Dynamics' smaller size, since it is easier to grow a business when it is small than when it is large and mature. But Steel Dynamics is also a bit more aggressive, noting that it has just entered the aluminum market. Its aluminum business uses similar technology to its steel business, so this isn't a huge reach. But it shows clearly that Steel Dynamics is a far more aggressive business. Which steel mill is right for you? Nucor and Steel Dynamics have similarly attractive steel businesses. So the core business isn't likely to be the differentiating factor for investors. And they both have solid dividend histories behind them, though being a Dividend King clearly gives Nucor some bragging rights. Nucor's yield is around 1.8% today, which is higher than Steel Dynamics' 1.5%, with both being higher than the S&P 500's smaller average of 1.3%. The real difference here, however, is likely to boil down to the dividend growth rate, combined with the aggressiveness of management. If you are a conservative income investor who likes to buy reliable dividend stocks when they are out of favor, Nucor is likely to be the better choice. Notably, Nucor's stock has fallen 40% from its 2024 highs, which is actually a pretty normal drawdown for the stock. Steel Dynamics, which has more attractive growth prospects for its business (because it is smaller and because it is working to expand into aluminum), is only down around 10% over the same span. But if you are looking for rapid dividend growth, Steel Dynamics may be worth a premium price. That said, either choice will leave you owning a well-run U.S. steelmaker. Reuben Gregg Brewer has positions in Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Should you invest $1,000 in Nucor right now? Offer from the Motley Fool: Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you'd have $656,825!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you'd have $865,550!* Now, it's worth notingStock Advisor's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you joinStock Advisor. See the 10 stocks »
