Should You Buy Nucor's Rallying Stock?
Nucor (NYSE: NUE) is a large and diversified U.S. steelmaker. Despite being conservatively run, the company can't avoid the cyclical nature of the industry in which it operates. No amount of diversification or financial strength can change steel demand trends or market-driven steel pricing. With its industry weak right now, Nucor's stock has fallen dramatically from its recent highs. But for investors, that could present an attractive long-term opportunity.Nucor makes steel and manufactures fabricated steel products. It is one of the largest and most diversified U.S. steel companies. There are two key nuances that investors ought to be aware of here. First, Nucor's infrastructure is built entirely around electric arc mini-mills. These facilities use electricity to recycle scrap steel into "new" steel. That technology is, to simplify things, more flexible than older blast-furnace technology, which uses iron ore and metallurgical coal to make primary steel.Image source: Getty Images.Continue reading
Nucor (NYSE: NUE) is a large and diversified U.S. steelmaker. Despite being conservatively run, the company can't avoid the cyclical nature of the industry in which it operates. No amount of diversification or financial strength can change steel demand trends or market-driven steel pricing. With its industry weak right now, Nucor's stock has fallen dramatically from its recent highs. But for investors, that could present an attractive long-term opportunity.
Nucor makes steel and manufactures fabricated steel products. It is one of the largest and most diversified U.S. steel companies. There are two key nuances that investors ought to be aware of here. First, Nucor's infrastructure is built entirely around electric arc mini-mills. These facilities use electricity to recycle scrap steel into "new" steel. That technology is, to simplify things, more flexible than older blast-furnace technology, which uses iron ore and metallurgical coal to make primary steel.
Image source: Getty Images.
