4-Star Stocks Poised to Pop: Nucor

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steelmaker Nucor (NYSE: NUE) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Nucor's business, and see what CAPS investors are saying about the stock right now.

Nucor facts

Headquarters (founded)

Charlotte, N.C. (1940)

Market Cap

$13.45 billion

Industry

Steel

TTM Revenue

$23.66 billion

Management

Chairman/CEO Daniel DiMicco
CFO Terry Lisenby

Return on Equity (average, last three years)

32.0%

Dividend Yield

3.2%

Competitors

U.S. Steel (NYSE: X)
ArcelorMittal (NYSE: MT)

CAPS members bullish on NUE also bullish on

General Electric (NYSE: GE)
Freeport-McMoRan (NYSE: FCX)

CAPS members bearish on NUE also bearish on

Bank of America (NYSE: BAC)
Dell (Nasdaq: DELL)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 1,621 of the 1,685 members who have rated Nucor -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include Lasergirl28 and All-Star MattH42004, who is ranked in the top 0.5% of our community.

In February, Lasergirl28 wrote that Nucor "has a very strong policy of building infrastructure improvements and training their team during production slowdowns-setting them up to be the frontrunners when the economy rebounds. They are doing this right now."

In a pitch from late January, MattH42004 shares that contrarian sentiment:

When the economic recovery comes Nucor should come out a big winner. First, the company has a tremendous balance sheet. … This will allow Nucor to finance it's own growth from inside the company, avoiding the loanshark rates of the current credit markets. Nucor also has by far the best management in the steel industry. It's not even close. They manage to keep costs down by using scrap metal, relying on more efficient mini-mills, and avoiding any union labor by using generous profit sharing, performance based pay, and avoiding the executive perks that ruin the culture of so many other companies. The current 3% yield is also nice and appears well covered.

What do you think about Nucor, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Dell is a Motley Fool Inside Value selection. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 07, 2009, at 7:42 PM, drysdry wrote:

    I think X, MT or AKs will be better than NUE...

  • Report this Comment On April 10, 2009, at 11:48 PM, lifter31 wrote:

    THE PARADIGM HAS NOT SHIFTED. Nucor is a top US steel company. They have a lot of plants thru-out the US and have a whole bunch of top notch steel plants and production facilities. They are also into scrap and scrap yards.

    They have already popped from Low's below $32 per share.

    I own a bit of NUE stock and many other steels, alum, copper, gold silver

    Look for the steel co's with good balance sheets and low-debt ratios. Many materials will rebound, as it is unlikely that these company's are worth say 1/5 to 1/10 of what they previously were based on WORLD earnings and POPULATION GROWTH. As long as they can survive 2009 steel and metals will sustain long-term returns and provide good trading room.

    THE PARADIGM HAS NOT SHIFTED. Basic Materials remain Basic Building Materials of the World and will soon return to equilibrium at higher levels then now.

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3/19/2010 4:00 PM
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Nucor Corp CAPS Rating: ****

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