Please ensure Javascript is enabled for purposes of website accessibility

5-Star Stocks Poised to Pop: Nucor

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:57PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steelmaker Nucor (NYSE:NUE) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

$14.4 billion

Industry

Steel

Trailing-12-Month Revenue

$23.9 billion

Management

CEO Daniel DiMicco (since 2000)

CFO Terry Lisenby (since 2000)

Return on Equity (average last three years)

34.1%

Dividend Yield

3.1%

Competitors

United States Steel (NYSE:X),

AK Steel (NYSE:AKS)

CAPS members bullish on NUE also bullish on:

Vale (NYSE:RIO),

Freeport-McMoRan Copper & Gold (NYSE:FCX)

CAPS members bearish on NUE also bearish on:

ArcelorMittal (NYSE:MT),

General Motors (NYSE:GM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, some 96% of the 1,535 members who have rated Nucor believe the stock will outperform the S&P 500 going forward. These bulls include DrDinoTX and CAPS All-Star MagicDiligence.

Two days ago, DrDinoTX tapped Nucor as a particularly timely pick:

Great company with outstanding management. Their low operating leverage is terrific for this tough economic environment. Plus a large cash balance gives this company acquisition possibilities.

In a pitch from last week, MagicDiligence elaborated on the Nucor bull case. Below is an excerpt, but be sure to check out the entire analysis here:

Predictably, Nucor's formula for success in a tough industry mirrors that of Dell (DELL), Southwest Airlines (LUV), and Wal-Mart (WMT) in similarly difficult markets - by consistently being the low cost provider. In Nucor's case, the low cost advantage has been achieved through consistently doing things better than competitors. ... The dollar is strengthening, making foreign steelmakers more competitive. Still, Nucor has a track record of great results, and this record is likely to continue into the future.

What do you think about Nucor, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started. 

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds. They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Wal-Mart and Dell are Motley Fool Inside Value picks. The Fool's disclosure policy always gets a perfect score.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nucor Corporation Stock Quote
Nucor Corporation
NUE
$141.90 (0.29%) $0.41
General Motors Company Stock Quote
General Motors Company
GM
$38.46 (1.34%) $0.51
Freeport-McMoRan Inc. Stock Quote
Freeport-McMoRan Inc.
FCX
$31.67 (0.86%) $0.27
United States Steel Corporation Stock Quote
United States Steel Corporation
X
$24.82 (-0.96%) $0.24
Rio Tinto plc Stock Quote
Rio Tinto plc
RIO
$59.98 (1.59%) $0.94
AK Steel Holding Corporation Stock Quote
AK Steel Holding Corporation
AKS
ArcelorMittal Stock Quote
ArcelorMittal
MT
$25.39 (-1.01%) $0.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.