After spending much of the past year at a not-too-shabby four-star rank, Nucor
Though not everyone sees light at the end of the tunnel for stagnant industrial growth, CAPS members are becoming more bullish on a potential turnaround in domestic steel demand, and many think Nucor's operations are primed to take advantage of any uptick. The company recently said the first quarter was the first time in a while that it's seen real end-demand for its products rather than demand from restocking inventories. It posted a better-than-expected first-quarter profit, with revenue growing 38%.
While the hunger for steel in China and other parts of the globe has been fueling the furnaces for South Korean steel giant POSCO
Nucor still sees weakness in the U.S. commercial and nonresidential construction markets and has yet to see any significant impact from federal stimulus dollars. Others are echoing the same view: Heavy-equipment maker Caterpillar
Despite the domestic uncertainty, Nucor is expecting continued earnings improvement in the second quarter and many CAPS members like its long-term prospects.
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Fool contributor Dave Mock owns no shares of companies mentioned here. Nucor is a Stock Advisor choice. POSCO is an Income Investor selection. The Fool's disclosure policy moonlights at a local dinner theater.