#1 - Nucor (NYSE:NUE)
Perhaps no stock illustrates the anticipation for the proposed infrastructure bill than Nucor (NYSE: NUE), the largest steel company in the United States. The company is expected to play a major role in rebuilding America’s bridges and tunnels.
And the company is coming off another strong earnings report and citing a stronger, and faster-than-expected U.S. recovery from the pandemic. This is requiring the company’s customers to restock depleted inventories. Plus, steel prices are much higher than they were pre-pandemic. The company’s mills are already operating at near 100% capacity and that does not take into account the additional business that would come from the infrastructure bill.
If investors need any more reason to jump on this cyclical stock, the company is planning to return 40% of its net income to shareholders with dividends and share repurchases. And the company has been increasing its dividend for the last 48 consecutive years, which makes it a Dividend Aristocrat.
About Nucor
Nucor Corporation engages in manufacture and sale of steel and steel products. It operates in three segments: steel mills, steel products, and raw materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and engineered special bar quality products; and engages in the steel trading and rebar distribution businesses.
Read More - Current Price
- $116.58
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $173.75 (49.0% Upside)
