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Opinions John Zechner
Nucor Corp.NUEHOLDAug 17, 2012
John ZechnerUnknown
$39.97
Stock price when the opinion was issued
$243.40
As of Jun 18, 2026. Market Open.
steel
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BUY
Has outlasted all its steel peers over time. Superior balance sheet and has raised its dividend for 50 years. Trades at only 5x trailing earnings. However, the street predicts EPS to fall by half between 2022's peak and this year, and even lower in 2024. His take: if we avoid recession, shares will soar. Also, Nucor will supply most of the steel needed during the coming wave of infrastructure spending, driven by the IRA act. A long-term investment.
steel
BUY
America's best steelmaker. Is up this year by 15% and has enjoyed monster earnings growth as the economy earlier this year. Therefore, shares peaked last April the plunged by July. The market expected much weaker numbers, but that didn't happen. They just announced a light forecast, so shares fell 10% in a single day. Remember that the street under-estimated their earnings a year ago, and he wouldn't be surprised if Nucor beat again. Nucor would benefit hugely from the infrastructure bill that kicks in next year.
WATCH
Likes it but has sold shares from February to early April, because cyclicals get hit when the Fed tightens aggressively. Shares have fallen so far that it trades under 5x earnings; Wall St. worries earnings will plunge in 2023 after the Fed kills inflation (and high steel prices). The stock could be attractive now. Today, Nucor announced it will buy C.H.I. Overhead Doors (makes garage doors) and shares fell because it puzzled investors.
steel
BUY
It sold off hard this week. They last reported margin pressure which freaked out the street. He bought when this sank at $14 and his since risen, like 6% today. People get way too negative, too quickly, but take longer to get positive. Pays an okay dividend. It's an cyclical, but as extreme as others. Take advantage on the protective steel tariffs, which lets this stock blossom. This stock does well early in a rate-hike cycle. Also, Biden has passed his infrastructure bill, so that's a tailwind. Secondly, autos are in short supply at least for a quarter or two, and NUE makes steel for those. Thirdly, oil drillers need steel. It should be a core position, and it's levered to several industries. Strong management. It's a rare growth-cyclical stock which the market craves now. Trades at a low PE.
steel
Margins were under some pressure and obviously steel pricing has come down but it is still a low-cost manufacturer. They use more scrap than the integrated steelmakers. He feels we are starting to see growth in global industrial production again which benefits them.