12 Oversold Value Stocks to Buy According to Hedge Funds

5. Nucor Corporation (NYSE:NUE)

Number of Hedge Fund Holders: 51

​Nucor Corporation (NYSE:NUE) is the largest steel producer in the US and a leading manufacturer of steel and steel products. The company operates through three segments: Steel Mills, Steel Products, and Raw Materials. Its operations include electric arc furnace (EAF) steelmaking, producing a range of finished and semi-finished steel products such as sheet, bar, structural, and plate steel. NUE also manufactures downstream products including joists, decking, and rebar fabrication. It sources recycled scrap as a primary input and operates a vertically integrated supply chain.

Nucor Corporation (NYSE:NUE) achieved its safest year in history during 2024, with the lowest number of recordable and reportable injuries on record. The company reported earnings of $1.22 per share in Q4 and $8.46 for the full year 2024, generating EBITDA of $751 million for the quarter and nearly $4.4 billion for the year. The company maintained a strong financial position with $4.1 billion in cash at year-end while deploying approximately $3.2 billion in total CapEx and $760 million in acquisitions during 2024. The company is making significant progress on its largest capital investment, the West Virginia sheet mill, which is approximately 40% complete and on track for commissioning by the end of 2026.

Looking ahead to 2025, Nucor Corporation (NYSE:NUE) expects steel demand to show modest growth in the first half of the year with more momentum in the second half, supported by strong infrastructure construction activity and institutional construction. The company’s downstream platforms, including overhead doors, racking, and insulated metal panels, are expected to generate over $450 million in EBITDA in 2025, up from approximately $400 million in 2024. Management expressed optimism about the potential positive impacts of the new administration’s policies, particularly regarding fair trade and pro-growth economic initiatives. With a forward P/E of 11.28, NUE is one of the oversold stocks to buy according to hedge funds.