1. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 41
Nucor Corporation (NYSE:NUE) is a North Carolina-based company that manufactures and sells steel and steel products. The company operates through Steel Mills, Steel Products, and Raw Materials segments. It is one of the best steel stocks to consider. On October 20, Nucor Corporation (NYSE:NUE) reported its Q3 results, announcing earnings per share of $6.50 and a revenue of $10.50 billion, outperforming Wall Street estimates by $0.08 and $141.30 million, respectively.
On December 6, UBS analyst Andreas Bokkenheuser raised the price target on Nucor Corporation (NYSE:NUE) to $145 from $120 and kept a Neutral rating on the shares as part of a broader research note on Americas Steel. High profitability continues to drive shareholder cash returns while declining raw materials costs also add further support to metal spreads, the analyst told investors in a research note.
According to Insider Monkey’s data, 41 hedge funds were bullish on Nucor Corporation (NYSE:NUE) at the end of Q3 2022, compared to 32 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 1.2 million shares worth $131 million.
Here is what Madison Funds has to say about Nucor Corporation (NYSE:NUE) in their Q1 2021 investor letter:
“This quarter we are highlighting Nucor (NUE) as a relative yield example within the Materials sector. NUE is a leading manufacturer of steel and steel products. It is the largest steelmaker in the U.S. based on production volume with a vertically integrated business model. The company has a low fixed-cost position due to its use of electric arc furnaces, which are cleaner, less labor and energy-intensive than blast furnaces, and this results in low total costs per unit of steel produced. Our view is that a low cost position is an important attribute in a commodity business. NUE’s historical financial record supports this view as it has been profitable every year except for one over the past fifty years, unlike many steel producing peers. In addition, the company has a diverse product and mill portfolio that takes market share over time. We believe its scale, low fixed-cost position, consistent record of profitability and diverse mill portfolio result in a sustainable competitive advantage versus peers.
Our thesis on NUE is that it should benefit from higher steel prices as the U.S. economy recovers from the downturn caused by the Covid-19 pandemic. The company may also be a beneficiary of on-shoring, where manufacturing returns to the United States. These two dynamics should drive growth this year, and if the United States Congress passes new infrastructure legislation, that will provide another avenue for growth longer-term.” (Click here to read full text)
Follow Nucor Corp (NYSE:NUE)
Follow Nucor Corp (NYSE:NUE)
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