In this article, we discuss 5 precious metal stocks to buy according to Ken Fisher. If you want to check more precious metals stocks in Fisher’s portfolio, click 10 Precious Metals Stocks to Buy According to Ken Fisher.
5. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 26
Nucor Corporation (NYSE:NUE) is a North Carolina-based provider of steel and steel products. In addition to its primary steel business, the company’s Raw Materials segment produces ferrous and nonferrous metals such as pig iron.
The securities filings for Q4 2021 reveal that Ken Fisher owned 255,774 shares of Nucor Corporation (NYSE:NUE), valued at $29.1 million. The billionaire increased his stake by 3% in Q4.
Goldman Sachs analyst Emily Chieng raised the price target on Nucor Corporation (NYSE:NUE) on February 15 to $120 from $114 and kept a Neutral rating on the shares as part of a broader research note on metals & mining. The analyst updated her model based on refreshed commodity price assumptions.
On February 22, Nucor Corporation (NYSE:NUE) declared a quarterly dividend of $0.50 per share, in line with previous. The dividend is payable on May 11, to shareholders of record on March 31.
The Q4 database of Insider Monkey suggests that 26 hedge funds were long Nucor Corporation (NYSE:NUE), up from 25 funds in the earlier quarter. AQR Capital Management is a leading shareholder of the company, with a position worth $53 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)
