Yahoo Finance Here's How Much a $1000 Investment in Nucor Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Nucor (NUE) ten years ago? It may not have been easy to hold on to NUE for all that time, but if you did, how much would your investment be worth today?
Nucor's Business In-Depth
With that in mind, let's take a look at Nucor's main business drivers.
Headquartered in Charlotte, NC, Nucor Corporation is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. It also produces direct reduced iron (“DRI”) that is used in its steel mills. The company has 123 operating facilities, primarily in the United States and Canada. Also, most of its operating facilities and customers are located in North America.
Over the years, the company has grown through acquisitions as well as by tapping new markets and expanding geographically. Through its network of “mini-mills”, the company produces steel sheets, bars, plates as well as various structural and other products. Nucor, in 2014, completed the acquisition of Gallatin Steel Company from global steel giant ArcelorMittal and Brazilian steel maker Gerdau for roughly $770 million in cash. Notably, the company is North America’s largest recycler, which uses scrap steel as the primary raw material in producing steel and steel products.
Nucor operates in three segments – the Steel Mills segment (23.2 million shipments in 2022), the Steel Products segment and the Raw Materials segment. The Steel Mills segment manufactures hot rolled steel products such as angles, rounds, flats, channels, rebar, sheets, wide-flange beams, pilings, billets, blooms, beam blanks, and plates; and cold-rolled steel products. The Steel Products segment makes steel joists and joist girders, steel deck, cold finished steel, steel fasteners, metal building systems and light gauge steel framing among other products. The Raw Materials segment produces direct reduced iron, ferrous and nonferrous metals, and pig iron; ferro-alloys; and processes ferrous and nonferrous scrap from the facility in Trinidad.
Nucor sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. Its steel products are used in highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums and high-rise buildings.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Nucor, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in July 2013 would be worth $3,802.76, or a gain of 280.28%, as of July 4, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 175.82% and the price of gold went up 47.81% over the same time frame.
Analysts are anticipating more upside for NUE.
Earnings estimates for Nucor for the second quarter have been going up over the past month. The company is committed to expand its production capabilities and grow its business through strategic acquisitions. Its efforts to boost production capacity through a number of growth projects should drive profitability. Nucor is also seeing strong momentum in the non-residential construction market, which is driving its steel products unit. It is also seeing strong demand in the heavy equipment market. The company also remains focused on achieving greater penetration in automotive. Higher steel prices and higher end-market demand should also drive its margins. However, the company faces challenges from higher input costs due to supply constraints. Its high debt level is another concern. The steel industry is also reeling under oversupply.
Shares have gained 17.50% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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