- Nucor has sold off by more than 30% in the last few months. While the investment has many moving parts, the ultimate driver here is that the stock is cheap.
- If 2023 sees steel prices weaken substantially, the stock could end up priced at 10x free cash flow. That's not such a bad outcome.
- Nucor has a sector-leading strong balance sheet. Even if much pain is inflicted on the sector, Nucor is well positioned to withstand the prolonged downturn.
- The stock has a positive risk-reward profile. I rate this stock a buy.
- As always, happy to discuss my investment thesis further in the comments section.
For further details see:
Nucor: Very Strong Balance Sheet, Priced At 5x FCF