Steelmaking is a hard business, and for investors in many of the companies in the industry, it's also proved to be a wonderful way to lose a lot of money. However, Nucor Corporation (NYSE: NUE) has broken the mold and made for a market-crushing long-term investment. A $1,000 investment in Nucor way back in 1980 would have generated more than $139,000 in total returns. Nucor's flexible operating model, management's incredible track record of allocating capital to keep the balance sheet strong, and timely acquisitions to grow its market share have all kept the company profitable for decades.
But here's the question that matters the most: Is Nucor a buy now? Past success is important, but not if the company's prospects aren't what they once were.
The short answer, in this Fool's opinion, is yes. Nucor is stronger than it has ever been, has the right leadership in place, and has excellent prospects for growth. Its shares may not be as dirt cheap today as they were a few months ago, but they're still cheaper than they've generally been most of the past decade. That makes Nucor a solid buy in my book.
Source: Fool.com