Is Now the Right Time to Buy This Cyclical Company?
In his best-selling book One Up on Wall Street, famed mutual fund manager Peter Lynch wrote, "cyclicals are the most misunderstood of all the types of stocks." As North America's most diversified steel company, and largest recycler, Nucor Corporation (NYSE: NUE) falls squarely in the category of a cyclical company. But Nucor's recent large investments make it clear in which direction it wants to take its business, and shareholders could benefit from this growth. As Lynch also noted, however, "timing is everything in cyclicals...", so let's explore whether these investments correspond with a good time to invest.
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That Nucor is one of the most respected steel and steel products companies in the world isn't in question. Its culture started with founder Ken Iverson's views on pushing responsibility and decision-making to the manufacturing floor and keeping the company lean. Its practice of never having laid off an employee in 50 years of operations -- particularly when many competitors consider that "business as usual" -- breeds loyalty among its teammates.
Source Fool.com
