Nucor (NYSE: NUE) is one of the largest steel companies in the United States. That fact alone, however, doesn't make it worth buying, since there are plenty of once-giant companies on the dust heap of Wall Street history. Here are six key reasons why Nucor is not just a giant steel company, but also one of the best you can buy.

The starting point for Nucor is that it uses electric arc steel mills. These are more flexible than older blast furnace technology mills, which require high operating rates to turn a profit. It's a simplification, but Nucor can ramp its mills up and down more easily, and thus quickly adjust to market conditions. In addition, electric arc mills tend to be smaller than blast furnaces and, as a result, can often be located closer to the markets they serve. This helps to reduce the cost of transporting heavy steel products from the mill to the end market, offering a cost advantage to Nucor. There's a lot of nuance here, but the end result is that using modern electric arc mills gives Nucor a leg up in the North American market.

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Source Fool.com