Near a 5-Year Low, Is This High-Yield Steel Giant a Buy?
Nucor Corp. (NYSE: NUE) stock is currently trading at a five-year low. In fact, the shares are very near a 10-year low as well. At this point, they are down around 50% from the highs reached in early 2018. That's a painful decline, to be sure, but the bigger question now is whether or not the drop, which has the company's dividend yielding 4.7%, is opening up a buying opportunity for investors.
The steel industry is highly cyclical, largely tracking along with the economy. That makes sense given that steel is an important product throughout the business world, from construction to manufacturing. However, this is a key factor to think about when investing in a company like Nucor. When times are good the stock price can reach extreme heights based on earnings that look impressively high -- but that just won't last.
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Source Fool.com
