Why Nucor Stock Dropped 26% in the First Half of 2020
Shares of giant U.S. steel mill Nucor Corporation (NYSE: NUE) fell 26% through the first six months of 2020, according to data from S&P Global Market Intelligence. At the lowest point, the stock was down roughly 50%. For comparison, the S&P 500 fell around 30% at its worst point and ended the six-month period off by about 5%. Clearly, Nucor is lagging. But don't get too worried about it.
Steelmaking is a highly cyclical business that waxes and wanes along with the economy. COVID-19 has upended a great many things, with nonessential businesses getting shut down and consumers asked to stay home in an attempt to slow the spread of the coronavirus. That had a negative impact on demand for steel. Furthermore, the U.S. economy fell into a recession in February.
Image source: Getty Images.
Source Fool.com
