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If You Invested $1000 in Nucor a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Nucor (NUE - Free Report) ten years ago? It may not have been easy to hold on to NUE for all that time, but if you did, how much would your investment be worth today?
Nucor's Business In-Depth
With that in mind, let's take a look at Nucor's main business drivers.
Headquartered in Charlotte, NC, Nucor Corporation is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. It also produces direct reduced iron (“DRI”) that is used in its steel mills. The company has 123 operating facilities, primarily in the United States and Canada. Also, most of its operating facilities and customers are located in North America.
Over the years, the company has grown through acquisitions as well as by tapping new markets and expanding geographically. Through its network of “mini-mills”, the company produces steel sheets, bars, plates as well as various structural and other products. Nucor, in 2014, completed the acquisition of Gallatin Steel Company from global steel giant ArcelorMittal and Brazilian steel maker Gerdau for roughly $770 million in cash. Notably, the company is North America’s largest recycler, which uses scrap steel as the primary raw material in producing steel and steel products.
Nucor operates in three segments – the Steel Mills segment (23.2 million shipments in 2022), the Steel Products segment and the Raw Materials segment. The Steel Mills segment manufactures hot rolled steel products such as angles, rounds, flats, channels, rebar, sheets, wide-flange beams, pilings, billets, blooms, beam blanks, and plates; and cold-rolled steel products. The Steel Products segment makes steel joists and joist girders, steel deck, cold finished steel, steel fasteners, metal building systems and light gauge steel framing among other products. The Raw Materials segment produces direct reduced iron, ferrous and nonferrous metals, and pig iron; ferro-alloys; and processes ferrous and nonferrous scrap from the facility in Trinidad.
Nucor sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. Its steel products are used in highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums and high-rise buildings.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Nucor a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2013 would be worth $3,530.86, or a 253.09% gain, as of February 14, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 172.13% and the price of gold increased 8.92% over the same time frame in comparison.
Going forward, analysts are expecting more upside for NUE.
Nucor’s earnings and sales for the fourth quarter of 2022 topped the respective Zacks Consensus Estimate. The company is committed to expand its production capabilities and grow its business through strategic acquisitions. Its efforts to boost production capacity through a number of growth projects should drive profitability. Nucor is also seeing strong momentum in the non-residential construction market, which is driving its steel products segment. It is also witnessing strong demand in the heavy equipment market. Demand in the automotive market is also expected to improve this year as the semiconductor crisis gradually eases and automakers ramp up production. The company also remains focused on achieving greater penetration in automotive. Nucor has also outperformed the industry it belongs to over the past year.
The stock has jumped 6.38% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in Nucor a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Nucor (NUE - Free Report) ten years ago? It may not have been easy to hold on to NUE for all that time, but if you did, how much would your investment be worth today?
Nucor's Business In-Depth
With that in mind, let's take a look at Nucor's main business drivers.
Headquartered in Charlotte, NC, Nucor Corporation is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. It also produces direct reduced iron (“DRI”) that is used in its steel mills. The company has 123 operating facilities, primarily in the United States and Canada. Also, most of its operating facilities and customers are located in North America.
Over the years, the company has grown through acquisitions as well as by tapping new markets and expanding geographically. Through its network of “mini-mills”, the company produces steel sheets, bars, plates as well as various structural and other products. Nucor, in 2014, completed the acquisition of Gallatin Steel Company from global steel giant ArcelorMittal and Brazilian steel maker Gerdau for roughly $770 million in cash. Notably, the company is North America’s largest recycler, which uses scrap steel as the primary raw material in producing steel and steel products.
Nucor operates in three segments – the Steel Mills segment (23.2 million shipments in 2022), the Steel Products segment and the Raw Materials segment. The Steel Mills segment manufactures hot rolled steel products such as angles, rounds, flats, channels, rebar, sheets, wide-flange beams, pilings, billets, blooms, beam blanks, and plates; and cold-rolled steel products. The Steel Products segment makes steel joists and joist girders, steel deck, cold finished steel, steel fasteners, metal building systems and light gauge steel framing among other products. The Raw Materials segment produces direct reduced iron, ferrous and nonferrous metals, and pig iron; ferro-alloys; and processes ferrous and nonferrous scrap from the facility in Trinidad.
Nucor sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. Its steel products are used in highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums and high-rise buildings.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Nucor a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2013 would be worth $3,530.86, or a 253.09% gain, as of February 14, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 172.13% and the price of gold increased 8.92% over the same time frame in comparison.
Going forward, analysts are expecting more upside for NUE.
Nucor’s earnings and sales for the fourth quarter of 2022 topped the respective Zacks Consensus Estimate. The company is committed to expand its production capabilities and grow its business through strategic acquisitions. Its efforts to boost production capacity through a number of growth projects should drive profitability. Nucor is also seeing strong momentum in the non-residential construction market, which is driving its steel products segment. It is also witnessing strong demand in the heavy equipment market. Demand in the automotive market is also expected to improve this year as the semiconductor crisis gradually eases and automakers ramp up production. The company also remains focused on achieving greater penetration in automotive. Nucor has also outperformed the industry it belongs to over the past year.
The stock has jumped 6.38% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.