Nucor’s Steel Mills segment produces hot-rolled, cold-rolled and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks and H-piling and sheet piling products; and bar steel products, such as blooms, billets, concrete reinforcing and merchant bars and engineered special bar quality products.
The company also engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators and manufacturers in the United States, Canada and Mexico.
Its Steel Products segment offers hollow structural section steel tubing products, electrical conduits, steel racking, steel joists and joist girders, steel decks, fabricated concrete reinforcing steel products, cold finished steel products, steel fasteners, metal building systems, insulated metal panels, steel grating and expanded metal products, and wire and wire mesh products primarily for use in nonresidential construction applications. This segment also engages in the piling distribution business.
The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process, as well as nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals.
The dividend yield here is 1.40%. BofA Securities has set its price target at $188. Nucor stock has a $147.54 consensus target, but shares closed at $155.73 on Thursday, up almost 6% on the day following an earnings beat.
Principal Financial
This well-known company is a solid financial play for more conservative investors. Principal Financial Group Inc. (NYSE: PFG) operates in four main segments: Retirement & Income Solutions (RIS), Asset Management (PGI), International and U.S. Insurance.
RIS delivers full-service accumulation, pension products, annuities, mutual funds and other services to individuals and small-to-medium-sized businesses. PGI is a global asset manager. U.S. Insurance provides individual life and disability insurance and group life insurance. Lastly, the International business sells products in Latin America and Asia.
Investors receive a 3.32% dividend. Principal Financial stock has an $81 price target at BofA Securities. That compares with a $78.33 consensus target and Thursday’s closing print of $75.99.
Cyclical industrial stocks, combined with insurance and financial services leaders, are very solid ideas in what could become a tangled stock market this summer. The data show that interest rate increases, while lowering the nagging inflation, may come back to haunt investors in certain sectors like technology, so these five top value plays make good sense now.
Originally published at 24/7 Wall St.
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