Nucor
While by far the cheapest from a price-to-earnings standpoint at 7.2, this also may be the best contrarian idea from the Value 10 list. Nucor Corp. (NYSE: NUE) engages in the manufacture and sale of steel and steel products.
The company’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
- 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 the following:
- 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
- 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. It 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.
Investors receive a 1.31% dividend. BofA Securities has a price target of $185, and the consensus target is $160.50. Nucor stock closed at $156.43 on Thursday.
United Rentals
In a slowing economy, rental companies always tend to outperform, and at a cheap 13.5 PE, this is an outstanding idea now. United Rentals Inc. (NYSE: URI) operates as an equipment rental company though the following two segments.
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