Nucor remains one of the most admired companies in the steel sector, thanks to its superb management, ability to innovate, unquestionable leadership in the mini-mill steelmaker sector, and its disciplined business model.
Wall Street has soured on the overall steel sector. Just last Thursday, investment banking giant Goldman Sachs Group Inc. (GS) downgraded the sector from "Attractive" to "Neutral." It maintained its "Buy" rating on both Nucor and United States Steel Corp. (X), but removed the latter from its "Conviction Buy" list.
All the technical indicators - as well as the fundamental indicators related to valuation - point to a massively oversold condition in Nucor’s shares specifically, and the steel sector in general. The panic selling that created this oversold condition has created a profit opportunity of which investors should take full advantage.
At current levels, Nucor’s shares feature a very nice dividend yield of 2.64%. The firm, which has paid 141 consecutive quarterly dividends, just declared a "special" dividend of 20 cents a share - in addition to its 32-cent-a-share cash dividend - payable to shareholders of record as of Sept. 30.