from AlphaProfit Sector Investors’ Newsletter
Year 2015 can be a good one for Nucor (NUE) as many profit drivers are set to converge. Nucor should realize benefits from its recent $770 million Gallatin Steel acquisition and the Special Bar Quality expansion project. The steel maker also stands to profit from further rise in construction activity. The company is likely to direct over $1.5 billion in free cash flow it generates towards growth projects.
Nucor shares suit growth-at-reasonable-price investors. They trade at 80% of sales while EPS is forecasted to grow 60% in the next 12 months. (Next earnings: Late Jan. 2015)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, December 2014