NUE

Nucor Corporation, the largest steel producer in the U.S., is currently facing a volatile market due to potential rollbacks of steel tariffs. The company's vertically integrated business model, with segments in Steel Mills, Steel Products, and Raw Materials, allows it to weather cyclical downturns. Key risks include the potential for increased foreign competition if tariffs are softened and a 'multi-year CapEx hangover' from recent investments. However, major opportunities exist with the upcoming completion of the Apple Grove sheet mill, targeting high-margin automotive and sustainable energy markets, and a strategic investment in fusion power startup Helion Energy, which could provide a long-term competitive advantage through low-cost, carbon-free energy.

Nucor, a leader in Electric Arc Furnace (EAF) steel production, has a resilient business model with a diversified portfolio and a strong focus on sustainability and value-added products. The company is well-positioned to benefit from the onshoring trend and infrastructure spending. Key risks include raw material volatility and geopolitical tensions. The company's 'Dividend King' status and strong balance sheet provide a margin of safety for investors.

Nucor is the lowest-cost, most diversified, and de-risked steel producer in the U.S. Its industry-leading EAF mills, diversified revenue streams, and economically resilient business model have established it as the leading steel producer in the U.S. With the reinstatement of the Section 232 Tariff and rising steel demand, Nucor is well-positioned to take advantage of being the leading domestic provider.