Nucor Corporation (NUE): A Bull Case Theory

We came across a bullish thesis on Nucor Corporation (NUE) on Business Model Mastery’s Substack. In this article, we will summarize the bulls’ thesis on NUE. Nucor Corporation (NUE)'s share was trading at $108.94 as of 29^th May. NUE’s trailing and forward P/E were 19.20 and 14.14 respectively according to Yahoo Finance.

Nucor stands out as a vertically integrated steel producer operating through three synergistic segments—steel mills, steel products, and raw materials—underpinned by its control of critical inputs, including 3.5 million metric tons of direct reduced iron (DRI) and 18 million tons of recycled scrap annually. This integration enables tight cost control and reliable supply chains.

The company’s strategic focus on high-value products like insulated panels, overhead doors, and custom racking systems has driven meaningful margin expansion, further bolstered by premium-branded offerings such as ECONIQ™ and AEOS™, which meet growing demand in low-carbon and seismic-resistant construction markets.

Nucor’s operational flexibility is a core strength, with nearly all production relying on electric arc furnaces (EAFs) that offer rapid scalability and deliver 60–70% lower carbon emissions compared to traditional blast furnaces. Its micro mill strategy and regional footprint enhance both cost efficiency and environmental performance.

The company’s unique decentralized culture, with just 200 employees at headquarters overseeing over 32,000 teammates, empowers plant-level decision-making and incentivizes performance, driving innovation and responsiveness. This structure supports its aggressive capex-driven growth strategy—$11.8 billion deployed over the past three years, with 63% allocated to capacity expansion and 37% to acquisitions. These investments target fast-growing sectors such as data centers, renewable energy, and automated warehousing, positioning Nucor for long-term structural advantage.

The company's integrated model, flexible operations, and disciplined capital deployment collectively support a compelling narrative of margin growth, sustainable production leadership, and strategic evolution in key demand verticals.

For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of their bullish thesis of Sanofi (SNY). Since our coverage, the stock is up 4.7%.

Nucor Corporation (NUE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held NUE at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.