Seeking Alpha: Share, Prices, And Costs Seem To Be Working In Nucor's Long-Term Favor

Commodity stocks can be frustratingly counter-intuitive during recoveries, as it is often the inferior companies that outperform. I don't know if anybody will argue that Nucor (NUE) isn't the best-run steel company in the business (or at least very near the top), but over the past year the shares of AK Steel (AKS) and U.S. Steel (X) have dramatically outperformed Nucor.

This year has been a little more frustrating, though, and Nucor has been outperforming on a relative basis - just barely negative while Steel Dynamics (STLD), AK Steel, U.S. Steel, and ArcelorMittal (MT) have fallen around 5% to 15%. Nucor doesn't immediately jump out as a cheap stock on conventional multiples, but the company's cost-reduction efforts should improve long-term margins and the company is still waiting for the recovery in construction that should boost demand, utilization, and margins.

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Share, Prices, And Costs Seem To Be Working In Nucor's Long-Term Favor