Why Nucor Corporation (NUE) Is A Strong Value Play: ArcelorMittal (ADR) (MT), United States Steel Corporation (X)

ArcelorMittal (ADR) (NYSE:MT) is recognized for having developed a sustainable business, as well as having invested in Europe, creating proper conditions for global investors in Europe. Proving to be continuously succeeding, the company’s capital expenditure in 2013 is expected to be approximately $3.5 billion and steel shipments are expected to increase by approximately 2% to 3% as compared to the previous year. The Board of Directors proposed a 20 cent dividend per share, payable in July.

United States Steel Corporation (NYSE:X) is one of the largest steel producers in the world. The company has two main product lines, which include flat-rolled products and tubular products. In addition to the steelmaking assets, the company has iron ore and coke production facilities, rail and barge transportation operations, real estate and engineering and consulting services.

Although United States Steel Corporation (NYSE:X) is benefiting from a strong domestic demand from the auto sector, the company’s high margin tubular segment remains challenged and will more than offset any benefit from a recovery in steel demand during 2013.

In January, United States Steel Corporation (NYSE:X) reported solid Q4 2012 results, its third consecutive quarter with all its segments having positive operating results despite uncertainty in the global economy. For the current fiscal year the company expects a slight improvement in its European operation. The flat-rolled segment is expected to be near breakeven. Five cents per share dividend on common stock is payable on March 8.

The Bottom Line

Despite operating at only 70% of its capacity, Nucor Corporation (NYSE:NUE) is delivering consistent results. I expect Nucor’s strategy to move up in the value chain for a majority of its products should result in better margins in 2013. Due to its strong balance sheet and a track record of cash discipline, I feel Nucor, especially in comparison to its peers, is in a strong position and has value for long-term investors. Moreover, the stock also yields value for dividend seeking investors with a 3% dividend yield.

The article Why Nucor Is A Strong Value Play originally appeared on Fool.com and is written by Anindya Batabyal.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.