ArcelorMittal (ADR) (MT), Nucor Corporation (NUE): The US Steel Industry Is Concerned

Even if Nucor Corporation (NYSE:NUE) trades at a premium to its peers, the premium is more than justified. The company is the safest bet within an industry that has been operating under pressure for many years. As a matter of fact, it is the only company within this group of three that has been consistently making money since the 2009 crisis. Nucor is trading at 10.3 times its EV/EBITDA for 2013 and a price-to-earnings ratio of 24 times, which is well above its peer group.

Final comment

Although the steel market is experiencing some difficulties, I think that there is a good opportunity for the future. The companies analysed above have different types of risks and rewards. For those looking for a global exposure to steel prices, ArcelorMittal (ADR) (NYSE:MT) might be a good option. For those looking for a safe and US-focused stock, Nucor Corporation (NYSE:NUE) is the answer. Meanwhile, investors looking for a healthy balance sheet at a premium price should go for US Steel.

Vanina Egea has no position in any stocks mentioned. The Motley Fool recommends Nucor. The Motley Fool owns shares of ArcelorMittal. Vanina is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The US Steel Industry Is Concerned originally appeared on Fool.com and is written by Vanina Egea.

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