4-Star Stocks Poised to Pop: Steel Dynamics
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steel products manufacturer Steel Dynamics (NAS: STLD) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Steel Dynamics' business and see what CAPS investors are saying about the stock right now.
Steel Dynamics facts
|Headquarters (Founded)||Fort Wayne, Ind. (1993)|
|Market Cap||$2.96 billion|
|Trailing-12-Month Revenue||$7.67 billion|
Co-Founder/Chairman/CEO Keith Busse
Co-Founder/President/COO Mark Millett
|Return on Equity (Average, Past 3 Years)||3.9%|
|Cash/Debt||$456.7 million / $2.38 billion|
AK Steel (NYS: AKS)
Nucor (NYS: NUE)
U.S. Steel (NYS: X)
Sources: S&P Capital IQ and Motley Fool CAPS.
This past summer, laborduck tapped Steel Dynamics as a particularly strong selection: "A vertical, mini-mill steel company with growing opportunities for expansion ... and an excellent track record of returning value to shareholders."
Over the next five years, in fact, Steel Dynamics is expected to grow its bottom line at a brisk rate of 16% annually. That's faster than competitors like AK Steel (5%), Nucor (12%), and U.S. Steel (7%).
CAPS member QuarkHadron elaborates on the Steel Dynamics bull case:
Long term -- 5 years. Good PE, book value near share price. Dividend and it looks like earnings can continue to support it. Infrastructure building will need to get (re)started when economy starts to improve -- gotta happen eventually.
I needed some basic manufacturing in my portfolio, and this one seemed to fit the bill nicely.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Nucor. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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