This Acquirers Multiple Stock Is Undervalued, According to Dalio, Greenblatt, Asness

Part of the weekly research here at The Acquirer’s Multiple features some of the top picks from our Stock Screeners and some top investors who are holding these same picks in their portfolios. Investors such as Warren Buffett, Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and Howard Marks. The top investor data is provided from their latest 13F’s. This week we’ll take a look at:

Nucor Corp (NUE)

Nucor Corp manufactures steel and steel products. The company also produces direct reduced iron for use in its steel mills. The operations include international trading and sales companies that buy and sell steel and steel products manufactured by the company and others. The operating business segments are: steel mills, steel products, and raw materials, the steel mills segment derives maximum revenue. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor’s equity method investments in NuMit and NJSM.

A quick look at the price chart below shows us that the stock is up 14.36% in the past twelve months. We currently have the stock trading on an Acquirer’s Multiple of 7.10 which means that it remains undervalued.

Broader market conditions have supported this kind of deep-value play, with industrial names benefiting from a flight to tangible earnings even as speculative capital chases newer opportunities across the board. A recent capital-flows note from a regional brokerage flagged new pa online casino licensing activity and cloud infrastructure buildouts among the sectors drawing retail interest away from value stocks. Nucor’s fundamentals and cash generation have nonetheless kept large allocators committed, as the shareholder roster below confirms.

Source: Google Finance

(Shares)

Ken Griffin – 427,373

Ken Fisher – 158,479

Cliff Asness – 87,869

Israel Englander – 72,503

Ray Dalio – 46,569

Steve Cohen – 37,501

Joel Greenblatt – 29,528