Episode 8 out of 30 - Inflation Friendly Stocks

Hey Patreons, this is episode 8 out of 30 in our inflation friendly stocks.

As I mentioned, there are number of industries that tend to perform better during inflationary times, with infrastructure being one of them. In my last post I told you about EPD, and in this post I want to share with you an infrastructure stock which I feel will be a great fit for inflationary times.

The stock is $NUE Nucor Corporation.

Nucor Corporation is one of the biggest steel products company in the US. In addition, its a major player in the metals recycling industry in the US., which sets it up to benefit from the expected inflation and the expected spike in construction as a result.

Short interest in only 2.58% and the company is generating over $20B in revenue per year.

The company is still trading at reasonable multiples, the EV / Sales is 1.55 while EV to Ebitda is 10.22 and Price to Sales is 1.41 - Clearly, NUE is trading at very reasonable multiples right now.  

All 3 divisions of the company, steel mills, steel products and raw materials are expected to outperform the market during inflationary times. The company is sitting on $2.5B in cash, it has double the assets vs the liabilities, which shows its well run. As the real estate market and inflation heat up, this company will benefit from both these trends significantly.  

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