2 Magnificent Stocks to Buy That Are 20% Below Their 52-Week Highs
Friday, Nov 15, 2024 4:50 am ET
6min read As the S&P 500 reaches new all-time highs, some industry leaders are lagging behind, presenting attractive opportunities for long-term investors. United Parcel Service (UPS) and Nucor (NUE), both roughly 20% below their 52-week peaks, offer compelling cases for consideration.
UPS is working through a turnaround, with operational efficiency and financial performance improving. Through the first nine months of 2024, operating profit rose to $2 billion in the third quarter, up from $1.3 billion in the same quarter of 2023. Operating margin increased to 8.9% from 6.4%. Despite initial struggles, UPS appears to be moving in the right direction.
UPS's dividend history and yield are crucial factors in its long-term investment appeal. The company has increased its dividend annually for 15 consecutive years, demonstrating a consistent commitment to returning value to shareholders. Currently, UPS offers an attractive 4.9% dividend yield, which is significantly higher than the S&P 500 average of around 1.5%.
The e-commerce boom has significantly bolstered UPS's competitive position and growth prospects. With more consumers buying online, UPS, as one of the few package delivery giants, has a strong tailwind for long-term growth.
Nucor's story is very different. The company is one of the largest steelmakers in North America, with an incredibly diversified business that includes both bulk steel and higher-margin specialty products. Nucor is easily one of the best-run steel companies in the world. But that doesn't change the normal ebbs and flows of the highly cyclical industry. Right now steel prices are retreating and investors are reacting by selling Nucor.
Nucor's dividend history and reinvestment strategy have been pivotal to its long-term success. As a Dividend King, Nucor has increased its dividends annually for at least 50 years, demonstrating its financial strength and consistency. The company's focus on reinvesting in its business, particularly during periods of weakness, allows it to get the best bang for its spending buck. Currently, Nucor is in the middle of a capital spending plan that management believes will prepare the company for an even brighter future.
Even good companies go through hard times, and that's clearly what's happening with these two industry giants. With their stocks still roughly 20% below their respective 52-week highs at the time of this writing, long-term investors might want to take a closer look even as the broader market reaches all-time highs.
In conclusion, UPS and Nucor offer attractive opportunities for long-term investors seeking a combination of growth, income, and value. Their impressive histories of success, combined with their current undervalued status, make them worthy of consideration in a diversified portfolio.
UPS is working through a turnaround, with operational efficiency and financial performance improving. Through the first nine months of 2024, operating profit rose to $2 billion in the third quarter, up from $1.3 billion in the same quarter of 2023. Operating margin increased to 8.9% from 6.4%. Despite initial struggles, UPS appears to be moving in the right direction.
UPS's dividend history and yield are crucial factors in its long-term investment appeal. The company has increased its dividend annually for 15 consecutive years, demonstrating a consistent commitment to returning value to shareholders. Currently, UPS offers an attractive 4.9% dividend yield, which is significantly higher than the S&P 500 average of around 1.5%.
The e-commerce boom has significantly bolstered UPS's competitive position and growth prospects. With more consumers buying online, UPS, as one of the few package delivery giants, has a strong tailwind for long-term growth.
Nucor's story is very different. The company is one of the largest steelmakers in North America, with an incredibly diversified business that includes both bulk steel and higher-margin specialty products. Nucor is easily one of the best-run steel companies in the world. But that doesn't change the normal ebbs and flows of the highly cyclical industry. Right now steel prices are retreating and investors are reacting by selling Nucor.
Nucor's dividend history and reinvestment strategy have been pivotal to its long-term success. As a Dividend King, Nucor has increased its dividends annually for at least 50 years, demonstrating its financial strength and consistency. The company's focus on reinvesting in its business, particularly during periods of weakness, allows it to get the best bang for its spending buck. Currently, Nucor is in the middle of a capital spending plan that management believes will prepare the company for an even brighter future.
Even good companies go through hard times, and that's clearly what's happening with these two industry giants. With their stocks still roughly 20% below their respective 52-week highs at the time of this writing, long-term investors might want to take a closer look even as the broader market reaches all-time highs.
In conclusion, UPS and Nucor offer attractive opportunities for long-term investors seeking a combination of growth, income, and value. Their impressive histories of success, combined with their current undervalued status, make them worthy of consideration in a diversified portfolio.
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