What Has NUE Stock Done For Investors?

• Nucor's shares person been connected a teardrop implicit the past mates of months.

• However, its one-year and three-year returns person lagged the market's.

• In airy of that, its five-year returns are surprising.

• 10 stocks we similar amended than Nucor ›

The stock terms of concern stalwart Nucor (NYSE: NUE) has soared 10.6% implicit the past month, easy outperforming the market's 2% gain. That doesn't see an further 11.3% stock terms surge from precocious October, aft the steelmaker reported beardown Q3 results.

But is that caller outperformance portion of a semipermanent inclination oregon conscionable a short-term anomaly? Here's however Nucor shares person performed for longtime investors.

Nucor's banal has risen by 11.9% implicit the past year, which is 0.7 percent points down the S&P 500's one-year instrumentality of 12.6%:

As you tin spot from the illustration above, Nucor's banal was severely lagging the marketplace for astir of the twelvemonth aft a steep stock terms driblet past December, and adjacent its caller stock terms gains haven't brought it up to the S&P 500's level.

However, there's different origin to consider: dividends. Nucor's banal pays a dividend that's presently yielding 1.4%, and erstwhile we origin successful reinvestment of those dividends, Nucor's one-year show improves somewhat to a full one-year instrumentality of 13.8%. But that's inactive lagging the 14.3% full one-year instrumentality of the S&P 500.

So, is this one-year underperformance a blip? Has Nucor outperformed the marketplace implicit the mean term?

Investors who bought shares of Nucor 3 years ago, connected Dec. 8, 2022, weren't doing truthful severely for the archetypal year. Their shares' show astir tracked the show of the broader market. All that changed successful April 2024 aft Nucor delivered anemic guidance successful its Q1 2024 net release. Nucor's stock terms declined for the remainder of 2024 adjacent arsenic the broader marketplace roseate passim the year.

At slightest Nucor investors aren't underwater: Their three-year returns are 6.5%, oregon 11.2% connected a full instrumentality basis. But the accidental outgo has been tremendous: the S&P 500 has returned 74.4% connected an implicit ground and 82.4% connected a full instrumentality ground during the aforesaid clip period, meaning Nucor investors' three-year returns are lagging the marketplace by astir 70 percent points either way.

Well, if the one- and three-year returns are this bad, the five-year returns indispensable beryllium abysmal, right? Wrong.

Nucor's one-year returns were somewhat down the market, and its three-year returns were severely down the market, truthful it mightiness astonishment you to find that its five-year returns are beating the market!