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This Moat Has Steel Walls

Low-cost production and a top-line facility provide a positive moat trend to this narrow-moat company.

This Moat Has Steel Walls
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Andrew Lane: Given that steelmakers mainly produce undifferentiated commodified products, a steel company's most likely route to establishing an economic moat is by entrenching itself as a definitive low-cost producer. As a narrow-moat company, we believe Nucor has done just that.

Additionally, we have assigned a positive moat trend to Nucor, indicating that the company's moat is widening due to our belief that the company is likely to improve its positioning on the industry cost curve in the years to come.

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Andrew Lane does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.