The AI frenzy has been driving Wall Street recently, sending some tech stocks to stratospheric heights. But there is still real value in tried-and-true companies that aren’t part of the tech sector. If you’re looking for a buy low opportunity in a less glitzy market segment, here are two interesting options.
Black and Decker (NYSE: SWT)
Stanley Black and Decker has been known for its household tools for more than a century. The company had a real moment during the pandemic, when homeowners stuck in the house decided to focus on DIY upgrades. But when the world reopened, people quickly lost interest. Stanley Black and Decker faltered as a result.
Today, the company is trading at close to its 52-week low, but all signs point to a turnaround. Stanley Black and Decker is following an aggressive plan that includes nationalizing products, streamlining operations, lowering debt, and selling some assets. There’s still a long way to go, but this could be your opportunity to buy into a stable, mature company with historic dividends of around 4%.
Nucor (NYSE: NUE)
Nucor is one of the biggest and most diversified steel companies in the United States, but it’s been having a rough time lately. The steel sector is commodity driven, and lately there simply hasn’t been as much demand. However, Nucor is implementing a variety of strategies to hedge against market fluctuations. Its modern electric arc mills can easily be scaled up and down as needed. It largely uses its own steel for its high-end specialty products line. Importantly, the company is currently focused on ramping up production of the steel required for the red-hot data center market.
Nucor will always be a bit of a gamble, due to the inherent volatility of the steel market. But it has always paid strong dividends, and its current investments are likely to help reduce major fluctuations in the future. Patient investors may want to give this company a second look.
Neither Lisa Fritscher nor Stocks.News have positions in this company.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...