1 Magnificent S&P 500 Stock Down 40% to Buy Today

The most important aspect of the S&P 500 index (SNPINDEX: ^GSPC) that often gets overlooked is that the stocks are selected by a committee. The goal isn't to create an index that represents the stock market, it's to create an index that is representative of the broader U.S. economy.The index is filled with large and important companies, which is why it is such an interesting starting point if you are looking for stocks to buy. One company that's particularly interesting right now is a Dividend King that has fallen over 40% from its early 2024 highs. The best part is, the drop has nothing to do with poor execution. Here's why you might want to buy this stock despite the big price decline.The S&P 500 index component in question here is Nucor (NYSE: NUE). It is one of the largest steelmakers in North America. Steel is a highly cyclical business that tends to ebb and flow along with economic activity. Steel demand and steel prices go a long way toward determining where Nucor's top and bottom lines end up. Right now, demand and pricing have come down from historically high levels and investors are dumping Nucor's shares.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool