We recently compiled a list of the Jim Cramer Talked About These 16 Stocks. In this article, we are going to take a look at where Nucor Corporation (NYSE:NUE) stands against the other stocks Jim Cramer was talking about.
Jim Cramer, host of Mad Money, shared his thoughts on the market’s reaction to the election results. He noted that the trading session on November 6 was largely influenced by a collective sigh of relief from traders who were glad the election was over. With President-elect Donald Trump set to take office, many were preparing for the shifts his administration could bring. Cramer pointed out that the market responded positively to Trump’s victory, stating:
“The market likes Donald J. Trump and it loves a peaceful transition to the next president. We got both and we had a monster-buying celebration. It was a bull jailbreak and the bears never knew what trampled them.”
Cramer reflected on the uncertainty leading up to the election, with many investors fearing a prolonged and contentious process. But with the winner now clear, Cramer argued that the market is better off knowing what lies ahead. He remarked:
“Let’s understand that many people thought we’d have a contested election, which would cause tremendous uncertainty. The fact that we already know the winner is a huge win for the stock market in itself, which makes it a magnet for new money. This election, with its vicious maelstrom of hate and fear, is finally over.”
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One of Cramer’s main focuses was Trump’s proposed tax cuts, which he believes will have a substantial impact on corporate profits. Cramer emphasized that the tax cuts are expected to boost earnings, particularly by lowering corporate tax rates, which would directly increase profit estimates and earnings per share. Cramer also highlighted the importance of maintaining low interest rates for these benefits to materialize.
He cautioned that while the current environment might feel like a party, there could be risks down the line, especially as debt continues to grow. Despite these concerns, Cramer seemed optimistic, suggesting that the market could continue to rally as long as interest rates stay low and corporate tax cuts come to fruition.
However, Cramer also pointed out a potential complication and commented:
“We also have to accept that we will have another earning season right at the time of the inauguration. So we’ll have to worry about those earnings too, but not yet.”
Additionally, Cramer suggested that there could be more significant market moves in the near future, especially if President-elect Trump makes comments about the Federal Reserve that investors find unsettling. He said that such remarks could trigger a negative reaction from the market, potentially leading to a downturn before things settle again.
Our Methodology
For this article, we compiled a list of 16 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 6 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse.
Nucor Corporation (NYSE:NUE)
Cramer remarked that he would buy Nucor Corporation (NYSE:NUE) stock even while it is up and emphasized that Trump should protect the company from Chinese steel.
“The President-elect wants to protect the American industries. He should protect Nucor from Chinese steel, which is transshipped through Mexico right now, and [the] Biden administration did nothing about it. I’d buy that stock of Nucor even up here.”
Nucor (NYSE:NUE) is a major manufacturer and supplier of steel products, serving customers throughout North America. According to S&P Global, in 2024, China exported approximately 638,356 metric tons of finished steel to the United States during the first nine months of the year. Amidst these trade flows, the company has been vocal in urging the U.S. government to impose stronger trade restrictions on countries like Mexico, which, according to the company, could be used as a conduit for China to bypass the steel tariffs established under Section 232 of the Trade Expansion Act.
Nucor’s CEO, Leon Topalian, emphasized this stance during a conference with investors, where he reiterated the company’s commitment to advocating for fair trade practices in Washington, irrespective of the political administration. He stressed the importance of creating a level playing field for the U.S. steel industry, ensuring that illegally dumped and subsidized steel does not flood the market.
During Nucor’s (NYSE:NUE) third-quarter earnings call, Topalian noted that there is now broad bipartisan agreement on the need for strong trade enforcement, particularly regarding steel imports. He pointed to the damage done to the U.S. steel industry by unfair trade practices and highlighted some troubling developments, such as a sharp 180% spike in steel exports from Mexico on a quarterly basis.
Topalian also discussed the global oversupply of steel, particularly from China, where roughly 100 million metric tons of steel are seeking international markets. He commented that the U.S. remains the most significant market for this surplus.
Overall NUE ranks 6th on our list of the stocks Jim Cramer was talking about. While we acknowledge the potential of NUE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NUE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.