Cramer Says Cleveland-Cliffs Trails Nucor, Needs More Economic Activity
Jim Cramer said Cleveland-Cliffs’s stock has underperformed Nucor this year despite tariffs supporting steel prices, attributing weakness to insufficient economic activity. He added that lower interest rates could improve earnings for Cleveland-Cliffs but reiterated Nucor’s operational superiority and recommended buying Nucor on any weakness.
1. Cramer’s Assessment of Cleveland-Cliffs Performance
In a televised segment, Jim Cramer noted that tariffs have bolstered steel prices but Cleveland-Cliffs’s stock has underperformed peer Nucor this year due to sluggish economic activity. He emphasized that current demand has not been sufficient to drive gains for Cleveland-Cliffs’s flat-rolled and specialty steel products.
2. Emphasis on Nucor’s Strength and Rate Outlook
Cramer highlighted Nucor’s operational strength under CEO Leon Topalian, pointing out Nucor shares reached a 52-week high despite mixed reaction to its earnings. He suggested that a shift to lower interest rates could benefit steel makers broadly, including Cleveland-Cliffs, while maintaining Nucor as his preferred pick.