We recently published a list of Jim Cramer Says These 10 Stocks Will Go Higher in Trump Presidency. In this article, we are going to take a look at where Nucor Corp (NYSE:NUE) stands against other stocks that will go higher in Trump presidency according to Jim Cramer.
In a recent program, Jim Cramer celebrated the market’s rally on Donald Trump’s election victory, saying the market likes Trump.
“The market likes Donald J. Trump, and it loves a peaceful transition to the next president. We got both, and we had a monster celebration. It was a full jailbreak, and the bears never knew what trampled them. Now, though, with the inclusion of this amazing session, we have to ask: have you missed the Trump rally?”
Cramer said the answer to the question of whether you missed the Trump rally lies in the stock you have in your mind. He said many were expecting a contested election and there was a lot of uncertainty around transition. However, that did not happen and that was in itself a win for the market.
“Trump wants to cut taxes—all taxes—including corporate taxes. Some numbers go higher, estimates go higher, earnings-per-share go higher. You do need to see interest rates go low for things to really work. Someday this is going to matter. It’s hard to keep doing this and piling on debt. But party on until we see damage; that’s what it felt like to me, seems to be the mantra.”
Cramer said the market is still “oversold” as many Trump stocks underwent a massive selloff after Kamala Harris reportedly started to gain ground. However, Cramer said the polls were again proved wrong.
Cramer then talked about the stocks that investors can buy to ride the Trump rally.
READ ALSO: Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks.
For this article we watched the latest programs of Cramer and picked stocks he believes can go higher under the Trump presidency. With each company, we have mentioned the number of hedge fund investors. 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 Corp (NYSE:NUE)
Number of Hedge Fund Investors: 40
Talking about Nucor, Cramer said:
“The President-elect wants to protect the American industry he is here to protect Nucor from Chinese steel which is transhipped through Mexico right now. And the Biden administration did nothing about it. I’d buy that stock of Nucor even up here. Cleveland Cliffs and U.S. Steel should do well too—they’re not as good as Nucor, but they’re good.”
Earlier this year, Morgan Stanley upgraded Nucor Corp (NYSE:NUE) to “Overweight” from “Equal Weight” with a $176 price target. The bank highlighted that despite strong earnings growth and cash generation expected in 2025 and 2026, the stock has underperformed its peers.
Analyst Carlos de Alba noted that Nucor Corp (NYSE:NUE) currently trades at a discount to Steel Dynamics (STLD) on an EV/EBITDA basis for 2025, while its P/E premium is below its five-year average. De Alba believes this discount is unjustified given Nucor Corp (NYSE:NUE)’s higher expected earnings growth.
De Alba also favors Nucor Corp (NYSE:NUE) over Cleveland-Cliffs (CLF), citing expected subdued auto production in the second half of 2024, which he thinks will limit upside for flat steel prices and constrain Cliffs’ earnings recovery.
With over 50 years of consecutive dividend increases, steel company Nucor Corp (NYSE:NUE) is one of the best stocks that can benefit from a Trump presidency, according to Wolfe Research. Nucor Corp (NYSE:NUE) has been on an acquisition spree lately, expanding into new growth areas. In April, Nucor Corp (NYSE:NUE) bought data center infrastructure firm Southwest Data Products, Inc. (SWDP) for $115 million.
With the deal Nucor Corp (NYSE:NUE) entered the AI infrastructure market where specific solutions to maintain cool temperatures at data centers are in high demand. To address this market, Nucor Corp (NYSE:NUE) is creating a dedicated group.
Overall, NUE ranks 10th on our list of stocks that will go higher in Trump presidency according to Jim Cramer. While we acknowledge the potential of NUE, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
