Jim Cramer Talked About These 16 Stocks

7. Cleveland-Cliffs Inc. (NYSE:CLF)

In an episode of Mad Money, Cramer said that Cleveland-Cliffs Inc. (NYSE:CLF) should perform well. He said, “Cleveland-Cliffs and US Steel should do well too. They’re not as good as Nucor, but they’re good.”

Cleveland-Cliffs (NYSE:CLF) is a North American flat-rolled steel producer offering a wide range of steel products. In its third-quarter earnings report, it announced an adjusted loss of $0.33 per share and revenue of $4.6 billion, a decrease from $5.1 billion in the previous quarter. The decline was largely attributed to weakened demand, especially in the automotive sector, which contributed to lower steel prices and reduced margins.

Despite these challenges, CEO Lourenco Goncalves remains optimistic about the future, stating that steel demand is expected to recover in early 2025, driven by a combination of economic and political factors. A key development for the company during this period was its $2.8 billion acquisition of Stelco Holdings Inc., a move that is set to strengthen its position as the largest flat-rolled steel producer in North America.

This deal, which combines cash and stock, not only expands Cleveland-Cliffs’ (NYSE:CLF) geographical footprint into Canada but also diversifies its customer base, reducing its reliance on the automotive sector as pointed out by the CEO. Goncalves highlighted Stelco’s strong industry performance and investment in its operations, noting that management is confident in its ability to realize $120 million in cost synergies within the first year of the acquisition.