Jim Cramer’s Game Plan: 23 Stocks to Watch

21. Nucor Corporation (NYSE:NUE)

Number of Hedge Fund Holders: 40

Mentioning traditional investment strategies, Cramer said it could be “interesting” to buy Nucor Corporation (NYSE:NUE) shares post rate cutting.

“Nucor’s tough, though. See, while steel pricing’s weak, the old hedge fund playbook says you should buy steelmakers like Nucor after the first rate cut because that’s when their stocks typically start to turn ahead of pricing of steel. Could be an interesting level to get long here.”

Nucor (NYSE:NUE) is engaged in the manufacture and sale of a range of steel and steel products. In addition to its core activities, the company is involved in the production, processing, and trading of raw materials, alongside offering services related to metal and industrial gases.

In its earnings report for the third quarter announced on October 21, the company reported consolidated net earnings of $249.9 million or $1.05 per diluted share. In comparison to the same quarter in 2023, when net earnings reached $1.14 billion, or $4.57 per diluted share, the latest figures show a decrease in profitability. Despite these fluctuations, the company maintained a solid financial position, ending the quarter with $4.86 billion in cash and cash equivalents, along with short-term investments.

Throughout the third quarter, Nucor (NYSE:NUE) repurchased around 2.5 million shares of its common stock at an average price of $156.07 per share. Year-to-date, the total share repurchases reached approximately 11.0 million shares at an average price of $172.36. Over the first nine months of 2024, the company returned about $2.29 billion to its stockholders through both share buybacks and dividend payments. As of late September, the company still had approximately $1.42 billion authorized and available for additional repurchases under its existing share repurchase program.