Jim Cramer Says Cleveland-Cliffs “Needs More Economic Activity to Do Better”

Cleveland-Cliffs Inc. (NYSE:CLF) is one of the stocks in focus on Jim Cramer’s game plan. Cramer noted that the tariffs are hurting the stock, as he remarked:

Monday morning, and that’s where we hear from Cleveland-Cliffs. Talk about a company that’s hurting. This is a steel company that’s done better than if there were no tariffs, but not as well as Cramer fave, Nucor, with a stock that’s had a tremendous year. Cliffs needs more economic activity to do better. It’s discouraging, but I’m not giving up on what lower interest rates could do for a steel maker that’s not as good as Nucor.

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Cleveland-Cliffs Inc. (NYSE:CLF) produces flat-rolled and specialty steel products, including stainless, electrical, and tubular steels, as well as iron ore and hot-briquetted iron. A caller mentioned their outsized position in the stock during the January 26 episode and asked whether the stock was a buy, sell, or hold. In response, Cramer commented:

Okay, my favorite is Nucor. I’m not going to recommend Cleveland-Cliffs over Nucor because I think Nucor is the superior operator and has been for some time now. You’re going to be able to buy Nucor at a discount. They reported a number of people didn’t like it, but it was at its 52-week high going into the session. Call me a buyer of Nucor on any weakness. You know, I think that Leon Topalian does a fantastic job with that company.

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Disclosure: None. This article is originally published at Insider Monkey.