Jim Cramer Prefers Nucor (NUE) Over Reliance (RS)
Jim Cramer prefers Nucor (NUE) over Reliance (RS) but acknowledges RS's strength. Both companies reported strong Q2 results: RS revenue up 26.5% YoY, EPS up 41.5%; NUE EPS up to $5.04. Both expect higher steel prices but lower raw materials margins. Hedge fund holdings increased for both.
How this was made
The 30-second read
Why it matters
Earnings beats and guidance upgrades provide fresh catalysts for traders.
Market read
Strong Q2 earnings for two major steelmakers may lift the broader industrial sector.
What to watch
Potential tariff changes and import competition may limit upside.
Background
Jim Cramer praised both companies, noting Reliance as "very, very good" and preferring Nucor.
Ticker impact
Reliance reported Q2 revenue of $4.63B, EPS $6.27 and highlighted strong tonnage growth.
Potential modest price rise on earnings beat.
Revenue and EPS both exceeded expectations, with strong demand drivers.
Nucor posted Q2 net earnings of $1.16B, EPS $5.04, and raised third‑quarter outlook on higher steel prices.
Likely upward move as investors price higher guidance.
Earnings more than doubled YoY and guidance is bullish.
Market effects
Both results reinforce strength in the U.S. steel sector amid infrastructure spending.
U.S. industrial stocks may see modest gains.
Highlights demand from data centers and construction, relevant to global commodities markets.
Counterpoint
Higher raw‑material costs could pressure margins if steel prices soften.
Key entities
- companyReliance, Inc.
U.S. steel producer reporting Q2 results.
- companyNucor Corporation
U.S. steel producer reporting Q2 results.
