Jim Cramer Prefers Nucor (NUE) Over Reliance (RS)

During the September 8 episode of Mad Money, Jim Cramer responded to a caller who believed Reliance, Inc. (NYSE:RS) would perform well. Cramer agreed, stating that RS is a very fine company. He made a similar comment on April 27, praising Reliance as a very fine company. On the September 9 Jefferies Global Industrials Conference, Reliance CEO Karla Lewis emphasized the bullish sentiment among the mills and highlighted strength in sectors like electrification, data centers, nonresidential construction, automotive toll processing, and general manufacturing.

Meanwhile, Nucor Corporation (NYSE:NUE) reported increased net earnings attributable to shareholders in Q2, with adjusted net earnings per diluted share at $4.84. The company anticipates higher earnings in Q3 due to better realized prices and stable steel-mill volumes, albeit with declining raw materials earnings due to lower margins.

Reliance expects a 2%-4% sequential decline in tons sold, excluding the border-wall project, but an increase in average selling price per ton by 1%-3%. Both companies' outlooks depend on higher steel prices and stable mill volumes, with NUE also anticipating lower earnings in its raw materials segment due to thin margins. Despite recent positive results, Jim Cramer still prefers Nucor Corporation over Reliance, Inc.