10 S&P 500 Stocks on Jim Cramer’s Radar

8. Celanese Corporation (NYSE:CE)

Number of Hedge Fund Holders: 15

Cramer advised to stay away from Celanese Corporation (NYSE:CE) as it needs China and aggressive rate cuts.

“Third is Celanese, CE, it’s a Federal Reserve stock, meaning it’s a company that makes plastics, one that got its clock cleaned, down 55%, revenues flattened, profits fell, typical of all the material stocks that follow though. This one, like so many other industrials needed China to recover and it didn’t. It also needs aggressive rate cuts. Until we get both, please don’t bet on this one bouncing back.”

Celanese (NYSE:CE) is a chemical and specialty materials company that produces high-performance engineered polymers and acetyl products used in various industries. On January 7, Piper Sandler reduced its price target for the stock to $77 from $98 and maintained an Underweight rating on the stock. The firm cited a lowered growth outlook for chemicals, driven by structural challenges in economies outside the U.S., particularly in Europe and Asia, with China playing a key role.

Additionally, Piper expects considerable downside risk due to potential policies from the incoming Trump administration, particularly those aimed at boosting oil and gas production and imposing tariffs that could trigger retaliatory responses.

Additionally, in response to declining profits, Celanese (NYSE:CE) announced significant financial adjustments in November 2024, including a drastic 95% cut to its dividend. The company stated that this temporary reduction, effective in the first quarter of 2025, was necessary to reduce its debt load. Alongside this decision, it outlined additional cost-cutting measures that are expected to generate savings of over $75 million by the end of 2025.