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

3. Texas Pacific Land Corporation (NYSE:TPL)

Number of Hedge Fund Holders: 20

Discussing Texas Pacific Land Corporation (NYSE:TPL), Cramer said:

“…. a bankrupt railroad that sit atop vast quantities of oil and gas in the Permian Basin that we’ve covered, and I’m proud to say we really kind of nailed. This stock kept going higher, the stock finished up 111%, but at one point it was much, much higher.

I think the oil trade will be hurt by excess drilling. Something that will, it always seems to happen when we get a fossil fuel-friendly president. Now there are better stocks. I like Coterra for the Charitable Trust because it has both natural gas and oil. Better bet. I think it’s breaking out here.”

Texas Pacific (NYSE:TPL) is a company that specializes in land and resource management, water services, land leasing, and material sales. It has an ownership of 873,000 acres of land in the Permian Basin, a significant oil and gas region in West Texas.

However, according to management, the company is also looking beyond the traditional oil and gas sector for new growth opportunities, particularly in wind power and data centers. The company has been exploring the data center space, recognizing the increasing demand for power and space as tech companies build facilities to support AI. Management believes the company’s extensive land holdings in West Texas position it well to capitalize on this growing demand.

As noted by CEO Tyler Glover, “TPL just has a lot of positive attributes for data centers.” In addition to wind power and data centers, Texas Pacific (NYSE:TPL) is addressing the increasing demand for energy across various sectors. Over the past 24 months, the company has contracted more than 700 megawatts of solar energy projects. It is also involved in seven utility-scale battery projects, four Bitcoin mining operations, and 78 megawatts of active power generation, with another 50 megawatts in development.