In this article, we will take a detailed look at 10 Stocks on Jim Cramer’s Radar These Days.
Jim Cramer in a latest program on CNBC talked about the latest trends in the AI data center industry and said that based on reports from some of the leading companies, there is no slowdown in demand:
“Now that earning season is well underway, we’ve heard from a bunch of companies connected to the AI data center theme, and you know what? They’ve been putting up pretty darn good numbers. It’s almost like there was never anything wrong with the AI infrastructure story in the first place.”
Cramer then talked about several major AI companies and said that most top firms are seeing strong demand for data centers. He believes Satya Nadella-led tech giant slowed down its AI spend amid its “breakup” with OpenAI.
“Wall Street’s become very skeptical, and I don’t think that’s really changed. But looking at what we’ve seen so far this earning season, I’m feeling much more sanguine about the story, especially if we get some more trade war de-escalation from the White House and stocks stay as cheap as they are. And man, are they ever cheap.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Jim Cramer recently talked about during his shows on CNBC. With each company, we have mentioned its latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Foot Locker Inc (NYSE:FL)
Number of Hedge Funds Investors: 27
Jim Cramer in a latest program on CNBC commented about Foot Locker:
“Foot Locker reported a terrific quarter, much better than expected, as CEO Mary Dillon’s turnaround plan takes hold, aided by Nike’s attempts to repair its relationship with actual shoe stores. Nobody cared too much under the previous CEO. Nike didn’t really care for Foot Locker; they wanted more of an emphasis on direct-to-consumer. It was stupid, and that didn’t work out. But Elliott Hill, the new CEO, is working very closely with Foot Locker. It’s a new Foot Locker. But people were way too gloomy to even notice the same-store sales improvement this morning. That doesn’t make sense. I think it’s a genuine winner. I can go on, and yes, despite all these positives, the stock only gained 89 cents because things are being valued incorrectly.”
9. Albemarle Corp (NYSE:ALB)
Number of Hedge Funds Investors: 35
Jim Cramer was recently asked about Albemarle Corp (NYSE:ALB) during the Lightning Round segment of his program. Cramer recommended investors stay away from the stock.
“I can’t go with it. I can’t go. I’ll tell you why I can’t go with it—because in the end, we forgot about EVs. I mean, we’re pretty sure we’re going to be buying gas guzzlers. I want to stay away from that one, but so does everybody else. That’s the only problem.”
The London Company Large Cap Strategy stated the following regarding Albemarle Corporation (NYSE:ALB) in its Q2 2024 investor letter:
“Exited: Albemarle Corporation (NYSE:ALB) – Sold our remaining position in ALB after the stock triggered our soft stop loss review. We are concerned that weaker demand in the US for electric vehicles coupled with greater than expected supply of lithium reaching the market may lead to declining lithium prices. This will likely lead to lower cash flow generation in the years ahead, which weakens the downside protection case for the stock.”
8. Ford Motor Co (NYSE:F)
Number of Hedge Funds Investors: 36
Jim Cramer in a latest program said that Ford Motor Co (NYSE:F) previously looked like a cheap stock because of its low PE ratio but it has lost its allure because of the potential tariff impact.
“Their future earnings are in grave danger. Turns out Ford and GM could be ridiculous value traps. While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda, along with Kia and Hyundai. A 25% tariff on imports from Mexico is basically a subsidy for those companies.”
7. BlackRock Inc (NYSE:BLK)
Number of Hedge Funds Investors: 37
Jim Cramer in a latest program on CNBC said his charitable trust owns a stake in BlackRock Inc (NYSE:BLK) and he believes the stock has more upside potential amid Trump’s infrastructure plans.
“We own BlackRock for the charitable trust. Oh, it’s been a complete… It’s been trying to crack into infrastructure, but it hadn’t really done anything. Well, wait a second, CEO Larry Fink had a brilliant idea. Trump wants to take back the Panama Canal. You know, there are ports on either side, and they’re owned by a Hong Kong-based company that were for sale. Well, Fink wanted them. The company CK Hutchison wanted to sell these two and others. Why not buy them, put them in through that new infrastructure portfolio that Fink bought? Others had the same idea, but Fink got those properties, and now he has the premier infrastructure product in the world. Trump obviously loved the deal. These BlackRock shares… what do they do well? They’re still down 5% for the year and way below where the company traded after its last good quarter. It’s ridiculous. I think BlackRock stock is worth much more than it’s selling for. We’re buying for the trust.”
The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q3 2024 investor letter:
“BlackRock, Inc. (NYSE:BLK) – Shares of BLK rallied during 3Q as organic growth improved sequentially. Our long-term view of BLK has not changed. In the near-term, strong equity market performance is supportive of AUM and fee growth, and, visibility on declining interest rates is a potential tailwind to the fixed income ETF business. We continue to view BLK as a long-term share gainer with a broad spectrum of solutions, and we appreciate the strong balance sheet and steady capital return.”
6. Palantir Technologies Inc (NASDAQ:PLTR)
Number of Hedge Funds Investors: 43
Jim Cramer was asked about Palantir Technologies Inc (NASDAQ:PLTR) in a latest program. Here is what he said:
“The meme guys are pushing it up every day. They push it up in the morning. They usually start around 3:30. I get up earlier than they do, so I watch them do it. And it just blossoms each day. What a blast. The manipulation is incredible. But you know what? In the new regime, it’s just called solid buying.”
Baron Asset Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Two software stocks that the Fund did not own, Palantir Technologies Inc. (NASDAQ:PLTR) and AppLovin Corporation, each gained more than 100% and accounted for 52% of the Benchmark’s gain during the quarter. At year end 2024, Palantir was valued at approximately 200 times its expected 2024 earnings, while AppLovin was valued at 80 times. The market cap of each exceeded $100 billion, and the two stocks represented nearly 8% of the Index. Neither company met our criteria for investment. The total impact on relative performance from Palantir and AppLovin was about 7 times higher than we have seen historically for two securities that are unique to the Benchmark, showing just how unparalleled the event was and something that we believe is unlikely to be repeated.”
5. FedEx Corp (NYSE:FDX)
Number of Hedge Funds Investors: 55
Jim Cramer in a latest program on CNBC said he prefers FedEx Corporation (NYSE:FDX) over UPS.
“I think that I question their strategy, and I certainly do not question the strategy of another stock that’s down a lot, which is FedEx. That’s the one I’d be buying. Raj Subramaniam is doing a remarkable job. FedEx stock’s up today. I think it’s the beginning of a big move. UPS challenge.”
Sound Shore Management stated the following regarding FedEx Corporation (NYSE:FDX) in its Q3 2024 investor letter:
“Meanwhile, detractors of note for the quarter were connected by a common theme: signs of a slowing economy. NXP Semiconductors, a leading chip maker for the auto industry, was lower on uncertain auto demand and package hauler FedEx Corporation (NYSE:FDX) lagged on muted volume trends. Importantly, both of these companies have ways to increase earnings outside of the business cycle, but are not entirely immune to the recent slowdown. Business cyclicality requires investor patience and a long-term perspective – we have both.”
4. General Motors Co (NYSE:GM)
Number of Hedge Funds Investors: 64
Jim Cramer in a latest program said that General Motors Co (NYSE:GM) was a cheap stock based on its PE ratio but given the potential impact of the new tariffs, the stock could be a “value trap.”
“Their future earnings are in grave danger. Turns out Ford and GM could be ridiculous value traps. While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda, along with Kia and Hyundai. A 25% tariff on imports from Mexico is basically a subsidy for those companies.”
Hotchkis & Wiley Large Cap Value Fund stated the following regarding General Motors Company (NYSE:GM) in its Q3 2024 investor letter:
“General Motors Company (NYSE:GM) is one of the world’s largest manufacturers of passenger vehicles. GM reported a strong Q2; however, management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”
3. Intel Corp (NASDAQ:INTC)
Number of Hedge Funds Investors: 68
Jim Cramer in a latest program said that Intel Corp (NASDAQ:INTC) shares are still expensive and expressed surprise that the stock is not down more. Cramer said Intel can lose its importance following Taiwan Semiconductor’s latest investment plans in the US.
“Intel’s now ground zero for the end of government, especially after Taiwan Semi committed $100 billion to build semiconductor foundries here in America. That brings a total of $165 billion. They made a previous commitment. Who the heck needs Intel? I don’t know where it fits in the president’s plans, other than being a poster child for President Trump’s view of President Biden’s legacy.”
Invesco Growth and Income Fund stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter:
“Intel Corporation (NASDAQ:INTC): The chipmaker reported weaker-than-expected quarterly results as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward; the stock fell on the news. We sold the position during the quarter.
The chipmaker’s quarterly earnings report was weaker than anticipated as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward. Given that a potential recovery appears to be further in the future than we originally anticipated, we sold the position.”
2. Rtx Corp (NYSE:RTX)
Number of Hedge Funds Investors: 73
A caller recently asked Jim Cramer about Rtx Corp (NYSE:RTX) during a program on CNBC. Cramer urged the investor to keep holding the stock.
“You were buying it, right? Keep it. It’s a fantastic stock. I wish I owned it for my charitable trust.”
Longleaf Partners Fund stated the following regarding RTX Corporation (NYSE:RTX) in its Q4 2024 investor letter:
“RTX Corporation (NYSE:RTX) – Aerospace and defense company RTX was a top contributor for the year. Our appraisal value has grown nicely since we first purchased the company just over a year ago. While the issues for Pratt & Whitney’s (P&W) Geared Turbofan engine are still not yet fully fixed, they have gotten better and given us another reminder that the point of maximum pessimism is only obvious in retrospect. We continue to have a conservative valuation on P&W so view this as a source of future value upside. The Raytheon segment has also performed better as the year has gone on, with recent signs of margin improvement. Strong industry tailwinds, prudent capital allocation and a solid balance sheet provide a foundation for sustained growth and eventual full value recognition.”
1. GE Vernova Inc (NYSE:GEV)
Number of Hedge Funds Investors: 89
Jim Cramer was recently asked about GE Vernova on CNBC. Here is what he thinks about the stock:
“Yes, I am. I’m high on GE Vernova. I’m high on GE Aerospace. And if that dog GE Healthcare would stop giving up the gains that it has, we own that for the trust. I’d be higher on that one too.”
Fidelity Dividend Growth Fund stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q3 2024 investor letter:
“Among individual holdings, the top relative contributor was an overweight stake in GE Vernova Inc. (NYSE:GEV). The company’s shares gained about 49% the past three months, as the power-generation business that split from General Electric on April 2 continued to fare well as a stand-alone entity. On July 24, the company reported quarterly earnings that were better than expected, boosted by its natural gas power-turbine business, and released an optimistic financial forecast for the rest of 2024.”
While we acknowledge the potential of GE Vernova Inc (NYSE:GEV), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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