We recently published a list of Jim Cramer’s Top 11 Trump Trades: Winners and Losers. Since Coterra Energy Inc (NYSE:CTRA) ranks 11th on the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the consequences of the failed assassination attempt on Donald Trump and mentioned a few stocks that could benefit if the former President comes to power again.
“You are sticking your head in the sand if you think nothing has changed after the failed assassination attempt on the now-official Republican nominee for President.”
Cramer said that the “frightening moments” of the assassination attempt have indeed “cut in the favor” of Trump’s win and he was “already leading in the polls.”
Cramer recalled the days when he was the anchor of Kudlow & Cramer show and Biden was a senator from Delaware. Cramer said Biden once told him that he was the “poorest senator out of one hundred because he owned no stocks.”
“He was actually bragging about it,” Cramer said.
Cramer said that Joe Biden is not the “champion” of stocks and he’s “on board with labor.”
Jim Cramer’s Thoughts on Donald Trump
Here’s what Cramer said about Trump:
“In the many years I’ve known Trump and I have known him fairly well, he’s been wildely pro stock market, always watching it like a hawk. He loves bantering about the stock market.”
Cramer said that even though Trump was in “real estate, he enjoyed stocks.”
Jim Cramer added that Trump always thought there was too much regulation and was also “wildly” pro-oil and gas. The CNBC host said since Trump cannot see the stock market going down and sees the market gains as a positive factor even for his presidency, his arrival in the White House could boost stock portfolios.
“Hate him or like him, he’s good for your portfolio.”
For this article watched the latest programs of Cramer where he mentioned stocks that could benefit from a Trump presidency. With each stock, we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Coterra Energy Inc (NYSE:CTRA)
Number of Hedge Fund Investors: 40
Jim Cramer has repeatedly pitched Coterra Energy Inc (NYSE:CTRA) as a promising stock to buy over the past several months. In his latest program he said Coterra Energy Inc (NYSE:CTRA) could also gain if Trump comes to power.
Cramer’s charitable trust also owns a stake in the company. He said Coterra Energy Coterra Energy Inc (NYSE:CTRA) could be a “winner” if there’s a spike in natural gas orders.
One of the reasons why Cramer has been recommending Coterra is the rising energy demand on the back of the data center boom. During Q1 earnings call, Coterra Energy Inc (NYSE:CTRA) management talked about data centers and AI-led demand:
In spite of near-term headwinds, we remain wholly optimistic on natural gas. With coming LNG export capacity, near-term power demand and the evolving discussion about the long-term power demands of AI-driven data center needs, it is hard not to be constructive on the future of natural gas.
We watch this conversation closely and have heard forecast for incremental natural gas demand driven by growing data center consumption that range from 3 Bcf per day to 30-plus Bcf per day, by the year 2030. We will welcome increased demand anywhere within that range.
Read the entire earnings call transcript here.
Coterra Energy Inc (NYSE:CTRA) is expected to benefit from various catalysts in the future. Data from Natural Gas Intelligence says there would be a 76% increase in LNG support capacity by late 2024 into 2025 amid expectations of a lift of ban on LNG exports. Data centers, EVs and an overall rise in economic activity in the future will also lift gas demand, helping stocks like Coterra Energy Inc (NYSE:CTRA).
The company is expected to generate about $1.3 billion in 2024 free cash flow. Coterra Energy Inc (NYSE:CTRA) raised its full-year oil production forecast by 2% to 3% due to quicker cycle times and strong well performance. It also maintained its natural gas production outlook despite recent overperformance. Improved natural gas prices in the second half of 2024 are expected to prompt the completion of deferred wells.
Diamond Hill Mid Cap Strategy stated the following regarding Coterra Energy Inc. (NYSE:CTRA) in its fourth quarter 2023 investor letter:
“Other bottom contributors in Q4 included Coterra Energy Inc. (NYSE:CTRA), VF Corporation and Ciena Corporation. Coterra Energy is an oil exploration and production company focused in West Texas’s Permian Basin and Oklahoma. Though production is beating expectations, shares traded in sympathy with the broader industry, which declined alongside falling oil and natural gas prices.”
Overall, Coterra Energy Inc (NYSE:CTRA) ranks 11th on Insider Monkey’s list titled Jim Cramer’s Top 11 Trump Trades: Winners and Losers. While we acknowledge the potential of Coterra Energy Inc (NYSE:CTRA), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CTRA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.