We recently published a list of Jim Cramer Looked At These 7 Stocks Recently. In this article, we are going to take a look at where Chord Energy Corporation (NASDAQ:CHRD) stands against other stocks that Jim Cramer recently looked at.
Jim Cramer, host of Mad Money, recently shared his perspective on a few oil service stocks and the impact of President Donald Trump’s pro-drilling agenda. While Trump has rolled out extensive plans aimed at boosting the oil and gas industry, Cramer said that oil service stocks might not see immediate gains as a result.
“The whole oil and gas industry loves a ‘drill, baby, drill’ White House, but doesn’t automatically take up the oil service stocks, or the producers for that matter. After listening to what SLB and HAL had to say over the past week, considering the macro environment and the new geopolitical factors, I think their stocks can work over time, just perhaps not necessarily right now.”
READ ALSO: Jim Cramer Recently Shed Light on These 9 Stocks and 8 Stocks on Jim Cramer’s Radar
Cramer further elaborated that President Trump’s public statements often feel like a non-stop “lightning round” of buys and sells. Wall Street, he said, enjoys the energy and excitement that comes with Trump’s rapid-fire ideas, even if they don’t always lead to actionable investment opportunities.
“If you’re a trader, Trump’s a dream come true. He generates a huge number of catalysts every time he talks. I don’t think most people should trade too hard unless you do it professionally, but this is heaven on earth for them.”
Cramer also pointed to historical examples, specifically drawing a comparison to President Ronald Reagan’s time in office. He recalled that Reagan’s vision of a 600-ship Navy led to significant profits for defense contractors. However, Cramer noted an important difference between Reagan’s and Trump’s approach: while Reagan’s statements were more measured, Trump’s style is fast-paced and unpredictable. Cramer sees this rapid-fire communication as both a challenge and an opportunity for market participants.
“I think we have to expect that President Trump will say something every day that gets a ton of coverage… We need to monitor these statements, but, look, we can’t expect all of them to generate actionable investing ideas, even if they do produce bullish animal spirits that boost the market.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on January 23. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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).
A technician in a lab coat examining a sample of crude oil.
Chord Energy Corporation (NASDAQ:CHRD)
Number of Hedge Fund Holders: 50
Chord Energy Corporation (NASDAQ:CHRD) is a U.S.-based independent exploration and production company. It focuses on acquiring, exploring, developing, and producing crude oil, natural gas, and natural gas liquids, primarily in the Williston Basin. In response to a viewer’s question about the company, Cramer clarified:
“Well, not an oil guy here. I mean, you know that in the club, we know we’re selling our Coterra now that it’s hit $30. We think it goes still higher, but we don’t want an add, Jeff Marks and I talked to the club, we’re not adding any more oils.”
During the announcement of its Q3 2024 results, Danny Brown, Chord Energy’s (NASDAQ:CHRD) President and Chief Executive Officer, shared a new three-year outlook for the company, highlighting a significant capital expenditure plan. According to the company’s projections, it plans to allocate $1.4 billion annually in capital expenditures for the years 2025 through 2027, aimed at maintaining flat pro-forma FY24 oil production levels of 152,000 to 153,000 barrels of oil per day.
Brown emphasized that this capital spending plan reflects improved capital efficiency, driven by the company’s high-quality inventory, better operational practices, and over $200 million in synergies resulting from its merger with Enerplus.
It should be noted that on January 22, Morgan Stanley increased its price target on Chord Energy (NASDAQ:CHRD) to $160 from $158 while maintaining an Equal Weight rating on the stock. The firm updated its price deck based on Q4 actual results and the latest forward strip, noting that its 2025 EBITDA projections for the North American exploration and production sector are rising by an average of 11%.
The firm continues to favor gas over oil and, within the oil sector, prefers Majors and exploration and production companies that show a positive rate of change, according to an analyst note ahead of Q4.
Overall, CHRD ranks 4th on our list of stocks that stocks that Jim Cramer recently looked at. While we acknowledge the potential of CHRD as an investment, our conviction lies in the belief that 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 CHRD 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.
