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 CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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).
CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cybersecurity firm known for its sophisticated Falcon platform, which provides a variety of endpoint security solutions. When a caller asked Cramer about the company, he said, “… that one’s going higher. We’re going to have the anniversary of the July outage, don’t forget, and then it’s gonna fly.”
In 2024, the company faced a significant setback last summer when a botched update caused a global outage affecting Windows computers and servers. As a result of the incident, the stock experienced a sharp decline. However, according to PYMNTS, CrowdStrike (NASDAQ:CRWD) CEO, George Kurtz, recently commented that the company successfully turned a challenging situation into an opportunity. PYMNTS noted that the company has fully recovered from that loss and has seen its stock now surpass its value prior to the outage, as reported by the Financial Times. From July 19, 2024, the stock has gained over 20%.
Kurtz explained that CrowdStrike (NASDAQ:CRWD) managed to transform this crisis into a competitive advantage, maintaining customer trust throughout the process. He shared that customers have continued their relationships with the company, with one client even expressing that “broken bones heal stronger” and they didn’t expect such an issue to occur again. Kurtz contrasted this with competitors, who haven’t faced a similar crisis and might pose a higher risk to customers.
Overall, CRWD ranks 1st on our list of stocks that stocks that Jim Cramer recently looked at. While we acknowledge the potential of CRWD 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 CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
