We recently published a list of Jim Cramer Says Buy These 5 Industrial Stocks Before Rate Cuts — And 5 Other Stocks He’s Talking About. Since Parker-Hannifin Corp (NYSE:PH) ranks 3rd on the list, it deserves a deeper look.
Jim Cramer said in a latest program on CNBC that the NASDAQ has become an “annoying source of funds” for other indexes as mutual funds pull out of tech and growth stocks that would not benefit from rate cuts and funnel these funds into the companies that can “super-charge” their earnings amid the expected rate cuts in September.
Cramer said that the decline of tech stocks could be “painful” for many because while these companies do not benefit from rate cuts, their earnings are still strong. Cramer said there are two kinds of companies that will benefit from rate cuts: the ones with cyclical businesses that thrive during rate cuts and those with high dividend yields.
Cramer said that by the time the Fed would announce its first rate cuts, it would have been “too late” to buy the stocks that benefit from rate cuts.
“You have to let them recharge, let them come down and then you can pull the trigger,” Cramer said.
In a separate program a few days ago Jim Cramer specifically talked about five industrial stocks he’s bullish on before rate cuts. In this article we mentioned these five stocks along with a few other stocks Cramer is talking about during his programs these days. With each company 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).
Parker-Hannifin Corp (NYSE:PH)
Number of Hedge Fund Investors: 67
Jim Cramer in a latest program praised Parker-Hannifin Corp (NYSE:PH) latest quarterly results, saying it was like “stars flying out of it.”
“Here is a company that makes motion and control systems along with filtration products, fluid connectors and engineered equipment for aerospace and defense, industrial equipment, vehicles, heating, ventilation and air conditioning – all the things that you probably don’t want to do but I don’t care because it’s really making a lot of money.”
Cramer said that Parker-Hannifin Corp (NYSE:PH) is also shaking its portfolio to benefit from secular growth “megatrends” including aerospace, infrastructure, clean energy, semiconductor manufacturing and again the data center.
Cramer said that Parker-Hannifin Corp (NYSE:PH) beat estimates on organic growth and EPS and gave a strong outlook.
Madison Investors Fund stated the following regarding Parker-Hannifin Corporation (NYSE:PH) in its Q2 2024 investor letter:
“Parker-Hannifin Corporation (NYSE:PH) is a leading diversified industrial manufacturer. The company continues to execute well with respect to improving margins and integrating the recent acquisition of Meggitt. However, the industrial economy is slowing, which weighed on investor sentiment.”
Overall, Parker-Hannifin Corp (NYSE:PH) ranks 3rd on Insider Monkey’s list titled Jim Cramer Says Buy These 5 Industrial Stocks Before Rate Cuts — And 5 Other Stocks He’s Talking About. While we acknowledge the potential of Parker-Hannifin Corp (NYSE:PH), 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 PH 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.