We recently published a list of Jim Cramer’s Latest Stock Portfolio: Top 10 Recommendations. Since Enbridge Inc (NYSE:ENB) ranks 6th on the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the concept of “suitability” of stocks in investing, which emphasizes the importance of picking individual stocks based on your personal context, circumstances and life goals instead of short-term market movements. Cramer recalled his days at the Harvard Law School and how he used to run to the library to read research reports on companies to dig out information on quality stocks on a week-to-week basis. When Cramer joined Goldman Sachs, an “executive” at the firm introduced him to the concept of suitability, advising him never to recommend stocks to people without knowing what they want out of investing. According to Cramer, that “best semiconductor stock” might not be good for all individuals and therefore it’s necessary to know the “tolerance” and risk appetite of investors.
Answering a question during the program, Cramer said technical analysis, including paying attention to RSI values, is “incredibly” important to him and he does not like to buy stocks if “their chart is bad.”
For this program we watched several latest programs of Jim Cramer and picked 10 stocks he talked about recently. These include stocks he’s bullish on as well as the ones he recommends selling. We have analyzed each stock in detail to see its fundamentals and know what the Wall Street believes about it. We have also mentioned hedge fund sentiment with each company. 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).
Enbridge Inc (NYSE:ENB)
Number of Hedge Fund Investors: 32
Jim Cramer recently pitched Enbridge Inc (NYSE:ENB) as a high-yield dividend stock which also has strong growth prospects in terms of share price appreciation. Cramer was responding to a questioner who asked about the benefits of investing in equity markets versus treasury bonds which seem much safer in the current market environment.
“You want to take the long-term view. You can buy a dividend-yielding stock that is very good, like Enbridge, like ONEOK, that have growth, not just dividend.”
In May, Jim Cramer said that he likes Enbridge Inc (NYSE:ENB) and trusts its management team.
Enbridge Inc (NYSE:ENB) has been growing its dividends consistently over the past 29 years. Enbridge Inc (NYSE:ENB) is also seen as an indirect AI play since companies are set to spend a fortune on power and energy solutions to meet data center-driven demand. Enbridge Inc (NYSE:ENB) is positioned well to benefit from this since it’s one of the largest natural gas utility companies and one of the largest pipeline companies in North America. Enbridge Inc (NYSE:ENB) bought three natural gas utilities from Dominion Energy, Inc. (D), which serve 3 million people across Ohio, Utah, Wyoming, Idaho, and North Carolina. With this acquisition, ENB’s utility segment now serves over 6 million customers in North America.
Overall, Enbridge Inc (NYSE:ENB) ranks 6th on Insider Monkey’s list titled Jim Cramer’s Latest Stock Portfolio: Top 10 Recommendations. While we acknowledge the potential of Enbridge Inc (NYSE:ENB), 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 Enbridge Inc (NYSE:ENB) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
