We recently published a list of Jim Cramer Looked At These 23 Stocks Recently. In this article, we are going to take a look at where American Tower Corporation (NYSE:AMT) stands against other stocks that Jim Cramer looked at recently.
Jim Cramer, the host of Mad Money, offered an optimistic perspective on the market on Thursday as he challenged the prevailing pessimism among some on Wall Street. He highlighted the diverse range of sectors showing gains.
READ ALSO Jim Cramer Put These 16 Stocks Under a Microscope and Jim Cramer Commented on These 8 Stocks Recently
Cramer observed that when investors are focused on long-standing winners, like tech stocks, it can be easy to miss when their dominance starts to wane. Cramer expressed his hesitation to part ways with tech given its long-term success but he pointed out something surprising as he reviewed the top-performing sectors.
“But when I scroll through the winning sectors for the year, I am struck by how they represent a wide array of groupings that aren’t tethered to any particular economic worldview.”
Cramer noted that neither the outlook of a recession nor predictions of a major slowdown could explain the growth seen in sectors beyond tech and communication services. He discussed that this year’s leaders are not only unexpected but in some cases, they seem counterintuitive. He described them as “broad,” in the sense that they span a wide range of industries, each responding to different economic conditions. He highlighted that these sectors that are performing well now have been largely overlooked for years, as tech has long dominated the spotlight.
Cramer said that for a long time, market participants had hoped for a rally that would extend beyond the tech sector, and now it seems to be happening. However, he remarked, “except you can’t call it a rally anymore.” He went on to say that a day like Thursday, in his view, was a sign of a healthy market despite the constant narrative of trouble in the economy.
“But the bottom line: It’s tricky to see such a broad mixture of stocks winning here, from ones that can run in a recession to ones that can rally hard in a robust economy. What it tells me is that the market may be far healthier than we think, and this backdrop simply isn’t as bad as many would have you believe.”
Our Methodology
For this article, we compiled a list of 23 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 27. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A wide angled view of a high-rise office building, the windows reflecting a nearby cityscape.
American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 70
Commenting on American Tower Corporation (NYSE:AMT), Mad Money’s host said:
“The REITs rule in real estate, that’s the seventh best performing group, the real estate group and we have three very different ones, showing the broad nature of this rally in this part, the subset… Then American Tower, which is the REIT that owns cell towers… I mean call this a paragon of diversity here.”
American Tower (NYSE:AMT) is a well-known global REIT. The company is an independent owner, operator, and developer of multi-tenant communications real estate. Meridian Hedged Equity Fund stated the following regarding American Tower Corporation (NYSE:AMT) in its Q4 2024 investor letter:
“American Tower Corporation (NYSE:AMT) is a leading global owner and operator of wireless communications infrastructure, with a portfolio spanning the U.S. and key international markets. We hold American Tower for its exposure to the secular growth in wireless data consumption and its strategic positioning in underpenetrated emerging markets. The company benefits from long-term contracts with investment-grade wireless carriers, providing strong visibility into future cash flows. This quarter, performance was mixed. Revenue met expectations but fell short of consensus. Adjusted EBITDA declined slightly year-over year, impacted by the divestiture of its India business and elevated bad debt expense. However, organic tenant billings growth remained healthy, with U.S. and international markets posting solid growth. While we maintain conviction in American Tower’s ability to benefit from increasing data consumption and 5G network deployments, near-term currency headwinds and regional challenges warrant monitoring.”
Overall, AMT ranks 19th on our list of stocks that Jim Cramer looked at recently. While we acknowledge the potential of AMT 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 timeframe. If you are looking for an AI stock that is more promising than AMT 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
