In this article, we will take a detailed look Jim Cramer Is Talking About These 10 Stocks Heading Into December.
Jim Cramer in a recent program talked about President-elect Donald Trump’s Treasury pick and highlighted his enthusiasm for the stock market.
“On the other hand, President Trump was all about Nielsen ratings when he was on The Apprentice, and as president, he repeatedly said, The Dow Jones Industrial Average all-time high, and the S&P 500 were his new Nielsen ratings. He likes being rated, he likes to win, and he wants that stock market to go up to ratify his performance. That’s a big reason why the market exploded higher when he won.”
Cramer also discussed Trump’s Treasury pick Scott Bessent’s possible 3-3-3 plan that calls for bringing the budget deficit down to 3% of GDP, 3% growth and producing 3 million barrels of oil per day.
Jim Cramer said he is skeptical about Elon Musk’s efficiency plans in the upcoming Trump administration.
“Can there be a legitimate top-to-bottom change in the efficiency of our government and its associated costs? Count me as a skeptic about any attempt to change the government, including Elon Musk and Vivek Ramaswamy’s Doge thing, because every penny of spending in the budget has a constituency. When you add all those proposed cutbacks together, you face tremendous opposition. But that’s not the point. What matters is that this Treasury Secretary-designate is a serious person.”
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For this article we watched several latest programs of Jim Cramer and picked 10 stocks he is talking about. With each stock we have mentioned its hedge fund sentiment. 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).
10. AMC Entertainment Holdings (NYSE:AMC)
Number of Hedge Fund Investors: 16
Answering a question about AMC Entertainment Holdings (NYSE:AMC) in a latest program on CNBC, Jim Cramer said:
“If it gets to six, I want you to sell it. Period. End of story.”
AMC is down 27% over the past year. Last year, the company managed to generate a small positive free cash flow in Q3, totaling just over $8 million. However, this year, the situation turned negative once again, with a significant cash burn of over $92 million. By the end of September, AMC had around $527 million in cash, while its debt stood at more than $4.1 billion.
Though the debt restructuring extends some maturities, AMC’s management is still navigating the business with considerable risk.
9. Enbridge Inc (NYSE:ENB)
Number of Hedge Fund Investors: 26
While talking about energy stocks that can benefit under the upcoming Trump administration, Jim Cramer named Enbridge Inc (NYSE:ENB) and said:
“The Canadian company that transports nearly 20% of the natural gas consumed in the U.S. and also operates North America’s largest natural gas utility by volume, serving customers in Ontario, Northeast Ohio, Utah, and North Carolina. For the pipeline business, Enbridge Inc (NYSE:ENB) is very strategically located, as it’s connecting the Gulf Coast to the Eastern Midwest, meaning the Appalachian Basin. They actually are in the Gulf King, okay? They also go across the Northeast, and they can get natural gas where it needs to go. Their system is just incredible.
Enbridge Inc (NYSE:ENB) has taken off in the back half of the year, rallying 22% since the end of June. Even after that move, though, the stock supports a bountiful 6.1% yield. It’s one of the safest dividends around, totally covered by the cash flow. We’ve been with it the whole way for years now and have been able to get that juicy yield.”
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 serves 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.
8. Sempra (NYSE:SRE)
Number of Hedge Fund Investors: 33
While talking about energy stocks that can benefit under the upcoming Trump administration, Jim Cramer named Sempra (NYSE:SRE) and said:
“I also like Sempra, which is a more diversified power company but has plenty of natural gas exposure through regulated gas utilities in California and a big natural gas pipeline network that helps bring gas to Mexico. Can you believe that? They need our natural gas after being so big in it, but they haven’t done any of the infrastructure. It’s also got a growing portfolio of LNG export facilities in both the U.S. and Mexico. This is another name that’s broken out since the election, straight up, actually also up 15%. Now, I would be a little more cautious and wait for it to come down.”
7. Robinhood Markets Inc (NASDAQ:HOOD)
Number of Hedge Fund Investors: 36
Jim Cramer in a Mad Dash episode on CNBC sounded bullish on Robinhood Markets Inc (NASDAQ:HOOD) because of the company’s success in attracting younger Americans who are interested in investing:
“This is the king, okay? These guys have the next generation. The other guys have the people who watch fire shows and hospital shows and detective shows. These guys have the young; they watch TikTok, they watch YouTube, and they watch their handhelds and trade crypto.”
Can HOOD shares go higher in the future?
In the latest earnings call with analysts, Robinhood’s CFO, Jason Warnick, highlighted the company’s significant growth in recent quarters, which has pushed it to an all-time high of 2.2 million Robinhood Gold subscribers. This growth, he noted, is part of Robinhood’s unique approach. Few other brokers manage to charge a subscription fee for using their platform. Robinhood Gold plays a crucial role in monetizing the company’s user base, but it’s only one aspect of its broader strategy.
“And one of the most exciting new parts of the Gold program is our Robinhood Gold card. When I’ve talked to Robinhood customers in recent months, the Gold card almost always comes up. If someone has it, they love it. If they don’t have it, they want to know when they’re going to get it. And I hear you. We’re working hard to increase the rollout, but we’re also being patient and carefully studying customer behavior as we grow so that we manage credit risk to profitably scale over time. While it’s still early, I wanted to share some emerging data from our 100,000 Gold card customers. First, customers love the Gold card. App store ratings continue to be five out of five with over 10,000 five-star reviews. Customers tell us they love the metal card, the digital app, and of course, the 3% rewards,” the company’s CEO Vlad Tenev said on the call.
Read the entire call transcript here.
Recently, Robinhood expanded its reach by acquiring TradePMR, a firm specializing in brokerage and custodian services for Registered Investment Advisors (RIA), in a deal valued at approximately $300 million. The move is seen as part of Robinhood’s push into the retirement account market. As of Q2 2024, the Investment Company Institute reported around $40 trillion in retirement investment assets in the U.S.
Robinhood’s estimated forward revenue growth stands at 26.79% year-over-year, nearly 393.55% above the sector median of 5.43%.
6. Coterra Energy Inc (NYSE:CTRA)
Number of Hedge Fund Investors: 39
While talking about energy stocks that can benefit under the upcoming Trump administration, Jim Cramer named Coterra Energy Inc (NYSE:CTRA) and said:
“This is another exploration production play, although it’s more balanced between oil and gas. In fact, after a pair of acquisitions announced earlier this month, Corterra revenue mix will tip a bit more in favor of oil next year. We like to say it’s more oily, less gassy. It does happen to have the lowest cost natural gas of any company in our country/
I like Corterra Energy because it’s one of the trust operators in the industry. I trust them to handle whatever environment we already have, making it a great long-term holding. When reported late last month, Corterra announced that they signed three new liquefied natural gas supply agreements to sell a total of 200 million cubic feet per day indexed to international price points. Now, that’s huge because international price points are much, much higher than domestic ones. The actual sales won’t take place until 2027–2028. That was a bummer to me, but it’s nice to see they’re going to unlock a lot of demand, and I think it gives it a great glide path for the next couple of years.”
Coterra Energy Inc (NYSE:CTRA) is also expected to benefit from various catalysts in the future. Data from Natural Gas Intelligence says there would be a 76% increase in LNG support capacity by late 2024 into 2025 amid expectations of a lift of ban on LNG exports. Data centers, EVs and an overall rise in economic activity in the future will also lift gas demand, helping stocks like Coterra Energy Inc (NYSE:CTRA).
Diamond Hill Mid Cap Strategy stated the following regarding Coterra Energy Inc. (NYSE:CTRA) in its Q3 2024 investor letter:
“Among our bottom Q3 contributors were Civitas Resources, Coterra Energy Inc. (NYSE:CTRA) Energy and Ashland. Oil and gas exploration and production companies Civitas Resources and Coterra Energy were pressured against a backdrop of weakening future global oil demand, which weighed in turn on West Texas Intermediate (WTI) and Brent crude prices and, consequently, the energy sector overall.”
5. EQT Corp (NYSE:EQT)
Number of Hedge Fund Investors: 48
Talking about the impact of a Trump presidency on natural gas stocks, Jim Cramer said in a latest program on CNBC that he’s bullish on EQT Corp (NYSE:EQT):
“Even before the election, the stock was getting some buzz. Bank of America reinstituted coverage with a buy rating in late October. Then the next day, EQT reported a terrific beat and raised their quarter, which did shock me…… If the natural rally truly has legs, then I’ve got to tell you, EQT—by the way, I still very much…(buy, buy, buy).”
There have been concerns around EQT Corp (NYSE:EQT) amid lower natural gas demand due to warmer winters. However, analysts believe natural gas demand will begin to increase in early 2025 while AI-driven electricity demand surge is almost guaranteed to help EQT Corp (NYSE:EQT) solve demand-related headwinds. EQT is behind a pure-play Marcellus Shale natural gas field in Appalachia. EQT Corp (NYSE:EQT) controls approximately 200,000 acres in northeast Pennsylvania, around 70,000 acres in eastern Ohio, 460,000 acres in southwest Pennsylvania, and 370,000 acres in West Virginia.
4. PepsiCo Inc (NASDAQ:PEP)
Number of Hedge Fund Investors: 58
Answering a question about Pepsi in a latest program on CNBC, Jim Cramer explained why he is bearish on the stock:
“The odds are just right now… If you have the Fed cutting rates, you shouldn’t own the stock. If you have the GLP-1 you shouldn’t own the stock. If you have people saying that junk food is not good for you, you can’t own the stock. It’s just become too darn hard. So even though it’s got a 3 and a half percent yield, I do think it goes. Unfortunately, I have to say, I think it goes lower.”
PepsiCo Inc (NASDAQ:PEP) is trying to compete with The Coca-Cola Company in the U.S. liquid refreshment beverage (LRB) market. Its share in the international carbonated soft drink (CSD) market remains notably smaller when compared with Coke. To maintain its leadership in the retail industry, PepsiCo has focused on acquiring numerous convenient food brands. Amid a decline in the consumption of sugary sodas and the rise of weight loss drugs, the company is focusing on new consumer trends. In 2023, PepsiCo also unveiled two ambitious nutrition goals, aiming to further cut sodium levels and provide 145 billion servings of a variety of ingredients annually by 2030.
3. Cheniere Energy Inc (NYSE:LNG)
Number of Hedge Fund Investors: 62
While talking about energy stocks that can benefit under the upcoming Trump administration, Jim Cramer named Cheniere Energy Inc (NYSE:LNG) and said:
“They were the first mover and have a nice lead when it comes to natural gas exports actually happening right now. Cheniere Energy Inc (NYSE:LNG) traded sideways from mid-2022 until the middle of this year, but it’s gained a mere 15%, anyway you want to look at it since the election, reaching new all-time highs.”
Cheniere Energy Inc (NYSE:LNG) is one of the biggest LNG companies in the world. According to a report by Shell earlier this year, the global gas demand is expected to rise 50% by 2040 amid increasing LNG appetite in Asia. Cheniere Energy Inc (NYSE:LNG) is operating with a wide moat since it’s the second biggest LNG company with a huge production infrastructure. Cheniere has facilities with 45 million metric tonnes per annum as of this year. Its Sabine Pass LNG Terminal in Louisiana has six operational trains. Cheniere Energy Inc (NYSE:LNG) has already secured orders or agreements for 95% of its anticipated production capacity extending into the middle of the year 2030.
2. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
Jim Cramer in a recent program made the case that investing in Tesla Inc (NASDAQ:TSLA) stock just because of Donald Trump’s possible support is a “bad reason” as he believes allowing EVs and related infrastructure all over the country won’t be simple for the upcoming government.
“I’m not against owning Tesla, you know that. I just think that this is a bad reason. Elon Musk tells a very compelling story about full self-driving as well as solar robots, all wrapped up in one stock of a company that happens to make vehicles. But the idea that the White House can somehow allow self-driving cars everywhere with the stroke of a pen, that’s just plain fanciful.
First, our country simply doesn’t work like that. We have state and local governments with tremendous power to block anything. I remember when I was going to be able to take a self-driving taxi from downtown Phoenix to Glendale, the home of the Arizona Cardinals, a couple years ago for the Super Bowl. It seemed so simple, except Glendale didn’t allow self-driving vehicles. I was incredulous, but the municipal government of Glendale was able to block us.
Second, you might think it’s natural for Trump to just declare the federal interstate highway system a self-driving zone, but you know what? That’s meaningless too. Think about it—how do you get on the interstate highway system? Other than a few municipalities that may be designated on some map someday, it’s catch-as-catch-can. The feds can’t control state or local self-driving laws. If they try it, those municipalities will sue the Federal Highway Administration, and they’re going to win.”
Cramer said Tesla Inc (NASDAQ:TSLA) does not need an “Elon Musk premium” as he believes the “Tesla premium” is enough to justify investing in the stock.
“Tesla’s a tech company; the others are automakers. And a tech company can get an insanely high price-to-earnings multiple with no one blinking so much as an eye about it.”
Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q3 2024 investor letter:
“The largest relative detractors during the quarter were Apple, Airbnb, and Tesla (not owned). We’ve spoken at length about our rationale for not owning Tesla, Inc. (NASDAQ:TSLA). In short, the market seems to be pricing in a lot of positive optionality for this company in the near-to-intermediate term (and particularly a fully autonomous fleet of electric vehicles in the medium term). What exists today is an automobile manufacturer limited to the higher-income segment that is increasingly challenged to sell vehicles when interest rates are not zero. We continue to question the company’s long-term growth profile and governance.”
1. Nvidia Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Talking about one of his favorite stocks, NVIDIA Corporation (NASDAQ:NVDA), in a latest program, Jim Cramer said:
“Frankly, I’ve never seen anything like what’s happening at Nvidia. Never, just never. And even though the stock was down despite 19 firms raising their price targets this morning, I said this stock is simply not capturing the seismic shift that’s happening here. You see, Nvidia is disrupting everything we know.”
Simply beating earnings estimates is not enough for NVIDIA Corporation (NASDAQ:NVDA) anymore. The stock fell despite reporting better-than-expected numbers for the latest quarter. However, analysts are sensing a growth slowdown. Nvidia’s Q4 revenue guidance missed the buy-side whisper number of $39 billion, and the company expects gross margins to keep shrinking next quarter. For Q4, non-GAAP gross margin is projected at 73.5%, down from 75% in Q3. NVIDIA Corporation’s (NASDAQ:NVDA) biggest customers, cloud hyperscalers — which account for 50% of its revenue — are increasingly developing in-house AI chips and collaborating with competitors like AMD. This raises concerns about Nvidia’s medium-to-long-term growth in demand and margins.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“In a reversal from the past two quarters, NVIDIA Corporation (NASDAQ:NVDA) represented our top relative contributor this quarter, despite the modest underperformance, declining -1.7%. In many ways, NVIDIA was a microcosm of the broader market’s heightened volatility. Beneath the placid surface, the company experienced a 27% drawdown followed by a +31% rally, only to repeat the cycle with a -21% drawdown followed by a subsequent 20% rally to finish the quarter. In our view, the stock’s volatility goes beyond fundamental business drivers, but the company in turn benefitted from increasing capital spending budgets from cloud service providers and large enterprises for generative AI (“GenAI”) infrastructure spending. Simultaneously, the stock endured weakness related to the delayed next-generation Blackwell chip, and an earnings forecast that exceeded expectations, albeit not as much as some investors hoped. While we continue to believe NVIDIA is a highly advantaged business, with significant demand for their chips and servers ahead of the need for that hardware from real-world businesses, we are cautious about its growth sustainability since it lacks recurring revenue.”
While we acknowledge the potential of Nvidia Corp (NASDAQ:NVDA), our conviction lies in the belief that under the radar 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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