Jim Cramer Looked At These 11 Stocks Recently

1. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 45

Ford Motor Company (NYSE:F) was mentioned during the episode and here’s what Cramer said:

“Let’s tackle first the market’s brilliant clairvoyance and I’ve been perplexed by the fact that Ford and General Motors have some of the lowest price-to-earnings ratios in the entire stock market… 7.3 and 4.3 times earnings, respectively. 4.3, remember the average stock of the S&P 500 trades at roughly 22 times earnings. Ford and GM look like the single greatest bargains in the world. Ford pays a… 6.2% yield. General Motors, has one of the most voracious buybacks I’ve ever seen.”

Cramer warned that Ford’s (NYSE:F) stock, which initially appeared undervalued, may be a value trap due to the risks posed by tariff issues that could threaten the company’s future earnings. He added:

“While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda along with Kia and Hyundai. A 25% tariff on imports from Mexico is basically a subsidy for those companies. Look out for big earnings cuts that will make the PE multiples go from, seem from very small to very large, making the stocks’ true colors come to life.”

Ford (NYSE:F) focuses on the design, production, and maintenance of various vehicles, including trucks, cars, vans, SUVs, and luxury models, offered under the Ford and Lincoln brands.

While we acknowledge the potential of Ford Motor Company (NYSE:F) 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 F but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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