We recently published a list of Jim Cramer Discussed These 6 Stocks Recently. In this article, we are going to take a look at where Trane Technologies plc (NYSE:TT) stands against other stocks that Jim Cramer discussed.
On Tuesday, Jim Cramer, host of Mad Money, defended the growing wave of artificial intelligence investment, drawing a distinct line between this boom and previous capital expenditure surges. He argued that the AI movement stands apart from other booms driven by the private sector, largely because of the immense wealth backing it from Big Tech leaders. Cramer quipped:
“Bubble, bubble, bubble and you know how it just seeps into your consciousness? And that’s why I want to retire that word, instead talk about whether it’s a capital expenditure boom, one that might go bust. But it’s a boom. It’s not a bust.”
READ ALSO: Jim Cramer Recently Put These 10 Stocks Under Spotlight and Jim Cramer Recently Talked About These 5 Subscription Stocks
Cramer highlighted that the economy has experienced many significant capital expenditure booms over time, noting that Deutsche Bank had recently published an impressive piece of research focused on these phenomena, examining both booms and busts.
The report from Deutsche Bank takes a look back at several major bubbles throughout history, including the explosive real estate market of the 20th century, as well as the dot-com and telecom booms, each of which culminated in significant losses. Yet, Cramer pointed out that not every capital expenditure boom ends in disaster. He cited various instances of successful themes that, despite their high risks, ultimately proved worthwhile. “These were fantastic themes, and no one ever called them bubbles,” he observed, adding that these movements, while capital-intensive, were largely initiated by government rather than the private sector. He added:
“This might be the boom that doesn’t go bust, because the players are so well capitalized. It simply doesn’t have to end that way…. But the bottom line: If you’re any of the hyper-competitive tech execs involved in the space race, you know what’s going on. You hate to lose and you won’t let it happen. After all, how do you think they got where they are in the first place?”
Our Methodology
For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 25. 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 worker inspecting a newly installed heating unit in a modern home.
Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 65
A caller asked Cramer’s thoughts on Trane Technologies plc (NYSE:TT) and Cramer replied:
“TT is absolutely terrific. We’ve had them on the show. They really know what they’re doing. I like ‘em. I [will] give you a twofer. You mentioned Florida West Palm, that is right where Carrier is, Dave Gitlin. Both stocks are excellent.”
Trane Technologies (NYSE:TT) designs, manufactures, and services a wide range of HVAC and refrigeration solutions, including air conditioning systems, heating units, energy recovery products, and refrigeration equipment for various sectors, while also offering energy efficiency programs, digital controls, and maintenance services.
Aristotle Atlantic Partners, LLC stated the following regarding Trane Technologies plc (NYSE:TT) in its Q4 2024 investor letter:
“Trane Technologies plc (NYSE:TT) detracted from performance in the fourth quarter of 2024. The company reported better than expected revenue and earnings growth at the end of October. The stock declined in December despite two investor conferences early in the month where the company reiterated expectations that current strong trends in commercial HVAC will continue into 2025, the service business is continuing to experience low double-digit growth, and the residential business is expected to improve from a lull in 2024. Higher interest rates have been a drag on industrial stock performance generally in December. Strength in the US dollar in 2025 will impact large cap companies like Trane, which have international exposure.”
Overall, TT ranks 3rd on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of TT 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 TT 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.
