We recently published an article titled Jim Cramer Discussed 9 Stocks for This Week’s Game Plan. In this article, we are going to take a look at where 3M Company (NYSE:MMM) stands against the other stocks Jim Cramer recently talked about.
Jim Cramer, the host of Mad Money, recently discussed this week’s events on Wall Street, which included President-elect Donald Trump’s inauguration and several companies’ earnings reports. Cramer touched on the broader theme of business operations, reflecting on how companies generally want the freedom to operate with minimal interference and lower taxes. He posed the question of whether that’s unreasonable, noting that it really depends on one’s perspective.
“Very unreasonable if you think big business is inherently nefarious and all these companies are run by greedy oligarchs, but if you believe in free market capitalism, letting businesses do what they want within certain limits, well that is the name of the game.”
READ ALSO 9 Stocks on Jim Cramer’s Radar and Jim Cramer’s Lightning Round: 7 Stocks Under the Spotlight
When discussing Trump’s inauguration, Cramer highlighted that Trump seems intent on rolling back many of the regulations put in place by the Biden administration, including closing borders and taking aggressive steps against undocumented immigration. While acknowledging that not all of Trump’s plans might be realized, Cramer remarked that some of his policy changes could be enacted quickly, while others might never reach the Supreme Court. Regardless, he noted that it appears Trump is preparing for a strong push to support business interests.
“That’s the only thing that can justify this market’s recent rally. Now, my interactions with soon-to-be President Trump tended to revolve around the stock market, which he thinks of as the true barometer of his job performance. It’s funny because Biden never cared about the stock market even though stocks did great during his administration.”
According to Cramer, Biden approached his presidency with a focus on labor and class, whereas Trump has made it clear that he intends to prioritize business and capital. He expressed little expectation that this would change in Trump’s second term, suggesting that there will be plenty of executive orders to analyze moving forward.
“Here’s the bottom line: As you wrap up the Biden administration, even though I’ve been very critical of his approach to the business, stocks have done well. The Dow is up 41%, the S&P is up 58%, and the Nasdaq recorded 49%. Any other president would be proud of that track record. The fact that Biden seems to not be, maybe it says pretty much everything.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 17. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A specialized industrial laboratory, filled with high-tech machinery for producing abrasives.
3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 82
As 3M Company (NYSE:MMM) is set to report its fourth quarter 2024 earnings, Cramer praised the company’s CEO and bet that the company will perform well.
“How about Tuesday? Tuesday continues with the regular reporting season and we got some pretty compelling companies that I expect to talk about a brighter future, even if it’s also somewhat uncertain both politically and economically. 3M reports in the morning, and I bet that CEO Bill Brown, he’s a total hitter, I think he’ll deliver us an awesome quarter.”
3M (NYSE:MMM) provides diverse technology products across the safety, industrial, transportation, electronics, and consumer sectors, including abrasives, safety equipment, automotive solutions, and consumer goods. As a result of strong performance, the company raised its full-year adjusted earnings expectations for 2024.
The updated forecast for adjusted total sales growth is approximately 1%, up from the prior estimate of a range between -0.25% and +1.75%. 3M (NYSE:MMM) revised the adjusted organic sales growth forecast to about 1%, compared to the previous projection of flat to +2%. Additionally, the adjusted EPS forecast was adjusted to a range of $7.20 to $7.30, up from the prior expectation of $7.00 to $7.30.
Overall MMM ranks 1st on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of MMM 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 MMM 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
