We recently published an article titled Was Jim Cramer Right About These 12 Stocks? In this article, we are going to take a look at where Concentra Group Holdings Parent, Inc. (NYSE:CON) stands against the other stocks.
Back then, Cramer was focused on the impact of future rate cuts and how different stocks would react. He argued that the market had become simple:
“Stocks that benefit from rate cuts get bought. Stocks that don’t benefit get sold.”
At that time, Cramer pointed to McDonald’s as an example of a rate-cut winner, despite the company having weak earnings at the time, saying:
“This market doesn’t care that it’s doing badly. It just treats the Golden Arches as a rate-cut winner.”
Meanwhile, he appeared rather bearish around big tech at the time. He warned against buying the “Magnificent 7”, saying that while they had thrived despite rate hikes, they wouldn’t necessarily benefit as rates came down. Here’s how he put it back then:
“For years now, the market has been rallying on companies that don’t need to borrow money, that don’t need rate cuts. But the flip side is that they won’t really benefit as rates come down.”
Tech stocks were under pressure at that time, and Cramer saw no short-term relief:
“For tech, the watchword is three words my staff loves to say: get out now.”
Cramer expressed some interesting opinions in that particular show. Let’s see how each prediction unfolded 7 months later.
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on July 30, 2024. We then calculated their performance from July 30th, 2024, market close to February 14th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q3 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Note: This article covers Jim Cramer’s commentary from July 30, 2024, and does not account for any changes in his opinions regarding the stocks mentioned. Therefore, the commentary should not be mistaken for his latest opinions on any of the stocks that are mentioned.
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 healthcare professional examining an X-ray of a patient with a serious cardiovascular disease.
Concentra Group Holdings Parent, Inc. (NYSE:CON)
Number of Hedge Fund Investors: N/A
Cramer talked a lot about the IPO market back then, which he was very fond of at the time. He saw Concentra Group Holdings Parent, Inc. (NYSE:CON) as an intriguing healthcare play but urged patience before buying.
“Now that Select Medical has spun off its Occupational Health business as Concentra, I think this one’s worth putting on your shopping list. Just hold off on the actual buying.”
Cramer liked the company’s dominant position in occupational health and noted that the company was going under the radar:
“Concentra is the largest provider of occupational health services in America, partnering with every single member of the Fortune 100 and 95% of the Fortune 500, yet nobody’s ever heard of them!”
However, he saw near-term risks due to its recent IPO and parent company Select Medical still owning 80% of the stock, which he believed would create selling pressure.
“Select Medical still owns a huge slug of stock that they plan to distribute to their own shareholders. Many of them may choose to sell, which is a big impediment to getting really excited about this stock right now.”
On valuation, Cramer found Concentra Group Holdings Parent, Inc. (NYSE:CON)’s price a bit steep compared to similar healthcare stocks. His call was to wait for the stock to dip below $20 before buying:
“When Select Medical distributes its remaining stake to shareholders, I bet the stock falls below $20, and that’s where you can do some buying.”
And the stock did fall below $20 a few times since then and had some solid bounce-backs. However, it has been mostly flat since Cramer talked about it, with a performance of -0.9%.
Overall CON ranks 1st on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of CON 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 CON 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 is originally published at Insider Monkey.
