We recently compiled a list of the Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024. In this article, we are going to take a look at where Eaton Corporation plc (NYSE:ETN) stands against the other companies that hit $100 billion in market cap in 2024.
Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.
READ ALSO 10 Best Jim Cramer Stocks to Buy According to Analysts and Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight
He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.
Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:
“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”
Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.
“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, 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 technician standing in the middle of a power station, inspecting a power distribution system.
Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 90
Cramer mentioned Eaton Corporation plc (NYSE:ETN) and remarked:
“Now it was a big cluster with gains in the mid-fifties… Then there’s Eaton, Charitable Trust holding, makes electrical components for the data center.”
Eaton (NYSE:ETN) is a power management company offering a wide range of electrical, aerospace, vehicle, and eMobility products and services. As per management’s guidance, the company expects its organic growth for 2024 to range between 8% and 9%, although it anticipates the revenue growth to fall on the lower end of that spectrum due to challenges like ongoing labor strikes in the aerospace industry and a slowdown in vehicle markets.
For 2024, adjusted EPS is forecast to be between $10.75 and $10.81, with the midpoint of $10.78 representing an 18% growth in adjusted EPS. This projection reflects a slight increase of $0.08 over its previous estimate and a $0.63 rise from its initial guidance for the year. Looking ahead to 2025, management expects strong growth across nearly all markets, with particularly high growth anticipated in data centers, distributed IT, commercial aerospace, and electric vehicles.
Utility and other markets are also expected to experience solid growth, while the commercial vehicle market is forecast to decline. In total, Eaton (NYSE:ETN) anticipates its end markets will grow by 6% to 8% in 2025, with incremental margins between 30% and 35%. The company’s ongoing multi-year restructuring program is expected to result in savings of $75 million. Additionally, it plans to continue share repurchases, estimating around $2 billion in buybacks for the year.
Overall ETN ranks 5th on our list of the companies that hit $100 billion in market cap in 2024 according to Jim Cramer. While we acknowledge the potential of ETN 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 ETN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
