We recently compiled a list of the 10 S&P 500 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Enphase Energy, Inc. (NASDAQ:ENPH) stands against the other S&P 500 stocks.
Jim Cramer, host of Mad Money, recently discussed the current state of the market and also discussed both the leading and lagging stocks within the S&P 500. He posed an intriguing question: What if Trump’s tariffs are more negotiable than expected? Instead of a hard-line approach, Cramer suggested they could end up being more like a “steak knife” than a “meat axe,” meaning less harmful to trade and international relations.
READ ALSO Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently and 8 Stocks on Jim Cramer’s Radar
While a more reasonable tariff policy might not be ideal for global trade, it would be a positive development for stocks, particularly if it results in lower prices for American consumers or if multinational companies move their manufacturing to more favorable countries. Cramer emphasized that, for stockholders looking for growth, hopes should be placed on negotiable tariffs.
“If you own stocks and you want them higher, you have to hope for negotiable tariffs that could cause countries to lower prices to us or make multinational companies move their manufacturing base here to a more friendly country.”
Cramer also discussed the S&P 500’s performance this year, noting that, while it is clear which stocks have thrived in the Nasdaq, the winners and losers in the broader S&P 500 have been more difficult to pinpoint.
Additionally, Cramer mentioned that several of the stocks in his Charitable Trust, which are reliant on a rebound in China, are ones he’s not excited about at the moment, especially considering the disappointing Chinese economic data. He mentioned that his dismay for such stocks will only last until “they annualize the crummy Chinese numbers and then they’ll probably bounce back.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. 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, 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 solar panel array stretched across a large open field, its glimmering panels reflecting the sun.
Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 38
Dissecting Enphase Energy, Inc. (NASDAQ:ENPH), Cramer remarked:
“Finally, there’s Enphase, which is a solar equipment company that has the misfortune of making some of its equipment in China. Given that Trump won over solar advocate Vice President Harris, we can expect that much higher tariffs are looming on Chinese goods. I think it’s amazing that Enphase was only down 48% for the year. But hey, there’s always 2025.”
Enphase Energy, Inc. (NASDAQ:ENPH) is a company that designs, develops, manufactures, and sells energy solutions, particularly for the solar photovoltaic sector. It has been expanding its presence globally, particularly in Latin America. Recently, the company launched the IQ8P Microinverters in Colombia, Panama, and Costa Rica, aimed at supporting high-powered solar modules for both residential and commercial applications.
At the same time, Enphase Energy, Inc. (NASDAQ:ENPH) is operating in an environment shaped by broader geopolitical events. According to The Washington Post, President Trump’s economic advisers are working on a plan that would include universal tariffs of up to 20%, focusing on industries considered essential to national security, such as defense, energy, and critical medical supplies. This approach aims to prevent countries like China from circumventing tariffs by rerouting goods through third-party nations.
However, Trump has denied this report. He continues to advocate for sweeping tariffs of 60% to 100% on imports from China and a 25% tariff on all products coming from Mexico and Canada. This stance has been a part of his campaign promises and remains a topic of discussion in his economic policies.
Overall ENPH ranks 10th on our list of the S&P 500 stocks on Jim Cramer’s radar. While we acknowledge the potential of ENPH 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 ENPH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.