We recently published an article titled Jim Cramer Discussed 10 Stocks That Can Do Well in December.In this article, we are going to take a look at where EQT Corporation (NYSE:EQT) stands against the other stocks that can do well in December according to Jim Cramer.
Jim Cramer, the host of Mad Money, recently shared a list of ten stocks he believes will perform well in December. He pointed out that stocks that do well in November tend to continue their strong performance into the final month of the year.
Cramer explained that the beginning of a new month brings attention to the previous month’s performance, and with that, a significant influx of money flows into the market. This money, he said, tends to validate the moves of the largest stocks, creating a cycle where money is immediately put to work, often benefiting the Magnificent Seven.
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Cramer also highlighted a common pattern at the end of the year, noting that people tend to make contributions to their retirement accounts when the year is going well. He emphasized that this trend is already visible in the market. When asked why a strong November often translates into a positive December, Cramer pointed to the mechanics of money management. He said that this pattern isn’t new for him, elaborating:
“Before I started my Charitable Trust more than two decades ago, I ran a hedge fund. I was always looking for an edge, and one of the most reliable patterns I found is that, when December rolls around, you mimic the biggest winners of November.”
Cramer recalled how, during his hedge fund days, he would focus on the top-performing stocks of November, buying heavily into those picks and letting them continue to perform through the end of the year. He remarked that this approach has proven to be successful year after year.
In addition to the stocks he recommended, Cramer also noted a category of stocks tied to travel. He mentioned that travel-related industries, including airlines and cruise ships, were particularly strong in November and could continue to show promise in December.
“Now, there are other[s] underneath this list, ones that involve traveling. To me, that means you could buy anything connected to travel, including the airlines… Cruise ships work… But the bottom line: If you want to know what I think could do best in the month of December, or simply what worked best in the month of November, so now you got your marching orders and I say (buy, buy, buy).”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during a recent episode of Mad Money on December 2. 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 storage facility for natural gas, showing the vast reserves of this abundant energy source.
EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 48
Calling EQT Corporation (NYSE:EQT) “the single biggest beneficiary of Trump’s election”, Cramer stated:
“Finally, number 10, my favorite is EQT, that’s the largest natural gas company in the country. Talk about a Trump stock. Perhaps the single most thriving industry in our country is the liquified natural gas complex, the apex, all of the LNG export terminals in Louisiana and Texas, both in existence and those being built or planned.
Given that we have absurd amounts of natural gas in this country, we’re the largest exporter in the world, the export market is a bonanza. Almost everyone needs our cheap natural gas but at the beginning of the year, Biden put a pause on the approval of these LNG terminals. The move caught everybody by surprise, including companies that have spent billions upon billions of dollars doing these things and it crushed any stock involved in the process. Now we do expect that the pause is… maybe eliminated, go right back to work [on] the first day of Trump’s administration. No wonder EQT stock caught fire. It may be the single biggest beneficiary of Trump’s election.”
EQT (NYSE:EQT) is a leading natural gas production company in the United States, focused on the extraction and sale of natural gas and natural gas liquids. Recently, we covered Cramer’s comments about the stock’s performance post-election in our article, Jim Cramer’s List of 7 Energy Stocks for the Trump Trade. Here is an excerpt:
“After spending a couple years trading sideways, EQT has caught fire since the election, climbing 22% to its highest level since late 2022. Well, even before the election, this stock was getting some buzz.”
On December 5, JPMorgan analyst Arun Jayaram raised the price target on EQT (NYSE:EQT) stock to $50 from $44 while maintaining an Overweight rating. The firm anticipates that in 2025, natural gas producers will benefit from “three powerful secular demand trends”: the expansion of liquefied natural gas export capacity, increased power demand driven by electrification, and the transition from coal to natural gas.
JPMorgan updated its exploration and production models through 2030, reinforcing its outlook for long-term gas prices above $3.50 per MMBtu, as the firm believes prices will need to adjust higher to encourage additional supply growth from the Haynesville and other high-cost gas regions. Additionally, JPMorgan expects the oil market to move from balanced conditions in 2024 to a surplus in 2025 due to supply increases, prompting the firm to adopt a “more defensive stance.”
Overall EQT ranks 5th on our list of the stocks that will do well in December according to Jim Cramer. While we acknowledge the potential of EQT 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 EQT 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.