We recently compiled a list of the Jim Cramer’s Game Plan This Week: 10 Stocks to Watch. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against the other stocks featured in Jim Cramer’s game plan for this week.
Jim Cramer, the host of Mad Money, recently discussed the current state of the market, touching on various factors including upcoming earnings reports and new inflation data. Reflecting on the November jobs report, which came in largely as expected, Cramer noted:
On Friday, Cramer remarked that the market had a relatively calm session, with the Dow dipping by 123 points, the S&P gaining 0.25%, and the NASDAQ climbing 0.81%. He emphasized that nothing about Friday’s action surprised him, and he maintained his expectation for a 25-basis point rate cut later this month. Cramer added that he still anticipates the Fed will go ahead with this move despite the recent data.
READ ALSO Jim Cramer Discussed 10 Stocks That Can Do Well in December and Jim Cramer’s Lightning Round: 7 Stocks to Watch
Looking ahead, Cramer highlighted Wednesday’s upcoming release of the Consumer Price Index (CPI), which he noted could play a crucial role in the Fed’s decision-making. With the Federal Reserve meeting in just two weeks, he cautioned that there will be chatter about the Fed’s decision to cut rates.
“All of us still see high prices when we go to the supermarket, right? So we shouldn’t be surprised if the CPI comes in hot. At that point, why should the Fed really bother to cut? Be ready for that kind of chatter. Don’t worry, they’ll still cut.”
The following day, Thursday, will bring the release of the Producer Price Index (PPI), which Cramer pointed out is another important inflation measure. He again expressed concern that inflation needs to cool down in order to avoid complications. There has been ongoing speculation about whether the Fed could hesitate on rate cuts, which could derail the market’s expectations. Cramer remarked that if inflation remains elevated, the Fed might have no choice but to delay or even shelve rate cuts for next year.
“Bottom line: Look, I’m trying to get my arms around a market that takes up all sorts of crypto, lots of unprofitable companies, never too great a sign for those who want the Fed to cut repeatedly,” he said. “I want you to keep that in mind so you won’t be surprised if we get some overheated inflation numbers next week and the market gives up some of these extraordinary gains.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on December 6. 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).
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Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Cramer mentioned that he expects Oracle Corporation (NYSE:ORCL) to report strong earnings due to the virtually limitless demand for data centers.
“Now first, here’s Oracle, one of the major companies building out these data centers. I think they’ll show incredible strength, amazing, really fabulous sales because there’s practically an endless demand for data centers. Let’s see if they’re still planning to build those things like crazy…. We’ll learn more from Oracle Monday evening.”
Oracle (NYSE:ORCL) provides a wide range of enterprise IT solutions, including cloud software applications, industry-specific solutions, infrastructure technologies like databases and cloud services, and hardware products. It is known for being one of the most cost-effective data center operators in the industry, a factor that has helped attract high-profile AI start-ups, including OpenAI and Elon Musk’s xAI.
According to the company, the demand for its cloud infrastructure services is currently surpassing supply. As of the first quarter of fiscal 2025, the company had 162 data centers either operational or under construction, with plans to expand to between 1,000 and 2,000 data centers in the future. The company also secured $3 billion worth of AI-related cloud contracts during the same quarter, signaling strong future growth potential for its cloud business.
Oracle (NYSE:ORCL) has set an ambitious target for fiscal 2026, expecting revenue to reach $66 billion, a 13% increase from the projection for fiscal 2025. The company also anticipates non-GAAP EPS to grow between 6% and 10%, with the expected range in constant currency being between $1.42 and $1.46. Furthermore, it forecasts its revenue to exceed $104 billion by fiscal 2029, marking significant long-term growth.
Overall ORCL ranks 3rd on our list of the stocks featured in Jim Cramer’s game plan this week. While we acknowledge the potential of ORCL 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 ORCL 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.
