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 Palantir Technologies Inc. (NYSE:PLTR) 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 software engineer manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 43
Cramer discussed Palantir Technologies Inc.’s (NYSE:PLTR) recently reported impressive quarter, and federal contracts and mentioned he liked its defense business.
“Why don’t we start with Palantir, which reported one of the best quarters of the year, fantastic growth, fantastic gross margins. That’s right. growth and gross margins together, that is fabulous. And they’re killing it with federal contracts, including some important work for the Pentagon. Palantir’s people… tend to win almost everything that they tender for. They also have a great commercial group, but I like their defense work. It’s a, what I used to call a total up stock.”
Palantir (NYSE:PLTR) is a prominent developer of advanced software platforms that specialize in integrating and analyzing complex data to aid in decision-making. Known for its work with government agencies, it provides essential tools for data-driven operations. Earlier this year, the company secured a significant $480 million contract from the U.S. Department of Defense to develop a prototype called the Maven Smart System.
This contract, expected to be completed by May 2029, marks a further deepening of the company’s relationship with the Pentagon, following a sole-bid solicitation from the Defense Department. Additionally, we talked about the company’s third-quarter earnings report in our article, Jim Cramer’s Best Performers List: Top 10 Stocks. Here is an excerpt from the piece:
“Palantir (NYSE:PLTR) saw particularly strong growth within its government business. Revenue from government contracts rose 33% year over year to $408 million, with U.S. government revenue alone surging by 40%, reaching $320 million. This marked the highest growth the company had experienced from its largest customer in 15 quarters.”
In November, Palantir (NYSE:PLTR) entered into a partnership with Anthropic and Amazon Web Services to offer U.S. intelligence and defense agencies access to the Claude 3 and 3.5 model families on AWS. The integration of these Claude models within Palantir’s data analytics platform will help government agencies process large amounts of complex data rapidly, identify patterns more effectively, streamline document review, and assist in making informed decisions during time-sensitive situations.
Overall PLTR ranks 7th on our list of the stocks that will do well in December according to Jim Cramer. While we acknowledge the potential of PLTR 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 PLTR 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.
