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 Texas Pacific Land Corporation (NYSE:TPL) 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 pipeline running through a rural landscape, a reminder of the companies oil and gas Royalty Interest.
Texas Pacific Land Corporation (NYSE:TPL)
Number of Hedge Fund Holders: 20
Discussing Texas Pacific Land Corporation (NYSE:TPL), Cramer said:
“…. a bankrupt railroad that sit atop vast quantities of oil and gas in the Permian Basin that we’ve covered, and I’m proud to say we really kind of nailed. This stock kept going higher, the stock finished up 111%, but at one point it was much, much higher.
I think the oil trade will be hurt by excess drilling. Something that will, it always seems to happen when we get a fossil fuel-friendly president. Now there are better stocks. I like Coterra for the Charitable Trust because it has both natural gas and oil. Better bet. I think it’s breaking out here.”
Texas Pacific Land Corporation (NYSE:TPL) is a company that specializes in land and resource management, water services, land leasing, and material sales. It has an ownership of 873,000 acres of land in the Permian Basin, a significant oil and gas region in West Texas.
However, according to management, the company is also looking beyond the traditional oil and gas sector for new growth opportunities, particularly in wind power and data centers. The company has been exploring the data center space, recognizing the increasing demand for power and space as tech companies build facilities to support AI. Management believes the company’s extensive land holdings in West Texas position it well to capitalize on this growing demand.
As noted by CEO Tyler Glover, “TPL just has a lot of positive attributes for data centers.” In addition to wind power and data centers, Texas Pacific Land Corporation (NYSE:TPL) is addressing the increasing demand for energy across various sectors. Over the past 24 months, the company has contracted more than 700 megawatts of solar energy projects. It is also involved in seven utility-scale battery projects, four Bitcoin mining operations, and 78 megawatts of active power generation, with another 50 megawatts in development.
Overall TPL ranks 3rd on our list of the S&P 500 stocks on Jim Cramer’s radar. While we acknowledge the potential of TPL 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 TPL 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.
