We recently published an article titled Jim Cramer Discusses These 18 Stocks & President Trump’s $500 Billion AI Plan. In this article, we are going to take a look at where The Travelers Companies, Inc. (NYSE:TRV) stands against the other stocks Jim Cramer recently discussed.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer had a lot to say about a lot of stocks. Along with stocks, he was also full of comments about the new Trump administration and how it’s different from the previous one. Cramer shared, “If you go back over the councils that were disbanded post-Charlottesville, what you would see are a lot of traditional industrialists and drug companies.” According to him, “These were the people that were not drawn to, by Elon Musk. Elon Musk has changed the equation” to increase the role that technology companies and executives are playing this time around.
Commenting further on Musk, Cramer shared, “Now, by the way, there’s a lot of talk now about where is Elon Musk?” This means wondering where he is “in terms of having people in powerful positions say, in the Defense Department.” Cramer believes that Musk “doesn’t seem to have them” and added, “If Musk wants to be meaningful, I don’t want a seat at the table, I want a table.”
The CNBC host also mentioned some industries that will benefit from AI. As part of a discussion about the returns from the multiple billions of dollars that firms have invested into AI, Cramer cautioned not to “forget healthcare.” He believes “Healthcare’s gonna be a very big, very big part of AI. David, it’s not yet. And we need that, well-meaning people who believe in the industry have to have what people who are more than just trying to figure out how to make it so there’s a call center that’s better.”
Cramer also shared his thoughts about the breadth of market performance during the day. While markets were rising, he noted, “Yet the S&P oscillator I follow, [inaudible] is slightly overbought, there’s a lot more room.” Cramer believes “there’s a considerable part of the market that has done nothing. Nothing for years. And that’s coming on.” He doesn’t like small-cap stocks either. “And I’m not a small cap aficionado,” Cramer commented. He believes, “That stuff doesn’t work. People always try to chin that up. And then somebody sells a big small cap derivative.” The host added that instead of small-cap stocks, he likes “companies that frankly, what we, you know we didn’t think all that much of the second tier tech companies that are really taking off. The semis that haven’t done anything lately.”
As for President Trump, Cramer believes that he needs to look at insurance costs that affect a large number of Americans. According to him:
“The President has to take a look at these issues. Because this is where the, the copay, your insurance, your group insurance, your property, casualty insurance. That’s where the President’s going to put it. If he wants to put a stake in the inflation. He goes after the pharmacy benefits managers.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on January 22nd.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 woman signing a policy document while a representative from the insurance company looks on.
The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders In Q3 2024: 37
The Travelers Companies, Inc. (NYSE:TRV) is a New York-based property and casualty insurance provider. While continuous climate disasters have disrupted the insurance industry, the firm has done well recently since its shares are up by 16.9% year-to-date. The Travelers Companies, Inc. (NYSE:TRV)’s stock has gained since high premiums in the insurance industry have enabled the firm to beat earnings estimates in 2024. Cramer’s remarks for the firm were more sarcastic, as he went on to comment on high insurance costs and the need for President Trump to tackle them in order to help Americans. When told that The Travelers Companies, Inc. (NYSE:TRV) CEO had shared that it was too early to estimate the damages from California’s wildfires, Cramer replied:
“[On CEO saying it’s too early to estimate the impact from California fires] Is it too early to put a number on how far our insurance bills have gone up?”
Overall TRV ranks 17th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of TRV as an investment, our conviction lies in the belief that some 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 TRV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
