We recently published a list of Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. Since Toyota Motor Corp (NYSE:TM) ranks 8th on the list, it deserves a deeper look.
Jim Cramer in his latest program talked about how the China factor is affecting US stocks. He said that companies that have exposure to China are getting hammered and he does not see that changing “anytime soon.”
Cramer said that currently there are many “pernicious forces working against the bulls.” The CNBC host said many growth stocks are declining right when interest rates are around the corner. He said that companies that don’t benefit from rate cuts are going down. Cramer also mentioned weak earnings reports which show companies having challenged client bases. Cramer mentioned a consumer products company that was recently hammered because of weakness in China.
Cramer thinks the problem in China is twofold: there’s a government that does not like America or American businesses while the population is “cash-strapped” even if they “like our country.”
Cramer said “China is so darn complicated.” He said at one point the Chinese government was “so business friendly” that Western companies thought it’s “insane” not to go there. But since the Trump administration, the country has been engaged in trade wars with the US.
Cramer said the Chinese government “took advantage of us on trade.”
For this article we watched several latest programs of Jim Cramer and picked 10 important stocks he’s talking about. With each stock we have mentioned its hedge fund sentiment. 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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Toyota Motor Corp (NYSE:TM)
Number of Hedge Fund Investors: 17
A caller recently asked Jim Cramer about his thoughts on Toyota Motors. Cramer recommended investors to stay away from Toyota and auto stocks in general.
While Toyota Motor Corp (NYSE:TM) shares have gained about 14% over the past year, analysts are turning bearish on the stock, mostly due to a lack of EV strategy. Instead, the company seems to be doubling down on ICE and traditional cars, which shows the management may be resisting the global shift towards EV which is inevitable. Toyota Motor Corp (NYSE:TM) Chairman Akio Toyoda in a recent statement pitched making better engines to reduce carbon emissions and the company published its strategy in a release entitled “The Engine Reborn.” Analysts took it as a horse cart company pledging to make better horse carts at a time when engine-based cars were starting to appear on the road. This strategic flaw is reflected in the numbers too. Toyota Motor Corp (NYSE:TM) Corolla has lost its title of the most popular car to Tesla Model Y. The company was also in the news amid a safety scandal allegedly involving cheating on certification tests for seven vehicle models.
Toyota Motor Corp (NYSE:TM) overall outlook is also soft. For fiscal Toyota expects to sell 9.5 million units, down from 11.09 million in FY 2024.
Overall, Toyota Motor Corp (NYSE:TM) ranks 8th on Insider Monkey’s list titled Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. While we acknowledge the potential of Toyota Motor Corp (NYSE:TM) 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 TM 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.
