We recently published a list of Jim Cramer is Talking About These 10 Stocks. In this article, we are going to take a look at where Chevron Corp (NYSE:CVX) stands against other stocks Jim Cramer is talking about.
Jim Cramer in a latest program on CNBC said that the market is narrowing again as he sees gains getting concentrated in big tech stocks again amid bond movements.
“If the bond market doesn’t start behaving and calming down, and long-term interest rates don’t stop going up, we are gonna start losing the groups that led us higher for months and go back to our bad old ways with just a couple of magnificent ones.”
Jim Cramer said that this trend was more or less expected as market assumptions following the 50bps rate cut by the Federal Reserve proved to be wrong down the road.
But then that darn double cut—we saw something that hasn’t happened since 1995. We saw loan rates go higher, not lower. It was a total buzzkill, and we’re beginning to feel it with earnings.
Cramer then talked about a latest earnings report from a notable homebuilder that showed soft results, indicating a weaker consumer. Cramer then summarized his thesis again on why he sees the overall market trajectory in what he called a “suboptimal situation.”
“If interest rates don’t stop rising quickly—they can go up slowly, but this quick rise means we’ll go right back to the same old story. Only a few big tech stocks were winning, while many more were losing. In other words, we’re on the verge of what I can describe as an extremely suboptimal situation if the bond market doesn’t settle down.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
Our Methodology
For this article we watched several latest programs of Jim Cramer on CNBC and picked 10 stocks he’s talking about. With each company 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).
An aerial view of an oil rig at sea, the sun glinting off its structure.
Chevron Corp (NYSE:CVX)
Number of Hedge Fund Investors: 64
Jim Cramer recently visited Chevron Corp (NYSE:CVX)’s offshore facility in the Gulf of Mexico. During a program on CNBC from the facility, Cramer said that Elon Musk was “wrong” when he said during the latest Tesla event that ICE cars are becoming a “niche business.”
“He (Elon Musk) said gasoline-powered cars will soon be a niche business, invoking the horse—a veiled reference to the buggy. I say, wait a second. Chevron Corp (NYSE:CVX)’s a big company too. CEO Mike Wirth, our guest tonight, did not spend more than $5 billion on this thing because fossil fuel-powered cars will be a niche business. Elon Musk, while he talks a better game than just about anyone, and I think Tesla’s got tons more room to run—how about that? But he’s wrong on this,” Cramer said.
The CNBC host then made the case of fossil fuels and natural gas and said conventional energy would be needed to fulfill the insatiable demand coming from data centers.
“If we need more energy, we’re going to get it from what comes out of the ground in places like this—fossil fuels that will power the data center, specifically natural gas.”
Overall, CVX ranks 5th on our list of stocks Jim Cramer is talking about. While we acknowledge the potential of CVX, our conviction lies in the belief that under the radar 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 CVX 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.
