We recently published a list of Jim Cramer Discussed These 6 Stocks Recently. In this article, we are going to take a look at where GSK plc (NYSE:GSK) stands against other stocks that Jim Cramer discussed.
On Tuesday, Jim Cramer, host of Mad Money, defended the growing wave of artificial intelligence investment, drawing a distinct line between this boom and previous capital expenditure surges. He argued that the AI movement stands apart from other booms driven by the private sector, largely because of the immense wealth backing it from Big Tech leaders. Cramer quipped:
“Bubble, bubble, bubble and you know how it just seeps into your consciousness? And that’s why I want to retire that word, instead talk about whether it’s a capital expenditure boom, one that might go bust. But it’s a boom. It’s not a bust.”
READ ALSO: Jim Cramer Recently Put These 10 Stocks Under Spotlight and Jim Cramer Recently Talked About These 5 Subscription Stocks
Cramer highlighted that the economy has experienced many significant capital expenditure booms over time, noting that Deutsche Bank had recently published an impressive piece of research focused on these phenomena, examining both booms and busts.
The report from Deutsche Bank takes a look back at several major bubbles throughout history, including the explosive real estate market of the 20th century, as well as the dot-com and telecom booms, each of which culminated in significant losses. Yet, Cramer pointed out that not every capital expenditure boom ends in disaster. He cited various instances of successful themes that, despite their high risks, ultimately proved worthwhile. “These were fantastic themes, and no one ever called them bubbles,” he observed, adding that these movements, while capital-intensive, were largely initiated by government rather than the private sector. He added:
“This might be the boom that doesn’t go bust, because the players are so well capitalized. It simply doesn’t have to end that way…. But the bottom line: If you’re any of the hyper-competitive tech execs involved in the space race, you know what’s going on. You hate to lose and you won’t let it happen. After all, how do you think they got where they are in the first place?”
Our Methodology
For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 25. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A doctor and a patient discussing a therapy plan that includes pharmaceutical products.
GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 38
A caller asked if Cramer deviated from his previous bullishness on GSK plc (NYSE:GSK), in light of the threatened tariffs on the pharma companies. In response, Cramer said:
“Not at all, not at all. I like GSK very much. I think it’s a very good company. I think Dame Walmsley’s doing a terrific job. I think the stock, the fact that it’s at a very low PE and it yields 4%, that’s my kind of stock. I think you put it away, buy it, and put it away.”
GSK plc (NYSE:GSK) is engaged in research, development, and production of vaccines, as well as specialized and general medicines aimed at preventing and treating various diseases. In early March, Cramer was similarly bullish on the company as he said:
“Well, look, GSK is a very inexpensive stock with a 4% yield, with a lot of things going for it. I’m gonna say yes to that.”
Overall, GSK ranks 4th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of GSK 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 time frame. If you are looking for an AI stock that is more promising than GSK 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
