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 Celanese Corporation (NYSE:CE) 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 laboratory full of vials, tubes and Bunsen burners, with a scientist in the center examining a chemical.
Celanese Corporation (NYSE:CE)
Number of Hedge Fund Holders: 15
Cramer advised to stay away from Celanese Corporation (NYSE:CE) as it needs China and aggressive rate cuts.
“Third is Celanese, CE, it’s a Federal Reserve stock, meaning it’s a company that makes plastics, one that got its clock cleaned, down 55%, revenues flattened, profits fell, typical of all the material stocks that follow though. This one, like so many other industrials needed China to recover and it didn’t. It also needs aggressive rate cuts. Until we get both, please don’t bet on this one bouncing back.”
Celanese Corporation (NYSE:CE) is a chemical and specialty materials company that produces high-performance engineered polymers and acetyl products used in various industries. On January 7, Piper Sandler reduced its price target for the stock to $77 from $98 and maintained an Underweight rating on the stock. The firm cited a lowered growth outlook for chemicals, driven by structural challenges in economies outside the U.S., particularly in Europe and Asia, with China playing a key role.
Additionally, Piper expects considerable downside risk due to potential policies from the incoming Trump administration, particularly those aimed at boosting oil and gas production and imposing tariffs that could trigger retaliatory responses.
Additionally, in response to declining profits, Celanese Corporation (NYSE:CE) announced significant financial adjustments in November 2024, including a drastic 95% cut to its dividend. The company stated that this temporary reduction, effective in the first quarter of 2025, was necessary to reduce its debt load. Alongside this decision, it outlined additional cost-cutting measures that are expected to generate savings of over $75 million by the end of 2025.
Overall CE ranks 8th on our list of the S&P 500 stocks on Jim Cramer’s radar. While we acknowledge the potential of CE 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 CE 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.