We recently compiled a list of the Jim Cramer Discussed These 10 Stocks, AI Power Demand & Healthcare. In this article, we are going to take a look at where Cheniere Energy, Inc. (NYSE:LNG) stands against the other stocks.
In his recent appearance on CNBC’s Squawk on the Street, Jim Cramer started the morning by commenting on the S&P’s best eight-session rally since August. As most stock market gains by then had been due to mega-cap stocks, Cramer shared that “I do like to see that this is a rally that’s not led by” either Wall Street’s favorite AI GPU stock that tumbled by 15% on Monday or by the firm responsible for designing the iPhone.”
In fact, Cramer was happy that stocks were instead being led higher by sectors that had underperformed lately. One of these is healthcare, and the CNBC host shared his excitement by sharing “Or how about the drugs? How about the drugs!” He added “I mean last week I was at the JPMorgan Healthcare Conference. And no one liked the drugs! They exploded yesterday!”
Yet, even though the ‘drugs were exploding,’ Cramer also mentioned other sectors that were having bull markets. According to him “So what I’m saying is that, many bull markets each day. Banks had a bull market. Drugs had a bull market. Rails had a bull market. I think I love it! . . .This is what I want! Not broad on one day, but broad over time.”
As to the reason behind his optimism, Cramer outlined “I just don’t want it to be the same old, same old!” He was irate over market and media sentiment indicating that multiples of the Magnificent 7 stocks were overstretched. Mentioning a piece in the Financial Times, Cramer shared “Like yesterday there was a piece in the FT, I like the FT. But they were talking about how you know, now things are really stretched.” He believes that the argument that the multiples are overstretched doesn’t explain the S&P’s rally as “It’s not a Mag 7 rally for heaven’s sake. It’s not!”
Cramer added, “Well I just think this is one of those markets where when you have a good quarter, bingo.” When co-host David Faber asked him why he believed that non-tech sectors were driving the market since technology stocks had done well until that point, Cramer replied and stated “I’m saying, this particular jaunt is not led by the usual suspects. I said all that stuff.” He added “But what I’m saying is that there are other stocks besides tech. That’s all I’m saying. And that yesterday was about healthcare. It was about healthcare and it hasn’t been about healthcare for a long time. The healthcare stocks, the HMOs were terrific.”
Another topic that he’s recently discussed is European stocks. When Cramer was asked why it’s not easy to find top-tier growth in Europe, he shared that “It is[n’t]. And yet, Europe is much discussed as being doing well because the rates are so low in Germany.”
Cramer also commented on the high power demand from AI data centers and how it’s affecting natural gas stocks. He believes “We have to spend, so much time on power, because we are beginning to get, what I’d be doing with these natural gas companies, they’re being green-lit, and they’re not being talked about, and they’re starting to realize, why is everything being nuclear?” The reason behind some folks doubting nuclear power, according to Cramer, is “Because nuclear is seven to eight years. Okay, seven to eight years.”
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 24th.
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).
Close-up of a liquefied natural gas terminal expelling plumes of smoke.
Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders In Q3 2024: 62
Cheniere Energy, Inc. (NYSE:LNG) is an American energy company that operates primarily in the midstream portion of the liquefied natural gas (LNG) supply chain. Its shares are up by 35% over the past year as the firm benefited from higher Asian LNG prices and an 11.6% share price surge after the November Presidential Election. Cheniere Energy, Inc. (NYSE:LNG)’s shares are up by 1.80% year-to-date as well due to rising LNG demand in America which surged to a record 15.2 billion cubic feet per day as 2024 ended. Here’s what Cramer said about Cheniere Energy, Inc. (NYSE:LNG):
“Cheniere’s been an unbelievable story. I remember when Cheniere was at two bucks. I mean cause what happened is this that we ended up having reverse all the pipes when Cheniere started natural gas we were importing. Then it turned to an export. Look they’re not making, they have revenue, revenue downstream.
“Well if you wanna play on what the President is saying about how we can weaponize it, weaponize the natural gas, this is it.”
Overall LNG ranks 5th on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of LNG 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 LNG 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.