We recently published a list titled 7 Stocks to Stay Away from According to Jim Cramer.
Excelerate Energy Inc (NYSE:EE) ranks 5th on this list. Let’s see why the CNBC host is bearish on the stock.
Jim Cramer in a latest program yet again lamented over the market’s obsession about the Fed’s stance over sticky inflation, saying the latest Fed minutes from April 30 to May 1 spooked investors because the central bank officials seem to be getting “impatient” with the inflation’s slower-than-expected decline.
However, Cramer said that economic data released after these Fed minutes showed that the labor market as well as inflation are cooling, exactly what the Fed wants. Cramer said had the Fed officials seen this data before, their minutes would have been different.
Cramer said that the Fed needs to know that their “inflation lamentation” from three weeks ago isn’t necessary.
Jim Cramer said that consumer spending has been the biggest issue for the Federal Reserve as they wonder, “is they any place that’s too high for them (consumers).” Cramer acknowledged that without putting brakes on consumer spending it’d be impossible to beat inflation.
However, the CNBC host said that if Fed officials had paid attention they’d have found that they are “finally” winning their battle against consumer spending too.
Jim Cramer said there are “nascent signs” showing that the consumers are finally saying “enough is enough.” Cramer pointed to Walmart’s latest numbers as a sign of consumers’ preference for discount retailers. Cramer said Walmart is one of the few companies offering value in budget.
“After years of seemingly endless price increases, the consumer has had enough. Consumers are now staying more at home.”
Jim Cramer also highlighted latest comments from Kevin Hourican, the CEO of Sysco, which supplies food products to restaurants. Hourican said that the industry needs to do “something” about the rising prices that are affecting foot traffic at restaurants.
Cramer Sees a “Consumer Rebellion”
Jim Cramer thinks a “consumer rebellion” is happening in the industry which has executives scratching their heads.
Another sign of this rebellion, according to Cramer, is major companies like McDonald’s Corp (NYSE:MCD) rolling out budget options. Cramer said that consumers also has had enough of price increases at McDonald’s Corp (NYSE:MCD), and the company needed these budget menu offerings to increase traffic.
Excelerate Energy Inc (NYSE:EE)
Number of Hedge Fund Investors: 15
Jim Cramer was recently asked about LNG solutions company Excelerate Energy Inc (NYSE:EE). Cramer said he’s not a “big fan” of this stock and instead recommended Corterra Energy. However, last month, Cramer had made positive comments about the stock, saying Excelerate Energy Inc (NYSE:EE) would “fly” if the US government reverses its decision to halt LNG projects expansion, which, according to Cramer, is one of the “dumber” things the current administration has done.
Over the past one year, Excelerate Energy Inc (NYSE:EE) shares have lost about 10% in value.
As of the end of the first quarter of 2024, 15 hedge funds tracked by Insider Monkey had stakes in Excelerate Energy Inc (NYSE:EE).
Earlier this month, Excelerate Energy posted first quarter results. Adjusted EPS in the quarter came in at $0.24, beating estimates by $0.14. Revenue in the quarter fell 5.2% year over year to $200.1 million, surpassing estimates by $171.12 million.
Excelerate Energy Inc (NYSE:EE) ranks 5th in our list of the 7 Stocks You Should Stay Away from According to Jim Cramer.
Click to see Jim Cramer Says You Should Stay Away from These 7 Stocks.
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Disclosure: None. This article is originally published at Insider Monkey.