We recently published a list of Jim Cramer’s Latest Stock Moves: Top 10 Calls. In this article, we are going to take a look at where The Timken Company (NYSE:TKR) stands against other stocks that Jim Cramer discusses.
Jim Cramer in a recent program on CNBC expressed his frustration over the recent market selloff following tariff uncertainties. Cramer said non-US markets are performing well and had something to say to President Donald Trump.
“Remember, this whole situation is manufactured by the Walmart White House because almost every other market around the globe is crushing ours. They’re all doing better than we are. I don’t know who’s advising the president. I know what he is doing is important work, and I am no free trader. I am not even a fair trader. I’m a tariff guy. But I think you can kill more flies with honey right now, and certainly more than nuclear weapons.
Now, the president can roll him back if he wants to, but he generally believes his tariffs are the right thing to do, which is why they’ll probably keep coming with no finesse whatsoever — just brute force. Which I have to tell you, and including you, Mr. President, there are other ways and better ways to get things done.”
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For this article, we picked 10 stocks Cramer recently discussed during his program on CNBC. With each company we have mentioned the number of hedge fund investors. 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).
The Timken Company (NYSE:TKR)
Number of Hedge Funds Investors: 25
Jim Cramer was recently asked about bearings and power transmission products company The Timken Company (NYSE:TKR). The CNBC host said he’s bearish on the stock.
“They’re leaving a bunch of industries that are really slowing down. As much as I like the company very much, I’m going to have to say no to Timkin.”
SouthernSun Small Cap Strategy made the following comment about The Timken Company (NYSE:TKR) in its Q1 2023 investor letter:
“The Timken Company (NYSE:TKR), a global leader in engineered bearings and industrial motion products, was a top contributor again this quarter, reporting 10% organic sales growth and 56% Adjusted EPS growth in the fourth quarter of 2022 compared to the same period the previous year. The company saw growth across most of its end markets and expects a continuation in 2023 with guidance of mid-single digit growth in sales and Adjusted EPS. A secularly growing renewable energy business has also become TKR’s largest end market. Financial flexibility remains adequate with net debt/EBITDA at 1.9x and significant free cash flow expected in 2023, driven by improved working capital and higher earnings. We continue to believe TKR is a durable, niche-dominant company, run by a rational and owner-oriented management team. We would highlight that the company has increasingly become more diversified and higher margin since it spun off Timken Steel in 2014. Despite this increase in quality, the business still trades at a multiple roughly in line with its post-spin valuation. While the investment meets our return hurdle without multiple expansion, we believe a recognition by the market of this increase in quality provides potential upside.”
Overall, TKR ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of TKR, 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 time frame. If you are looking for an AI stock that is more promising than TKR 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.