We recently compiled a list of the Jim Cramer Recommends These 10 Stocks. In this article, we are going to take a look at where Tesla Inc. (NASDAQ:TSLA) stands against the other stocks recommended by Jim Cramer.
In a recent episode of Squawk on the Street, Jim Cramer discussed how global markets have become more interconnected than ever. He compared this to 1987, when Japan’s influence on U.S. stocks was clear, with Japanese investors driving up prices in sectors like waste management and railroads. This connection between markets was strong then, and it’s even stronger now.
“Obviously, we went down on Japan, and we went up on Japan. This is somewhat reminiscent of 1987, when, if Japan was up, they’d come over and flood our markets. Sometimes they didn’t care; they’d just start buying stocks, often starting with waste management and Browning-Ferris. “
Cramer explained that the weakening dollar further enhances this global link, benefiting companies that sell internationally, such as Coca-Cola. He also observed a significant shift in investor behavior—where people once looked for reasons to stay out of the market, they now seem more inclined to stay in, finding optimism even in bad news. This change in attitude mirrors today’s market environment, where good news lifts stocks, and even bad news is met with hope for a recovery.
“Back in the day, you’d wonder why Browning-Ferris was up, and the answer would be, ‘Large buyer, large buyer, large buyer.’ Eventually, you’d go out for a beer, and it turns out it’s Tokyo. They loved the rails. There was such craziness back then, but now, we’re even more linked. And with the dollar continuing to weaken, it’s good that we’re linked for companies like that.”
Jim Cramer noted the irony of discussing September as a traditionally bad month for the market. He pointed out that when people focus too much on a specific month being negative, it often doesn’t turn out that way. Cramer also mentioned that despite this expectation, the market had been up significantly, making last week’s market behavior seem unusual.
“Well, it’s funny. You talked about September being a bad month last week, so maybe we get there in a roundabout way. I know that when you single out a month, that’s often when it doesn’t happen. But I also know that we’re up big, and last week seemed odd.”
Our Methodology
For this article, we reviewed a recent episode of Jim Cramer’s Squawk on the Street and his post on the key things to watch in the stock market for Monday. We selected ten stocks that he mentioned and included information on hedge fund sentiment for each. The stocks are ranked by the number of hedge funds that own them, from lowest to highest.
At Insider Monkey we are obsessed with 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).
Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Fund Investors: 85
Jim Cramer notes that analysts at Piper Sandler recommend buying Tesla Inc. (NASDAQ:TSLA) shares ahead of the company’s robitaxi event, which is now scheduled for October 10. Despite the setback, Piper Sandler has kept its buy-equivalent rating and $300 price target for Tesla Inc. (NASDAQ:TSLA). Currently, Tesla Inc. (NASDAQ:TSLA)’s shares are down approximately 13% year-to-date.
“Investors should own shares of Tesla ahead of the electric vehicle maker’s robitaxi event set for October 10, according to analysts at Piper Sandler. The unveiling was originally slated for August 8, but CEO Elon Musk requested design changes, which led to the delay. Piper Sandler has maintained its buy-equivalent rating and $300 price target on the stock. Shares of Tesla are down about 13% year-to-date.”
Tesla Inc. (NASDAQ:TSLA) is a top player in the electric vehicle (EV) market, known for its cutting-edge technology and strong brand. Its EV lineup, including the Model S, Model 3, Model X, and Model Y, is praised for high performance, long-range, and advanced features. Tesla Inc. (NASDAQ:TSLA) is actively expanding with new manufacturing plants, such as the Gigafactories in Berlin and Texas, which will increase production and reduce costs.
Additionally, Tesla Inc. (NASDAQ:TSLA)’s expansion into emerging markets like China and India offers significant growth potential. Tesla Inc. (NASDAQ:TSLA)’s focus on innovation is clear with advancements in battery technology, autonomous driving, and energy solutions. Investments in Full Self-Driving (FSD) technology and battery improvements keep Tesla Inc. (NASDAQ:TSLA) at the leading edge of both the EV and tech sectors.
Beyond cars, Tesla Inc. (NASDAQ:TSLA) is growing its energy business with products like the Powerwall and Powerpack to meet the rising demand for renewable energy. High customer demand and strong brand loyalty further boost Tesla Inc. (NASDAQ:TSLA)’s growth prospects and make it an attractive investment.
Overall TSLA ranks 4th on our list of the best stocks to buy according to Jim Cramer. While we acknowledge the potential of TSLA as an investment, 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 timeframe. If you are looking for an AI stock that is more promising than TSLA 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.