We recently published a list of Jim Cramer Says These 10 Stocks Will Go Higher in Trump Presidency. In this article, we are going to take a look at where Texas Roadhouse Inc (NASDAQ:TXRH) stands against other stocks that will go higher in Trump presidency according to Jim Cramer.
In a recent program, Jim Cramer celebrated the market’s rally on Donald Trump’s election victory, saying the market likes Trump.
“The market likes Donald J. Trump, and it loves a peaceful transition to the next president. We got both, and we had a monster celebration. It was a full jailbreak, and the bears never knew what trampled them. Now, though, with the inclusion of this amazing session, we have to ask: have you missed the Trump rally?”
Cramer said the answer to the question of whether you missed the Trump rally lies in the stock you have in your mind. He said many were expecting a contested election and there was a lot of uncertainty around transition. However, that did not happen and that was in itself a win for the market.
“Trump wants to cut taxes—all taxes—including corporate taxes. Some numbers go higher, estimates go higher, earnings-per-share go higher. You do need to see interest rates go low for things to really work. Someday this is going to matter. It’s hard to keep doing this and piling on debt. But party on until we see damage; that’s what it felt like to me, seems to be the mantra.”
Cramer said the market is still “oversold” as many Trump stocks underwent a massive selloff after Kamala Harris reportedly started to gain ground. However, Cramer said the polls were again proved wrong.
Cramer then talked about the stocks that investors can buy to ride the Trump rally.
READ ALSO Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks
For this article we watched the latest programs of Cramer and picked stocks he believes can go higher under the Trump presidency. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
View of kitchen staff working together to deliver an extraordinary dining experience.
Texas Roadhouse Inc (NASDAQ:TXRH)
Number of Hedge Fund Investors: 42
A caller recently asked Jim Cramer about MCD. Cramer instead recommended Texas Roadhouse Inc (NASDAQ:TXRH) as a better buy.
“Don’t know if you caught last night’s show. We had a Texas—Texas Roadhouse on yesterday. TXRH. And I don’t know about you, maybe you can pull it up online, but it was incredible. And it is making me rethink the restaurant group. I think Texas Roadhouse is a better stock, though, than McDonald’s.”
Despite tough competition in the industry, Texas Roadhouse Inc (NASDAQ:TXRH) is growing. In the third quarter, Texas Roadhouse Inc (NASDAQ:TXRH) achieved 8.5% growth in comparable sales, driven by a 3.8% increase in traffic and 4.7% growth in the average check per guest. Texas Roadhouse Inc (NASDAQ:TXRH) opened seven company-owned restaurants domestically and three internationally, with a target of 30 company-owned and 14 franchise-owned restaurants for the year. Texas Roadhouse Inc (NASDAQ:TXRH) acquired 13 franchised locations, set to operate under its control starting in FY 2025, which will significantly boost revenue growth and operating cash flow.
Texas Roadhouse Inc (NASDAQ:TXRH) is also on track to convert 250 restaurants to its Digital Kitchens by the end of FY 2024, with plans to convert an additional 300 units in FY 2025.
Over the past two years Texas Roadhouse Inc (NASDAQ:TXRH) has grown from 162 to nearly 775 units, a 350% increase, and expanding its workforce to over 100,000 employees.
Baird Mid Cap Growth Equity Strategy stated the following regarding Texas Roadhouse, Inc. (NASDAQ:TXRH) in its Q2 2024 investor letter:
“Adjustments made to our consumer discretionary exposure include the addition of two new positions, Texas Roadhouse, Inc. (NASDAQ:TXRH) and Dutch Bros—both restaurants. Texas Roadhouse is a full-service casual dining chain with a long history of consistent sales and profit growth and above-average returns. We believe recent inflationary pressures across the restaurant space have broadened Texas Roadhouse’s competitive positioning.”
Overall, TXRH ranks 9th on our list of stocks that will go higher in Trump presidency according to Jim Cramer. While we acknowledge the potential of TXRH, 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 TXRH 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.
