Jim Cramer, host of Mad Money, shared his thoughts on the market’s reaction to the election results. He noted that the trading session on November 6 was largely influenced by a collective sigh of relief from traders who were glad the election was over. With President-elect Donald Trump set to take office, many were preparing for the shifts his administration could bring. Cramer pointed out that the market responded positively to Trump’s victory, stating:
“The market likes Donald J. Trump and it loves a peaceful transition to the next president. We got both and we had a monster-buying celebration. It was a bull jailbreak and the bears never knew what trampled them.”
Cramer reflected on the uncertainty leading up to the election, with many investors fearing a prolonged and contentious process. But with the winner now clear, Cramer argued that the market is better off knowing what lies ahead. He remarked:
“Let’s understand that many people thought we’d have a contested election, which would cause tremendous uncertainty. The fact that we already know the winner is a huge win for the stock market in itself, which makes it a magnet for new money. This election, with its vicious maelstrom of hate and fear, is finally over.”
READ ALSO Jim Cramer Says These 10 Stocks Can Do Well Regardless of Who Wins and Jim Cramer’s Latest Game Plan: 15 Stocks to Watch
One of Cramer’s main focuses was Trump’s proposed tax cuts, which he believes will have a substantial impact on corporate profits. Cramer emphasized that the tax cuts are expected to boost earnings, particularly by lowering corporate tax rates, which would directly increase profit estimates and earnings per share. Cramer also highlighted the importance of maintaining low interest rates for these benefits to materialize.
He cautioned that while the current environment might feel like a party, there could be risks down the line, especially as debt continues to grow. Despite these concerns, Cramer seemed optimistic, suggesting that the market could continue to rally as long as interest rates stay low and corporate tax cuts come to fruition.
However, Cramer also pointed out a potential complication and commented:
“We also have to accept that we will have another earning season right at the time of the inauguration. So we’ll have to worry about those earnings too, but not yet.”
Additionally, Cramer suggested that there could be more significant market moves in the near future, especially if President-elect Trump makes comments about the Federal Reserve that investors find unsettling. He said that such remarks could trigger a negative reaction from the market, potentially leading to a downturn before things settle again.
Jim Cramer Talked About These 16 Stocks
Our Methodology
For this article, we compiled a list of 16 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 6 and listed the stocks in the order that Cramer mentioned them.
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).
Jim Cramer Talked About These 16 Stocks
16. CVS Health Corporation (NYSE:CVS)
Cramer stated that health insurers deserve to rise. Talking about CVS Health Corporation (NYSE:CVS), he said, “… the new team at CVS, which owns Aetna, just got a gigantic break.”
CVS Health Corporation (NYSE:CVS) is a prominent player in the U.S. healthcare market, offering a broad spectrum of health solutions. The company has faced a series of challenges in recent years, including slow revenue growth and declining stock performance. Additionally, its healthcare benefits segment, which includes the Aetna business, has struggled due to rising healthcare costs and increased utilization.
In response to these challenges, management announced a key leadership change during its third-quarter earnings call, appointing Steve Nelson as the new CEO of Aetna. With his extensive background in the insurance industry, Nelson is expected to play a critical role in addressing Aetna’s struggles, particularly within its Medicare business. During the earnings call, CVS Health Corporation (NYSE:CVS) CEO David Joyner provided updates on the company’s efforts to expand and innovate within Aetna’s offerings.
He highlighted the introduction of Simple Pay, a new product designed for commercial customers that provides greater price certainty before medical visits or treatments. This offering has already shown positive results, including a 60% increase in the use of high-quality providers and a 12% reduction in the total cost of care for employers and members.
Joyner also pointed to the success of Aetna’s Medicare Advantage (MA) program, noting that 88% of Aetna’s Medicare Advantage members are enrolled in plans rated four stars or higher. Furthermore, more than two-thirds of Aetna’s MA members are in plans rated 4.5 stars.
15. UnitedHealth Group Incorporated (NYSE:UNH)
Cramer mentioned that he likes UnitedHealth Group Incorporated (NYSE:UNH) as the company performs well every time.
“Health insurers deserve to run, every one of them. I think the Republicans now have enough votes to get rid of whatever the health insurers deemed to be onerous about Obamacare. Huge windfall. I like UnitedHealth because it always does well anyway.”
UnitedHealth (NYSE:UNH) is a diversified healthcare organization that offers a broad range of services and products across various segments. In its third-quarter earnings report, the company surpassed analyst expectations. Its revenue for the quarter reached $100.8 billion, growing $8.5 billion year-over-year. It reported an EPS of $7.15, marking a 9% increase compared to the previous year, despite facing the challenges of a major cyberattack during the quarter.
Optum Health, one of its key segments, served 104 million consumers in Q3, an increase of roughly 1 million from the same period in 2023. Revenue from value-based care models, an area of focus for Optum, also saw growth, further contributing to the company’s strong performance.
Optum Rx also saw heightened customer engagement, which resulted in a $5.4 billion year-over-year increase in revenue. UnitedHealth’s (NYSE:UNH) UnitedHealthcare expanded its domestic services, reaching 29.7 million consumers by the end of Q3, which included an addition of 2.4 million consumers year-to-date.
14. Palantir Technologies Inc. (NYSE:PLTR)
Cramer acknowledged that Palantir Technologies Inc. (NYSE:PLTR) is a popular stock and commented that it will perform well.
“There’s a sense that a Trump presidency will bring more hacks. Probably won’t, though. This one will do best, Palantir. It’s upending the Pentagon procurement process and making it possible for us to play offense when it comes to cybersecurity. President-elect Trump’s gonna have a lot of fun with Alex Karp, the co-founder and CEO of Palantir… [It] can go much higher, I don’t care about the valuation. I know it’s a popular stock. It can go higher.”
Palantir (NYSE:PLTR) is a prominent developer of software platforms specializing in complex data integration and decision-making. The company primarily serves government agencies, particularly in the intelligence sector, as well as commercial clients. Over the years, the company has made significant strides in positioning itself as one of the key beneficiaries of the growing demand for AI technologies, largely through its Artificial Intelligence Platform (AIP). This focus on AI innovation has helped the company gain recognition as a leader in the field.
For the third quarter, CEO Alex Karp credited Palantir’s (NYSE:PLTR) success to the continued and “unwavering” demand for its AI products, which he sees as a promising indicator of future growth. The company’s performance was especially strong in the U.S., where revenue rose 44%, reaching $499 million. The U.S. commercial segment was a particularly bright spot, showing a 54% jump in revenue to $179 million.
13. Meta Platforms, Inc. (NASDAQ:META)
Cramer highlighted the chatter around a conflict between Meta Platforms, Inc.’s (NASDAQ:META) Mark Zuckerberg and President-elect Trump and said:
“Big Tech got a real boost, especially the ones that have been hectored by antitrust like Alphabet or Amazon or, or frankly even Apple and maybe even, we thought maybe Nvidia and Meta… I’d also buy Meta here. There’s all sorts of bogus scuttlebutt about how the President-elect and Mark Zuckerberg don’t get along. I think that’s the old days, people. I believe things have gotten better between the two and you should think more about the fundamentals now, which are fabulous… Look, there’s some common ground between the two. It was silly that the stock wasn’t up as much, but people were worried about the two of them being angry at each other.”
Meta (NASDAQ:META), a global leader in digital connectivity has a massive audience of 3.29 billion daily active users across its platforms. It has become a dominant force in shaping how people communicate and share information online.
After the 2016 U.S. elections, Facebook faced criticism for its role in undermining American democracy. Critics argued that the platform’s algorithmic News Feed promoted hyperpartisan content, fake news, and disinformation, including materials seeded by Russian operatives. This was later confirmed by the U.S. Director of National Intelligence, who declassified a report in January 2017 detailing Russia’s interference.
Initially, its executives, including Mark Zuckerberg, dismissed these concerns, with Zuckerberg even calling it “pretty crazy” to suggest that fake news on the platform had influenced the election. However, within 10 months, Zuckerberg acknowledged his earlier comments as dismissive and expressed regret.
The company’s involvement in the political sphere continued into the 2020 U.S. presidential election. President-elect Donald Trump’s critique was included in his “Save America” coffee table book, where he threatened legal action against Zuckerberg, stating that if the company engaged in any illegal activity during the 2020 election, Zuckerberg could face lifelong prison time. However, after Trump’s recent victory in the election, Meta’s (NASDAQ:META) Zuckerberg publicly congratulated him, expressing optimism for future collaboration with his administration.
12. NVIDIA Corporation (NASDAQ:NVDA)
Cramer said that Trump likes winners like NVIDIA Corporation (NASDAQ:NVDA) and reiterated his philosophy of “own it, don’t trade it” for the stock.
“Big Tech got a real boost, especially the ones that have been hectored by antitrust like Alphabet or Amazon or, or frankly even Apple and maybe even, we thought maybe Nvidia and Meta… Trump likes winners. He likes success stories. That means he’ll like Nvidia. Remember, Trump’s all in with Elon Musk. He knows that Musk respects Nvidia’s Jensen Huang. Good stock to own, not trade.”
NVIDIA (NASDAQ:NVDA) has firmly established itself as a dominant force in the graphics processing unit (GPU) market. As the company heads into its fiscal 2025 third-quarter earnings report, expected on November 20, it is preparing to launch its new Blackwell architecture, which it claims will be the most powerful chip the company has ever produced.
This launch, slated for the fourth quarter, is expected to ramp up production significantly, generating billions of dollars in additional revenue, according to statements made during the company’s previous earnings call in August. According to TipRanks, on November 11, UBS raised the price target on the stock to $185 from $150 and maintained a Buy rating.
The firm remains optimistic about NVIDIA’s (NASDAQ:NVDA) future performance, citing strong customer demand and positive supply chain dynamics. Based on the firm’s conversations with customers and analysis of the supply chain, UBS analysts believe that Q3 revenue will likely fall between $34.5 billion and $35 billion, with Q4 guidance around $37 billion, potentially reaching up to $39 billion when the company reports Q4 results in early 2025.
11. Apple Inc. (NASDAQ:AAPL)
Talking about companies like Apple Inc. (NASDAQ:AAPL) that have operations in China, Cramer said:
“Big Tech got a real boost, especially the ones that have been hectored by antitrust like Alphabet or Amazon or, or frankly even Apple and maybe even, we thought maybe Nvidia and Meta… if companies make goods in China like Apple, that could be tough because you know what, China and Trump, they are also like oil and water and if you do business there, it’s gonna hurt you here. However, it’s a popular time for Trump, okay, and a less popular time for China.”
Apple (NASDAQ:AAPL) is best known for its pioneering iPhone technology. As of 2023, its operations have expanded significantly, especially in China, where it has increasingly turned to local suppliers and manufacturers. In 2023, the company made a shift in its global supply chain strategy, increasing the number of suppliers based in China.
A Nikkei Asia analysis of the company’s official supplier list revealed that Chinese suppliers now form the largest group in its supply chain, a position they have held since 2020. The number of Chinese suppliers grew from 48 in 2022 to 52 in 2023, according to Nikkei Asia. Additionally, the company expanded its manufacturing and development facilities in China, increasing the number of such sites by 10, bringing the total to 286.
Tim Cook, Apple’s (NASDAQ:AAPL) CEO, has maintained a strong presence in China. According to Bloomberg, during a visit in 2024, Cook met with Jin Zhuanglong, China’s Minister of Industry and Information Technology, to discuss the company’s continued growth in the country.
According to a post on WeChat by the ministry, Cook emphasized that the company would keep increasing its investments in China and contribute to the high-quality development of the country’s supply chain. The discussion also touched on its involvement in areas like cloud services and secure data management, although specific details of those conversations were not disclosed.
10. Amazon.com, Inc. (NASDAQ:AMZN)
Last week, after the elections came to a decisive end, Cramer noted that mega-cap stocks like Amazon.com, Inc. (NASDAQ:AMZN) soared and said:
“Big Tech got a real boost, especially the ones that have been hectored by antitrust like Alphabet or Amazon or, or frankly even Apple and maybe even, we thought maybe Nvidia and Meta…”
Amazon (NASDAQ:AMZN) has firmly established itself as a key player in the global technology sector, with a wide-ranging focus on e-commerce, advertising, and subscription-based services. As one of the largest online retailers in the world, it operates a vast marketplace that offers over a billion items across various categories, ranging from consumer electronics to books and groceries. However, the company’s dominance in the online retail space has recently drawn legal scrutiny, particularly from the U.S. Federal Trade Commission (FTC).
According to Reuters, the FTC’s case against the company regarding anti-competitive behavior will proceed, despite some states that joined the lawsuit seeing their claims dismissed. The central accusation from the FTC is that the company has been engaging in practices that stifle competition within online retail.
Specifically, the agency claims that Amazon (NASDAQ:AMZN) used an algorithm that artificially inflated prices, resulting in U.S. households paying over $1 billion more for goods. The FTC contends that such tactics have helped the company maintain its position as a leading marketplace, potentially at the expense of consumers and smaller competitors. In response, the company has argued that the program in question was discontinued in 2019.
In December, the company sought to have the case dismissed, asserting that the FTC had not demonstrated any consumer harm from the alleged practices. However, in a recent ruling, the judge overseeing the case indicated that it was premature to consider the company’s defense, including its claim that its actions had a positive effect on competition.
9. Alphabet Inc. (NASDAQ:GOOGL)
In last week’s episode of Mad Money, Cramer mentioned Alphabet Inc.’s (NASDAQ:GOOGL) stock performance after the election results came in and the company’s run-in with the antitrust authorities. Here’s what he said:
“Big Tech got a real boost, especially the ones that have been hectored by antitrust like Alphabet or Amazon or, or frankly even Apple and maybe even, we thought maybe Nvidia and Meta…”
Alphabet (NASDAQ:GOOGL), the parent company of Google, was formed in 2015 following a major corporate restructuring. The company is currently facing significant legal challenges, primarily related to antitrust concerns. In 2020, the U.S. Department of Justice (DOJ) filed an antitrust lawsuit against it, accusing the company of engaging in monopolistic practices to maintain its dominance in online search.
In addition to the lawsuit, there have been signals from the DOJ suggesting that it could push for the breakup of Google, a move that would fundamentally change how the company operates. Among the potential actions being discussed is the termination of Google’s payments to secure its default status on new devices, a practice that has played a key role in keeping the company at the top of the search engine market.
The ongoing legal battle could be influenced by political shifts. According to Reuters, experts have suggested that under a potential second term of Donald Trump, antitrust policies may change direction. The trial over the DOJ’s proposed remedies will not take place until April 2025, with a final ruling expected by August of that year. This delay leaves the door open for potential shifts in the case’s trajectory, as experts, such as William Kovacic, a law professor at George Washington University, suggest that a change in political leadership could influence how the DOJ handles Alphabet’s (NASDAQ:GOOGL) case moving forward.
8. United States Steel Corporation (NYSE:X)
Cramer expects United States Steel Corporation (NYSE:X) to perform well. He remarked, “Cleveland-Cliffs and US Steel should do well too. They’re not as good as Nucor, but they’re good.”
United States Steel Corporation (NYSE:X) is a prominent producer of flat-rolled and tubular steel products, with operations primarily in North America and Europe. Its stock prices rallied last week after the election results were in favor of Donald Trump. The market sentiment is that Trump’s policies, which historically favored tariffs on imports and tax cuts for corporations, would benefit U.S.-based steel companies like U.S. Steel.
In the third-quarter earnings call, the company’s management discussed how the company’s free cash flow profile has significantly improved over the past decade. From 2015 to 2019, the company’s free cash flow generation was essentially breakeven. However, the company now anticipates that its average free cash flow could reach about $1 billion annually from 2021 to 2024.
Management also highlighted that 2024 is expected to be a pivotal year for the company, with all ongoing projects beginning to generate EBITDA and cash flow for at least part of the year. Additionally, for the fourth quarter, United States Steel Corporation (NYSE:X) projects adjusted EBITDA to be between $225 million and $275 million. While the North American Flat-Rolled segment is expected to see a slight decrease in results, primarily due to lower expectations for average selling prices, the Mini Mill segment is expected to improve during the same period.
7. Cleveland-Cliffs Inc. (NYSE:CLF)
In an episode of Mad Money, Cramer said that Cleveland-Cliffs Inc. (NYSE:CLF) should perform well. He said, “Cleveland-Cliffs and US Steel should do well too. They’re not as good as Nucor, but they’re good.”
Cleveland-Cliffs (NYSE:CLF) is a North American flat-rolled steel producer offering a wide range of steel products. In its third-quarter earnings report, it announced an adjusted loss of $0.33 per share and revenue of $4.6 billion, a decrease from $5.1 billion in the previous quarter. The decline was largely attributed to weakened demand, especially in the automotive sector, which contributed to lower steel prices and reduced margins.
Despite these challenges, CEO Lourenco Goncalves remains optimistic about the future, stating that steel demand is expected to recover in early 2025, driven by a combination of economic and political factors. A key development for the company during this period was its $2.8 billion acquisition of Stelco Holdings Inc., a move that is set to strengthen its position as the largest flat-rolled steel producer in North America.
This deal, which combines cash and stock, not only expands Cleveland-Cliffs’ (NYSE:CLF) geographical footprint into Canada but also diversifies its customer base, reducing its reliance on the automotive sector as pointed out by the CEO. Goncalves highlighted Stelco’s strong industry performance and investment in its operations, noting that management is confident in its ability to realize $120 million in cost synergies within the first year of the acquisition.
6. Nucor Corporation (NYSE:NUE)
Cramer remarked that he would buy Nucor Corporation (NYSE:NUE) stock even while it is up and emphasized that Trump should protect the company from Chinese steel.
“The President-elect wants to protect the American industries. He should protect Nucor from Chinese steel, which is transshipped through Mexico right now, and [the] Biden administration did nothing about it. I’d buy that stock of Nucor even up here.”
Nucor (NYSE:NUE) is a major manufacturer and supplier of steel products, serving customers throughout North America. According to S&P Global, in 2024, China exported approximately 638,356 metric tons of finished steel to the United States during the first nine months of the year. Amidst these trade flows, the company has been vocal in urging the U.S. government to impose stronger trade restrictions on countries like Mexico, which, according to the company, could be used as a conduit for China to bypass the steel tariffs established under Section 232 of the Trade Expansion Act.
Nucor’s CEO, Leon Topalian, emphasized this stance during a conference with investors, where he reiterated the company’s commitment to advocating for fair trade practices in Washington, irrespective of the political administration. He stressed the importance of creating a level playing field for the U.S. steel industry, ensuring that illegally dumped and subsidized steel does not flood the market.
During Nucor’s (NYSE:NUE) third-quarter earnings call, Topalian noted that there is now broad bipartisan agreement on the need for strong trade enforcement, particularly regarding steel imports. He pointed to the damage done to the U.S. steel industry by unfair trade practices and highlighted some troubling developments, such as a sharp 180% spike in steel exports from Mexico on a quarterly basis.
Topalian also discussed the global oversupply of steel, particularly from China, where roughly 100 million metric tons of steel are seeking international markets. He commented that the U.S. remains the most significant market for this surplus.
5. Citigroup Inc. (NYSE:C)
Cramer described the relationship between investment banks like Citigroup Inc. (NYSE:C) and the Biden administration as being like oil and water. Here’s what he had to say:
“The banks, especially investment banks, these stocks had gigantic moves. Moves that would normally take weeks or even months to occur and instead they happened in a handful of hours. The banks have been pushed down for ages because the Democrats have tough, relentless regulators who love to go after the industry. Hey, you may hate the industry, you might want that. You may love it and say… enough. The regulators have crushed their earnings power and their dividend giving and their buyback ability. That, in turn, really obliterated the price-earnings multiple of the cheapest stocks in the entire market. Now though the banks could be unfettered, they might be able to merge again, reward investors with much higher dividends, and buyback even more stock.”
Cramer explained that with the new administration in place, investment banks will have the opportunity to advise on a greater number of mergers. He said there will likely be an increase in merger activity, as regulators are expected to take a more relaxed approach. He gave his blessing to buy these stocks and called the group cheap.
Citigroup (NYSE:C) is a prominent global financial services company offering a range of financial products and services, including cash management, trading, investment banking, and more. In the third quarter, despite the overall softness in the IPO market, the company saw an increase in its investment banking fees, which rose by 44%.
This growth was primarily driven by a surge in investment-grade debt issuance, as many of its clients accelerated their activities ahead of the U.S. election. During the quarter, Citigroup (NYSE:C) returned a total of $2.1 billion to its common shareholders, which included both dividends and share repurchases.
4. Morgan Stanley (NYSE:MS)
During the episode of Mad Money, Cramer talked about how bank stocks like Morgan Stanley (NYSE:MS) stock performed post-election. He commented:
“The banks, especially investment banks, these stocks had gigantic moves. Moves that would normally take weeks or even months to occur and instead they happened in a handful of hours. The banks have been pushed down for ages because the Democrats have tough, relentless regulators who love to go after the industry… The regulators have crushed their earnings power and their dividend giving and their buyback ability. That, in turn, really obliterated the price-earnings multiple of the cheapest stocks in the entire market. Now though, the banks could be unfettered, they might be able to merge again, reward investors with much higher dividends, and buyback even more stock.”
Cramer also noted that the bank stocks rose significantly after the election results came in, but he gave his approval to purchase them. He mentioned that, overall, the sector remains undervalued. He also pointed out that for the stocks to surge further, they may dip first, providing an opportunity to buy.
“More importantly, the investment banks can advise on many more mergers and there will be many more mergers because the regulators will look the other way and we’ll get more IPOs too. It’s hard to convey how much antipathy there was between bankers and the Biden administration, they were oil and water.”
Morgan Stanley (NYSE:MS) is a global financial services firm offering a broad spectrum of products and services, including capital raising, financial advisory, brokerage, and investment management. According to its third-quarter earnings call, it continues to focus on delivering value to shareholders, as evidenced by its decision to raise its quarterly dividend to $0.925. In addition, the firm repurchased $750 million of its common stock during the same period.
During the earnings call, CEO Ted Pick highlighted several key trends in the financial markets, particularly in the realm of IPOs and M&A. He noted that sponsors in the IPO market currently have approximately $1.3 trillion in “dry powder,” a term used to describe available capital waiting to be deployed. Furthermore, Pick mentioned that portfolio companies in the market, by some estimates, total between $3 trillion to $4 trillion across roughly 10,000 companies.
Morgan Stanley’s (NYSE:MS) Pick also pointed out a significant change in market behavior, emphasizing that for the first time in nearly 15 years, the rate of capital deployment in private equity is outpacing fundraising. While acknowledging that these markets have faced challenges, he expressed optimism that IPOs, particularly from larger companies, will gradually return, with the market for initial public offerings steadily regaining momentum.
3. The Goldman Sachs Group, Inc. (NYSE:GS)
Cramer noted that while banks like The Goldman Sachs Group, Inc. (NYSE:GS) saw rapid stock movements due to tough regulation under the Biden administration, they may benefit from looser rules under a Trump administration, potentially leading to higher dividends, buybacks, and more mergers.
“The banks, especially investment banks, these stocks had gigantic moves. Moves that would normally take weeks or even months to occur and instead they happened in a handful of hours. The banks have been pushed down for ages because the Democrats have tough, relentless regulators who love to go after the industry. Hey, you may hate the industry, you might want that. You may love it and say… enough. The regulators have crushed their earnings power and their dividend giving and their buyback ability. That, in turn, really obliterated the price-earnings multiple of the cheapest stocks in the entire market. Now though, the banks could be unfettered, they might be able to merge again, reward investors with much higher dividends, and buyback even more stock.
More importantly, the investment banks can advise on many more mergers and there will be many more mergers because the regulators will look the other way and we’ll get more IPOs too. It’s hard to convey how much antipathy there was between bankers and the Biden administration, they were oil and water. That’s it. The banks have now run a lot. You got my blessing though, to buy them… For the Charitable Trust, we actually sold some of our shares. These became some of our largest positions ’cause they went up so much… Overall, the group is still cheap. To go parabolic, it will come down, you can buy.”
Goldman Sachs (NYSE:GS) is a leading global financial services firm known for its expertise in investment banking, wealth management, and a range of other financial services. In the third quarter, it returned $2 billion to its common shareholders. This amount included dividends totaling $978 million and stock repurchases of $1 billion. On October 11, the firm announced a dividend of $3.00 per common share, set to be paid on December 30, to shareholders of record as of December 2.
The financial environment has played a significant role in Goldman Sachs’ (NYSE:GS) recent performance. In recent years, the Federal Reserve’s interest rate hikes had a chilling effect on M&A and IPO activity, making it a challenging period for many financial institutions. However, as interest rates have begun to decline, the economic conditions have started to improve for firms like Goldman Sachs.
Advisory fees surged by 27% in the third quarter compared to the previous one. While the IPO market remains slow, the bank is positioning itself for a potential rebound when market conditions fully stabilize.
2. JPMorgan Chase & Co. (NYSE:JPM)
Talking about banks like JPMorgan Chase & Co. (NYSE:JPM), Cramer commented on how the sector did during Biden’s administration and how it could fare under Trump.
“The banks, especially investment banks, these stocks had gigantic moves. Moves that would normally take weeks or even months to occur and instead they happened in a handful of hours. The banks have been pushed down for ages because the Democrats have tough, relentless regulators who love to go after the industry. Hey, you may hate the industry, you might want that. You may love it and say… enough. The regulators have crushed their earnings power and their dividend giving and their buyback ability. That, in turn, really obliterated the price-earnings multiple of the cheapest stocks in the entire market. Now though the banks could be unfettered, they might be able to merge again, reward investors with much higher dividends, and buyback even more stock.
More importantly, the investment banks can advise on many more mergers and there will be many more mergers because the regulators will look the other way and we’ll get more IPOs too. It’s hard to convey how much antipathy there was between bankers and the Biden administration, they were oil and water. That’s it. The banks have now run a lot. You got my blessing though, to buy them… For the Charitable Trust, we actually sold some of our shares. These became some of our largest positions ’cause they went up so much… Overall, the group is still cheap. To go parabolic, it will come down, you can buy.”
JPMorgan Chase (NYSE:JPM) is a global financial services firm offering a wide range of services, including deposits, loans, investment banking, and wealth management to consumers, businesses, and institutional clients. On October 7, Baird downgraded the stock to Underperform from Neutral with an unchanged price target of $200.
The firm expressed concerns about the current valuation of JPMorgan Chase (NYSE:JPM) shares, suggesting that the stock’s recent price levels offer a poor risk/reward ratio. Despite the optimism surrounding the potential for a more favorable regulatory environment and pro-growth policies under a potential Trump administration, Baird believes that the stock price is already factoring in these expectations, which may limit future upside.
The firm noted that while market sentiment remains positive, the high price of the stock, coupled with what it sees as already inflated expectations, warrants caution. Baird’s analysis advises investors to consider taking profits at current levels, given what it perceives as limited potential for further growth in the near term.
1. Tesla, Inc. (NASDAQ:TSLA)
Cramer discussed the possible role that Tesla, Inc.’s (NASDAQ:TSLA) Elon Musk could play under a Trump administration. Here’s what Mad Money’s host had to say:
“The rally in Tesla, that one has legs. I’m telling you, I can’t believe it wasn’t up much more. For Trump, politics is personal. He’ll reward Elon Musk as much as he can given the constraints of the law. Tesla does need some things. Musk wants full self-driving approval nationwide. You know what, Trump might push for interstate self-driving. Musk wants any break that unionized auto companies have. He can run the table against anyone in the space. This one goes higher.”
Tesla (NASDAQ:TSLA), a company renowned for its electric vehicles and innovative energy solutions, has seen impressive gains in its stock price following the U.S. presidential election. Its stock was up over 39% since the election, and more than 40% year to date. This surge has pushed its market capitalization back above the $1 trillion mark, a milestone it first reached in late 2021 before losing it during a market downturn.
A significant driver of Tesla’s (NASDAQ:TSLA) potential lies in its development of autonomous driving technology. The company recently unveiled its self-driving “Cybercab” robotaxi, which it plans to launch by 2027. This announcement has captured the attention of investors and Elon Musk has expressed confidence in the progress of this technology, suggesting that regulatory approval processes could be streamlined under a new political environment. In a recent conference call, Musk argued that there should be a federal approval process for autonomous vehicles.
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
