Jim Cramer’s Lightning Round: 7 Stocks Under the Spotlight

1. KKR & Co. Inc. (NYSE:KKR)

Number of Hedge Fund Holders: 66

Cramer said that he would be a buyer of KKR & Co. Inc. (NYSE:KKR) and called the management smart.

“I am gonna say that I like the stock very much and I think those guys are so smart. I would be a buyer… At one point it was down really big today. That made no sense to me whatsoever.”

KKR & Co. (NYSE:KKR) is a private equity and real estate investment firm specializing in a wide range of investments, including acquisitions, leveraged buyouts, growth equity, and distressed assets. According to management, the firm remains focused on portfolio optimization and continues to explore various avenues to maximize value for its stakeholders. Recently, it was reported that the company is considering selling its stake in Viridor Ltd., a U.K. waste management company.

The deal has a potential valuation of £7 billion, though discussions are still in early stages and a sale may not occur until 2025. Viridor generated around £400 million in annual EBITDA. Additionally, KKR is engaged in a competitive bidding process to take Fuji Soft, a Japanese IT services firm, private, having outbid Bain Capital with a $4 billion offer. KKR’s bid, which acquired 34% of Fuji Soft, was supported by the company’s board, while Bain moved forward with a hostile bid, asserting shareholder interests and challenging the use of confidential information.

During KKR & Co.’s (NYSE:KKR) Q3 earnings call, management provided an updated outlook, affirming its commitment to achieving significant growth over the next several years. It has guided toward operating earnings of over $300 million by 2026, more than $600 million by 2028, and exceeding $1 billion by 2030. Management expressed confidence in its ability to meet these targets, stating that its conviction in the company’s capacity to achieve these goals has only strengthened since the initial guidance was issued.

While we acknowledge the potential of KKR & Co. Inc. (NYSE:KKR) 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 KKR 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.

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