We recently published a list of Jim Cramer Recently Shed Light on These 9 Stocks. In this article, we are going to take a look at where Sportradar Group AG (NASDAQ:SRAD) stands against other stocks that Jim Cramer recently highlighted.
Jim Cramer, host of Mad Money, recently discussed a possible looming energy crisis in the U.S. that has taken many by surprise. He warned that if the country doesn’t act swiftly, it will soon be overwhelmed by an energy shortfall. According to Cramer, we need to tap into every available energy source including natural gas, wind, geothermal, and hydroelectric power. However, he stressed that the most critical energy source right now is nuclear power. He added:
“Crisis comes down to the fact that we had no real industrial growth in this country for decades so we haven’t had to build much energy infrastructure. Now all of a sudden these data centers start coming online like the ones that will be part of Stargate, the Oracle, SoftBank, OpenAI project… And these data centers consume insane amounts of electricity. It’s a level of demand that nobody saw coming. So after years where we spent more time decommissioning power plants and building new ones, we suddenly gotta go back into growth mode.”
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Cramer went on to discuss an energy source that many are reluctant to consider: coal. While it may seem counterintuitive, he argued that coal could make a comeback in the U.S. energy mix.
“When the president gave his inaugural address on Monday, he declared a national emergency aiming to produce more domestic fossil fuels, including coal. Once the mainstay utility fuel, coal has been phased out year after year after year because it is terrible for the environment. 10 years ago, coal-based fuel was responsible [for] about 33% of electricity. Now it’s fallen to 15%.”
Yet, with the push to decommission nuclear plants, and the rising cost of natural gas, Cramer suggested that coal might need to be reintegrated into the energy mix. He argued that, despite the environmental drawbacks, the demand for power is now so great that coal’s long decline could be nearing its end.
“Under this president, coal could have… a renaissance. Sure, coal’s time has come and gone, but it will come again because the data center inspired energy crisis really is so pressing that there’s not really a choice anymore. Yes, the demand is that great, [and] we so foolishly mothballed good nuke plants that it wouldn’t surprise me if coal’s long decline may have finally run its course.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on January 22. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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).
A customer data analyst working at a computer, surrounded by monitors displaying live sports data.
Sportradar Group AG (NASDAQ:SRAD)
Number of Hedge Fund Holders: 24
A caller asked Cramer whether they should buy, hold, or take the money and run when it comes to Sportradar Group AG (NASDAQ:SRAD). Here’s what Mad Money’s host had to say:
“No, no. I like this company. I think this company, you know, it’s now turned profitable. It’s doing a lot of really good things. It is not expensive, it’s not expensive on its growth rate. Okay? So I think you’re into something good. It’s speculative, but I like it.”
Sportradar (NASDAQ:SRAD) provides sports data services to the sports betting and media industries, offering software, data, content, and live streaming solutions. In October 2024, when Cramer discussed the company, he said:
“I’ve gotta tell you that there are some things here I really like. Unlike so many other members of the IPO class of 2021, these guys actually make money. In fact, they’ve been profitable since coming public… Using Sportradar’s latest revenue and EBITDA guidance for 2024, both lines will have more or less doubled over the past three years. Put it another way, Sportradar’s revenue has increased at a 24% compound annual growth rate in these past three years and its profitability has grown even faster.
What’s driving the strength? Okay, in the past few years, there’ve been several rounds of rights renewals, which have proved to be pretty expensive for Sportradar… The cost of these rights has risen substantially over the past few years, which has put a lid on Sportradar’s earnings power for a long time. Now though, there’s just one big deal left and that’s with Major League Baseball.”
Cramer noted that after finalizing its current negotiations, the company should experience stability and be able to focus on improving its margins. He pointed out that Wall Street expects significant earnings growth for the company in 2025 and 2026, with analysts highlighting this potential.
Cramer also mentioned that while Sportradar’s (NASDAQ:SRAD) financial performance has improved over the past three years since going public, the company’s outlook is now even more favorable. Cramer commented that with much of its costly bidding for sports league rights behind it, the company is well-positioned for future growth, which could drive its stock upward.
Overall, SRAD ranks 6th on our list of stocks that Jim Cramer recently highlighted. While we acknowledge the potential of SRAD 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 time frame. If you are looking for an AI stock that is more promising than SRAD 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.
