In this article, we will look at the stocks on Jim Cramer’s radar as he highlighted the importance of lower interest rates in sustaining the broader market rally. The host of CNBC’s Mad Money said Tuesday that the stock market could have trouble holding onto recent gains unless the bond market starts cooperating.
We got a powerful reminder that the economy is indeed bigger than the data centre, and it’s worth investing in. Today was the perfect lesson because we saw that these high fliers can plummet hundreds of points… When you get this kind of inflation, it really cuts back on your opportunities. Sure, we had some nice bounce-backs today. If you bought stocks, any stocks in the depths of despair that we saw, you’re up. Hey, terrific. But without the bond market on your side, you might just be up on a trade.
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Cramer also said that investors who locked in profits from major technology winners are better positioned to absorb losses elsewhere without seriously damaging overall performance. He noted that the broader significance lies in the market becoming healthier as several beaten-down sectors finally participated in the rally. He said he welcomed that because it signaled a wider recovery beyond a narrow group of high-growth technology names.
The bottom line, though: I just wish more companies could crack their own code and fast because the Venezuelan timeframe for the war with Iran is long gone, and the new one, it’s beginning to put the hurt to a lot of people. That inflation, real bad news, because the stock market won’t be able to rally for long without the oxygen of lower interest rates. And it’s very hard to cut rates with the CPI up 3.8%.
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 12. We 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Stocks on Jim Cramer’s Radar: CoreWeave, Vertiv, and Need for Lower Interest Rates
8. Sterling Infrastructure, Inc. (NASDAQ:STRL)
Sterling Infrastructure, Inc. (NASDAQ:STRL) was among the stocks on Jim Cramer’s radar as he highlighted the importance of lower interest rates in sustaining the broader market rally. Answering a caller’s question about the stock, Cramer commented:
You can’t buy it here. We just have to say, we missed it… We just missed it, and I just can’t put you in that stock after it just had a 52% move. That’d be irresponsible.
Sterling Infrastructure, Inc. (NASDAQ:STRL) provides e-infrastructure, transportation, and building solutions, including site development for data centers, industrial facilities, and public works projects. In addition, the company offers concrete, plumbing, and surveying services for residential and commercial construction. During the May 5 episode, Cramer noted that the company posted a “tremendous” quarter. He said:
Nucor makes the steel… Sterling Infrastructure does a lot of the building too and the roads too. It reported a tremendous quarter last night. How tremendous? It jumped 276 points or 52% today. How’s that versus your index fund?
7. Vertiv Holdings Co (NYSE:VRT)
Vertiv Holdings Co (NYSE:VRT) was among the stocks on Jim Cramer’s radar as he highlighted the importance of lower interest rates in sustaining the broader market rally. During the lightning round, a caller inquired about the stock, and in response, Cramer said:
Okay, here’s what I want you to do with Vertiv. I think they’ve got great orders. I think if you want to put a position on, you buy half and then you wait for a decline. If it doesn’t decline, that’s too bad because the stock is just, it is just a tiger right now, and I don’t want you to get burned.
Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and manages power and cooling systems for data centers and digital networks. The company also provides services to keep these systems running smoothly and efficiently. Cramer discussed the company’s latest quarterly results during the April 22 episode, as he remarked:
This morning, we got a great quarter again from Vertiv Holdings, which makes crucial power and cooling equipment for the data center, of course. Yet the stock actually got dinged a little. Look, I think that was purely because it came in too hot. Even after this pullback, the stock’s up 88% year to date. I hope you have some of these kinds of stocks.
Quarter was phenomenal. Vertiv delivered a 17-cent earnings beat off a dollar basis. That’s up 83% year over year. Revenue came in higher than expected. Their operating margin expanded by a staggering 430 basis points. Even better, management raised their full year sales and earnings forecast. They’re now talking about 29 to 31% organic revenue growth this year. Problem is the stock had already made a monster move higher, but Vertiv keeps making smart acquisitions to expand its place in the data center.
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