We recently published a list of Jim Cramer and Analysts Like These 10 Stocks. In this article, we are going to take a look at where GE Vernova (NYSE:GEV) stands against other stocks that Jim Cramer and analysts like.
On Thursday, Jim Cramer, the host of Mad Money, shared his thoughts on the current state of the stock market, explaining that until things become more balanced, we are likely to continue experiencing what he referred to as the “Walmart White House” scenario. In this environment, he explained, there are consistently lower prices for the Dow Jones, the S&P, and, more “savagely”, the Nasdaq 100.
“Let’s say you believe that the stock market is a good proxy for the state of a country. It’s not perfect, but it certainly reflects how investors feel about America and its future trajectory. But judging by the averages, maybe we should be embarrassed or even mortified because we’re doing so much worse than similar countries, including countries that we’d written off years ago.”
READ ALSO: Jim Cramer Looked At These 11 Stocks Recently and 10 Stocks on Jim Cramer’s Radar
The answer, according to Cramer, lies in the fact that several European nations are faring better at this moment because these countries have central banks that have been consistently lowering interest rates in an effort to stimulate demand. On top of that, Cramer emphasized that individual European countries are taking proactive steps to jumpstart their economies.
“Now, we all know what’s keeping our stock market down. It’s being sacrificed on the altar of uncertainty and confusion about punishing our trading partners for allowing illegal immigration and fentanyl smuggling, in fairness, and also of course, tariffs.”
He reminded viewers that President Donald Trump campaigned on border security, not on boosting stock prices, so in that sense, he is following through on his promises. However, Cramer expressed frustration with how chaotic and difficult to comprehend the current policy landscape seems.
Many people, Cramer noted, believe that the market will not improve until the Dow sees a significant drop of 10 to 15%. He has been attempting to guide viewers through this difficult time, but he also questioned how much longer the disparity between the U.S. market and those of its allies can persist before it becomes too significant to ignore.
“I think we’d be in better shape if Trump rolled out the tariffs more gradually with a clear trajectory of where we’re headed rather than these endless intermittent volleys of Katyusha rockets.”
Our Methodology
For this article, we compiled a list of 73 stocks that Cramer was bullish on during episodes of Mad Money aired in January. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of March 6. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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GE Vernova Inc. (NYSE:GEV)
Average Price Target Upside: 40.97%
Number of Hedge Fund Holders: 111
Cramer was bullish on GE Vernova Inc.’s (NYSE:GEV) CEO in January when he said:
“I don’t know how far Larry [Culp] can see around the corner but now GE Vernova is a beloved company, the hottest one with momentum traders can’t get enough of it precisely because it makes the turbines and windmills, … that you need to power all those new data centers. He appointed Scott Strazik to run what became GE Vernova. The stock started trading independently at $141 about 10 months ago. Now it’s at $383. Oh and don’t forget, it’s also gonna be the company that builds small modular nuclear plants that everybody loves so much.”
GE Vernova (NYSE:GEV) is an energy company that offers products and services for the generation, transmission, and storage of electricity worldwide. Cramer is not the only one bullish on the stock as on March 5, Guggenheim raised its rating on GEV stock to Buy from Neutral, setting a price target of $380.
Despite a decline in the stock since mid-January, the analyst expressed increased confidence in GE Vernova’s (NYSE:GEV) projections following recent remarks from the firm. The analyst noted that upcoming pricing actions are expected to impact the model later in the decade, and the company’s backlog continues to grow. Additionally, progress in its power business remains strong, according to the analyst.
Overall, GEV ranks 2nd on our list of stocks that Jim Cramer and analysts like. While we acknowledge the potential of GEV 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 GEV 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.