In this article, we will take a detailed look at Jim Cramer is Talking About These 10 Stocks.
Jim Cramer in a latest program on CNBC discussed the reasons behind the recent market declines after the ISM Services Index data. Cramer said many are still expecting more rate cuts from the Federal Reserve soon but they are wrong.
“This survey showed surprising strength, so much strength that it makes you think that the FED might not give us more rate cuts anytime soon. Right now, a ton of investors believe that the FED needs to push through a bunch of rate cuts in order to revive the economy. Lots of those bulls are counting on those cuts. That seems wrong today. They were rocked to the core because not only have they been wrong, but they’re starting to question the FED’s credibility. They know nothing,” Cramer said.
Cramer said he was “mystified” by the Fed’s rate cuts amid strong economic data.
“These traders are wondering why the heck the FED cut short rates by 50 basis points September then give another 25 in November another 25 in December what the heck did they see that made them so aggressive judging by the data. Nothing. The credibility issue, if you claim you’re data dependent, and the data is strong then why the heck are you cutting so aggressively.”
Cramer at the time said the latest nonfarm payrolls report would be one of the most important indicators of the economy and it would set the “dialog” in the coming days. Sure it will. The latest jobs data showed unemployment fell and job additions crushed Wall Street expectations. Many now believe the Fed is set to put brakes on rate cuts.
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For this article, we picked 10 stocks Cramer recently talked about. With each company, we have mentioned the number of hedge fund investors. 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).
10. Energy Transfer (NYSE:ET)
Number of Hedge Fund Investors: 29
Answering a question about Energy Transfer (NYSE:ET), Jim Cramer said:
“I want you to keep owning it. It’s got a 7% yield, and if it goes down, just buy more. I like Energy Transfer. I used to dislike it, but I’ve liked it now for the last five points.”
Energy Transfer is among the largest midstream companies in the world, with over 130,000 miles of pipelines and nearly 900,000 barrels per day in natural gas liquids (NGL) gathering capacity. The company makes about 90% of its EBITDA from fees, which makes it less cyclical compared to upstream energy companies that produce oil and gas. The company can benefit in the coming days amid an expected end to the pause on pending and future export permits for new liquefied natural gas projects. Energy Transfer’s $13 billion LNG-export facility in Louisiana is one of the projects impacted by this pause.
Then there’s AI. Energy Transfer is expected to be one of the biggest beneficiaries of the AI-based data center boom.
The company talked about this opportunity in Q3 earnings call:
“Given Energy Transfer’s extensive interstate and intrastate natural gas pipeline footprint, we are the best positioned to capitalize on the anticipated rise in natural gas demand for AI data centers, natural gas power plants and industrial and onshore manufacturing for decades to come. We have never seen this level of activity from a demand pull standpoint and these opportunities are truly spread across our natural gas footprint from Arizona to Florida and from Texas to Michigan.
We currently serve gas-fired power plants in 15 states with approximately 185 plants served via direct or indirect connections throughout these states, and our opportunities have only increased since our last call. We have had requests to connect to approximately 45 power plants that we do not currently serve in 11 states that in aggregate could consume gas loads up to 6 Bcf per day. In addition, we have had requests from over 40 prospective data centers in 10 states. These data centers in aggregate could consume gas loads up to 10 Bcf per day. Some of these may be behind the electric meter for reliability purposes.” [read the full transcript]
9. Sempra (NYSE:SRE)
Number of Hedge Fund Investors: 33
Jim Cramer in a recent program said he prefers Sempra (SRE) over Constellation Energy.
“Constellation Energy, it has a habit of bouncing back because it’s really involved with the data center, but it’s got way too much volatility for me, and I think that when it gets back to 250-260, I think you should take some off the table and go put it in Sempra”
8. Kinder Morgan Inc (NYSE:KMI)
Number of Hedge Fund Investors: 42
Answering a question about Kinder Morgan Inc (NYSE:KMI), here is what Jim Cramer said:
“Kinder Morgan’s good. I mean, look, obviously it’s been straight up. It still yields four. It’s finally getting its act together for this year. It’s a good situation.”
7. Stryker Corp (NYSE:SYK)
Number of Hedge Fund Investors: 55
Jim Cramer in a latest program on CNBC was asked about medical technologies company Stryker Corporation (NYSE:SYK).
“Stryker is a really good company. I have been recommending Stryker for a very long time. They have… it’s just one of those companies that you just want to own it. I hate to say this and forget about it because that’s how good it is,” Cramer said.
Parnassus Core Equity Fund stated the following regarding Stryker Corporation (NYSE:SYK) in its Q3 2024 investor letter:
“We view Stryker Corporation (NYSE:SYK) as a best-in-class medical technology provider. It is a leader in most of its end markets and has a broad product offering, which has helped it achieve significant revenue and market share growth compared to its competitors. Stryker is particularly dominant in orthopedics, and we are optimistic about upcoming product launches, including the expansion of its Mako robotic assisted surgery arm. The company also has one of the top industry CEOs with a strong track record of leading successful innovations and mergers and acquisitions to help the company grow.”
6. Abbott Labs (NYSE:ABT)
Number of Hedge Fund Investors: 63
A caller recently asked about Abbott Labs (NYSE:ABT) in a recent program on CNBC. Here is what Cramer said:
“I think it’s a terrific idea. I think that their legal stuff is really largely behind them, and we will find out now that the FDA and the NIH said, ‘Listen, this thing, we need that formula.’ I think that the plaintiffs don’t have a leg to stand on, honestly, and I know their situation is tragic, but this is not the venue for them to be able to do okay in.”
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Investors: 81
Asked about Johnson & Johnson (NYSE:JNJ), Cramer said he’d recommend this stock amid its attractive valuation and dividend.
“”Oh man, this stock is just so, it’s 3.3% yield. It’s got really fabulous drugs. I know the whole drug stocks, the whole cohort is down, but if you can get this company for 14 times next year’s owner, this is J&J. Even with the talc litigation, I do want to buy it down here. Drug stocks are way out of favor.”