Jim Cramer on Ares Capital: “I Want to Be Very Careful There”

Ares Capital Corporation (NASDAQ:ARCC) is one of the stocks Jim Cramer recently looked at. When a caller mentioned that their top five holdings are AAPL, ARCC, HSY, KMB, and NVDA, Cramer remarked:

Wow, okay. Well, you got some yield there. You got some growth. I don’t like the Ares because I can’t really tell what they own, so I want to be very careful there. So, I’m going to get you out of that. I’m going also put you in J&J. We have Hershey, obviously, we got a candy company. We’ve got a what is the ultimate soft goods company. I can’t know if it’s holding par. That’s genuine Wall Street gibberish for $100. Apple, went over that, that’s terrific. NVIDIA, I told Jeff Marks, said it wasn’t, oh, I did that at the last one. Okay, so, semiconductor, I’m going to call it consumer electronics… it’s a tech company. I don’t know, tissue, chocolate, food, and then you just got rid of this. You went into J&J, and then you’re fine. Please, I don’t trust this one. I don’t like the 9% yield. It makes me very, very nervous.

A stock market graph. Photo by energepic.com

Ares Capital Corporation (NASDAQ:ARCC) provides financing solutions, including debt, equity, and mezzanine capital, to middle-market companies across several industries, including manufacturing, healthcare, and technology.

While we acknowledge the risk and potential of ARCC as an investment, our conviction lies in the belief that some 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 ARCC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.