In this article, we will look at the stocks in focus as Jim Cramer shared how to navigate Wednesday’s tough tape. The host of Mad Money, on Wednesday, discussed what investors can do on punishing days in the market.
When the bear comes running at you, it’s mighty difficult to hide, to stay ahead of the darn thing, to avoid being mauled. Right now, we have a situation where every time we provoke the bear by attacking Iranian oil facilities, only a few stocks can rally. When you throw in a crummy Producer Price Index reading and a Fed meeting with no hope whatsoever of a rate cut, well, you get a hideous day for the averages… These are what’s known as macro events that I just talked about, not stock stories, and they can impact the entire market. Usually, there’s a reliable set of sectors we can turn to even when things get ugly like this, but not today. Everything was awful except for a handful of oil and gas stocks.
READ ALSO: Jim Cramer’s Latest 6 Stock Calls As Oil Drops and the U.S. Market Rises and Jim Cramer’s Bullish AI Investment Thesis Amid Iran Conflict: 6 Stocks in Focus.
Cramer said that he does not approach markets as a geopolitical expert, but the connection between surging oil futures and falling equities is clear. He noted that oil prices climbed throughout the day, and, aside from a few unusual gainers, rising oil prices generally translate into declining stock prices. He added that the strain that higher energy costs placed on the S&P 500 was unmistakable.
The bottom line: NVIDIA is one of the fastest growing firms with one of the lowest valuations in the entire market, and that’s always tempting, even with oil up a few bucks and a recalcitrant Federal Reserve, something that may matter to the stock short term, but absolutely doesn’t matter to NVIDIA’s long-term prospects. After that festival, I gotta tell you, NVIDIA is still best in show.
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 18. 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).
Jim Cramer on How to Navigate Wednesday’s Tough Tape: 7 Stocks in Focus
7. Arm Holdings plc (NASDAQ:ARM)
Arm Holdings plc (NASDAQ:ARM) is one of Jim Cramer’s latest stock calls as he shared how to navigate Wednesday’s tough tape. Cramer noted the company’s potential in AI, as he said:
I like Arm Holdings, which I think will be the big beneficiary from the pivot to using not just its monster GPU architecture, but also its more agile CPUs to help manage these AI agents. They need CPUs. Arm’s always been tight with NVIDIA. I think it gets tighter.
Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications. Cramer highlighted the company’s importance to the semiconductor industry during the March 16 episode, as he stated:
As we celebrate all things AI at NVIDIA’s annual conference, I want to highlight a company that’s become increasingly important to the entire semiconductor industry: Arm Holdings. This semiconductor design company cut its teeth providing CPU designs that maximize energy efficiency, especially for smartphones. That expertise has made Arm the preferred partner for many AI systems, including NVIDIA’s. That said, for some reason, the stock has been stuck in a rut, trading sideways for the past couple of years. Can it get its mojo back? Because I gotta tell you, it’s got the earnings back… The stock is up since the last quarter, but nowhere near reflecting the kind of book of business that Rene has just outlined for the next year and a half.
6. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies Inc. (NYSE:DELL) is one of Jim Cramer’s latest stock calls as he shared how to navigate Wednesday’s tough tape. Cramer showed positive sentiment toward the stock during the episode, as he remarked:
So I scanned the field for winners. I think Dell’s worth buying. This is the company that enterprises are using to connect with NVIDIA. I call it the customer’s most sought-after technology and one of the most undervalued stocks in the market. I reiterated Dell as a bullpen stock for the club in today’s morning meeting, but only if it retreats a bit from these levels.
Dell Technologies Inc. (NYSE:DELL) provides storage systems, servers, networking gear, and consulting services, as well as laptops, desktops, workstations, and accessories. Cramer mentioned the company during the March 2 episode and commented:
Next up… was another data center play with a fantastic bang-up quarter last week, Dell Technologies, up 29.4%. Now, this stock had been steadily sinking lower throughout the last fall and into the new year as Wall Street thought they’d be crushed by skyrocketing memory and data storage costs. But last week, Dell shocked Wall Street with a huge fourth quarter beat driven by strong AI product sales and far better than expected margins because they were able to pass on their own cost increases to their customer base. Dell’s got a huge backlog, and they have a very bullish outlook for the full year. It was a great conference call, which is why the stock soared nearly 22% on Friday alone. Very confident.
Hedge Fund Resource Center