We recently compiled a list of the 10 Best Jim Cramer Stocks to Buy According to Analysts. In this article, we are going to take a look at where LandBridge Company LLC (NYSE:LB) stands against the other Jim Cramer stocks.
Jim Cramer, the host of Mad Money, recently discussed the rise of Bitcoin and expressed his admiration for the digital currency’s growth. However, he was careful to emphasize that Bitcoin should not replace traditional investments, particularly stocks, but rather should complement them in a diversified portfolio.
“I want to discuss Bitcoin, really I do, not to the detriment of stocks but in addition to stocks. I come to praise Bitcoin, not bury it.”
Cramer recalled the moment when President-elect Donald Trump began giving importance to cryptocurrency during his administration. On July 27, Trump declared that the U.S. government would fully embrace Bitcoin if he won the election. At the time, Bitcoin was valued just under $70,000. Cramer also noted Trump’s promise to create a strategic Bitcoin reserve and make America the global leader in cryptocurrency.
Cramer highlighted Trump’s statement, “If crypto is going to define the future, I want it to be mined, minted, and made in the USA.” Regardless of whether one agrees with the policy, Cramer remarked, Trump’s words were a clear signal of how beneficial the growing popularity of cryptocurrency could be for its owners.
READ ALSO Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight and Jim Cramer’s Game Plan This Week: 10 Stocks to Watch
Cramer then shared insights from Federal Reserve Chairman Jerome Powell, who suggested that many investors see Bitcoin as a store of value, similar to gold. He went on to say:
“I’ve always endorsed keeping up to 10% of your portfolio in gold as a kind of insurance against the world’s lunacy. But for years now, I’ve also been saying Bitcoin’s a fine alternative to gold for that 10% position. Why not? I think the federal budget deficit is at impossible levels. I don’t want to be wedded to a currency backed by the full faith and credit of a country that owes $36 trillion.”
Cramer also acknowledged that some people might have gone all-in on Bitcoin and praised their decision. However, he recommended balancing Bitcoin investments with stocks. For instance, if Trump were to make a move to encourage buying Tesla, Cramer commented, having both stocks and crypto would give investors an edge.
“While we could become the bitcoin network, especially since President-elect Trump christened us as the bitcoin nation, I actually think there’s more to investing than just owning cryptocurrencies… Bitcoin’s part of the most obviously diversified portfolio in recent history. Buying and holding stocks can be just as lucrative as buying Bitcoin six days after Biden dropped out of the race. Or maybe, just maybe, it can make you even more money.”
Our Methodology
For this article, we compiled a list of 29 stocks that Cramer was bullish on during episodes of Mad Money aired over the last 2 weeks. 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 December 9. The average price target upside was calculated while the market was open. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q3 database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A drilling rig surrounded by reserves of oil and natural gas.
LandBridge Company LLC (NYSE:LB)
Average Price Target Upside: 21.52%
Number of Hedge Fund Holders: 12
Talking about LandBridge Company LLC (NYSE:LB), Cramer stated, “I’ll tell you that’s a winner. I would just hold onto it.”
LandBridge Company (NYSE:LB) engages in the ownership and management of land and resources to support oil and natural gas development, primarily within the Delaware Basin. The stock has a consensus Buy rating from 7 analysts and its average price target of $79.50 implies a 21.52% upside, as of December 9.
In the third quarter, the company acquired 1,280 surface acres in Winkler County, Texas, and entered into a purchase agreement for an additional 5,800 acres in Lea County, New Mexico. These acquisitions bring the company’s total surface ownership to around 227,000 acres. Further adding to its land portfolio, the company secured a lease development agreement for approximately 2,000 acres of land in Reeves County, Texas. This land is designated for the development of a data center and related facilities.
LandBridge Company (NYSE:LB) made a significant acquisition in the Southern Delaware Basin, purchasing 46,000 acres, known as the Wolf Bone Ranch, for $245 million from a subsidiary of VTX Energy Partners, LLC. This acquisition, which includes plans for additional water infrastructure and a potential water distribution hub for New Mexico, is expected to drive revenue growth.
Along with other acquisitions, the company expanded its land holdings by approximately 53,080 acres in the fourth quarter of 2024. These moves are expected to contribute to future revenue growth, with a projected 2025 EBITDA multiple of 7.6x.
Overall LB ranks 4th on our list of the best Jim Cramer stocks according to analysts. While we acknowledge the potential of LB 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 timeframe. If you are looking for an AI stock that is more promising than LB 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.
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