We recently published a list of Jim Cramer Said These 13 Stocks Can Hold Their Value Amid Tariffs. In this article, we are going to take a look at where Sempra (NYSE:SRE) stands against other stocks that Jim Cramer discussed.
Jim Cramer, the host of Mad Money, on Thursday, shared his thoughts on the market’s volatility following President Donald Trump’s tariff announcements and provided insights into which sectors and stocks could weather the impact of these new trade policies.
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“President Trump is out there fighting inflation every day except not the way we want him to do it. He’s fighting inflation, not in the mall, not in the supermarket, but in the stock market.
He’s trying to give us everyday lower prices. He is rolling back stock prices point by point and if he keeps it up, he will indeed get us back to pre-COVID levels.”
He pointed out that Trump is attempting to reduce prices in the market by gradually bringing down stock values, noting that if the current trend continues, we may eventually see stock prices return to pre-COVID levels.
Cramer also identified stocks he believes could be relatively insulated from the negative effects of these tariffs. He emphasized that these are the companies whose values are not directly impacted by the primary reason many stocks are struggling, tariffs. The protected stocks, according to Cramer, can maintain their worth even if additional tariffs are imposed on other countries. Cramer’s list was aimed at those seeking stability in an uncertain market environment, where the next country to be hit with tariffs remains unclear. He went on to say:
“Starting with tech first. Nothing that can be sold to China has a chance to get out of this thing unscathed. Nothing that has parts made in Taiwan can hold its value. Nothing that’s crafted in China can stay up. If we can’t be sure where the next tariff is gonna land, we can’t own these stocks until they go lower and then we can.”
Turning to the transportation sector, Cramer was blunt in his assessment. He pointed out that transportation stocks are closely tied to global commerce, which in turn is directly affected by tariffs. With tariffs raising the cost of goods, Cramer argued, global trade will slow, which will negatively impact businesses across the board. He highlighted the general economic principle that raising prices leads to reduced sales, making the transportation sector vulnerable to these market shifts. When it came to the auto industry, Cramer described the situation as a tough one.
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 27. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s 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).
A power transmission tower with a desert sunset in the background, symbolizing power and energy.
Sempra (NYSE:SRE)
Number of Hedge Fund Holders: 34
Sempra (NYSE:SRE) is an energy infrastructure company that offers electric and natural gas services, oversees electricity transmission and distribution, and specializes in developing energy infrastructure. Talking about the stocks that can tolerate the impact of tariffs, Cramer said, “Utilities work too, Sempra after California lowered the boom… on them.”
Sempra (NYSE:SRE) has received praise from Cramer before as he recently stated:
“How about a sleeper stock? One that’s withstood the seller, Sempra. Sempra’s a growth utility with a decent yield and a lot of opportunity. CEO Jeff Martin, that, guest many times, can show you that this stock offered a better return than most of the traditional growth names. You know when this might be worth buying on weakness, I’m debating to put it in the Charitable Trust.”
Overall, SRE ranks 7th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of SRE 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 SRE 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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