We recently published a list of Jim Cramer Talked About These 10 Stocks Recently. In this article, we are going to take a look at where GE Vernova Inc. (NYSE:GEV) stands against other stocks that Jim Cramer discussed recently.
On Tuesday, Jim Cramer, host of Mad Money, broke down the day’s market movements as he pointed to rising bond yields as the main force behind a series of notable shifts in stock performance.
“Every day around here, we have a referendum on stocks, and you can’t let it get you down because tomorrow’s vote can always be different from today’s… Why is it like this?… Well, the answer is a mischievous one.”
READ ALSO Jim Cramer’s Recent Thoughts on These 15 Stocks and Jim Cramer Put These 12 Stocks Under the Spotlight
Cramer offered a broader perspective and explained that on most days, individual stocks respond either to the movements of other stocks or to the overall direction of the market. He said that the market, in turn, often takes its cues from the bond market, which he described as its “much larger sibling.”
On Tuesday, he noted that the bond market heavily influenced stock prices. He highlighted that every downward movement in bond prices, which translates to higher interest rates, was met with negative reactions from the stock market. According to Cramer, such a relationship meant that rising rates handed the advantage to the market bears and tipped the scales in their favor during daily trading.
“So here’s the bottom line: The good news is that rates can also go up and not just down by the time we get a budget deal. The bad news is that rates are threatening to break out to the upside. And if they can’t stay calm, if they jump to a new, higher level while Congress works on the budget bill, we’re liable to have more days like today, where you need a plethora of positive themes for any given stock to break free from the gravitational pull of these darn miserable Treasurys.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 20. 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 close-up of an electrical power line with a bright blue sky in the background, highlighting the company’s selection of electricity and natural gas services.
GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 111
Cramer highlighted that GE Vernova Inc. (NYSE:GEV) has various secular trends going for it, as he said:
“We’re going to talk about the stock of GE Vernova. That’s the power division that was spun off from the old General Electric that so many of you like. Right now, we’ve got several huge themes occurring at once. We know that we have a gigantic number of data centers being put up in the country, correct? Now they require tremendous amount of electricity. They’re big drainers. Our most abundant source of power comes from burning of natural gas. We got more natural gas than any other country.
GE Vernova makes the turbines. Those are huge machines, up to 700,000 pounds, that burn the natural gas, which then generates electricity. Now there’s the theme for you, but that’s not all. Today, the Tennessee Valley Authority, remember them, announced that it’s going to submit a construction permit for a small modular nuclear reactor, again because we need more power for the data centers. Who makes those? GE Vernova. And we know that the Empire offshore wind project off the coast of New York just got re-greenlighted by the Trump administration. According to a 2022 press release, GE Vernova will be responsible for designing and building the high-voltage electrical system connected to this. It’s a huge multi-year project that will be fantastic for, yes, GE Vernova.
Oh, and if you are a country with a trade surplus with the US, the best way to get it down and then you lose the ire of the president, get away or get rid of the wrath, well, it’s always been to buy a Boeing plane, but I don’t think that works as much anymore. You know what you gotta do? You gotta buy a turbine from GE Vernova. It takes a lot to buck the bond voters. But GE Vernova has not one, not two, not three, but four secular trends going for it. That’s what you need. That’s belt, suspenders, and suspenders and then belt again.”
GE Vernova (NYSE:GEV) is an energy company that provides equipment and support for producing, moving, and storing electricity around the world.
Overall, GEV ranks 1st on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of GEV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GEV and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
