In this article, we will look at Jim Cramer’s 5 Stocks Review: MSFT, AVGO, and Market Rotation. Please visit Jim Cramer’s 11 Stocks Review: HOOD, WFC, and Market Rotation, if you’d like to see the extended list and methodology behind it.
5. StoneX Group Inc. (NASDAQ:SNEX)
StoneX Group Inc. (NASDAQ:SNEX) was among the stocks Jim Cramer reviewed on Mad Money while discussing the recent market rotation. Cramer was bullish on the stock during the episode, as he stated:
For now… this is a very good business, but it’s not just a timing story where StoneX has benefited enormously from high interest rates and market volatility. These guys have been building this business for a long time. In its investor presentation, management says operating revenue has compounded at 31% annually since fiscal 2003. And book value has had a compound annual growth rate of 29%. These numbers are staggering… They’re no fluke either. They tell us that this is a real compounder, just one that happens to live in a part of the market most people don’t really care about. And… I know it seems boring but what are we in this business for? We’re in it to make money, okay? So, StoneX remains a market-sensitive business.
If the world comes down too much, interest rates fall a lot or some of these acquired businesses disappoint, the numbers can get less exciting. That’s one reason the stock stayed under the radar for so long. But it’s also why I think StoneX deserves its recent run. If you believe we’re entering a moment with more geopolitical friction, more commodity volatility, more cross-border complexity and more need for financial infrastructure outside the giant money center banks, well, then this one’s a winner.
Bottom line… I really like it. I think it’s one of the best businesses you’ve never heard of. But after running to all-time highs yesterday, it’s no longer as cheap as it was, obviously. This feels more like a very good company with a stock you should buy on weakness, not a stock you chase after a huge move. If the market gives you a pullback, you have my blessing to buy some StoneX. At these elevated levels, though, I say keep your bat on your shoulder, but get ready because on any sell-off, I think that you’ve gotta take a chance and you gotta do some [buy, buy, buy] of StoneX.
StoneX Group Inc. (NASDAQ:SNEX) provides financial services, including risk management, hedging, and trading for global markets. The company handles physical commodities, precious metals, and institutional fixed income and offers wealth management and payment solutions.
