Was Jim Cramer Right About These 12 Stocks?

1. Concentra Group Holdings Parent, Inc. (NYSE:CON)

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Cramer talked a lot about the IPO market back then, which he was very fond of at the time. He saw Concentra Group Holdings (NYSE:CON) as an intriguing healthcare play but urged patience before buying.

“Now that Select Medical has spun off its Occupational Health business as Concentra, I think this one’s worth putting on your shopping list. Just hold off on the actual buying.”

Cramer liked the company’s dominant position in occupational health and noted that the company was going under the radar:

“Concentra is the largest provider of occupational health services in America, partnering with every single member of the Fortune 100 and 95% of the Fortune 500, yet nobody’s ever heard of them!”

However, he saw near-term risks due to its recent IPO and parent company Select Medical still owning 80% of the stock, which he believed would create selling pressure.

“Select Medical still owns a huge slug of stock that they plan to distribute to their own shareholders. Many of them may choose to sell, which is a big impediment to getting really excited about this stock right now.”

On valuation, Cramer found Concentra’s price a bit steep compared to similar healthcare stocks. His call was to wait for the stock to dip below $20 before buying:

“When Select Medical distributes its remaining stake to shareholders, I bet the stock falls below $20, and that’s where you can do some buying.”

And the stock did fall below $20 a few times since then and had some solid bounce-backs. However, it has been mostly flat since Cramer talked about it, with a performance of -0.9%.

While we acknowledge the potential of CON 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 CON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article was originally published on Insider Monkey.