CNBC’s renowned financial commentator, Jim Cramer, shared his insights on a variety of stocks during recent episodes of his popular show ‘Mad Money.’ Cramer’s stock picks offer a window into his market perspective and potential investment opportunities. Let’s delve into his recent pronouncements on Intuitive Surgical, Energy Transfer, T-Mobile, Constellation Energy, IBM, and Snowflake.
Intuitive Surgical: A Fantastic Company, But Expensive
Cramer lauded Intuitive Surgical, Inc. (ISRG), calling it a ‘fantastic company’ but acknowledging its expensive stock valuation. Intuitive Surgical, the maker of the da Vinci surgical system, reported impressive third-quarter revenue of $2.04 billion, exceeding analysts’ expectations. This strong performance underscores the company’s dominance in the minimally invasive surgical market. While Cramer acknowledges Intuitive Surgical’s merits, the high stock price may present a hurdle for some investors.
Energy Transfer: A Buy Recommendation
Cramer issued a ‘buy’ recommendation for Energy Transfer LP (ET). Despite missing analyst estimates for both earnings and revenue in the latest quarter, Cramer believes the energy infrastructure company presents a compelling investment opportunity. Energy Transfer reported quarterly earnings of 32 cents per share, falling short of the anticipated 37 cents. Similarly, sales of $20.772 billion trailed the projected $22.297 billion. Nevertheless, Cramer’s ‘buy’ recommendation suggests he sees potential for future growth and value creation.
T-Mobile: Let It Ride
Regarding T-Mobile US, Inc. (TMUS), Cramer’s advice was simple: ‘Let it ride.’ This indicates his belief in the continued strength and potential of the telecommunications giant. T-Mobile exceeded analysts’ earnings expectations, reporting quarterly earnings of $2.61 per share, surpassing the anticipated $2.41 per share. Cramer’s ‘let it ride’ stance suggests he sees T-Mobile as a solid investment for the foreseeable future.
Constellation Energy: Potential for Further Growth
Cramer is optimistic about Constellation Energy Corporation (CEG), stating, ‘I think it still works higher.’ Constellation Energy, a leading energy provider, reported third-quarter results and revised its FY24 adjusted EPS guidance, falling short of analyst expectations. Despite this, Cramer remains bullish, indicating his belief that the company’s growth trajectory remains positive.
IBM: Hold Position
Cramer advised holding International Business Machines Corporation (IBM), a tech giant known for its data and AI capabilities. IBM missed revenue expectations, reporting third-quarter revenue of $14.968 billion, falling short of the consensus estimate of $15.07 billion. Despite the shortfall, Cramer’s recommendation to hold suggests he sees long-term value in the company, potentially fueled by its continued investments in emerging technologies.
Snowflake: A Cautionary Note
Cramer expressed reservations about Snowflake Inc. (SNOW), a leading cloud-based data warehousing company. He cited increased competition in the market, stating, ‘I think they have a lot of companies that are up against them.’ This cautionary note underscores the competitive landscape within the data warehousing space, potentially impacting Snowflake’s future growth prospects. Keybanc analyst Eric Heath mirrored Cramer’s sentiment, maintaining an Overweight rating but lowering the price target from $168 to $150.
Price Action
Following these pronouncements, several of the mentioned stocks experienced price fluctuations. Energy Transfer shares fell 1.1%, Intuitive Surgical shares rose 0.3%, T-Mobile shares gained 0.3%, Constellation Energy shares declined 3.6%, IBM shares dropped 0.5%, and Snowflake shares climbed 1.6%.
