- CNBC’s Jim Cramer said he knows August has been a tough month for the market, but on Thursday he listed five stocks he thinks investors could surprise during “any bouts of weakness.”
- Cramer named American Airlines, Bank of America, Electronic Arts, Ball Corp. and Cummins.
CNBC Jim Cramer He said he knows it’s been a “brutal month” for the market, but on Thursday he listed five stocks he thinks investors might consider buying during “any bouts of weakness.”
“Whenever the market is affected, there are almost always buying opportunities,” Cramer said.
“Even if you think we’ll see more downside once we hear from Fed chief Jay Powell in Jackson Hole tomorrow, you can use that to buy the hardest-hit stocks at even lower levels.” He continued, referring to Federal Reserve Chairman Jerome Powell. friday speech where it is expected to indicate whether interest rates will remain high.
Here are the five stocks Cramer has in mind:
- american airlines: Cramer said the airline, which is now down 13% since the beginning of the month, according to FactSet, performed well in the early spring and early summer. But it has since pulled back from those highs, he said, adding that many airlines have been feeling the pinch of recent consumer weakness. Cramer acknowledged these industry-wide concerns, suggesting that investors invest money in airlines with “the best international exposure,” including American, United and Delta.
- Bank of America: Bank of America is down more than 10% since Aug. 1, according to FactSet, in part due to fears of slowing loan growth and new banking regulations, according to Cramer. He added that when the Federal Reserve tightens its policies, Bank of America gets higher net interest margins, making them more profitable. Cramer said he may be concerned about smaller regional banks, but not big industry players like Bank of America.
- electronic arts: The video game publisher is down about 12% in the August period, according to FactSet. Cramer highlighted the “scarcity value” of Electronic Arts since Microsoft submitted a new bid for take the control Activision Blizzardanother major video game publisher.
- ball corp: Ball Corp., a company that makes metal containers for food, beverages and household products, is down just over 10%, according to FactSet. Cramer singled out this company because it has limited competition and has just announced the sale of 5 billion dollars of its secondary aerospace division. He also said that he believes this sale will allow the company to be more focused and streamlined.
- Cummins: Engine maker Cummins is down more than 11% since Aug. 1, according to FactSet. Cramer said he has been recommending this company despite its recent bad quarter because they have made “great strides” in hydrogen-powered engines, which he said could be very successful in the future. He also pointed out that there is a lot of federal money going into clean energy sources like hydrogen.
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