We recently published a list titled Jim Cramer is Recommending These 10 Stocks in June. Since GE Vernova Inc (NYSE:GEV) ranks 3rd in the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the effect of inflation on US consumers and discussed how it’s impacting the Haves and the Have Nots. Cramer said while everyone is feeling the “pinch of inflation,” the Have Nots are feeling a “heck of a lot more” than the Haves. Cramer said that the difference between these two classes of consumers is very important for investment portfolios. He complained that many retailers don’t even know their consumers and that’s why they have a totally different reading of the current economic situation and its effects on consumers. Cramer criticized those who aren’t careful about the differences between consumers and use “the consumer” as a blanket term.
Cramer talked about several retail companies and how they are directly feeling the effects of inflation as consumers cut back on spending. The CNBC host said that Americans are making tough choices because of rising prices but we usually don’t talk about it.
Jim Cramer said that many strategists demand several rate cuts because “they want stocks higher.”
“I want higher stock prices too but if we get multiple rate cuts and inflation comes roaring back, it’s the Have Nots that will get hurt.”
Jay Powell Is Worried About Tens of Millions of People With Almost Nothing in the Bank, Cramer Says
Jim Cramer said that while many people won’t be happy to see a strong jobs report (because that decreases the chances of rate cuts), they should keep in mind the tough situation the Federal Reserve is in.
“Jay Powell isn’t worried about those of us with big portfolios. He’s worried about the tens of millions of people with almost nothing in the bank.”
For this article we watched several latest programs of Jim Cramer aired recently and picked 10 stocks he’s bullish about and recommending investors to buy or hold. With each stock we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
GE Vernova Inc (NYSE:GEV)
Number of Hedge Fund Investors: 107
Jim Cramer has recommended GE Vernova Inc (NYSE:GEV) multiple times over the past few days. Cramer is bullish on the stock amid its exposure to the nuclear power business and thinks the stock is a better nuclear stock than any other company out there.
“I keep saying to people… GE Vernova.. because they are nuclear, because they are also natural gas and they are also wind. And you want all those.”
Citi recently started covering GE Vernova Inc (NYSE:GEV) with a Neutral rating and a $183 price target. Citi sees GE Vernova Inc (NYSE:GEV) positioned well to benefit from favorable demand trends.
Wall Street analysts believe GE Vernova Inc (NYSE:GEV) is set to grow on the back of secular growth catalysts. Power demand in the US and all over the world is set to grow following a rise in population, electrification and the surge in AI data centers. The rapid rise in power demand has pushed the company’s order backlog to a whopping $116 billion, which includes backlogs from power, wind and electrification.
GE Vernova Inc (NYSE:GEV) expects about $35 billion in revenue in 2024, and $1 billion in FCF. For 2025, the company is expecting mid-single-digit revenue growth in 2025.
GE Vernova Inc (NYSE:GEV) valuation has been concerning for some. The stock is trading at a forward P/E ratio of 52.08. GE Vernova bulls believe with the company expecting margin expansion and long-term secular growth catalysts, the stock is a solid option for those who can wait.
Overall, GE Vernova Inc (NYSE:GEV) ranks 3rd on Insider Monkey’s list of Jim Cramer is Recommending These 10 Stocks in June. You can visit Jim Cramer is Recommending These 10 Stocks in June to see other stocks in the list. While we acknowledge the potential of GE Vernova Inc (NYSE:GEV), 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 GE Vernova Inc (NYSE:GEV) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.