We recently compiled a list of the Jim Cramer Talked About These 11 Stocks Recently. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against the other stocks Jim Cramer recently talked about.
On Thursday, Jim Cramer, host of Mad Money, discussed the current state of the market following the election, noting that it has been marked by extreme volatility, with some sectors experiencing massive gains while others have faced significant losses. Cramer observed a recurring pattern in the market:
“When it’s loved in this market, it’s really loved, but when it’s hated, I mean just forget about it. That’s been the dynamic ever since the election.”
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Cramer identified certain industries that have seen notable growth, explaining that these sectors have thrived for specific reasons. However, he cautioned that investors should be wary of jumping in too quickly, as these stocks need time to cool off before they become attractive again. In particular, he mentioned how companies with subscription-based models have been seeing a lot of attention, largely because of their steady revenue streams.
Another sector Cramer highlighted as being in the midst of a strong rally is enterprise software. He explained that companies in this space, particularly those providing essential products to large corporations, have been soaring.
While some sectors are riding high, Cramer also pointed to two areas that are currently undervalued but could see a rebound: pharmaceuticals and semiconductors. He speculated that the pharmaceutical sector has been dragged down in part due to concerns over Robert F. Kennedy Jr.’s controversial appointment as the head of the Department of Health and Human Services. However, Cramer suggested that these concerns may already be priced into the stocks.
Similarly, Cramer noted that semiconductor stocks have struggled. He said that the hatred comes from doubts surrounding the adoption of artificial intelligence-powered PCs. In his closing remarks, Cramer stressed that while there are plenty of stocks that are currently over-loved, many of them genuinely deserve the attention they’re receiving, but not necessarily at their current inflated prices.
As for sectors that seem to be in a perpetual decline, Cramer said he would be interested in buying them, but only after seeing signs that they’ve stopped falling. He added that any potential rebound will depend on greater clarity from President-elect Trump, who he believes could have a significant impact on the market, particularly with his potential to cause turbulence for many stocks.
“We need to see the floor of the abyss, unless, of course, we’re bouncing off it already. And for the overly loved, don’t look for Trump for support. He can surprise you with what concerns him. Do not get too cocky. Do not get too smug. It will hurt you for certain.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 14 and listed the stocks in the order that Cramer mentioned them.
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).
A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.
Salesforce, Inc. (NYSE:CRM)
On Thursday, Cramer said that enterprise software stocks like Salesforce, Inc. (NYSE:CRM) are loved presently and commented that buying enterprise software stocks should be done when they come down.
“Let’s start with love: This market [is] once again enamored with those enterprise software stocks that are so expensive… Now these have all had parabolic moves, up double digits this month, even if they all pulled back a little bit today. If you’re selling software to big businesses, you can do no wrong in this market. But man, speaking as a big believer in Salesforce, we’ve owned it for the Charitable Trust forever, I think the stock’s been on an unsustainable tear. I think it needs a breather. The darn thing’s gone from $243 to $331 in a little more than two months. Again, I adore Salesforce. I just wish the stock would digest its gains here because the kind of straight up rally makes me nervous… Now, enterprise software does tend to not have much Chinese exposure, which is a positive heading into Trump’s second term. How much is that worth? Not clear. At the CNBC Investing Club meeting, Jeff Marks and I talked about which companies could be helped or hurt by Trump 2.0. Enterprise software, it came out unscathed. I think that should put a premium on enterprise software stocks. But at this point, enough is enough. I say let ’em come down and then you can buy.”
Salesforce (NYSE:CRM) provides a comprehensive customer relationship management platform that helps businesses manage sales, customer service, marketing, analytics, and commerce, with integrated tools to enhance customer experiences and workflows. In September, it introduced Agentforce, a new suite of autonomous AI agents designed to assist employees by automating routine tasks across service, sales, marketing, and commerce. The AI agents are built to analyze data, make decisions, and optimize marketing campaigns, offering a potential boost in productivity for businesses.
By automating repetitive tasks, businesses can focus more on strategic initiatives, which could lead to an increase in both customer retention and spending. In September, the company announced that it reached a definitive agreement to acquire Own Company, a prominent provider of data protection and management solutions. Own helps organizations ensure the security, availability, and compliance of their critical data while unlocking new opportunities for deeper insights.
As part of the agreement, Salesforce (NYSE:CRM) will acquire Own for approximately $1.9 billion in cash, adjusted for the value of roughly 10% of the shares that Salesforce currently owns. The transaction is expected to close in the fourth quarter of the company’s fiscal year 2025. Own, a Salesforce AppExchange partner since 2012 and a part of the Salesforce Ventures portfolio, has evolved beyond its initial focus on backup and recovery. It serves nearly 7,000 customers, helping them safeguard their most important data.
Overall CRM ranks 1st on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of CRM 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 CRM 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.