We recently compiled a list of the Jim Cramer Is Focused on These 15 Stocks This Week. In this article, we are going to take a look at where Vertiv Holdings Co (NYSE:VRT) stands against the other stocks Jim Cramer is focused on this week.
Jim Cramer, the host of Mad Money, recently addressed some of the major events for Wall Street this week, focusing on earnings reports and investor days of various companies. With post-election jitters affecting the market, he warned investors to proceed with caution, as uncertainty looms over the economic landscape.
Cramer referred to Trump’s unpredictable nature, saying, “He is mercurial. Turns out he’s capricious.” Reflecting on the mood among investors, Cramer remarked that many were asking themselves, “What were we thinking?” as they processed the aftermath of the election.
He also noted the unsettling impact of Trump’s appointments to key administration positions, saying that “heads are turning” in response to some of these picks, and suggested that investors might soon feel the air leaving the post-election optimism that had initially lifted the market.
Cramer went on to caution that while there are certainly opportunities in individual stocks, especially in the wake of Trump’s policies, many stocks are still trading at levels far above where they were just a few months ago. He explained:
“Look, I’ve told you that there are many pitfalls with individual stocks when it comes to Trump 2.0. Most of them are buying opportunities but with stocks still up so much from a few months ago, you can’t be too eager to buy the dips.”
READ ALSO Jim Cramer on Microsoft and Other Stocks and Jim Cramer’s Best Performers List: Top 10 Stocks
Despite new stocks sparking interest, Cramer emphasized that he needed more time to assess market conditions before making any significant moves. He expressed a preference for waiting, stating that he doesn’t like to buy stocks only to watch them decline immediately after, a scenario he feels is likely if he rushes in too soon.
Cramer concluded by summarizing his outlook on the market, saying:
“So let me give you the bottom line: Even though the post-Trump rally hangover has been vicious, it still hasn’t taken most of the market down to levels where I think it makes sense to buy. Now, I just gave you some nuggets. I think they could be golden, but I think it’s more important to prepare yourself for better opportunities, at least in the near future.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 15 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 close-up of a group of technicians working on complex data center systems.
Vertiv Holdings Co (NYSE:VRT)
Cramer likes Vertiv Holdings Co (NYSE:VRT) and its chairman but mentioned that the stock is high and recommended waiting for weakness in the stock before buying.
“It’s a pure play data center supplier. It’s a fantastic company with an amazing chairman, Dave Cote… and I like it very much. No Trump issues, but like so many other good stocks, Vertiv’s at $120, not far from the $130 high it reached on Monday. You could put a starter position on here, but I’d rather wait for a little more weakness.”
Vertiv (NYSE:VRT) designs and provides critical infrastructure solutions, including power management, thermal systems, and monitoring products for data centers, communication networks, and industrial environments. During an Investor Event held on Monday, it revealed an expansion of its liquid cooling portfolio, introducing two new CoolChip CDU (Cooling Distribution Unit) systems tailored for AI applications.
The CoolChip CDU 2300kW, a liquid-to-liquid system, provides an impressive 2.3 MW cooling capacity, offering the highest capacity per square foot in the industry. In addition, the company introduced the CoolChip CDU 350kW, a liquid-to-air cooling solution that operates without requiring facility chilled water systems.
On the same day, Vertiv (NYSE:VRT) revealed a partnership with Compass Datacenters, a company that designs, builds, and operates data center campuses for some of the world’s largest technology firms. Together, the two companies are developing a novel cooling solution that allows for flexible deployment between air and liquid cooling systems. This solution is specifically designed to support high-density computing environments, such as those required for AI applications.
Vertiv’s role in this collaboration is to develop and manufacture the cooling technology, while Compass will integrate it into its data center operations. The first units of this new system are scheduled for deployment at a Compass facility in the first quarter of 2025, marking the beginning of what is expected to be a multi-year, multi-billion dollar supply agreement between the two companies.
Overall VRT ranks 1st on our list of stocks Jim Cramer is focused on this week. While we acknowledge the potential of VRT 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 VRT 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.