We recently published a list of Jim Cramer Is Talking About These 10 Stocks Heading Into December. In this article, we are going to take a look at where Coterra Energy Inc (NYSE:CTRA) stands against other stocks Jim Cramer is talking about as heading into December.
Jim Cramer in a recent program talked about President-elect Donald Trump’s Treasury pick and highlighted his enthusiasm for the stock market.
“On the other hand, President Trump was all about Nielsen ratings when he was on The Apprentice, and as president, he repeatedly said, The Dow Jones Industrial Average all-time high, and the S&P 500 were his new Nielsen ratings. He likes being rated, he likes to win, and he wants that stock market to go up to ratify his performance. That’s a big reason why the market exploded higher when he won.”
Cramer also discussed Trump’s Treasury pick Scott Bessent’s possible 3-3-3 plan that calls for bringing the budget deficit down to 3% of GDP, 3% growth and producing 3 million barrels of oil per day.
Jim Cramer said he is skeptical about Elon Musk’s efficiency plans in the upcoming Trump administration.
“Can there be a legitimate top-to-bottom change in the efficiency of our government and its associated costs? Count me as a skeptic about any attempt to change the government, including Elon Musk and Vivek Ramaswamy’s Doge thing, because every penny of spending in the budget has a constituency. When you add all those proposed cutbacks together, you face tremendous opposition. But that’s not the point. What matters is that this Treasury Secretary-designate is a serious person.”
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For this article we watched several latest programs of Jim Cramer and picked 10 stocks he is talking about. With each stock we have mentioned its hedge fund sentiment. 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).
An oil rig pumping under the open sky of the Permian Basin.
Coterra Energy Inc (NYSE:CTRA)
Number of Hedge Fund Investors: 39
While talking about energy stocks that can benefit under the upcoming Trump administration, Jim Cramer named Coterra Energy Inc (NYSE:CTRA) and said:
“This is another exploration production play, although it’s more balanced between oil and gas. In fact, after a pair of acquisitions announced earlier this month, Corterra revenue mix will tip a bit more in favor of oil next year. We like to say it’s more oily, less gassy. It does happen to have the lowest cost natural gas of any company in our country/
I like Corterra Energy because it’s one of the trust operators in the industry. I trust them to handle whatever environment we already have, making it a great long-term holding. When reported late last month, Corterra announced that they signed three new liquefied natural gas supply agreements to sell a total of 200 million cubic feet per day indexed to international price points. Now, that’s huge because international price points are much, much higher than domestic ones. The actual sales won’t take place until 2027–2028. That was a bummer to me, but it’s nice to see they’re going to unlock a lot of demand, and I think it gives it a great glide path for the next couple of years.”
Coterra Energy Inc (NYSE:CTRA) is also expected to benefit from various catalysts in the future. Data from Natural Gas Intelligence says there would be a 76% increase in LNG support capacity by late 2024 into 2025 amid expectations of a lift of ban on LNG exports. Data centers, EVs and an overall rise in economic activity in the future will also lift gas demand, helping stocks like Coterra Energy Inc (NYSE:CTRA).
Diamond Hill Mid Cap Strategy stated the following regarding Coterra Energy Inc. (NYSE:CTRA) in its Q3 2024 investor letter:
“Among our bottom Q3 contributors were Civitas Resources, Coterra Energy Inc. (NYSE:CTRA) Energy and Ashland. Oil and gas exploration and production companies Civitas Resources and Coterra Energy were pressured against a backdrop of weakening future global oil demand, which weighed in turn on West Texas Intermediate (WTI) and Brent crude prices and, consequently, the energy sector overall.”
Overall, CTRA ranks 6th on our list of stocks Jim Cramer is talking about as heading into December. While we acknowledge the potential of CTRA, our conviction lies in the belief that under the radar 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 CTRA 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.