We recently published a list of Jim Cramer’s December Portfolio: Top 10 Stocks to Watch. In this article, we are going to take a look at where LyondellBasell Industries NV (NYSE:LYB) stands against other stocks to watch in Jim Cramer’s December portfolio.
Jim Cramer in a latest program on CNBC talked about the evolution of AI and how the technology has come from being ignored as “hype” to now completely changing everyday lives for many. Cramer mentioned the AI solutions offered by Marc Benioff’s company and said the technology is actually exceeding expectations “dramatically.” [read Marc Benioff’s latest comments here]
Cramer mentioned the comments of Benioff on his company’s new AI-powered solutions:
“Suddenly, though, we have Agent Force, and with it, Marc said, I quote, “We’re unleashing this new year of digital labor force for every business and every industry.” He went on to say, quote, “The implications are just simply profound. Now people ridicule me for saying how much we need AI, but Marc says, quote, ‘For decades, economic growth depended on expanding the human workforce. It was all about getting more labor,’ end quote. Not anymore—not with agents powered by AI who, as you’re stating, can work faster, doing tedious things but essential jobs that nobody wants.
And there it is—you hear that Marc got 200 deals in the first week of Agent Force alone, lots of brand-name companies too. Do you know there are thousands more in the pipeline? Real customers, real money, tangible. That’s an insane amount of business to do,” Cramer said.
READ ALSO: Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks
For this article, we watched some latest programs of Jim Cramer and picked 10 stocks he was talking about. 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).
A factory worker monitoring a conveyor belt of specialty chemicals being produced.
LyondellBasell Industries NV (NYSE:LYB)
Number of Hedge Fund Investors: 38
Jim Cramer was asked about LyondellBasell Industries NV (NYSE:LYB) in a latest program on CNBC. He recommended owning the stock.
“I agree with you. I think at these prices, you do not want to ignore this stock. I’d buy some now, and if it goes down to 78%, I would buy more.”
This was a change from earlier this year when Cramer said he could not recommend the stock.
When asked about LyondellBasell, Cramer had said that while it’s a very “well-run company” it’s not a stock he’s recommending.
LyondellBasell Industries NV (NYSE:LYB)’s profitability is driven mainly by its Olefins & Polyolefins (Americas) and Intermediates & Derivatives segments. However, the company’s margins are being dragged down by its Olefins & Polyolefins (Europe, Asia & International) and Refining segments, which generate substantial revenue but contribute little to EBITDA.
LyondellBasell Industries NV (NYSE:LYB) plans to improve the performance of the Olefins & Polyolefins segment in Europe, Asia, and international markets. This is evident from the company’s capital expenditures in these regions and its recent acquisition of a 35% stake in the NATPET polypropylene joint venture in Saudi Arabia. EBITDA margins in these segments have been in the red or at low single digits for several quarters, so exiting refining and improving the international O&P segment could significantly boost overall profitability.
Overall, LYB ranks 8th on our list of stocks to watch in Jim Cramer’s December portfolio. While we acknowledge the potential of LYB, 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 time frame. If you are looking for an AI stock that is more promising than LYB 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.