In a recent broadcast, financial analyst Jim Cramer pointed out five stocks he called “bargains.” He believes these are the future winners as the S&P 500 marches ever higher. Cramer emphasized that it may seem challenging to find attractive investments, diligent research can uncover numerous affordable stocks with strong growth potential.
In fact, Cramer singled out Caterpillar, one of the world’s largest and most successful heavy equipment manufacturers. He sees the company as a great long-term play, especially with the increasing investment growth being forecast in infrastructure and construction industries. Together with Caterpillar, he cited Cummins and Jacobs Solutions as his other two favorite industrial stocks, arguing that all three stocks offer strong long-term value.
Moving on to the banking sector, Cramer called out Citigroup as the most undervalued of the big bank stocks. He noted Citigroup’s impressive turnaround in the last few years, putting it in a good place to flourish in today’s volatile market environment. On the bullish list was regional bank KeyCorp, which Cramer praised for its solidness and future growth.
In retail, Cramer likes Dollar Tree DLTR, which he said is set up to succeed with more consumers turning to value amid inflation pressures. Fourth, he says that $FDS is a smart move, having spun off its less profitable Family Dollar business. He contends that this previous gambit brings the company $65 million in additional value.
Cramer made some calls in other sectors, including Utilities and Consumer Goods, which he thinks have very good investment opportunities. He put an extraordinary amount of faith in the power company Entergy. He further pointed out that BXP’s portfolio is largely made up of high quality office buildings.
In addition to the above, Cramer recently praised Charles Schwab and Chubb for having strong business models and being able to weather turbulent markets. He pointed to private equity super-firm Apollo as the other main winner here – a great bet for investors seeking growth.
And even as the company announced the departure of CEO John Legere, Cramer has continued to sing T-Mobile’s praises. For one, he’s convinced that the company’s underlying strength will keep its competitors at bay in the near future. In the biopharmaceutical space, Cramer flagged Incyte, hailing its strong pipeline of products and promise of future breakthroughs.
“Sometimes it can feel like there’s nothing left to buy,” – Jim Cramer
Cramer elaborated on the broader market outlook, stating, “At the moment, the S&P in the aggregate is expected to put up 12.5% earnings growth next year, and it sells for just under 22 times next year’s numbers.” He urges investors to see past surface-level math to find real gold underneath.