‘Has Come Down So Much That It’s Getting Hard For Me To Dislike It With James Taiclet At The Top’
We recently compiled a list of the 8 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Lockheed Martin Corporation (NYSE:LMT) stands against the other stocks on Jim Cramer’s radar.
Jim Cramer, host of Mad Money, recently discussed some of the significant challenges the alcohol industry is facing. He pointed out that as the end of January approaches, the wine and spirits industry might be hoping for a quick resolution to what he described as a “disaster of a month,” caused by “Dry January.”
He questioned whether the slowdown in alcohol consumption during this month would continue into February, admitting that he wasn’t sure, but expressing concern that the industry could be facing deeper problems. One of Cramer’s major concerns was that most alcohol companies have not acknowledged the full extent of the difficulties they may be facing.
“They say we’re experiencing a post-COVID normalization because of excessive alcohol consumption during the pandemic. That’s why I say they’re holding their breath to see if the mocktails and the zero-alcohol beers quickly disappear by Saturday when January comes to an end. Look, I think these companies are about to have a rude awakening when dry January turns into drier-than-expected February and then we might even spiral from there.”
READ ALSO Jim Cramer Breaks Silence On DeepSeek AI Sell-Off & Discusses These 12 Stocks and Jim Cramer Talked About These 11 Stocks Recently
Cramer highlighted several key factors contributing to the decline in alcohol consumption. He first noted the rise of cannabis, which has become much more affordable in many states, offering a legal high without the risk of a hangover. He pointed out that we are no longer in the era of Smokey and the Bandit and suggested that cannabis could be stealing market share from alcohol.
Secondly, Cramer referenced a recent warning from the U.S. Surgeon General about the links between alcohol consumption and the increased risk of various cancers, including breast and liver cancer. He emphasized that there is no safe level of alcohol consumption when it comes to cancer prevention, which he said could have a significant impact on health-conscious consumers. He added:
“Third, young people just don’t like to drink as much as they used to. Some profess health worries. Others know that the liquor companies jacked up prices during the pandemic and now refuse to take them down. Fourth, ubiquitous GLP-1 weight loss drugs can stop your craving for alcohol in its tracks.”
Story Continues
He mentioned that studies indicate heavy drinkers tend to reduce their alcohol consumption when they start using these medications. Taken together, Cramer argued that these trends represent a significant challenge for the alcohol industry.
Despite these challenges, Cramer suggested that there is still hope for the alcohol business, but it will require innovation. He emphasized the importance of creating new and exciting drink options that stand out in a crowded market. Value pricing, he said, will also be crucial. He stressed that the days of endless price hikes without any pushback or creativity are over. Cramer expressed confidence that social drinking would remain part of people’s lives, but he warned that alcohol could end up in the same category as tobacco if companies do not adapt.
“Let’s drop the normalization wrap, please. This is not normal. The liquor companies need to be clever, thoughtful, and exciting, or they should just go find another business.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 29. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 hedge funds.
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).
Lockheed Martin Corp. (LMT): Leveraging AI for Aerospace and Defense Innovations
A military aircraft in flight, showing the strength of the company’s combat & air mobility capability.
Number of Hedge Fund Holders: 58
When a caller asked Cramer about Lockheed Martin Corporation (NYSE:LMT), L3Harris, RTX, and Northrop Grumman, he said:
“Lockheed Martin is a stock that frankly has come down so much that it’s getting hard for me to dislike it with James Taiclet at the top. However, I think the administration is far more focused on the idea of a Palantir-like solution to procurement and that would be very bad for all the companies you just mentioned. So I do not want to get in the way of the Palantir buzz saw because that’s very close to Elon Musk and that’s where I am.”
Lockheed (NYSE:LMT) is a worldwide leader in security and aerospace, specializing in the design, development, and production of cutting-edge technology systems, products, and services for the defense, aerospace, and space sectors. Over the past 12 months, LMT stock is up only over 5% while Palantir stock has gained more than 375%.
Overall LMT ranks 5th on our list of the stocks on Jim Cramer’s radar. While we acknowledge the potential of LMT 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 LMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article was originally published at Insider Monkey.
#Hard #Dislike #James #Taiclet #Top