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We recently published a list of Jim Cramer’s Latest Portfolio: Top 9 Stocks to Buy and Sell. Since Vertiv Holdings Co (NYSE:VRT) ranks 2nd on the list, it deserves a deeper look.
Jim Cramer is exuberant about the Federal Reserve’s aggressive rate cut.
“Believe me, there are few things more friendly than a 50 basis point rate cut,” Cramer said in a recent program.
The CNBC host said that he has reminded his viewers repeatedly that when the Fed is your “enemy” you should stick to recession-proof stocks that can produce consistent earnings despite market slowdowns.
“Once the Fed is done tightening and we start seeing signs of impending rate cuts you need to load up on the cyclicals, the companies that see massive earnings growth when the economy accelerates,” Cramer reminded his viewers about his advice on how to play the interest-rate game.
Jim Cramer has been talking about all sorts of stocks during his latest programs. In this article we picked 9 important stocks he’s bearish/bullish on and analyzed these companies in detail. 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).
Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Investors: 92
Jim Cramer in a latest program agreed with a caller who asked him whether he’d buy more Vertiv Holdings Co (NYSE:VRT) shares on a pullback.
“On a pullback, absolutely. Vertiv is a premier data center stock.”
Cramer said Vertiv is a “winner.”
Vertiv Holdings Co (NYSE:VRT) is a market leader in the data center power and cooling market, which has nowhere to go but up from here since companies are hungry for data center solutions as they begin to deploy AI software.
Vertiv Holdings Co (NYSE:VRT) is forming long-term partnerships with Intel and Nvidia to develop tailored solutions for their products. This is especially notable because AI training requires significantly more electricity and produces more heat than traditional servers, driving demand for specialized systems that Vertiv Holdings Co (NYSE:VRT) provides. The company estimates that the additional demand from AI could boost its top-line growth by up to 4% annually.
By designing products specifically for Nvidia’s GPUs, Vertiv can tap into Nvidia’s growth with minimal effort, as their systems are crucial for optimizing GPU performance. If Nvidia powers data centers with its processors, Vertiv provides the infrastructure that keeps them running efficiently.