Jim Cramer Says There’s A ‘Chance To Pounce’ On These 3 Stocks

 

These 3 stocks have been beaten down this week, but Cramer says the market’s trash can be your treasure.

Growth stocks are out and cyclicals are back in a big way this week, Jim Cramer said on Tuesday.

The CNBC host said that the market is a reflection of how institutional investors view the future and recommended that individual investors play the rotation.

“I think you need to view it as an opportunity to get in, not get out,” Cramer said. “If a high-quality stock is down enough, like Merck (NYSE: MRK) was… then that’s your chance to pounce.”

Merck is down -3.24% over the last week and sank as much as -8.9% between Monday’s high and Tuesday’s low. 

So far this year, MRK has been in a solid uptrend and has gained nearly 20% over the past twelve months, thanks in part to the introduction of its Keytruda cancer treatment for lung cancer. 

Cramer noted that the company is exploring the drug’s usefulness for treating other types of cancer.

“I think it’s the rotation out of stocks that thrive in a slowing economy and into stocks that thrive in an accelerating economy,” Cramer said. “In other words, Merck’s gone out of style on that Wall Street fashion show… Merck’s not going to benefit from the expected rate cut, so the stock has lost its appeal for now.”

Cramer also pointed to Visa (NYSE: V) and Mastercard (NYSE: MA), which are down -3.65% and -5.37%, respectively, over the last week. These two stocks were seeing a benefit from the secular growth in financial technology, while also giving investors exposure to the financial sector without actually owning bank stocks. 

“If this market wants to toss out high-quality merchandise, let their trash be your treasure,” Cramer said. 

Of these three stocks, analysts are most bullish on Merck and Visa, and their average price targets would see these stocks 12% and nearly 11% higher, respectively, over the next twelve months. 

Last month, SVB Leerink analyst Daina M. Graybosch initiated coverage of Merck, rating the stock an Outperform and setting a price target of $103 – nearly 24% above Thursday’s closing price.

“We believe investors underappreciate the potential for: long-term, diverse Keytruda revenues… [and] return from MRK’s aggressive strategy to explore… and then pursue… promising Keytruda add-on approaches to extend Keytruda’s competitive moat and lifecycle beyond patentlife,” Graybosch wrote in a research report on the stock.

As for Visa, Guggenheim Securities analyst Jeff Cantwell said late last month that the stock is a Buy considering the company’s new growth opportunities.

After a positive meeting the Visa’s chief financial officer, Cantwell wrote, “We’ve come away from the meeting with greater conviction that V’s ‘network of networks’ strategy is significantly expanding the company’s opportunity set – and as a consequence, we see V continuing to generate strong volume growth.”

Cantwell reiterated his price target for Visa at $199, suggesting possible upside of nearly 12% over the next twelve months.

 
Trending Ideas

Featured Stocks On The Move

Daily Rundown
  • Sportswear, Blockchain, Medical, E-commerce

    On Holding AG (ONON) On Holding AG is a premium sportswear company specializing in high-performance running shoes and apparel. Known for its innovative cushioning technology, the company caters to athletes... Read More

  • Chemicals, Venture, Energy, Insurance

    Flexible Solutions International Inc. (FSI) Flexible Solutions International Inc. develops and manufactures biodegradable and environmentally safe chemicals. The company specializes in water and energy conservation products, serving industries like agriculture... Read More

  • Data, Blockchain, Education, Semiconductors

    LiveRamp Holdings, Inc. (RAMP) LiveRamp Holdings, Inc. specializes in data connectivity and analytics, helping businesses unify customer data for personalized marketing strategies. Its platform enables secure data sharing and drives... Read More

  • Services, Renewable, Batteries, Midstream

    Ranger Energy Services, Inc. (RNGR) Ranger Energy Services, Inc. provides well service solutions to the oil and gas industry. The company specializes in high-spec rigs, well maintenance, and completion services,... Read More

  • Analytics, Manufacturing, Appliances, Energy

    ExlService Holdings, Inc. (EXLS) ExlService Holdings, Inc. is a leading provider of data analytics and digital operations solutions. The company helps businesses enhance decision-making, streamline operations, and achieve transformative growth... Read More

  • Wellness, Energy, Construction, Exploration

    LifeVantage Corporation (LFVN) LifeVantage Corporation is a wellness company focusing on nutrigenomics to improve health and longevity. It offers science-backed dietary supplements and skincare products aimed at optimizing health and... Read More

  • Housing, Biotech, Technology, E-commerce

    Fannie Mae (FNMA) Fannie Mae provides liquidity and stability to the U.S. housing market by purchasing mortgages from lenders, enabling them to offer more loans. The company plays a critical... Read More

  • Aviation, Medical, Biotech, Biopharmaceutical

    FTAI Aviation Ltd. (FTAI) FTAI Aviation Ltd. specializes in acquiring, leasing, and managing aviation assets, including aircraft and engines. The company provides innovative solutions to airlines and operators, optimizing performance... Read More



Top 3 Stocks in Leading Sectors
  • 3 Technology Stocks To Buy Now

    BTC Digital Ltd. (BTCT) BTC Digital Ltd. is engaged in cryptocurrency mining and blockchain technology development. The company leverages advanced infrastructure to produce digital assets and support the growth of... Read More

  • 3 Distribution Stocks To Buy Now

    DNOW Inc. (DNOW) DNOW Inc. is a leading distributor of energy and industrial products, offering supply chain solutions and services. Serving oil, gas, and industrial sectors, the company ensures operational... Read More

  • 3 Energy Stocks To Buy Now

    EQT Corporation (EQT) EQT Corporation is a leading natural gas producer, operating in the Appalachian Basin. The company leverages advanced technologies to optimize energy production and deliver sustainable solutions to... Read More

  • 3 Consumer Stocks To Buy Now

    Playa Hotels & Resorts N.V. (PLYA) Playa Hotels & Resorts N.V. owns and operates all-inclusive beachfront resorts in prime locations across the Caribbean and Mexico. The company offers luxurious accommodations,... Read More

  • 3 Aviation Stocks To Buy Now

    Kratos Defense & Security Solutions, Inc. (KTOS) Kratos Defense & Security Solutions, Inc. specializes in developing and deploying advanced defense technologies, including unmanned systems, satellite communications, and cybersecurity solutions. The... Read More

  • 3 Apparel Stocks To Buy Now

    V.F. Corporation (VFC) V.F. Corporation is a global leader in branded lifestyle apparel, footwear, and accessories. With a diverse portfolio of iconic brands like Vans, The North Face, and Timberland,... Read More

  • 3 Defense Stocks To Buy Now

    FTAI Aviation Ltd. (FTAI) FTAI Aviation Ltd. focuses on acquiring, leasing, and managing aviation-related assets, such as aircraft and engines. The company provides tailored solutions to airlines and operators, ensuring... Read More

  • 3 Energy Stocks To Buy Now

    Antero Resources Corporation (AR) Antero Resources Corporation is a leading natural gas and liquids exploration and production company. Operating primarily in the Appalachian Basin, the company focuses on responsible energy... Read More