In a recent CNBC article, financial commentator Jim Cramer provided investors with a list of five stocks that he believes could surprise during periods of market weakness. Cramer acknowledged that August had been a challenging month for the market but highlighted that there are often buying opportunities during market downturns. The stocks he recommended were American Airlines, Bank of America, Electronic Arts, Ball Corp., and Cummins.
Cramer explained that American Airlines has recently experienced a pullback from its previous highs, along with many other airlines that have been impacted by consumer weakness. However, he suggested that investors consider airlines with strong international exposure, including American, United, and Delta. Bank of America was another stock Cramer recommended, noting that it was down more than 10% in August due to concerns about slowing loan growth and new banking regulations. Despite these worries, Cramer believes that the bank could benefit from higher net interest margins when the Federal Reserve tightens.
Electronic Arts, a video game publisher, was also on Cramer’s list. The stock has dropped approximately 12% in August, but Cramer highlighted the company’s “scarcity value” as Microsoft made a bid to acquire Activision Blizzard, another major player in the industry. Ball Corp., a company that manufactures metal packaging for various products, was mentioned by Cramer due to its limited competition. The recent $5 billion sale of its noncore aerospace division was also seen as a positive development for the company. Lastly, Cramer recommended Cummins, an engine maker, despite its recent poor quarter. He cited the company’s advancements in hydrogen-powered engines and the significant investments in clean energy sources as potential drivers of future success.
In summary, Cramer provided investors with a curated list of stocks that he believes could perform well during market downturns. American Airlines, Bank of America, Electronic Arts, Ball Corp., and Cummins were the stocks recommended. Cramer emphasized the buying opportunities that emerge during market weakness and highlighted various factors that could contribute to the success of these stocks.