CNBC’s Jim Cramer believes that despite the challenging month the market has experienced, there are still opportunities for investors to consider buying certain stocks. He identified five stocks that could surprise investors during any market weakness. The stocks he listed are American Airlines, Bank of America, Electronic Arts, Ball Corp., and Cummins.
American Airlines has seen a decline of 13% since the beginning of the month, but Cramer pointed out that the airline performed well earlier in the year. He suggested that investors consider airlines with strong international exposure, including American, United, and Delta.
Bank of America has also experienced a drop of more than 10% since August 1. Cramer noted that when the Federal Reserve tightens, the bank’s net interest margins increase, making them more profitable. He expressed confidence in larger industry players like Bank of America, although he expressed concerns about smaller regional banks.
Electronic Arts, a major video game publisher, has seen a decline of about 12% in August. Cramer mentioned the “scarcity value” of Electronic Arts, particularly in light of Microsoft’s bid to acquire another major video game publisher, Activision Blizzard.
Ball Corp., which manufactures metal packaging for various products, has experienced a slight decline of over 10%. Cramer highlighted the company’s limited competition and its recent announcement of a $5 billion sale of its noncore aerospace division. He believes this sale will allow Ball Corp. to become more focused and streamlined.
Cummins, an engine maker, has seen a drop of more than 11% since August 1. Despite recent poor performance, Cramer has been recommending the company due to its advancements in hydrogen-powered engines, which he believes have great potential for success. He also mentioned the significant federal funding directed towards clean energy sources like hydrogen.
In conclusion, Cramer suggests that investors consider these stocks during periods of market weakness, as he believes they have the potential to surprise and perform well. However, investors should conduct their own research and exercise caution when making investment decisions.