Jim Cramer, the famous investor, believes that Advanced Micro Devices Inc. (NASDAQ: AMD), and Eaton Corporation PLC. (NYSE: ETN), are being unfairly punished for their recent earnings. They should therefore be purchased on this weakness.
After the opening bell of Tuesday, he bought 75 AMD shares and 25 Eaton shares. The Charitable Trust of his Charitable Trust owns 425 AMD shares and 300 Eaton shares in total.
Last week, both AMD and ETN announced solid quarter results as well as positive future forecasts. Both stocks, however, have fallen by about 7.0% over the past few days.
Why does Cramer like AMD?
Advanced Micro Devices surpassed Street expectations for its second-quarter last week, as revenue from data centres more than doubled year-overyear.
Santa Clara-based multinational is second in the world for data centre chips, after Nvidia. Jim Cramer has a bullish outlook on AMD because the company recently increased its sales forecasts for MI300X artificial intelligence chips by $500 million.
Mad Money’s host believes that AMD will benefit from Intel failing to strengthen its AI footprint.
Wall Street shares Cramer’s enthusiasm for AMD. The AI stock is currently rated “overweight” by analysts, with a potential upside of $188 in average. This suggests a potential gain of 40% from this point.
Why did Jim Cramer purchase Eaton Stock?
Eaton reported better than expected earnings last week for its second-quarter and increased its guidance for the full year for organic sales and margins, as well as adjusted earnings per share.
Jim Cramer says that industrial stocks are now just as cheap to buy as their peers. He told his investment group on Tuesday that a drop of 20% in ETN within three months is still worth investing.
Mad Money’s host praised the firm for its upbeat third-quarter guidance today, as this goes against the general concerns about an economic slowdown.
Wall Street also shares Cramer’s optimism about Eaton’s stock. Analysts have a “overweight rating” on ETN, which is paired with an average price target of $344. This translates into a potential gain more than 20% from this point.
Eaton Corporation also pays a dividend yield at the time of writing that is 1.34%, another reason why you should have this company in your portfolio.
The post Jim Cramer lists top two stocks for post-earnings decline may change as new information is released.
This site is for entertainment only. Click here to read more
