CNBC’s Jim Cramer suggests buying certain stocks during a market downturn. In light of the tough month the market has had, Cramer believes there are still buying opportunities for investors. He listed five stocks that he thinks could surprise investors during any bout of weakness.
First on the list is American Airlines, which is down 13% from the beginning of the month. Despite recent consumer weakness affecting many airlines, Cramer believes American Airlines, along with United and Delta, with their strong international exposure, could be a good investment.
Bank of America, down over 10% from August 1, is the second stock on Cramer’s list. Cramer highlights Bank of America’s potential for higher net interest margins when the Federal Reserve tightens, making the bank more profitable. While he expresses concerns about smaller regional banks, he sees Bank of America as a solid choice.
Electronic Arts, a video game publisher, is down about 12% in August. Cramer notes the “scarcity value” of Electronic Arts, especially after Microsoft’s bid to take over another major video game publisher, Activision Blizzard. This could make Electronic Arts an attractive investment opportunity.
Next is Ball Corp, a company that manufactures metal packaging for various products. It is down slightly over 10% in August. Cramer highlights the limited competition in the industry and the recent announcement of a $5 billion sale of its noncore aerospace division. He believes this move will allow Ball Corp to become more focused and streamlined.
Finally, Cramer suggests considering Cummins, an engine maker that is down more than 11% from August 1. Despite a recent poor quarter, Cramer recommends Cummins because of its advancements in hydrogen-powered engines. With a lot of federal money being directed towards clean energy sources like hydrogen, Cramer sees potential for Cummins in the future.
Cramer’s recommendations provide investors with options to consider during market downturns. It is important to conduct thorough research and analysis before making investment decisions.