Jim Cramer, renowned CNBC host and financial expert, has identified several companies that he believes have emerged as winners during earnings season. Cramer’s picks include chipmaker AMD, as well as industrial names Trane Technologies and Eaton.
In regards to AMD, Cramer highlighted CEO Lisa Su’s statement that revenue from graphics processors used in data centers is set to skyrocket due to the company’s utilization of artificial intelligence. As a result, AMD’s stock rose by nearly 10% on Wednesday. Cramer also expressed his belief that AMD has the potential to become a formidable competitor in the AI graphics chip market. Furthermore, Su’s announcement had a positive impact on other stocks in the AI sector, such as Nvidia, Microsoft, Amazon, ServiceNow, and Adobe.
Moving on to Trane Technologies, the company was initially known for its work in heating, ventilation, and air conditioning. However, it now positions itself as a sustainability solutions enterprise. Trane’s stock experienced a surge of over 12% following an earnings report that showcased strong organic revenue growth.
Eaton, a power management company, also received recognition from Cramer. The company surpassed analysts’ expectations for quarterly profit, reporting high demand for its electrical components and equipment. This positive performance led to a more than 3% increase in Eaton’s stock price on Wednesday.
Cramer acknowledged that the market has recently been preoccupied with the day-to-day fluctuations, preventing a focus on which companies truly excelled during earnings season. However, he aims to change this by highlighting those companies that deserve recognition for their achievements.
He acknowledged that the recent volatility in interest rates has made it challenging for the market to consistently reward companies that beat earnings expectations. Nevertheless, Cramer believes that the Federal Reserve’s recent statements and the Treasury’s announcement of a benign bond issuance schedule have alleviated concerns in the market.
In conclusion, Cramer’s guide to investing during earnings season identifies AMD, Trane Technologies, and Eaton as companies that have distinguished themselves. He believes that these companies’ strong performances warrant investor attention and recognition.