It’s “Get Good Numbers”

We recently published an article titled Jim Cramer’s Top Artist List: Top 10 Picks. In this article we will look at where Palantir Technologies Inc. (NYSE:PLTR) compares to other stocks on Jim Cramer’s list of best-performing stocks.

During the Oct. 1 episode of Mad Money, host Jim Cramer urged investors to remember the market’s strong performance in the last quarter, noting rising tensions in the Middle East that led to declines in major stock indexes on Tuesday.

He emphasized that the landscape extends beyond the major technology stocks and shined a spotlight on the top-performing companies in the S&P 500. Cramer noted that the last three months have witnessed what he described as the “revenge of small companies.” He said:

“When we look at the top 10 players in the third quarter, we discover that this previously narrow market has completely changed its face.”

Cramer emphasized that companies that are often overlooked are responsible for the current market boom. He said:

“This is an extraordinary list that represents a real expansion of the winners’ circle. Some would say this is a sign of where we are headed. I may not go that far, but clearly we need to start digging much deeper to find winners in the future.

In his recent commentary, Cramer emphasized that the main winners in the third quarter were unexpectedly unclear and primarily included a group of ten companies focused on energy generation and interest rate cuts.

He emphasized that these stocks deviate from the well-known Magnificent Seven and traditional FAANG names due to the lack of high-growth medical or cybersecurity companies, many of which have faced recent challenges.

Cramer suggested that investors look for market trends at the bottom of the S&P 500. He noted that Super Micro finished last in the quarter, down 49%. It reminds that supporting the wrong investment in artificial intelligence can lead to significant losses. Still, Cramer stressed the need for the market to focus on new stocks for long-term growth, rather than relying on previous leaders.

Our methodology

For this article, we’ve compiled a list of 10 stocks that Jim Cramer mentioned during the October 1 episode of “Mad Money.” We’ve listed the stocks in ascending order of hedge fund sentiment in the second quarter, which were pulled from Insider Monkey’s database of over 900 hedge funds.

Why are we interested in stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the best stocks of the best hedge funds. As part of our quarterly newsletter strategy, we select 14 small- and large-cap stocks every quarter, and since May 2014, we have returned 275%, beating the benchmark by 150 percentage points (see more details here).

Cramer of Palantir Technologies Inc. (NYSE:PLTR): “Showed Some Good Numbers”

Palantir Technologies Inc. (NYSE:PLTR)

Number of hedge fund holders: 44

Palantir Technologies Inc. (NYSE:PLTR) develops and deploys software platforms primarily for the intelligence community. Introducing the company, Cramer said:

“Palantir Technologies is a data analytics company that has posted strong numbers, but is better known as a stock that is in high demand among retail investors.”

One of its key offerings, Palantir Gotham, is designed to help users discover patterns hidden in complex data sets. The company also provides Palantir Foundry, a platform that redefines operational processes for organizations across sectors.

Another key tool is Palantir Apollo, which manages software delivery and updates, along with the Palantir Artificial Intelligence Platform (AIP), which gives users access to a variety of large language models.

Cramer explained to Palantir (NYSE:PLTR):

“Now, just over two weeks ago, the Wall Street Journal published an amazing article titled “Fanatic Amateur Investors Behind Palantir” that gave great insight into the die-hard fan base that rejoiced when the company’s stock joined the S&P 500 last month . Yes, they beat those numbers and helped the stock soar 46.9% this quarter.

Palantir (NYSE:PLTR) has invested significant time and resources in developing advanced artificial intelligence systems that help government agencies navigate massive amounts of data, enabling them to make informed choices.

While much of its revenue is generated from government contracts, the company has also made progress in recent years in expanding its AI applications into the commercial sector. In the second quarter, revenues from US government contracts reached $278 million. Additionally, revenues from the commercial segment increased by 33% during the same period, accounting for approximately 45% of the company’s total sales.

Generally, PLTR ranks 6th on our list of the best Jim Cramer artists. Although we are aware of the potential PLTR as an investment, our belief is based on the belief that AI stocks have a greater chance of delivering higher returns, and in a shorter period of time. If you are looking for AI stocks that have more promise than PLTR but it is less than 5 times earnings, check our report on cheapest AI stocks.

Read further: $30 Trillion Opportunity: Morgan Stanley’s 15 Best Humanoid Robot Stocks to Buy AND Jim Cramer says NVIDIA has “become a wasteland”.

Disclosure: None. This article was originally published on Insider Monkey.