“CNBC’s Jim Cramer says forget the Fed! These winning stocks are soaring due to brilliant leadership, not just central bank policy. Find out which companies Cramer recommends and why.”
Cramer: Look beyond the Fed, these stocks are winners because of strong leadership
Recently, Jim Cramer, host of CNBC’s Mad Money, discussed several stocks that have performed well recently and argued that these gains are due to strong leadership and company management rather than simply being influenced by the Federal Reserve.
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He analyzed several stocks whose prices have increased significantly since November 2020. These include American Express, Caterpillar, Microsoft, Goldman Sachs, Morgan Stanley, Chevron, Apple, JP Morgan, Travelers and United Health Group.
For each of these stocks, Cramer offers his insights that have driven their success:
American Express (AXP): AXP benefited from the post-COVID travel and leisure boom, but also because CEO Steve Squeri made a strategic decision to target younger demographics.
Caterpillar (CAT): CAT has benefited from federal infrastructure spending and CEO Jim Umpleby’s efforts to make the company less cyclical by focusing on returning capital to shareholders and diversifying away from China.
Microsoft (MSFT): CEO Satya Nadella’s decision to focus on its cloud infrastructure business, Azure, has paid off well for MSFT.
Goldman Sachs (GS): CEO David Solomon refocused the company on its core business of investment banking and serving the wealthy, causing GS’s stock price to soar.
Morgan Stanley (MS): CEO James Gorman’s reputation as a strong banker who rarely makes mistakes has instilled confidence in MS.
Chevron (CVX): CEO Mike Wirth’s smart decision not to overpay for Anadarko in 2019 has helped strengthen CVX’s financial position.
Apple (AAPL): AAPL’s success can be attributed to its strong service revenue stream and loyal customer base.
JPMorgan (JPM): CEO Jamie Dimon’s reputation as a great banker with a strong team has increased investor confidence in JPM.
Travelers (TRV): This insurance company has benefited from higher interest rates, which has boosted TRV’s share price.
United Health Group (UNH): The high cost of health care and UNH’s lucrative health care arm are driving this stock’s gains.
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According to Cramer investors should focus on management and the company’s mission rather than just the Federal Reserve when making investment decisions. By looking beyond the Fed and focusing on companies with strong leadership, investors can identify stocks that are poised for long-term success.
