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Jim Cramer says now is the time to pull the trigger on stocks; Here are 2 names that analysts like

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Investors are trying to make sense of the markets when faced with conflicting signals. We’ve been facing big losses since the start of the year, but more recently we’ve seen a sharp rise, despite confirmation this week that we’re in recession. Government data released on Thursday showed GDP contracted by 0.9% in the 2nd quarter, following a 1.6% contraction in the 1st quarter. That’s two quarters in a row, the definition of a recession.

Jim Cramer, the famous host of CNBC’s “Mad Money,” reminds us that the “conventional wisdom” at a time like this is to dump stocks. But Cramer notes that Fed Chairman Powell has indicated that the central bank is likely to slow the pace of interest rate hikes, and Cramer said, “what Jay Powell said was extremely optimistic.”

Elaborating further, Cramer says, “When the Fed gets out of the way, you have a real window and you have to jump through it… When a recession hits, the Fed has the good sense to stop raising rates. And that pause means you have to buy stocks… I think that window has finally arrived, and you don’t want to close it in front of you.”

Wall Street analysts find much to agree with in that assessment, and they’re picking stocks that could win going forward. Using TipRanks database, we’ve identified two stocks that are considered “strong buys.” Not to mention the significant growth potential here.

TuSimple Holdings (TSP)

The first stock we’ll look at, TuSimple, lives in the transportation industry. Founded in 2015, this company is working with both autonomous artificial intelligence and long-haul trucking in the development of autonomous trucking. The company’s goal is to use artificial intelligence to solve issues of range, efficiency and safety in the trucking industry.

TuSimple launched the Autonomous Freight Network (AFN) in 2020 to begin the practical use of AI-powered LiDAR navigation and sensor systems. The company’s AFN currently operates in the US Southwest with terminals and cargo lines in Texas, New Mexico and Arizona. The company is continuing Driver Out test operations as a prelude to removing support vehicles from the grid in favor of fully autonomous trucks.

The system generated a lot of interest, and TuSimple entered into an agreement with Werner Enterprises, a leading logistics company in North America, for roadside service and support. In addition, TuSimple increased its bookings by 500 in the first quarter of this year and now has a total of 7,475 bookings on its books.

Continuous improvement and expansion of Driver Out technology and the autonomous freight network are key points in the analytics Ravi ShankerMorgan Stanley Stock Review.

Shanker writes in some detail: “We believe TSP is the leader in autonomous trucking, and perhaps the leader in autonomous driving in general. Having spent a significant amount of time with mgmt. team and having experienced several test rides at TSP, and given TSP’s demonstrated track record of achieving industry benchmarks faster than many peers, we continue to believe that TSP is the leader in autonomous trucking.”

“This is not a winner-takes-all market and several players will be successful, but for now, in our view, TSP is ahead of the pack. In fact, given that TSP is the only company to have demonstrated the Driver Out capability during multiple high-speed drives on a public highway (without teleoperators), we believe TSP could be the leader in autonomous driving, period, including many bigger, older players in robotaxis,” the analyst added.

Consistent with his bullish approach, Shanker gives TuSimple an Overweight (i.e., Buy) rating, and his $35 price target suggests an impressive potential upside of 247% over the next year. (To see Shanker’s track record, Click here.)

Morgan Stanley’s view isn’t the only bullish view on TuSimple; this AI autonomous vehicle stock has 9 recent analyst reviews with a split of 8 to 1 in favor of buying over holding. Shares are trading at $10.08, and their average target price of $22.17 suggests 120% upside potential over the next year. (See the TSP stock forecast at TipRanks)

PDC Energy (PDCE)

The next stock we’re looking at is an energy company and an independent oil and gas company operating in the Wattenberg field in Colorado and the Delaware Basin in Texas. These players are important contributors to the US oil and gas sector, with PDC producing an average of 195,000 barrels of oil equivalent per day last year. The company’s production is focused on liquids – crude oil and liquefied natural gas. The bulk of this production, about 85%, came from the Wattenberg field.

High production continued in early 2022. PDC reported 199,000 barrels of oil equivalent (boe) per day in the first quarter, for a total production of 17.9 million boe. Of these, 5.9 million barrels are crude oil, the rest, about two-thirds of production, is liquefied natural gas. The company reported total hydrocarbon revenue of $882.4 million in 1Q22, nearly double the year-ago quarter. Total revenue supported diluted earnings per share of $3.66, up 27% from 1Q21. PDC will report 2Q22 numbers in early August.

As important as the current numbers are, the trend lines for PDC are also worth noting. Beginning in the second quarter of 2020, the company has posted seven consecutive quarters of both sequential revenue growth and EPS growth. Along with these solid results, PDCE stocks outperformed in 2022; where broader markets are down, PDCE is up 30% YTD.

Turning now to Wall Street, PDC has caught the eye of Wells Fargo’s Nitin Kumar. The 5-star analyst writes: “PDC Energy is one of the few SMID E&P capitalization companies that we believe is demonstrating the capital efficiency needed to increase production while costs are below cash flow, assuming conservative oil prices… We believe the stock offers a distinctive combination of low leverage (-0.3x/-0.7x to 2022e/2023e), a significant discount to peers at present and high asset quality “.

Kumar sets an Overweight (i.e. Buy) rating here, seeing great potential for PDC to continue its strong performance. His price target of $105 suggests the stock is on track for a 66% year-over-year gain. (To see Kumar’s track record, Click here)

Some companies just attract bulls, and in times of economic uncertainty, a consistently high-performing energy company is sure to be one of them. PDC Energy recently received 9 analyst reviews, all of which are positive, earning a consensus Strong Buy rating. The average price target of $103.89 suggests an upside of ~63% over the next year. (See PDCE stock forecast at TipRanks)

For good ideas for trading stocks at attractive valuations, visit TipRanks’ The best promotions to buya recently launched tool that aggregates all of TipRanks equity information.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended for informational use only. It is very important to do your own analysis before making any investment.

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