Jim Cramer hunts for growth stocks at reasonable prices amid market highs
CNBC Television·2025-09-23 00:27

Investment Strategy & Market Overview - The market is making record highs, prompting a search for safe investment opportunities [1] - A screen was run to identify S&P 500 stocks with above-average growth and below-average price multiples [2] - The S&P 500 is expected to have 125% earnings growth next year and sells for just under 22 times next year's numbers [2] - The analysis initially identified 104 stocks, which was then narrowed down to 86 after excluding energy and materials names [3] - The report favors growth stocks as they are believed to generate significant returns [26] Stock Recommendations & Analysis - T-Mobile is expected to have 194% earnings growth next year and is selling for just over 18 times next year's numbers [4] - Expedia is projected to have 18% earnings growth next year and sells for 13 times next year's numbers, making it cheaper than Booking Holdings at 21 times earnings [5] - Dollar Tree is considered a buy, selling for less than 15 times next year's earnings with a 15% growth rate [6] - Capital One Financial (COF) is projected to have nearly 14% earnings growth next year and sells for roughly 11 times next year's numbers [8] - Citigroup is expected to grow at a 28% clip next year and trades at just 105% times 2026 earnings estimates [10] - Keycorp is expected to grow at a 22% clip next year and trades at just under 11 times next year's numbers [11] - Insight, a biopharmaceutical company, is expected to have 19% earnings growth and trades at just under 12 times next year's numbers [14] - Caterpillar is on track to put up 18% earnings growth and sells for 22 times next year's numbers [15] - Jacobs Solutions should have 16% earnings growth next year and the stock sells for 215% times uh 2020 successments [17] - BXP has a 37% yield even after trimming its dividend [19] Sector Analysis - Financials are highlighted as a strong sector, with 34 out of 86 companies on the initial list coming from this sector [7] - Healthcare has been mostly a wasteland this year, with only four stocks passing the screen [14] - The report expresses a lack of confidence in energy stocks due to limited growth prospects [26]