President Donald Trump’s tariffs and the subsequent retaliation from other countries have been wreaking havoc on US stocks this week.
Still, famed investor Jim Cramer remains convinced that there are exciting buying opportunities in the stock market currently amid what he called a “manufactured sell-off” in his latest briefing to the Investing Club.
Three names in particular that he recommends buying on the recent pullback are Home Depot, Nvidia, and Amazon.
Home Depot Inc (NYSE: HD)
Cramer recommends buying the dip in HD shares as the home improvement retailer sources more than half of its goods from within North America.
More importantly, the former hedge fund manager expects Home Depot stock to benefit from lowering interest rates.
Note that mortgage rates currently sit at a six-month low.
Against that backdrop, “Home Depot should be bought, perhaps even aggressively,” according to Jim Cramer.
The pent-up demand for housing may also benefit HD stock moving forward, he added. Plus, a 2.56% dividend yield tied to Home Depot shares makes it all the more exciting to own at current levels.
Wall Street agrees with Cramer on the home improvement retailer. Analysts’ consensus “overweight” rating on HD comes with a mean target of $432, which translates to a more than 25% upside from current levels.
Nvidia Corp (NASDAQ: NVDA)
China has already announced retaliatory tariffs on American goods, which will hurt Nvidia as it has significant revenue exposure to the world’s second-largest economy.
Still, Jim Cramer recommends buying NVDA shares on the weakness as he continues to believe in the company’s long-term potential, particularly its pivotal role in the AI-driven industrial revolution.
Cramer sees Nvidia’s cutting-edge chips as central to AI advancements, which he sees as a transformative force across industries.
His view on Nvidia stock is also in line with that of Wall Street.
Despite a sharp sell-off, analysts see eventual recovery in the AI stock to $173, indicating a more than 85% upside from here.
Amazon.com Inc (NASDAQ: AMZN)
Almost half of the top 10,000 sellers on Amazon’s US marketplace are from China.
The e-commerce giant sources a large number of goods it sells from Beijing as well.
Still, the Mad Money host remains bullish on Amazon stock following the sell-off, partially because it’s trading at an attractive valuation.
AMZN is currently going for a forward price-to-earnings multiple of about 30, significantly below its historical average of more than 55.
Moreover, the multinational company has a robust business model and diversified revenue streams, which make it resilient to economic challenges, according to Jim Cramer.
Much like the other names on this list, Cramer’s view on AMZN shares is also in line with Wall Street analysts.
The average price target on the tech stock currently sits at about $267, signaling close to a 60% upside from here.
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