CNBC's Jim Cramer on Thursday encouraged investors to look beyond the Magnificent Seven, saying other companies could make money.
He acknowledged that mega-cap tech companies define the market every day, but other stocks are worth considering because they can generate higher returns than lower-risk investments like CDs. said.
“I don't want to deny you something that gives you a lot of money with no risk. That's what you get,” Kramer said of CD. “But can you at least admit that you could be missing out on big profits by just avoiding the stock market?”
Cramer pointed to several stocks that have risen more than 10% since Tuesday's close.
Trucking company XPO caught Kramer's attention as its stock price soared thanks to a better-than-expected quarter. Kramer said XPO took advantage of a competitor's bankruptcy to see solid growth in cargo volume per truck. Monolithic Power, an AI-related semiconductor company, is also surging after a strong quarter, and he said the company is “taking advantage of the reactive strategy” of industry giants Nvidia, Arm and Broadcom.
Kramer also mentioned the infrastructure company Advanced Drainage Systems, saying there is so much activity going on in this space that it would not be difficult to make money there. He pointed to Regenxbio's recent rally, adding that some stocks are rising thanks to innovative new technology. A drug company has revealed there may be a cure for the rare and severe disease Duchenne muscular dystrophy.
“It's not just mega-cap stocks that have reached new highs. We've gotten here because of the kind of action we've seen since last Tuesday,” Cramer said. “All this may be happening because the market is still a despised animal, a sneaky skunk of the 5% CD block party. All I ask is that at least the stock I just want you to consider joining.”
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Disclaimer CNBC Investing Club Charitable Trust owns shares of Nvidia.
