Cramer’s Pick: Why Dover (DOV) is a Better Buy than Aaon - InvestingChannel

Cramer’s Pick: Why Dover (DOV) is a Better Buy than Aaon

We recently published a list of 10 Jim Cramer Stocks to Watch in 2025. In this article, we are going to take a look at where Dover Corporation (NYSE:DOV) stands against other Jim Cramer stocks to watch in 2025.

Jim Cramer in a latest program on CNBC commented on the bearish start of 2025 and said being a bear in the market is “easy” because when the stocks rise no one would remember your outlook but if they fall, you will get the credit for your forethought. Cramer mentioned the reasons why he is bullish on the market in 2025.

First, Cramer believes the departure of FTC Chair Lina Khan would bode well for the market. He called Khan “way over her head” and said she used to oppose “all deals.”

Cramer also said President-elect Donald Trump’s tariff policies are expected to be “negotiable” that would offset their negative impact on companies. He also commented on the expected dynamics in the housing market:

“Housing breaks price we’re already seeing what happens when there’s overbuilding as is case in Florida. Prices come down when mortgage rates go up. What happens? Prices go down. Once prices come down, you know what? Buyers start staying away hoping for still lower prices, and it usually works, causing sellers to panic furiously, cutting prices themselves. They’ll be stuck and can’t move. It’s called the cycle. Although it has been operating normally for the last few years, I think 2025 will be the year the cycle reasserts itself, and the FED will win big on this one.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article we picked 10 stocks Jim Cramer was talking about heading into the new year. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A modern industrial equipment assembly line in motion.

Dover Corporation (NYSE:DOV)

Number of Hedge Fund Investors: 32

In late October, a caller asked Jim Cramer about his thoughts on HVAC company Aaon Inc (NASDAQ:AAON). Cramer instead recommended the investor to buy Dover Corporation (NYSE:DOV).

“That’s roof top stuff for the data center can we please just go down a little bit deeper Dover’s got half the price earnings multiple that’s a better play, DOV”

Dover Corp’s (NYSE:DOV) business offers products and services via five segments: engineered products, clean energy & fueling,  imaging & identification, pumps & process solutions and climate & sustainability technologies. Each segment’s revenue is over $1 billion on an annual basis. In 2023 the company’s full-year free cash flow came in at $1.1 billion, nearly double the previous year’s figure. This increase was due to effective working capital management and reduced capital expenditures. The free cash flow conversion rate has risen above 90%.

Overall, DOV ranks 9th on our list of Jim Cramer stocks to watch in 2025. While we acknowledge the potential of DOV, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DOV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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