We recently published an article titled Jim Cramer Discussed These 7 Stocks. In this article, we are going to take a look at where ServiceTitan, Inc. (NASDAQ:TTAN) stands against the other stocks Jim Cramer recently discussed.
Jim Cramer, host of Mad Money, recently shared his thoughts on the market’s movements this week, focusing on the economic data that’s shaping the outlook. He highlighted the upcoming nonfarm payroll report on Friday, noting its potential to sway market sentiment. Cramer pointed out that the market has been shaken by the persistently high 10-year treasury bond yields, which refuse to drop.
“Friday’s employment numbers need to show lower wage growth and disappointing hiring. Now that could bring down the yield in the 10-year and therefore make people feel that the Fed will be back on schedule to start cutting the rates again. We gotta get them back into that groove, you know. On the other hand, if hiring and wages remain hot, well then anything good that happens next week could be repealed.”
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The labor report is especially critical, according to Cramer, because despite the strength in sectors like autos, housing, and materials, the overall economy may still be running too hot for the Fed to slow it down as needed. He turned his attention to other economic indicators, such as the Purchasing Managers’ Index (PMI), which is offering strong signals of economic activity. Cramer mentioned a recent report, including Monday’s release of the PMI composite index, as an important barometer for the economy.
This data, he explained, provides valuable insights into how the economy is performing across different sectors, with particular attention to manufacturing, which has shown particularly strong performance. In addition to these key reports, Cramer also mentioned the implications of the Job Openings and Labor Turnover Survey (JOLTS), specifically focusing on job openings.
“I’ve been mulling over these job openings numbers and I keep thinking about how President-elect Trump might reverse the high levels of immigration we’ve seen under the Biden administration.”
Cramer warned that mass deportations could create a labor shortage that would drive wages even higher, especially if the country cannot rely on enough workers to fill the gaps. In that case, Cramer mused, “robots may be our only hope,” alluding to the role of automation in addressing potential labor shortages.
“So here’s the bottom line: It’s a light week, but still impactful, accept that people will be on edge ahead of Friday’s employment report. Still, I think you should do some buying if the market gets hammered. As we saw today, it’s not nearly as bad out there as so many think.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 3. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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 woman using a tablet to navigate the cloud-based bill payment technology.
ServiceTitan, Inc. (NASDAQ:TTAN)
Number of Hedge Fund Holders: N/A
Ahead of ServiceTitan, Inc.’s (NASDAQ:TTAN) third-quarter fiscal 2025 earnings release, Cramer said:
“There’s not a lot of corporate news of any consequence, but a recently minted IPO ServiceTitan, which is [a] software as a service company to help tradespeople, is going to report and I think it’s gonna give us a great quarter, maybe one that is so good that it’ll worth be buying ahead of.”
ServiceTitan, Inc. (NASDAQ:TTAN) is a provider of cloud-based software designed to assist businesses with a variety of tasks including advertising, scheduling jobs, dispatching, invoicing, and processing payments. In December, the company announced the pricing of its initial public offering (IPO).
From fiscal 2021 to fiscal 2024, the company’s revenue grew from $179.2 million to $614.3 million, marking a compound annual growth rate of 51%. Despite this significant revenue growth, the company reported net losses of $269.5 million in fiscal 2023 and $195.1 million in fiscal 2024. The markets the company serves represent roughly $650 billion of the total $1.5 trillion annual industry spend. The company captures, on average, approximately 1% of its customers’ Gross Transaction Volume (GTV) as revenue from the usage of its software products.
ServiceTitan, Inc. (NASDAQ:TTAN) estimates that by offering its full suite of products, it has the potential to capture around 2% of its customers’ GTV as revenue. With its current product offering and serviceable industry spend, the company estimates that its total addressable market opportunity is approximately $13 billion.
Overall TTAN ranks 7th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of TTAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TTAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.