CNBC’s Jim Cramer on Friday reviewed the “Super Seven,” mega cap European stocks Citi recently named as alternatives to the Magnificent Seven, but with lower valuations.
“I want you to think of the Super Seven as a shopping list of high-quality European stocks that could be very attractive on a pullback,” he said. “A shopping list brought to you by Dr. Beata Manthey and her terrific team at Citi.”
- Novo Nordisk: Cramer noted that this “Danish pharmaceutical titan” came out with the original GLP-1, diabetes and weight loss drug Ozempic. Bullish on the GLP-1 space, he was especially encouraged by the company’s new experimental weight loss pill and said the stock probably has more room to run.
- ASML: Cramer said the Dutch semiconductor maker has an “effective monopoly” on certain kinds of equipment needed to make the most advanced graphics chips. He also noted that the company reported a huge pickup in orders during its last quarter.
- LVMH: Cramer said LMVH — Louis Vuitton Moët Hennessy — has been “a phenomenal long-term performer.” The luxury goods company owns a lot of high-end apparel and jewelry brands including Givenchy, Dior, Fendi and Bulgari. He said he thinks the stock can keep winning, but that investors might want to wait for a pullback.
- Richemont: To Cramer, this Swiss luxury goods company has “something special.” It’s known for Cartier and Piaget, as well as Chloé, Montblanc and Peter Millar. He said he’s impressed Richemont has been able to report sales growth in China.
- SAP: This German enterprise software giant is making ample money off of artificial intelligence, Cramer said, adding he doesn’t think the stock is finished climbing.
- Schneider Electric: This French industrial company — specializing in electric power products and digital automation — reminds Cramer of Eaton. He said these electric companies are poised to do well because of how much energy is needed to power AI data centers.
- Ferrari: Cramer said demand for Ferrari’s sports cars is “incredible” because the company limits its supply, allowing it to control prices. He also praised Ferrari’s involvement with Formula 1.
“As great as the Super Seven may be, you’re not exactly early to any of these stories — most of these stocks are trading at or near their all-time highs,” Cramer said. “Of course, you could say the same thing about the Magnificent Seven, but it makes me a little queasy to recommend something that’s already had a huge run.”
