Cramer Likes Applied Digital on the Dip — but Warns: 'Start It Small, Don't Start It Big'

On CNBC’s “ Mad Money Lightning Round,” Jim Cramer said he likes Applied Digital Corporation (NASDAQ: APLD ) with the stock coming down. “Start it small, don’t start it big because it is losing money,” he noted.

Applied Digital announced that it will host a conference call on Monday, July 27, to discuss its operations and financial results for the fiscal fourth quarter.

Cramer recommended buying Bloom Energy Corporation (NYSE: BE ) as it has “come down a great deal and it’s a non-combustible way to be able to power data centers.” Truist Securities analyst Christopher Souther, on Tuesday, initiated coverage on Bloom Energy with a Hold rating and announced a price target of $250. “I think double down right now.

A 6% yield.

You want to own it.

I think it’s terrific for people who want fixed income,” Cramer said when asked about Enterprise Products Partners L.P. (NYSE: EPD ).

On July 9, JP Morgan analyst Jeremy Tonet maintained EPD at Neutral and raised the price target from $41 to $42.

The Mad Money host said no to Lennar Corporation (NYSE: LEN ). “I’ve tried to own some of these stocks in an atmosphere where people think that they may raise rates, and even though I don’t think they will, it is just too hard, including a great company like Lennar,” he added.

Citigroup analyst Anthony Pettinari, on Wednesday, maintained Lennar with a Neutral rating and lowered the price target from $104 to $88.

X-Energy, Inc. (NASDAQ: XEG ) is a “pure spec,” Cramer said. “It’s nuclear, and the problem with nuclear is everyone’s just decided it’s just too darn expensive.” On the earnings front, X-Energy reported worse-than-expected first-quarter sales on June 4.

Cramer said he would remain long on Construction Partners, Inc. (NYSE: ROAD ) and may buy some more. “I think that’s a road builder that should be bought.

I bet it’s going to be consolidated if it stays down here.

I think you’ve got a good one,” he added.

Construction Partners announced that it will release its fiscal third-quarter results on Aug.

7, before the market opens.

Price Action: Applied Digital shares gained 2% to settle at $29.03 on Wednesday.

Bloom Energy shares dipped 1.7% to close at $239.38 during the session.

Lennar shares rose 1.9% to settle at $85.29 on Wednesday.

Enterprise Products Partners shares declined 0.6% to close at $37.52.

X-Energy shares fell 1.8% to settle at $15.06 on Wednesday.

Construction Partners shares gained 6.7% to close at $103.86 during the session.

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