Dow Inc. (NYSE:D.O.W.) is among the Stocks take center stage as Jim Cramer reviews the S&P 500’s top performers and Nasdaq 100’s biggest laggards during the first quarter.. Cramer said the stock could pull back should the war end and the Strait of Hormuz open. He said:
Let’s talk about the next group, the companies that benefit from Iran’s closure of the Strait of Hormuz. You’ve got LyondellBasell, up 86%, it’s plastics, Dow, up 78%, polyethylene primarily, well, they make a lot of others, but that’s really the driver, third and fourth best performers in the S&P. These are two chemical raw materials companies, and their stocks were some of the worst performers in the index last year, but they were already starting to recover in January, weeks before the war with Iran started, because everyone thought we were going to get multiple rate cuts this year, and that’s true for textbook cyclical stocks like petrochemicals. It turns out that they benefit even more from petrochemical shortages caused by the Iranian government. I think Dow and LyondellBasell could be at risk of going backwards if the war ends and the Strait reopens. But then again, there is a real possibility that Iran will keep the Strait closed after we leave just to show us that they mean business. I don’t want to, I really don’t want to mess with these… I think you should kaching kaching.
Photo by Yiorgos Ntrahas on Unsplash
Dow Inc. (NYSE:DOW) develops chemicals and materials used in the packaging, construction, transportation and consumer industries.
While we recognize the DOW’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: 33 stocks that should double in 3 years and 15 stocks that will make you rich in 10 years
Disclosure: None. Follow Insider Monkey on Google News.