Ideas
Cheap low-P/E stocks beat expensive high-P/E stocks.
With the 30-year Treasury yielding 5.26% and limited new money entering stocks, big money managers are selling expensive high-P/E stocks as too risky and crowding into cheap low-P/E stocks; this explains the downside in high-growth technology, not a broken AI/data-center/momentum trade.
Cheap low-P/E stocks beat expensive high-P/E stocks.
With the 30-year Treasury yielding 5.26% and limited new money entering stocks, big money managers are selling expensive high-P/E stocks as too risky and crowding into cheap low-P/E stocks; this explains the downside in high-growth technology, not a broken AI/data-center/momentum trade.
MongoDB is too expensive; sell it.
MongoDB trades at almost 58x earnings and plunged 13.5% after a decent but not perfect quarter because it is too rich in a market where bond yields make expensive stocks too risky; Cramer says too rich equals sell.
Nvidia is cheap despite growth and fears.
Nvidia trades at 24x current earnings and about 14x next year's earnings despite phenomenal growth; Cramer vehemently disagrees with circular-financing bear arguments and says Nvidia's customers are making fortunes from its chips, so he prefers sticking with Nvidia.
ServiceNow is expensive versus Nvidia; avoid.
ServiceNow trades at 33.6x current earnings and 27x next-year earnings, much more expensive than Nvidia at 24x and 14x; in a rising-yield rotation out of high-multiple stocks, ServiceNow is unattractive relative to cheaper growth.
Dell is a cheap AI data-center winner.
Dell reported a great quarter, the stock trades below 20x earnings, and after the quarter Cramer says it could earn $25 per share; buyers are not fleeing the data center or tech broadly, they are fleeing high multiple tech, making Dell a low-multiple AI/data center winner and still a terrific stock to own even up 16%.
Corning likely falls more before re-entry.
Cramer sold Corning for the charitable trust to avoid turning a gain into a loss because Corning is a high-P/E stock vulnerable to the current multiple compression; he expects it to come down more before he gets back in, making it a near-term avoid and a watch for a lower re-entry.
Oracle can fall on data-center constraints.
Oracle's stock is hostage to data-center buildout loan/permit concerns; if anything indicates Oracle cannot build as many data centers as expected, the stock goes lower. Cramer prefers Nvidia and says Dell is still terrific, so Oracle is avoid.
PG&E setup hinges on California liability reform.
PG&E has already reduced wildfire risk dramatically, lowered rates, improved reliability and has a pathway to investment grade, but the stock fell about 20% after California wildfire liability reform collapsed. A simple legislative fix or special session could unlock capital, restore $2B of capex, support 9%+ EPS growth and dividend growth; until that happens the stock is a legislative event-driven watch.
Cardinal Health is a cheap healthcare winner.
Cardinal Health is a high-quality healthcare distributor seeing rotation inflows away from expensive tech; it has been shifting to specialty pharma, generics, and higher-margin businesses, revenue misses stem from drug pricing while its fee-for-service volume model still works, and FY27 guidance implies 13-15% earnings growth at less than 20x earnings, a cheap safe haven.
CVS is a buy-and-own healthcare stock.
CVS under CEO David Joyner has raised guidance, trades at a discount valuation with a 3% dividend and 25% upside, and Cramer says investors should own it rather than trade it; he wants to buy it for the charitable trust.
Cyber stocks are on sale; buy them.
CrowdStrike, Palo Alto Networks and Rubrik have been trading down despite excellent quarters because investors are rotating out of software/security; Cramer says these cybersecurity stocks are being put on sale and the decline is an opportunity to buy.
Cyber stocks are on sale; buy them.
Rubrik delivered its 10th consecutive quarter of outperformance with beats on topline, profitability and cash flow; demand is driven by AI-era cyber resilience and agentic security, and Rubrik's data infrastructure model is winning larger deals, supporting the stock after its post-earnings drop.
AeroVironment: too much defense competition, avoid.
Even though AeroVironment's stock is down sharply, Cramer says defense niche competition is so strong that he would not buy yet: 'not yet, not now'.
MP Materials is best play but slow.
MP Materials is the single best, most investable play on critical materials, which the US needs, but Cramer does not expect anything to happen soon and says the timeline has been long, making it a watch rather than a near-term catalyst trade.
Howmet remains best aerospace play; buy/hold.
Elon Musk's announcement that SpaceX will cast its own natural gas turbine blades hurt Howmet Aerospace, but Cramer believes it is unlikely to inflict lasting damage; Howmet is one of the best companies out there and the best way to play aerospace, so he says hold or buy.
This CNBC video, published September 02, 2026,
features Jim Cramer, Patty Poppy
discussing Low-P/E stocks, High-P/E technology stocks, MDB, NVDA, NOW, DELL, GLW, ORCL, PCG, CAH, CVS, CRWD, PANW, RBRK, AVAV, MP, HWM.
16 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Jim Cramer,
Patty Poppy
· Tickers:
Low-P/E stocks,
High-P/E technology stocks,
MDB,
NVDA,
NOW,
DELL,
GLW,
ORCL,
PCG,
CAH,
CVS,
CRWD,
PANW,
RBRK,
AVAV,
MP,
HWM
