ServiceTitan, Inc. (TTAN): ‘Worth Buying Ahead Of’ Earnings, According to Jim Cramer

Insider Monkey
08 Mar

We recently published a list of Jim Cramer and Analysts Like These 10 Stocks. In this article, we are going to take a look at where ServiceTitan, Inc. (NASDAQ:TTAN) stands against other stocks that Jim Cramer and analysts like.

On Thursday, Jim Cramer, the host of Mad Money, shared his thoughts on the current state of the stock market, explaining that until things become more balanced, we are likely to continue experiencing what he referred to as the “Walmart White House” scenario. In this environment, he explained, there are consistently lower prices for the Dow Jones, the S&P, and, more “savagely”, the Nasdaq 100.

“Let’s say you believe that the stock market is a good proxy for the state of a country. It’s not perfect, but it certainly reflects how investors feel about America and its future trajectory. But judging by the averages, maybe we should be embarrassed or even mortified because we’re doing so much worse than similar countries, including countries that we’d written off years ago.”

READ ALSO: Jim Cramer Looked At These 11 Stocks Recently and 10 Stocks on Jim Cramer’s Radar

The answer, according to Cramer, lies in the fact that several European nations are faring better at this moment because these countries have central banks that have been consistently lowering interest rates in an effort to stimulate demand. On top of that, Cramer emphasized that individual European countries are taking proactive steps to jumpstart their economies.

“Now, we all know what’s keeping our stock market down. It’s being sacrificed on the altar of uncertainty and confusion about punishing our trading partners for allowing illegal immigration and fentanyl smuggling, in fairness, and also of course, tariffs.”

He reminded viewers that President Donald Trump campaigned on border security, not on boosting stock prices, so in that sense, he is following through on his promises. However, Cramer expressed frustration with how chaotic and difficult to comprehend the current policy landscape seems.

Many people, Cramer noted, believe that the market will not improve until the Dow sees a significant drop of 10 to 15%. He has been attempting to guide viewers through this difficult time, but he also questioned how much longer the disparity between the U.S. market and those of its allies can persist before it becomes too significant to ignore.

“I think we’d be in better shape if Trump rolled out the tariffs more gradually with a clear trajectory of where we’re headed rather than these endless intermittent volleys of Katyusha rockets.”

Our Methodology

For this article, we compiled a list of 73 stocks that Cramer was bullish on during episodes of Mad Money aired in January. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of March 6. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close-up of a digital cloud, signifying the expansive reach of the software-as-a-service solution.

ServiceTitan, Inc. (NASDAQ:TTAN)

Average Price Target Upside: 36.89%

Number of Hedge Fund Holders: 43

Taking its place among the stocks that have garnered bullish sentiment from both Cramer was analysts, ServiceTitan, Inc. (NASDAQ:TTAN) discussed by Cramer in January as he 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 (NASDAQ:TTAN) offers cloud-based software solutions that help businesses manage various tasks such as advertising, job scheduling, dispatching, invoicing, and payment processing. The stock received a consensus Buy rating from 13 analysts and has an average price target of  $120.00, as of March 6. Baron Discovery Fund stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its Q4 2024 investor letter:

“ServiceTitan, Inc. (NASDAQ:TTAN) is the leading business management software platform for “the trades” (i.e HVAC, plumbing, electrical, pest control, roofing, etc.). The platform serves as a system of record offering clients nearly everything they need to run their businesses including customer relationship management (sales enablement, marketing automation, and customer service), field service management (scheduling/dispatching), enterprise resource planning (inventory), human capital management (compensation and payroll) and fintech (payments and consumer financing).

ServiceTitan operates in a large market. In just the U.S. and Canada, the trades are roughly a $1.5 trillion annual industry and ServiceTitan’s current set of solutions serve about $650 billion of this spend. This equates to about a $30 billion addressable market for the company, of which $13 billion is serviceable today. The industry is also resilient given that over 75% of U.S. residential trades jobs are non-discretionary in nature. Relative to its competition, ServiceTitan has several notable advantages including: 1) it is by far the leading end-to-end software platform built specifically for the trades that provides a strong return on investment to clients and would be very hard to catch at this point given it is virtually a one-stop-shop for all of a trade’s business’ technology needs; 2) it has a first mover advantage that allowed the company to build up broad-based customer trust over time; and 3) the company’s scale provides a big data advantage as ServiceTitan can use its industry leading data to make continuous improvements to its product offerings and connect previously disparate processes for customers…” (Click here to read the full text)

Overall, TTAN ranks 8th on our list of stocks that Jim Cramer and analysts like. 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 time frame. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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