In this article, we discuss the 10 best Jim Cramer stocks to buy. You can skip our detailed analysis of Jim Cramer’s investment philosophy, and go directly to read the 5 Best Jim Cramer Stocks To Buy Today.
Jim Cramer is an American investor and media personality. He is a former hedge fund manager and is currently hosting the famous finance show, Mad Money, on CNBC. His interest in the stock market dates back to his childhood when he used to memorize stock symbols for his future stock portfolio. He found a renewed interest in stocks when he enrolled in Harvard Law School in 1981. He landed a job at Goldman Sachs in 1984 and left it in 1987 to open his own hedge fund, Cramer Levy Partners. As of 2021, Cramer’s net worth stands at $150 million.
According to Jim Cramer, investors should pick stocks that are undervalued and always diversify their portfolio. He believes that research is the essence of stock picking as this determines the value and growth potential of such stocks. Cramer is regarded as one of the most successful investors of all time, as his hedge fund delivered an average annual return of 24% for fourteen years, according to a report by Bloomberg. The last two years of his hedge fund were the most profitable, as he managed to return 47% in 1999 and 28% in 2000, outperforming the S&P 500.
Jim Cramer is also an author of some critically acclaimed books, such as Get Rich Carefully, Getting Back to Even, and Stay Mad for Life. His books involve his personal insights into investing, with a detailed discussion of how one should invest in stocks. Some of Cramer’s recent stock picks include, Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS).
Our Methodology:
Let’s analyze our list of the 10 best Jim Cramer stocks to buy today. The list is compiled by using his recent videos uploaded on YouTube and recent related articles on CNBC. In addition to this, we took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.
Jim Cramer
Why pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Best Jim Cramer Stocks To Buy Today
10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 21
Bed Bath & Beyond Inc. (NASDAQ:BBBY) is an American in-store and online retail company that sells products related to home furnishings, such as bedding, furniture, and kitchen accessories. The company ranks tenth on our list of best Jim Cramer stocks to buy today.
Recently, Bed Bath & Beyond Inc. (NASDAQ:BBBY) launched Studio 3B, which will display contemporary home decor products inspired by modern design. The products include accent furniture, bath, decor, and bedding. In Q2 2021, Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported revenue of $1.99 billion. This July, B. Riley initiated its coverage on Bed Bath & Beyond Inc. (NASDAQ:BBBY) with a ‘Buy’ rating and a $44 price target. Jim Cramer appreciated the company’s use of tech in its operations. On August 1, the company’s board announced a quarterly dividend of $0.17 per share, yielding 4.08%.
As of Q2 2021, 21 hedge funds tracked by Insider Monkey have positions in Bed Bath & Beyond Inc. (NASDAQ:BBBY), compared with 23 in the previous quarter. These stakes are valued at $363.6 million.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), Bed Bath & Beyond Inc. (NASDAQ:BBBY) is also favored by Jim Cramer in 2021.
Heartland Advisors mentioned Bed Bath & Beyond Inc. (NASDAQ:BBBY) in its Q2 2021 investor letter. Here is what the firm has to say:
“The gyrations of story stocks touted on message boards have resulted in distortions in the market but on rare occasions have also swept up a few compelling opportunities. Bed Bath & Beyond (BBBY), a national retailer of home goods, babywear and health and beauty products, is one example.
Even before Bed Bath & Beyond made headlines earlier this year when day traders drove the price of shares up in an effort to squeeze short sellers, the company had caught our attention for the results its new management team was delivering since taking over in late 2019.
CEO Mark Tritton, who came to BBBY after a successful tenure at Target, quickly got to work installing new corporate leadership, closing underperforming stores, selling non-core businesses to firm up the balance sheet, and implementing retail best practices across the company. He also worked to improve store efficiency and revamped the company’s online presence.
The moves by Tritton made an impact. In its 2020 fiscal year, BBBY closed 144 under-performing stores, grew new digital customers by 95%, reduced debt by $1 billion, and returned $375 million of capital to shareholders. Despite the meaningful improvements, and the strong performance year-to-date, shares of the retailer are trading at just .35X sales and less than 5X estimated 2022 earnings before interest, taxes, depreciation, and amortization—roughly half of the multiple commanded by peer Williams- Sonoma Inc.
At current valuations, we view BBBY as offering attractive upside as recent improvements gain traction. It appears we’re not alone as executives have also been buying shares in recent months.”
9. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 27
Best Buy Co., Inc. (NYSE:BBY) ranks ninth on our list of the best Jim Cramer stocks to buy today. It is an American company that deals in consumer electronics. Along with this, the company also offers a range of related services to its consumers.
On September 27, Piper Sandler listed Best Buy Co., Inc. (NYSE:BBY) as the best idea stock pick as the company launched its new membership program, Best Buy Total Tech, which was also noted by Jim Cramer. The firm thinks that the rollout of this new program can result in a 3% growth in comparable sales. Piper Sandler lifted its price target on Best Buy Co., Inc. (NYSE:BBY) to $150, while keeping an ‘Overweight’ rating on the shares. In Q2 2021, the company posted an EPS of $2.98, beating the estimates by $1.09. On August 25, Best Buy Co., Inc. (NYSE:BBY) declared a quarterly dividend of $0.70 per share, yielding 2.3%. In 2021, the stock returned 6.73% to shareholders.
As of Q2 2021, 27 hedge funds tracked by Insider Monkey have positions in Best Buy Co., Inc. (NYSE:BBY), compared with 33 in the previous quarter. These stakes are valued at $984.2 million. AQR Capital Management is the company’s leading shareholder, with 2.4 million shares.
8. AGCO Corporation (NYSE:AGCO)
Number of Hedge Fund Holders: 38
AGCO Corporation (NYSE:AGCO) is an American agricultural machinery company that designs and produces agriculture-related products such as foragers, tractors, hay tools, among others. The company stands eighth on our list of the best Jim Cramer stocks to buy today.
In August, Goldman Sachs upgraded AGCO Corporation (NYSE:AGCO) to ‘Buy’ while keeping a $161 price target, which represents a 23% upside. The firm’s analyst believes that the company will benefit from growth in agriculture equipment demand as the economy continues to reopen.
In Q2 2021, AGCO Corporation (NYSE:AGCO) posted an EPS of $2.88, beating the estimates by $0.66. The company’s revenue for the quarter stood at $2.87 billion, showcasing a 42.8% growth from the prior-year quarter. On July 15, AGCO Corporation (NYSE:AGCO) announced a quarterly dividend of $0.20 per share, yielding 0.63%.
The number of hedge funds having stakes in AGCO Corporation (NYSE:AGCO) grew to 38 in Q2 2021, from 36 in the previous quarter. The total value of these stakes is $429.2 million.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), investors and analysts are also paying attention to AGCO Corporation (NYSE:AGCO).
7. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 52
Deere & Company (NYSE:DE) stands seventh on our list of the best Jim Cramer stocks to buy. It is an American manufacturing company that specializes in agricultural machinery. Along with this, the company also manufactures equipment used in construction and forestry.
Recently, Jim Cramer appreciated Deere & Company (NYSE:DE) for the use of tech which will help farmers save billions in wages. On August 25, Deere & Company (NYSE:DE) increased its quarterly dividend by 17% to $1.05 per share, paying a yield of 1.11%. Recently, Evercore ISI lifted its price target on Deere & Company (NYSE:DE) to $470, while keeping an ‘Outperform’ rating on the shares.
As of Q2 2021, 52 hedge funds tracked by Insider Monkey have positions in Deere & Company (NYSE:DE), compared with 51 in the previous quarter. The total value of these stakes is $2.17 billion.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), Deere & Company (NYSE:DE) is also one of Jim Cramer’s top stock picks.
Harding Loevner mentioned Deere & Company (NYSE:DE) in its Q2 2021 investor letter. Here is what the firm has to say:
“In the US, where we increased our weight as part of our recent portfolio manager transition, two of our industrial holdings stood out (one is) John Deere. John Deere delivered stronger-than-expected quarterly earnings and raised its guidance for the full-year. Sales of Deere’s tractors and combine harvesters are underpinned by Chinese demand for agriculture products and the bioethanol market rebounding with oil prices.”
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 63
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor company that manufactures computer processors and related products, such as motherboard chipsets and flash memories. The company ranks sixth on our list of the best Jim Cramer stocks to buy today.
Recently, Piper Sandler lifted its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $120, while keeping an ‘Overweight’ rating on the shares. The firm’s analyst Harsh Kumar appreciated the company’s Q2 earnings beat and expects the company to benefit from both PC and server markets. In Q2 2021, Advanced Micro Devices, Inc. (NASDAQ:AMD) posted an EPS of $0.63, beating the estimates by $0.09. The company’s revenue for the quarter stood at $3.85 billion, presenting a 99.5% year-over-year growth. Jim Cramer noted the company’s acquisition of semiconductor manufacturing company, Xilinx, under the competent leadership of Lisa Su. Advanced Micro Devices, Inc. (NASDAQ:AMD) delivered a 24.6% return to shareholders in the past year.
As of Q2 2021, 63 hedge funds tracked by Insider Monkey have positions in Advanced Micro Devices, Inc. (NASDAQ:AMD), worth $4.6 billion. The number of hedge funds having stakes in the company stood at 62 in the previous quarter.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), Advanced Micro Devices, Inc. (NASDAQ:AMD) is also one of the most notable stocks in 2021.
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Disclosure. None. 10 Best Jim Cramer Stocks To Buy Today is originally published on Insider Monkey.
