In this article, we discuss the 10 Best Jim Cramer Stocks to Watch in December. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Jim Cramer Stocks to Watch in December.
CNBC’s Mad Money host Jim Cramer is one of the most followed financial experts in the market today. In 1987, Cramer left Goldman Sachs and launched his own hedge fund, Cramer & Co., which was later named Cramer, Berkowitz & Co. Cramer’s compounded rate of return after fees as a hedge fund manager was 24% over 14 years. Cramer also co-founded the financial news and financial literacy website TheStreet.
Some of Cramer’s top stock picks are high-performing tech stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Alphabet Inc. (NASDAQ:GOOG). In this article, we’ll look at the stocks on Jim Cramer’s watchlist, which he recently highlighted on CNBC’s Mad Money show.
Despite the market’s volatility due to the new Omicron COVID-19 type, Cramer believes earnings reports and investor events in the second week of December could indicate the start of a late-December rebound.
Our Methodology
These were chosen based on the stocks Jim Cramer recently discussed on CNBC’s Mad Money show.
Insider Monkey’s data on 867 hedge funds was used to gauge hedge fund sentiment toward each stock.
Best Jim Cramer Stocks to Watch in December
10. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 27
UiPath Inc. (NYSE:PATH) is an enterprise automation company headquartered in New York. The automation software company went public in April 2021. The company raised $1.3 billion post-IPO and had a market valuation of around $36 billion.
UiPath Inc. (NYSE:PATH) is among the stocks Jim Cramer is watching in December as the company recently announced its Q3 earnings. The company’s revenue in the period came in at $221 million and beat revenue estimates by nearly $12 million.
Following strong third-quarter results, market analysts expressed optimism about UiPath Inc. (NYSE:PATH). Cowen analyst Bryan Bergin maintained an Outperform rating on UiPath Inc. (NYSE:PATH) on December 13 and named the company a “best idea for 2022,” citing PATH’s strong growth foundations. Bergin has set a $72 price target for the stock.
With nearly 24 million shares worth $1.26 billion, Cathie Wood’s ARK Investment Management is the biggest shareholder of UiPath Inc. (NYSE:PATH) at the end of the September quarter. At the end of the third quarter of 2021, 27 hedge funds in Insider Monkey’s database held stakes in UiPath Inc. (NYSE:PATH) worth $3.63 billion, compared to 46 in the previous quarter worth $3.46 billion.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Alphabet Inc. (NASDAQ:GOOG), UiPath Inc. (NYSE:PATH) is also one of the notable tech stocks to watch now, according to market analysts.
In its Q2 2021 investor letter, ClearBridge Investments mentioned UiPath Inc. (NYSE:PATH) and discussed its stance on the firm. Here is what the fund said:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing, and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem, and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
9. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 29
Hormel Foods Corporation (NYSE:HRL) produces food and meat products internationally. Among the company’s most popular brands are Hormel, SPAM, Skippy, Natural Choice, and Jennie-O. Even though Hormel Foods Corporation (NYSE:HRL) has been down from its highs in the previous year, the food stock gained 26% in the past five years.
Jim Cramer referred to Hormel Foods Corporation (NYSE:HRL) as a “tried and true” name in the food market. The Minnesota-based food manufacturer recently partnered with The Better Meat Co, a California-based sustainable food start-up. The partnership was announced in early October with the goal of accelerating Hormel Foods Corporation’s (NYSE:HRL) expansion in the plant-based food market.
On November 22, the company increased its quarterly dividend by 6.1% to $0.26 per share. The food stock offers a forward dividend yield of 2.42%.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Hormel Foods Corporation (NYSE:HRL) with 2.9 million shares worth $120 million.
In its Q3 2021 investor letter, mentioned Hormel Foods Corporation (NYSE:HRL) and discussed its stance on the firm. Here is what the fund said:
“Hormel Foods Corporation (HRL) – the maker of SPAM and Applegate Turkey (among many other products), is down over 20% since peaking last year, largely on fears of higher cost. We expect the company will be able to raise prices to offset cost inflation as they have always been able to do win their past.”
8. Stitch Fix, Inc. (NASDAQ:SFIX)
Number of Hedge Fund Holders: 30
Stitch Fix, Inc. (NASDAQ:SFIX) is an online personal styling platform that caters to millions of clients in the US and UK. According to Jim Cramer, the San Francisco-based apparel company bears resemblance to tech stocks that have hit the bottom and are poised to surge again.
Morgan Stanley analyst Lauren Schenk upgraded Stitch Fix, Inc. (NASDAQ:SFIX) to Equal Weight from Underweight with a price target of $27 on December 3. Stitch Fix, Inc. (NASDAQ:SFIX) gained 2.55% after Morgan Stanley upgraded its rating.
Of the 867 elite funds tracked by Insider Monkey, 30 were long Stitch Fix, Inc. (NASDAQ:SFIX) at the end of September, compared to 35 in the second quarter of 2021. Slate Path Capital, a New York-based investment group, upped its holding in Stitch Fix, Inc. (NASDAQ:SFIX) by 18% between June and September, increasing the total number of shares to 2.98 million worth $119 million.
Jim Cramer is bullish on Stitch Fix, Inc. (NASDAQ:SFIX) along with other senior growth stocks like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Alphabet Inc. (NASDAQ:GOOG).
7. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders: 31
BofA analyst Rafe Jadrosich reinstated a Buy rating on Toll Brothers, Inc. (NYSE:TOL) in November with a price target of $75. Jadrosich sees positive market opportunities for the Pennsylvania-based luxury home builder as demand for luxury homes and price momentum are expected to remain strong through 2022.
According to Jim Cramer, Toll Brothers, Inc. (NYSE:TOL) is one of the companies to watch in December, as the high-end home builder has multiple tailwinds which have enabled the company to come up with impressive results. One of the tailwinds mentioned by Cramer is Toll Brothers, Inc.’s (NYSE:TOL) strong profit margin, which increased to 22.7% in Q3 2021 from a 21% home sales gross margin in Q3 2020.
In the third quarter of 2021, the company’s home sales revenue grew 37% year over year to $2.23 billion. Additionally, Toll Brothers, Inc. (NYSE:TOL) delivered 2,597 homes in Q3, up 28% year over year.
With 5.2 million shares worth $287 million, New York-based investment firm Greenhaven Associates is the biggest stakeholder of Toll Brothers, Inc. (NYSE:TOL) at the end of the September quarter.
6. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 41
Lululemon Athletica Inc. (NASDAQ:LULU) is a Canadian athletic apparel retailer that sells its products internationally. The Vancouver-based company expects sales of between $6.1 billion and $6.3 billion in fiscal 2021. Jim Cramer recently stated that Lululemon Athletica Inc. (NASDAQ:LULU) is slated to release a “fantastic” third-quarter report on December 9.
At the end of the third quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $709 million in Lululemon Athletica Inc. (NASDAQ:LULU).
Argus analyst John Staszak expressed positive sentiment about the fitness apparel company. According to Staszak, the company’s brand image and expanding retail sales are catalysts. The analyst increased his price target for Lululemon Athletica Inc. (NASDAQ:LULU) to $530 from $500 and kept a Buy rating on the apparel stock on December 1.
Additionally, Lululemon Athletica Inc. (NASDAQ:LULU) is among the retail stocks favored by BTIG analysts. Analyst Camilo Lyon believes that the Canadian fitness apparel retailer is well-positioned to fulfill strong demand throughout the holiday season.
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Disclosure. None. 10 Best Jim Cramer Stocks to Watch in December is originally published on Insider Monkey.
