In this article, we will take a look at the 10 growth stocks to Jim Cramer is talking about. If you want to explore similar stocks, you can also take a look at 5 Growth Stocks Jim Cramer is Talking About.
“You Reach For Tech In A Slowdown”
On March 30, Jim Cramer talked about the ramifications of the SVB collapse and how it has catalyzed a rally in tech stocks. Cramer noted that the collapse of SVB has “launched rallies in hundreds of good stocks” as it has caused the Fed to decrease the magnitude of its rate hikes. Cramer said that the Fed may have gone with a 50 basis point rate hike if SVB had not collapsed, since the economy is still hot. Here are some comments from Jim Cramer:
“Nobody can blame the Fed for slowing down the pace of its rate hikes. Until a few weeks ago, we didn’t care that so many banks had taken their Covid-boosted deposits and invested them in longer-term bonds that were practically guaranteed to take losses in the event of aggressive rate hikes, which we got. We didn’t have a clue that old-fashioned bank runs could happen so swiftly.”
Cramer thinks that when we look at the ripple effects of the collapse of SVB, “they actually end up breaking positive, not negative, for much of the stock market”. Cramer elaborated by saying that before SVB failed, fighting inflation was the Fed’s top priority. Now, according to Cramer, the Fed has to reevaluate its priorities and also focus on averting similar banking failures “which are the most deflationary force in existence”. Jim Cramer thinks that the current market environment bodes well for tech stocks. Here is what he said:
“In a sluggish economy, the Wall Street playbook says you buy tech, but not just any tech. You buy tech that’s brimming with cash and doesn’t need to tap the equity or bond markets. Pristine techs, that have so much money, they actually look like banks.”
Cramer noted that “fewer tech stocks would have been getting the benefit of the doubt” if the Federal Reserve decided to go with a 50 basis point rate hike, which would have been probable if we did not have a banking crisis. However, the recent banking failures have caused the Fed to slow down the pace of its rate hikes and has allowed for growth stocks to “come back in style”. Here is what Cramer said:
“This market may be mindless, but it’s got muscle memory that says you reach for tech in a slowdown. The Silicon Valley Bank fiasco was just the oxygen that tech bull needed.”
Cramer thinks that in the current market environment, investors should position themselves in large-cap tech stocks such as Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:FB), and NVIDIA Corporation (NASDAQ:NVDA). We have compiled a list of 10 growth stocks that Cramer has been talking about. Let’s now look at these stocks in detail below.
Our Methodology
To determine the 10 growth stocks that Jim Cramer is talking about, we watched Mad Money episodes that have aired since March 30 to April 18. We compiled a list of growth stocks that Cramer has recommended buying or holding over the past 3 weeks. We then sourced each stock’s hedge fund sentiment from Insider Monkey’s database which tracks roughly 900 hedge funds. We narrowed down our list to the 10 growth stocks mentioned by Jim Cramer that were the most widely held by institutional investors. We have ranked these stocks in ascending order of the number of hedge funds that have stakes in them.
Growth Stocks Jim Cramer is Talking About
10. Verint Systems Inc. (NASDAQ:VRNT)
Number of Hedge Fund Holders: 22
Verint Systems Inc. (NASDAQ:VRNT) is an American analytics company that distributes software and hardware products for customer engagement management and business intelligence. Cramer recommended holding the stock to one of his callers. Cramer noted that though it is not an “inexpensive stock”, it is a “good call”.
On March 30, RBC Capital analyst Dan Bergstrom revised his price target on Verint Systems Inc. (NASDAQ:VRNT) to $46 from $48 and maintained an Outperform rating on the shares. As of April 18, the stock has returned roughly 15% to investors over the past 6 months.
At the end of Q4 2022, 22 hedge funds were long Verint Systems Inc. (NASDAQ:VRNT) and disclosed positions worth $434.5 million in the company. Of those, Rima Senvest Management was the leading investor in the company and disclosed a position worth $138.5 million.
Some of Jim Cramer’s top growth stock picks include Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:FB), and NVIDIA Corporation (NASDAQ:NVDA).
9. Lattice Semiconductor Corporation (NASDAQ:LSCC)
Number of Hedge Fund Holders: 35
Cramer likes Lattice Semiconductor Corporation (NASDAQ:LSCC) and gave one of his callers the go-ahead to buy the stock. He said that “it is a very very good company” and he is a buyer of the stock. Lattice Semiconductor Corporation (NASDAQ:LSCC) is ranked among the top growth stocks Jim Cramer is talking about.
On April 11, KeyBanc raised its price target on Lattice Semiconductor Corporation (NASDAQ:LSCC) to $110 from $100 and reiterated an Overweight rating on the shares. Lattice Semiconductor Corporation (NASDAQ:LSCC) has gained 99.43% over the past 6 months, as of April 18.
Lattice Semiconductor Corporation (NASDAQ:LSCC) was spotted on 35 hedge funds’ portfolios at the close of Q4 2022. These funds held collective positions worth $484 million in the company. As of December 31, Polar Capital is the most prominent stockholder in the company and holds a stake worth $129.5 million.
Carillon Tower Advisers made the following comment about Lattice Semiconductor Corporation (NASDAQ:LSCC) in its Q4 2022 investor letter:
“Lattice Semiconductor Corporation (NASDAQ:LSCC) is a semiconductor company focused on the lower- to mid-end of the field programmable gate array (FPGA) sub-sector. The company has been executing well in a volatile semiconductor and technology spending environment. Most recently, investors have appreciated the company’s announcements regarding new product introductions that we believe will significantly increase the total addressable market at a much higher pricing than the existing products.”
8. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 45
NXP Semiconductors N.V. (NASDAQ:NXPI) is another semiconductor stock that Jim Cramer likes. He recommended the stock to a caller during one of his lightning rounds. As of April 18, the stock has gained 24.38% over the past 6 months.
This February, Deutsche Bank analyst Ross Seymore raised his price target on NXP Semiconductors N.V. (NASDAQ:NXPI) to $200 from $185 and maintained a Buy rating on the shares.
NXP Semiconductors N.V. (NASDAQ:NXPI) was a part of 45 investors’ portfolios at the end of the fourth quarter of 2022. These funds held collective positions worth $964 million in the company. As of December 31, First Pacific Advisors LLC is the top investor in the company and has a stake worth $133.3 million.
7. Match Group, Inc. (NASDAQ:MTCH)
Number of Hedge Fund Holders: 54
Cramer talked about Match Group, Inc. (NASDAQ:MTCH) during one of his lightning rounds. Though the company reported weak earnings for fiscal Q4 2022, he recommends holding the stock. A caller asked whether he should buy the stock around $36 and Cramer responded “I would not sell the stock at $35, I think that could be a mistake.”
On April 17, TD Cowen analyst John Blackledge updated his price target on Match Group, Inc. (NASDAQ:MTCH) to $70 from $74 and maintained an Outperform rating on the shares.
54 hedge funds disclosed having stakes in Match Group, Inc. (NASDAQ:MTCH) at the close of the fourth quarter of 2022. The total value of these stakes amounted to $730 million.
Here is what RGA Investment Advisors had to say about Match Group, Inc. (NASDAQ:MTCH) in its Q4 2022 investor letter:
“Match Group, Inc. (NASDAQ:MTCH), a long-term holding of ours offers an important illustrative example of these effects. Tinder grew reported revenues 6% year-over-year, accelerating a debate about whether this particular asset has reached a plateau in its growth curve; however, revenues grew 16% on an FX neutral basis. Has this asset stalled or is it a mid-teens grower? Other factors will determine the one true answer to this question, though FX and the stated headline make the answer seem obvious when it is not. When foreign exchange movements are modest, people tend to focus more on FX neutral assuming those changes will normalize over time, yet when movements are extreme the headline takes prominence.”
6. Palo Alto Networks, Inc. (NYSE:PANW)
Number of Hedge Fund Holders: 85
One of Cramer’s callers asked about his thoughts on Palantir Technologies Inc. (NYSE:PLTR). Jim Cramer said that Palantir Technologies Inc. (NYSE:PLTR) is not his “cup of tea” and “if you want cybersecurity, you go to Palo Alto Networks, Inc. (NYSE:PANW)”. As of April 18, Palantir Technologies Inc. (NYSE:PLTR) has gained 10.37% over the past 6 months and Palo Alto Networks, Inc. (NYSE:PANW) has gained 24.91% over the comparable time period.
This April, Oppenheimer analyst Ittai Kidron raised his price target on Palo Alto Networks, Inc. (NYSE:PANW) to $250 from $220 and maintained an Outperform rating on the shares.
At the end of Q4 2022, 85 hedge funds were bullish on Palo Alto Networks, Inc. (NYSE:PANW) and disclosed positions worth $3.2 billion in the company. Of those, Citadel Investment Group was the leading shareholder in the company and disclosed a position worth $363.7 million.
TimesSquare Capital Management made the following comment about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q4 2022 investor letter:
“Within Information Technology, Palo Alto Networks, Inc. (NASDAQ:PANW) offers network security solutions to enterprises, services providers, and government entities. The company delivered another strong quarter with revenues, billings, and earnings all above the consensus. Management recognizes a challenging macro environment that is altering customer behavior such as increased deal scrutiny and elongating sales cycles. Their shares pulled back by -15% during the quarter.”
Some of the best-in-class growth stocks Jim Cramer is talking about include Palo Alto Networks, Inc. (NYSE:PANW), Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:FB), and NVIDIA Corporation (NASDAQ:NVDA).
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Disclosure: None. 10 Growth Stocks Jim Cramer is Talking About is originally published on Insider Monkey.
