In this article, we discuss the 10 stocks to buy in April according to Jim Cramer. If you want to read about some stocks that Jim Cramer is buying, go directly to 5 Stocks to Buy in April According to Jim Cramer.
The stock market has reacted sharply to the latest consumer price numbers released by the United States Department of Labor. Per the latest data, the Consumer Price Index, which is widely recognized as the benchmark inflation index in the US, rose to around 8.5% in March, the highest it has been since 1981. In response, the NASDAQ Composite declined by around 0.30%, the Dow Jones Industrial Average dropped by 0.26%, and the S&P 500, the benchmark market index, also fell by almost 0.34%.
In this uncertain environment, investors have been looking towards the insight offered by market experts like Jim Cramer to balance their portfolios. Cramer is a former hedge fund manager, Goldman Sachs employee, and a full-time journalist investor who hosts the Mad Money show on news platform CNBC. Over the years, Cramer has cultivated an ardent following through a successful career in broadcast journalism during which he has become perhaps the most famous finance personality on television.
Sharing his views on the present market situation during his latest show, Cramer has advised investors not to rely on “optimism” as a market strategy but to be prepared with cash in hand for when the market recovers. According to Cramer, investors who had a balanced portfolio with a lot of cash on the side could do very well at the market, given that they were “cautious, especially in certain key sectors”. Cramer noted that the markets would recover but also cautioned against spreading “false positivity”.
Cramer identified three key areas that investors should monitor to look for signs of an economic recovery. These included the Russian invasion of Ukraine, COVID-19 shutdowns in China, and the semiconductor chip shortage. He added that all investors had now was some “hope” and that was enough of a game plan. Some of the top stocks to buy in April according to Jim Cramer include The Walt Disney Company (NYSE:DIS), NIKE, Inc. (NYSE:NKE), and Expedia Group, Inc. (NASDAQ:EXPE).
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC.
Stocks to Buy in April According to Jim Cramer
10. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 25
Sysco Corporation (NYSE:SYY) distributes food and related products. During the Discussed Stock segment of his show on April 11, Cramer was bullish on the stock, identifying it as one of the firms that would give investors growth at a reasonable price, or GARP, from among the travel and leisure sector. He also underlined that Sysco Corporation (NYSE:SYY) was trading at 28 times earnings.
On April 8, Piper Sandler analyst Nicole Miller Regan maintained an Overweight rating on Sysco Corporation (NYSE:SYY) stock and raised the price target to $90 from $83, identifying “the potential for continued share gains and customer wallet penetration within the higher margin independent restaurant segment” as catalysts for Sysco Corporation (NYSE:SYY).
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Trian Partners is a leading shareholder in Sysco Corporation (NYSE:SYY) with 12.8 million shares worth more than $1 billion.
Just like The Walt Disney Company (NYSE:DIS), NIKE, Inc. (NYSE:NKE), and Expedia Group, Inc. (NASDAQ:EXPE), Sysco Corporation (NYSE:SYY) is one of the stocks that elite investors are monitoring.
9. Darden Restaurants, Inc. (NYSE:DRI)
Number of Hedge Fund Holders: 30
Darden Restaurants, Inc. (NYSE:DRI) owns and runs full-service restaurants. The journalist investor brought up the stock during the Discussed Stock segment of his show on April 11, placing it among a basket of travel and leisure stocks expected to benefit from the post-pandemic reopening. He also noted that Darden Restaurants, Inc. (NYSE:DRI) had a 3.5% dividend yield.
On April 12, Citi analyst Jon Tower initiated coverage of Darden Restaurants, Inc. (NYSE:DRI) stock with a Buy rating and a price target of $162, noting that the firm had “some of the best” buffers to protect profits and stoke traffic.
At the end of the fourth quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $401 million in Darden Restaurants, Inc. (NYSE:DRI), up from 25 in the previous quarter worth $337 million.
8. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 34
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming firm. The former hedge fund manager gave the stock a positive mention during the Lightning Round segment of his show on April 11. When asked about his views on the stock, Cramer noted that the firm was in a “pure battle to try to get market share and right now” and although the battle was not over yet, he expected the company to win.
On February 22, investment advisory Roth Capital upgraded DraftKings Inc. (NASDAQ:DKNG) stock to Neutral from Sell but lowered the price target to $19 from $23. Analyst Edward Engel issued the ratings update.
At the end of the fourth quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $1.30 billion in DraftKings Inc. (NASDAQ:DKNG), up from 28 the preceding quarter worth $1.32 billion.
In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and DraftKings Inc. (NASDAQ:DKNG) was one of them. Here is what the fund said:
“Shares of DraftKings Inc. (NASDAQ:DKNG) fell in the quarter, as stocks of online gaming companies were under pressure. Sports betting and i-gaming are rolling out with great fanfare and success across the country; however, investors seem concerned about competition and margins. Most participants are spending heavily on marketing and promotions, which is cutting into margins. We see this as worthy investment in customer acquisition at a moment in time when revenues are just building. We continue to believe that online sports betting and gaming will be enormous industries, that DraftKings Inc. (NASDAQ:DKNG) will be a leading player. We think the business will have high margins as it matures. We believe we are underwriting the business conservatively and see much upside in the long term.”
7. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 37
The Hershey Company (NYSE:HSY) makes and sells confectionery products. The finance broadcaster talked about the stock during the Featured Stock segment of his show on April 11, advising investors to pick up the shares in the present economic environment. Cramer stressed that The Hershey Company (NYSE:HSY) was the “the most consistent growth stock in a group where safety’s first” and he would buy the shares if the stock gets hit and the next time there is an inflation scare.
On March 30, UBS analyst Cody Ross initiated coverage of The Hershey Company (NYSE:HSY) stock with a Neutral rating and a price target of $226, backing the firms with “pricing power” to do well as inflation moves higher. Other advisors like Argus and RBC Capital are bullish on The Hershey Company (NYSE:HSY) as well.
At the end of the fourth quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in The Hershey Company (NYSE:HSY), up from 33 in the previous quarter worth $1.2 billion.
6. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 39
Altria Group, Inc. (NYSE:MO) makes and sells tobacco products. Jim Cramer gave the stock a positive mention during the Lightning Round segment of his show on April 11. Cramer has previously hailed the non-tobacco moves of the firm and brought them up again during the show, stressing that tobacco was not something he was “fond of”. However, he clarified that if you did not care about this, that it was “fine” to own the shares.
On April 7, Cowen analyst Vivien Azer maintained a Market Perform rating on Altria Group, Inc. (NYSE:MO) stock and raised the price target to $53 from $51, noting that the Philip Morris merger was once again on the table amid European tensions and earnings risk for the latter.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Altria Group, Inc. (NYSE:MO) with 9 million shares worth more than $434 million.
Along with The Walt Disney Company (NYSE:DIS), NIKE, Inc. (NYSE:NKE), and Expedia Group, Inc. (NASDAQ:EXPE), Altria Group, Inc. (NYSE:MO) is one of the stocks that institutional investors have on their radar.
In its Q2 2021 investor letter, Broyhill Asset Management, an asset management firm, highlighted a few stocks and Altria Group, Inc. (NYSE:MO) was one of them. Here is what the fund said:
“Altria Group, Inc. (NYSE:MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
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Disclosure. None. 10 Stocks to Buy in April According to Jim Cramer is originally published on Insider Monkey.
