In this article, we will take a look at the 13 best Jim Cramer stocks to buy now. To see more such companies, go directly to 5 Best Jim Cramer Stocks To Buy Now.
Jim Cramer recently talked about the latest market declines and said the buyers are going through a “hangover,” buying the “worst of the worst stocks.” Cramer summarized the highlights of key events in the market of this year in the program, starting from the banking crisis that raised fears earlier in the year of a major crisis. Cramer said that investors dumped banks and any companies that need borrowing and gravitated towards major tech stocks, especially the Magnificent Seven group of stocks which include major players like Apple, Alphabet, Amazon, Meta Platforms and Tesla. Cramer said that for most part of the year the market has been a “sober” evaluator of “merchandize.”
Cramer has been active throughout 2023, recommending and shunning stocks along the way. We kept reviewing his top stock picks and also gauged the performance of his recommendations. In this article we take a look at the top stock picks of Jim Cramer which are the most popular among the elite hedge funds tracked by Insider Monkey.
Methodology
For this article we first made a list of all the stocks Jim Cramer has been bullish on this year and then picked 13 of these stocks with the highest number of hedge fund investors. We gauged hedge fund sentiment using Insider Monkey’s database of 910 hedge funds. Some top names in the list include Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms, Inc. (NASDAQ:META).
Best Jim Cramer Stocks To Buy Now
13. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 89
The Walt Disney Company (NYSE:DIS) is one of the best Jim Cramer stocks to buy now which is also popular among hedge funds. In November last year, Jim Cramer was bullish on The Walt Disney Company (NYSE:DIS) and said Bob Iger’s return would turn things around at the company. Last month Jim Cramer praised The Walt Disney Company (NYSE:DIS)’s latest quarterly report. Cramer said that Disney “stole the show” this quarter. Cramer also said The Walt Disney Company (NYSE:DIS) will deliver on its cost-cutting promises or at least “die trying.”
But recently, Jim Cramer looks disappointed with The Walt Disney Company (NYSE:DIS), based on his recent comments. While talking about activist fund manager Nelson Peltz’s latest proxy fight against the company, Cramer said that like Boeing, The Walt Disney Company (NYSE:DIS) was a “mistake” at his end.
Insider Monkey’s database of 910 hedge funds shows that 89 funds had stakes in The Walt Disney Company (NYSE:DIS) as of the end of the September quarter.
12. ServiceNow Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 99
Software infrastructure and services company ServiceNow Inc. (NYSE:NOW) ranks 12th in our list of the best Jim Cramer stocks to buy now. Recently, ServiceNow Inc. (NYSE:NOW) CEO Bill McDermott gave a detailed interview to Jim Cramer on CNBC.
In October, Jim Cramer named a list of stocks that he believes investors should keep an eye on when the markets are down amid a broader downturn. Cramer believes these stocks rebound quickly and any market sell-off is a buying opportunity on these stocks. ServiceNow was among this list of stocks. Cramer said ServiceNow Inc. (NYSE:NOW) is the “de facto way to get in on the cloud.”
Insider Monkey’s database of 910 hedge funds shows that 99 hedge funds reported owning stakes in ServiceNow Inc. (NYSE:NOW). The biggest stakeholder of the fund was Rajiv Jain’s GQG Partners which owns an $831 million stake in ServiceNow Inc. (NYSE:NOW).
Here is what Baron Technology Fund has to say about ServiceNow, Inc. (NYSE:NOW) in its Q3 2023 investor letter:
“Despite near-term macro uncertainty, it’s important to frame that we find ourselves in the early innings of both the AI investment cycle and overall cloud penetration. We estimate cloud penetration to be between 25% and 30% versus the likely 70% to 75% level over time, if not even higher. AI deployments are literally just getting off the ground.Infrastructure and development platforms for securely storing and curating data, training and fine-tuning large-language and other AI models, and developing and delivering AI applications. Beneficiaries include Microsoft Azure and Amazon Web Services. Integration of generative AI capabilities, such as AI agents and copilots, directly into existing product offerings and customer workflows. Software vendors capitalizing on this opportunity includes ServiceNow, Inc.“
11. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 102
A couple of weeks ago Jim Cramer talked about the events in the weight loss drug industry and praised Eli Lilly and Company (NYSE:LLY)’s drug and compared it to Novo Nordisk’s weight loss drug. Cramer said that Eli Lilly and Company (NYSE:LLY) is his trust’s stock pick and it has been one of the biggest winners.
Last month, a study published on medRxiv found that Eli Lilly and Company (NYSE:LLY)’s anti-obesity medication tirzepatide is three times more likely to cause a 15% weight reduction compared to Novo Novo Nordisk A/S (NYSE:NVO)’s rival therapy, semaglutide.
Hedge funds also like Eli Lilly and Company (NYSE:LLY) shares. Of the 910 hedge funds tracked by Insider Monkey, 102 hedge funds had stakes in the company. The biggest stakeholder of Eli Lilly and Company (NYSE:LLY) was Ken Fisher’s Fisher Asset Management which owns a $2.4 billion stake in the company.
10. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 102
In July this year, Jim Cramer had said that the decline in Netflix, Inc. (NASDAQ:NFLX) shares was temporary and the stock, along with other companies such as Tesla Inc. (NASDAQ:TSLA), has the capability to rebound. Cramer said he likes Netflix, Inc. (NASDAQ:NFLX)’s ability to make money via its ad-tier plan. In February, Cramer recommended investors to “stick” with Netflix, Inc. (NASDAQ:NFLX). In April, Cramer said Netflix, Inc. (NASDAQ:NFLX) was a bargain. Cramer’s confidence in Netflix, Inc. (NASDAQ:NFLX) remains strong despite growth concerns and rising competition in the streaming industry.
Insider Monkey’s database of 910 hedge funds shows that 102 funds had stakes in Netflix, Inc. (NASDAQ:NFLX). The biggest stakeholder of Netflix, Inc. (NASDAQ:NFLX) as of the end of the September quarter was Ken Fisher’s Fisher Asset Management which owns a $1.5 billion stake in the company.
RiverPark Advisors made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2023 investor letter:
“Netflix, Inc. (NASDAQ:NFLX): NFLX was a top detractor in the quarter on weaker than expected reported and guided revenue, despite 2Q subscriber growth that was well above expectations (+5.9 million versus estimates of +2.1 million). The company’s subscriber growth re-accelerated following the company’s crack down on password sharing, and the rollout of the advertising supported subscriber offering known as the Ad Tier, but the average revenue per user came in below expectations and is expected to remain muted in the near term. NFLX reiterated expectations for full year 2023 operating margins of 18-20%, and guided free cash flow to at least $5 billion, up from prior guidance of $3.5 billion. Despite the positive momentum in the company’s business, market participants took comments from management at a recent conference to mean revenue growth may be slower in the coming years than expected. This was not our interpretation of these comments.
In fact, the recent re-acceleration of subscriber growth, plus price increases on premium memberships and a stabilization of content investments, should position the company for low double digit annual revenue growth over the next few years while driving improved operating margin to more than 25% (revenue grew 3% for 2Q23 and operating margin was 22.3%, up from 13% in 2019). We also believe that the stabilization of content spend should allow the company to continue to scale its FCF.”
9. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 103
In September, Danaher Corporation (NYSE:DHR) announced the separation of its Environmental & Applied Solutions segment, through the spin-off of Veralto Corporation. Jim Cramer likes this move and he’s bullish on Danaher Corporation (NYSE:DHR). Cramer in October said that separation of Danaher Corporation (NYSE:DHR) and Veralto would create value for shareholders. Cramer called the separation a “true reset” during a program on CNBC.
8. UnitedHealth Group Inc. (NYSE:UNH)
Number of Hedge Fund Holders: 104
Jim Cramer in October sounded excited about UnitedHealth Group Inc. (NYSE:UNH)’s Q3 results, as he said the company is “back” and that UnitedHealth “is a key component in the health-care universe, and … there will be a plethora of stocks that will trade well off this.”
UnitedHealth Group Inc. (NYSE:UNH) is also one of Jim Cramer’s best of breed stocks. He recommended UnitedHealth Group Inc. (NYSE:UNH) for 2023 back in December 2022. UnitedHealth Group Inc. (NYSE:UNH) shares have gained about 5.5% year to date through December 3.
Mairs & Power Growth Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2023 investor letter:
“Healthcare is another area that can benefit greatly from AI. In particular, we believe UnitedHealth Group Incorporated (NYSE:UNH) will be able to deliver care more efficiently while improving patient outcomes by utilizing AI. We added to both positions in the quarter.”
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 110
Jim Cramer has been paying attention to Advanced Micro Devices, Inc. (NASDAQ:AMD) this year. Last month Jim Cramer wrote on Twitter:
“I said watch AMD and i reiterate that’s THE tell today.”
Earlier this year Jim Cramer said in a program that Advanced Micro Devices, Inc. (NASDAQ:AMD) has some “very, very” strong chips and the stock has potential amid PC market bottoming out. But he said Advanced Micro Devices, Inc. (NASDAQ:AMD) didn’t turn out to be as “fabulous” as the market had earlier thought.
According to a January 2023 article by CNBC, Cramer’s Charitable Trust owns AMD shares.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Jim Cramer has time and again said that Apple Inc. (NASDAQ:AAPL) is a stock to buy and hold, not to trade. Cramer recently said that he believes Apple Inc. (NASDAQ:AAPL) is a long-term investment while many analysts look at the short-term picture while analyzing Apple’s business.
“They look at how Apple Inc. (NASDAQ:AAPL) seems static with just incremental growth. I look at it as an ecosystem of two billion active devices, all of which are candidates to upgrade to the latest and greatest models for all of the company’s offerings,” Cramer said.
Hedge funds are big fans of Apple Inc. (NASDAQ:AAPL). A total of 134 hedge funds tracked by Insider Monkey had stakes in Apple Inc. (NASDAQ:AAPL) as of the end of the end of the September quarter.
Like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms, Inc. (NASDAQ:META), Apple is one of the most popular stocks among hedge funds.
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Disclosure: None. 13 Best Jim Cramer Stocks To Buy Now is originally published on Insider Monkey.
