Jim Cramer’s latest stock picks are getting more cautious. Jim Cramer talked about Steve Jobs’ death and Apple’s future on his show, Mad Money, on Thursday. Cramer embraced Tim Cook as the new CEO of Apple and, while praising Steve Job’s legacy, explained that Jobs left behind an empire worth investing in. He urged viewers to concentrate on the value creation at Apple, Inc. (AAPL) and the fact that Apple is essentially an ecosystem onto itself. Apple has been a long-time favorite of Cramer’s and he is still very bullish about the stock over the long-term. His charitable trust also owns Apple.
Here are Jim Cramer’s latest stock picks on October 6th:
Chipotle Mexican Grill (CMG): Momentum stocks may experience some headwinds over the near term. That’s why Cramer is taking a cautious position on CMG now. He says that it is a good company and he thinks it may go up later this week. Cramer’s advice is to not buy, but rather sell into the momentum – and buy back later this week when the price goes down. CMG has a PE ratio of 49 and a market cap of $9 billion. Jim Simons’ Renaissance Technologies has more shares of CMG than does any other hedge fund manager we track (Jim Simons’ stock picks here).
Buffalo Wild Wings, Inc. (BWLD): Good growth and very little negative feedback combine to make BWLD a stock that Cramer is recommending. Besides, it’s NFL season after all and wings are the hot seller during the season. BWLD has a PE ratio of $24.33 and a market cap of $1.08 billion.
Cliffs Natural Resources, Inc. (CLF): Cramer is staying away from this group, saying that the “whole group has just been killed.” CLF is trading near the low end of its 52-week low at $58.89 a share. It has a PE ratio of 5.34 and a market cap of $8.60 billion.
Freeport-McMoRan (FCX): Cramer is so bullish about this stock that his charitable trust owns a position in the company. It is a copper and gold company. Cramer is pretty sure that the price has hit bottom. FCX has been climbing since Tuesday, October 4. It recently traded at $35.50. It has a market cap of $33.65 billion and a 6.05 PE Ratio.
American Capital Agency Corp (AGNC): Cramer is not crazy about AGNC. He agrees that its stock price has seemed resilient and it has been able to raise capital. Cramer even said that it has “distinguished itself this period as a winner.” Cramer is not bullish about it though, noting that he prefers more transparent management and operations than AGNC provides. AGNC has a $4.79 billion market cap and a PE of 4.11.
Annaly Capital Management (NLY): Cramer heavily prefers NLY over AGNC. He says that he understands its management and he likes that the company is very clear about what they do and how they do it. NLY has a PE ratio of 5.89 and a market cap of $15.35 billion.
PepsiCo, Inc. (PEP): Cramer said that some people are worried about PEP – its revenue, its earnings profile. He isn’t worried though. Cramer is focused on the reduction of raw material costs at PEP and its 3.5% yield. He is recommending buy and hold, as long as the price is right around $60 a share. PEP is currently trading at $60.96 a share. It has a market cap of $96.48 billion and a PE ratio of 15.51. Ric Dillon’s Diamond Hill Capital had more than $200 M in PEP at the end of June (see all of Diamond Hill Capital’s portfolio here).
KKR Financial Holdings , LLC (KFN): Cramer likes KFN for its solid yield and low cost per share. It recently traded at $7.54. KFN has a market cap of $1.34 billion and a PE ratio of 3.59.
General Motors (GM): Cramer says that GM is finally getting its stuff together and the share price is finally dropping low enough that there is a margin there for an investor to profit. Cramer was careful to note that the government owns a good chunk of the company but the way he sees it is “the stock is $3 up from here, and $1 down, which is a pretty good (risk/reward) ratio.” GM has a market cap of $35.50 billion and a PE ratio of 4.79. Jeffrey Tannenbaum’s Fir Tree has more shares of GM than any other fund we track (see all of Fir Tree’s positions here).
ITC Holdings Corp. (ITC): Cramer is recommending a pass on ITC. He just doesn’t feel like he knows enough about the company to make a decision about its worth as an investment. Cramer says he is putting it in the file to do more work on it. ITC has a market cap of $3.67 billion and a PE ratio of 23.08.
Navios Maritime Partners, LP (NMM): Cramer says that he has done the research on shipping companies and he doesn’t want anything to do with them. He thinks they are just too dicey. NMM has a market cap of $749.50 million and a PE ratio of 10.47.
Diamond Foods, Inc. (DMND): Cramer is much more confident about DMND. He thinks it is a great time to buy, especially considering its upcoming merger with Pringles. He also thinks the management is doing a great job. DMND has a market cap of $1.64 billion and a 33.59 PE ratio.
WebMD Health Corp (WBMD): Cramer just does not see a revenue profile he is comfortable with in WBMD. He says that they missed the quarter and, frankly, if you are going to invest your money, there are far better choices, like Bristol-Myers Squibb Co. (BMY) and Sanofi-Aventis (SNY). WBMD has a market cap of $1.73 billion and a PE ratio of 20.57.
Bristol-Myers Squibb Co. (BMY): Cramer is much more bullish about BMY, citing its terrific yield as the primary motivator. BMY has a PE ratio of 16.75 and a market cap of $55.13 billion. It also offers dividend yields of 4% and is trading near the top of its 52-week high. Samuel Isaly’s Orbimed Advisors has nearly 5 million shares of BMY in its portfolio (see all of Orbimed’s holdings here).
Sanofi-Aventis (SNY): Cramer is equally confident about SNY and notes that it could pose a better opportunity than some other stocks because it was just hit with the Euro and it is expected to only go up from there. SNY has an $88.91 billion market cap and a PE ratio of 15.22.
ZAGG Incorporated (ZAGG): Cramer is eyeing ZAGG as a possible derivatives play. Sure it involves a little speculation but it’s worth the risk. It has a fair amount of competition but many of its products are proprietary. It has a market cap of $343.33 million and a PE ratio of 22.33. ZAGG is Jim Cramer’s latest stock pick.
