In this article, we discuss the 5 best stocks to watch in December according to Jim Cramer. If you want to read our detailed analysis of these stocks, go directly to 10 Best Jim Cramer Stocks to Watch in December.
5. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 44
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a biotech company that is based in New York, is one of the stocks Jim Cramer is watching in December. The company develops RNA-based therapies for chronic diseases. During his Mad Money episode aired on December 10, Cramer stated that Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a profitable biotech company that trades at a very low price.
Meanwhile, the biotech company recently reported positive Phase 3 clinical data on its lead drug Dupixent. The study found that Regeneron Pharmaceuticals, Inc.’s (NASDAQ:REGN) Dupixent significantly improved skin clearance and reduced overall disease severity and itch in infants and children with severe atopic dermatitis aged 6 months to 5 years. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stock has risen 37% year to date.
On December 8, Wells Fargo analyst Mohit Bansal initiated an Overweight rating on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) with a price target of $750 per share. Overall, 44 hedge funds tracked by Insider Monkey were long Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) at the end of the third quarter of 2021.
Here is what Oakmark Funds has to say about Regeneron Pharmaceuticals, Inc. in its Q2 2021 investor letter:
“We restored Regeneron Pharmaceuticals from a rather trivial to a more normal position size. You may recall Regeneron performed well for the Fund during the Covid-19 crisis, so we significantly reduced our position as its price-value gap narrowed. During the past several quarters, however, the market has experienced the now infamous “reopening trade,” in which companies that performed well during the pandemic trailed as the economy reopened. Regeneron suffered a similar fate and its shares have lagged the S&P 500 by roughly 4000 basis points, despite the company’s strong fundamentals and robust pipeline of new products. The underperformance widened Regeneron’s price-value gap, so we restored it to a more normal position size.”
4. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders: 50
Centene Corporation (NYSE:CNC), the largest Medicaid-managed company in the US, is a healthcare company that provides government-sponsored healthcare plans. As of the end of September, the Missouri-based company has 26.5 million members in the US, UK, Central Europe, and Spain.
Centene Corporation (NYSE:CNC) was one of the stocks on Jim Cramer’s watchlist for December. The company recently released a revenue forecast for 2022 of $135.9 billion to $137.9 billion, which is higher than the $131.5 billion expected by Wall Street analysts. Shares of Centene Corporation (NYSE:CNC) popped 5.5% following the announcement of its Value Creation Plan which aims to enhance its portfolio and net assets.
Centene Corporation (NYSE:CNC) posted earnings for the third quarter on October 26, reporting earnings per share GAAP of $0.04, beating estimates by $0.04. The revenue over the period was $32.4 billion, topping estimates by $927 million.
As of the end of the September quarter, Connecticut-based hedge fund firm Viking Global is the biggest stakeholder of Centene Corporation (NYSE:CNC). The fund holds 9.8 million shares of the healthcare company worth $615 million.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 50
In his Mad Money segment on December 3, Jim Cramer described Broadcom Inc. (NASDAQ:AVGO) as “remarkably consistent in an inconsistent world.” The California-based chipmaker is one of the winners of the stay-at-home era that started during the pandemic. Shares of Broadcom Inc. (NASDAQ:AVGO) increased 40% in the past twelve months.
JPMorgan analyst Harlan Sur upped his price target on Broadcom Inc. (NASDAQ:AVGO) to $655 from $650 on December 6, while maintaining an Overweight rating on the stock. Further, 50 hedge funds tracked by Insider Monkey were long Broadcom Inc. (NASDAQ:AVGO) at the end of the third quarter of 2021, up from 47 in Q2 2021.
Broadcom Inc. (NASDAQ:AVGO) is one of the tech companies that pays out an annual dividend of $14.40 per share.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned Broadcom Inc. (NASDAQ:AVGO) and discussed its stance on the firm. Here is what the fund said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience, and consistency for the Strategy. We think these companies should comprise just under half of the portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
Broadcom has delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
2. RH (NYSE:RH)
Number of Hedge Fund Holders: 57
Cramer expressed optimism about RH’s (NYSE:RH) past performance, implying that every decline in RH stock has “been a reason to buy, not sell.” On December 6, Wedbush analyst Seth Basham maintained a Buy rating on the furniture stock with a price target of $600.
The California-based luxury furnishings retailer offers everything from textiles to lighting to children’s and teen furniture. RH (NYSE:RH) sells products through its galleries and e-commerce platforms.
RH (NYSE:RH) is one of the most popular Google searches in the previous four weeks, gaining traction among investors and potential customers. The furniture company saw an 18% increase in its search trend year over year.
With a stake worth $1.2 billion, Berkshire Hathaway is the biggest shareholder of the company as of the third quarter of 2021. Overall, 57 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in RH (NYSE:RH) at the end of September 2021, up from 54 in the preceding quarter.
Here is what Polen Capital has to say about RH (NYSE:RH) in its Q1 2021 investor letter:
“RH was also a top contributor during the quarter. RH is a leading luxury retailer in home furnishings, including high-end luxury furniture, home décor, lighting, textiles, etc. The company has experienced high demand for its products over the past year, despite many of its galleries and integrated restaurants being closed, at least temporarily, in 2020. We think the management team has continued to make thoughtful investments in the core business as well as other adjacencies to further meet customer needs. We believe RH has a long runway to further expand into other home furnishings categories, expand its footprint both domestically and internationally, and launch other luxury adjacent categories.”
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 62
One of the stocks Jim Cramer is watching this month is pharmaceutical giant Eli Lilly and Company (NYSE:LLY). The Indiana-based drug manufacturer is scheduled to have its annual meeting on December 15 where the company is to announce new data for its diabetes and Alzheimer’s drugs. Shares of Eli Lilly and Company (NYSE:LLY) increased 47% in the past twelve months.
The pharmaceutical company reported third-quarter earnings in late October that exceeded analyst expectations by $136.6 million, with total revenue of $6.77 billion.
Eli Lilly and Company (NYSE:LLY) was given an Equal Weight rating by Wells Fargo analyst Mohit Bansal on December 8. Bansal set a price target of $270 for the pharmaceutical stock and shared his bullishness on the company’s Alzheimer’s drug.
At the end of the September quarter, 62 hedge funds were reported having stakes in Eli Lilly and Company (NYSE:LLY) worth $4.29 billion, compared to 64 in the preceding quarter worth $2.99 billion.
You can also take a peek at the 15 Best Stocks to Buy for 2022 According to Analysts and 10 Long-Term Stocks to Buy According to Warren Buffett.
