In this article, we will take a look at the 5 Jim Cramer stocks this month. To see more such companies, go directly to 10 Jim Cramer Stocks This Month.
5. Activision Blizzard, Inc. (NASDAQ:ATVI)
Number of Hedge Fund Holders: 96
Jim Cramer is extremely bullish on gaming giant Activision Blizzard, Inc. (NASDAQ:ATVI), which has been in the news due to its planned merger with Microsoft. The merger is facing regulatory hurdles, though, and Cramer likes that. Cramer said that he “almost” hopes that Activision Blizzard, Inc. (NASDAQ:ATVI)’s merger with Microsoft fails as soon as possible so that “you’ll get a better buying opportunity.” Cramer thinks that Activision Blizzard, Inc. (NASDAQ:ATVI) doesn’t need the acquisition by Microsoft to keep performing well.
At the end of the third quarter of 2022, 96 hedge funds reported having stakes in Activision Blizzard, Inc. (NASDAQ:ATVI), according to Insider Monkey’s database of 920 hedge funds. The biggest stakeholder of Activision Blizzard, Inc. (NASDAQ:ATVI) during this period was Warren Buffett’s Berkshire Hathaway which owns a stake worth about $4.5 billion in the company.
4. Cintas Corporation (NASDAQ:CTAS)
Number of Hedge Fund Holders: 42
Ohio-based Cintas Corporation (NASDAQ:CTAS) make and sells a lot of important items and that’s why the company is poised to do well given the current environment where diversification of revenue streams is the key. Cintas Corporation (NASDAQ:CTAS) sells corporate apparel, mats, mops, cleaning and restroom supplies, first aid and safety products. Jim Cramer gave some very bullish comments about the company in his program on CNBC earlier this month. Cramer said:
“It’s one of the greatest small business companies in the world.”
Hedge funds seem to agree with Cramer, as Insider Monkey’s data shows that they piled into Cintas Corporation (NASDAQ:CTAS) last year. At the end of the third quarter of 2022, 42 hedge funds had stakes in Cintas Corporation (NASDAQ:CTAS), significantly up from 32 hedge funds in the previous quarter. The biggest stakeholder of Cintas Corporation (NASDAQ:CTAS) during this period was Ian Simm’s Impax Asset Management which owns a $386 million stake in the company.
TimesSquare Capital made the following comment about Cintas Corporation (NASDAQ:CTAS) in its Q3 2022 investor letter:
“Cintas Corporation (NASDAQ:CTAS), a supplier of corporate identity uniforms and facility services, gained 4%. Fiscal first quarter results featured beats to revenue and earnings estimates. The company is successfully winning new business and cross-selling into existing customers.”
3. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 115
Netflix, Inc. (NASDAQ:NFLX) is one of the Jim Cramer stocks to watch this month and for several months to come as the investor has recommended his fans to “stick with” the streaming giant’s shares. Jim Cramer said:
“You got the pain, you get the gain. Stick with it.”
Netflix, Inc. (NASDAQ:NFLX) has taken several steps to reinvigorate growth. Nielsen’s data shows that Netflix, Inc. (NASDAQ:NFLX) topped the list of most-streamed programs in 2022. Netflix, Inc. (NASDAQ:NFLX) is also moving to stop password sharing. Analysts believe in the long run this could increase subscriber growth. However, some surveys indicate people who were using someone else’s password for Netflix, Inc. (NASDAQ:NFLX) will not sign up for the service after the company’s latest move.
A total of 115 hedge funds tracked by Insider Monkey reported owning stakes in Netflix, Inc. (NASDAQ:NFLX) at the end of the third quarter of 2022, up from 95 funds in the previous quarter.
Alger Capital made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its Q4 2022 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) provides a subscription-based service for streaming movies and television episodes over the internet. In doing so, it is redefining how people consume entertainment in a rapidly digitizing world. Shares outperformed during the period as the company reported solid third quarter results, driven by net subscription additions that beat expectations. Management also raised fiscal fourth quarter guidance owing to strong customer acquisitions across all regions. Moreover, the company remains optimistic on new monetization efforts around ad pricing within their basic account tier.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 177
Meta Platforms, Inc. (NASDAQ:META) investors have finally something to cheer about as the company’s most recent quarterly results shows growth might be returning to Facebook platform. Jim Cramer earlier this month said in his program that Meta Platforms, Inc. (NASDAQ:META) is a case in point showing why it pays to stick with companies that are “incredibly well managed, or disciplined, or efficient.”
On a year-to-date basis Meta Platforms, Inc. (NASDAQ:META) stock has gained about 42% through February 10.
Some believe Meta Platforms, Inc. (NASDAQ:META)’s efforts to build its business around the metaverse technology has failed. However, Meta Platforms, Inc. (NASDAQ:META) can still profit from its long-term metaverse bets while focusing on its existing social media platforms. BlackRock recently said in a note that “investment opportunities are here and now” in the metaverse domain.
“At this juncture, it is much like the internet of the early 1990s or the smartphone of the early 2000s: We expect it is going to be big, and very likely change people’s daily lives,” BlackRock said.
Vulcan Value Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:
“During the quarter we sold Meta Platforms, Inc. (NASDAQ:META) after owning the business for over four years. The fundamentals of our investment case were based on the tremendous number of users that spent time on its various properties and the advertising dollars that flowed to the company as a result. We believed its competitive advantage was that the platform was, more or less, a monopoly on people’s time and attention. The rise of TikTok and other emerging platforms has given us pause on the company’s ability to maximize that advantage. From our perspective, the idea of “one platform to rule them all” may now be a thing of the past as social offerings have become more fragmented.
In addition, though our research has indicated that much of the initial damage done from Apple’s iOS 14.5 privacy changes has been repaired, we remain concerned with Apple’s influence over the digital advertising ecosystem. Apple is one of the largest gatekeepers to Meta’s mobile services, and it has become more difficult for us to gauge the pace of change emerging from Apple relating to privacy, as well as evaluating Apple’s ambitions in advertising…” (Click here to read the full text)
1. Etsy, Inc. (NASDAQ:ETSY)
Number of Hedge Fund Holders: 45
Earlier this month, Jim Cramer recommended young investors to buy Etsy, Inc. (NASDAQ:ETSY). Cramer said that Etsy, Inc. (NASDAQ:ETSY) could post long-term gains for investors who are willing to stomach some short-term risks. Cramer thinks Etsy, Inc. (NASDAQ:ETSY)’s underlying business is solid.
In January, Wolfe Research started covering the stock with a Peer Perform rating. The analyst thinks Etsy, Inc. (NASDAQ:ETSY) offers a “differentiated consumer value proposition” and an “attractive profitability profile.”
Etsy, Inc. (NASDAQ:ETSY) saw a sharp increase in hedge fund sentiment during the third quarter of 2022. A total of 45 hedge funds tracked by Insider Monkey reported owning shares in Etsy, Inc. (NASDAQ:ETSY) at the end of the September quarter, much more than 29 hedge funds in the previous quarter. The biggest stakeholder of Etsy, Inc. (NASDAQ:ETSY) was Natixis Global Asset Management’s Harris Associates which owns a $190 million stake in the company.
Here is what ClearBridge Investments Mid Cap Growth Strategy has to say about Etsy, Inc. (NASDAQ:ETSY) in its Q3 2022 investor letter:
“Stock selection in the consumer discretionary sector proved a tailwind to performance. Etsy (NASDAQ:ETSY), which operates a number of online marketplaces for craft and artisan goods, delivered second quarter results that demonstrated the company’s pricing power, cash flow generation, and margin upside remain intact. While Etsy is experiencing declines in gross merchandise sales, it is seeing better than expected take rates and improved margins. We believe the company is well-positioned to grow advertising spending on its marketplace, bring in new buyers and strengthen its e-commerce advantages.”
You can also take a peek at 10 Hot Tech Stocks To Buy Now and 10 Hot Healthcare Stocks To Buy Now.
