In this article, we discuss the 5 Jim Cramer stocks to buy in Q1 2022. If you want to read our detailed analysis of these stocks, go directly to the 10 Jim Cramer Stocks to Buy in Q1 2022.
5. ViacomCBS Inc. (NASDAQ:VIAC)
Number of Hedge Fund Holders: 64
ViacomCBS Inc. (NASDAQ:VIAC) is a media and entertainment firm that has underperformed compared to peers in the marketplace over the past few months. However, Cramer seems bullish on ViacomCBS Inc. (NASDAQ:VIAC) stock as a new fiscal year gets underway. Cramer noted in show on January 12 that investors were no longer looking for growth stocks but for stocks that were value for money and were backed by solid earnings and dividend histories. He identified ViacomCBS Inc. (NASDAQ:VIAC) as one that fit the bill in this regard, noting that the streaming strategy of the firm, with Paramount+ and Pluto, was also praiseworthy.
Hedge funds also agree with Cramer on the near-term prospects of ViacomCBS Inc. (NASDAQ:VIAC). 64 hedge funds in the database of Insider Monkey were long ViacomCBS Inc. (NASDAQ:VIAC) at the end of third quarter of 2021 with stakes worth $1.2 billion in the firm.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 65
Advanced Micro Devices, Inc. (NASDAQ:AMD) has attracted a lot of hedge fund interest in the past few months as chip prices skyrocket due to supply chain issues and increased demand. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) with 19.6 million shares worth more than $2 billion.
Advanced Micro Devices, Inc. (NASDAQ:AMD) stock was recommended as a Buy by Cramer during the Discussed Stock segment of his Mad Money on CNBC show on January 11. The share price of Advanced Micro Devices, Inc. (NASDAQ:AMD) is up 50% in the past year and Cramer said the stock is one that “investors should own and not trade”.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:
“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
3. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 79
Amid inflation and the prospect of rising interest rates, it is no wonder that Cramer is especially bullish on the finance sector in general and companies like Citigroup Inc. (NYSE:C) in particular for the next few months. He discussed Citigroup Inc. (NYSE:C) stock in his show on January 7, talking about the expected market-beating fourth quarter earnings of the bank and underlined that the commentary of the CEO of the firm after earnings could push the stock higher.
There are similarly bullish calls on Citigroup Inc. (NYSE:C) in the hedge fund universe. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in Citigroup Inc. (NYSE:C) with 28 million shares worth more than $1.9 billion.
In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C) was one of them. Here is what the fund said:
“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
2. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 95
Adobe Inc. (NASDAQ:ADBE) is one of the biggest software firms in the world. It has generated a lot of hedge fund interest in the past few months despite a broad correction in growth equities owing to inflation concerns. Ken Fisher’s Fisher Asset Management is a leading shareholder in Adobe Inc. (NASDAQ:ADBE) with 6.4 million shares worth more than $3.7 billion.
Jim Cramer is long Adobe Inc. (NASDAQ:ADBE). During his show on January 10, he spoke about the decline in growth stocks as interest rates rose and noted that some growth stocks had become “too cheap to ignore”. He identified Adobe Inc. (NASDAQ:ADBE) as an example, noting “price matters” and Adobe Inc. (NASDAQ:ADBE) “at $700 a share is very different than Adobe at just $500 a share”.
Here is what Polen Capital has to say about Adobe Inc. (NASDAQ:ADBE) in its Q1 2021 investor letter:
“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) has steadily turned bears into bulls over the past few months as it posts small profits for the first time since going public. Altimeter Capital Management is a leading shareholder in Uber Technologies, Inc. (NYSE:UBER) with 24 million shares worth more than $1 billion.
Cramer is also bullish about the long-term potential of Uber Technologies, Inc. (NYSE:UBER). He said during his show on January 10 that although the stock was not a “slam dunk”, but the positives were outweighing the negatives. Cramer identified Uber Freight and the advances in autonomous driving as the positives for Uber Technologies, Inc. (NYSE:UBER).
RiverPark Advisors, LLC, in its Q4 2020 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund has to say in its letter:
“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third quarter results with Delivery Gross Bookings growing 135% year-over-year which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
You can also take a peek at Forget Tesla (TSLA): 10 Cheap EV Stocks to Buy Now and 15 Best Consumer Discretionary Stocks to Buy Now.
