5 Stocks Jim Cramer Thinks Can Weather a Debt Default

In this article, we will be taking a look at 5 stocks Cramer thinks can weather a debt default. To explore similar stocks, you can go see 10 Stocks Jim Cramer Thinks Can Weather a Debt Default.

5. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 75

Considering the fact that The Procter & Gamble Company (NYSE:PG) “held very well in the decline of 2011,” Cramer believes the stock can manage to hold up just as well in today’s economic crisis.

On April 26, Lauren Lieberman at Barclays held an Overweight rating on The Procter & Gamble Company (NYSE:PG) shares. The analyst also raised her price target on the stock from $160 to $167.

There were 75 prominent hedge funds long The Procter & Gamble Company (NYSE:PG) in the first quarter. Their total stake value was $4.7 billion.

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

On May 25, Morgan Stanley analysts raised the price target on NVIDIA Corporation (NASDAQ:NVDA) shares from $304 to $450. The firm also kept an Overweight rating on the stock.

NVIDIA Corporation (NASDAQ:NVDA) was found among the 13F holdings of 132 hedge funds in the first quarter, with a total stake value of $12.3 billion.

NVIDIA Corporation (NASDAQ:NVDA) has a vital role to play in the rise of artificial intelligence. According to Cramer, the company can do well because people need its “cards to run such complicated software.” This reliance on the company’s technology can spell great resilience and profits in the near future.

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 204

According to Cramer, Alphabet Inc. (NASDAQ:GOOGL) is one of the “big AI names to keep an eye on” because it is “integrating AI” in its “commercial products.” It can also act as a “consultant” to help people “mine big data” for their “own advantage.”

About 204 elite hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOGL) at the end of the first quarter, with a total stake value of $17.7 billion.

Justin Post, an analyst at BofA, holds a Buy rating and a $128 price target on Alphabet Inc. (NASDAQ:GOOGL) shares as of May 24.

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 220

Meta Platforms, Inc. (NASDAQ:META) was spotted among the portfolios of 220 hedge funds in the first quarter. Their total stake value in the company was $25.1 billion.

Thomas Champion at Piper Sandler reiterated an Overweight rating and a $270 price target on Meta Platforms, Inc. (NASDAQ:META) on May 23.

Like the two companies above, Meta Platforms, Inc. (NASDAQ:META) is an AI name to add to your portfolio, according to Cramer. He states that the company has been “using AI to get around Apple Inc.’s (NASDAQ:AAPL) privacy restrictions” to “deliver targeted ads” to its users, something “advertisers love.”

Artisan Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its first-quarter 2023 investor letter:

“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

An Outperform rating has been reiterated on Microsoft Corporation (NASDAQ:MSFT) by Oppenheimer analysts, who have also placed a $330 price target on the stock as of May 25.

Cramer says Microsoft Corporation (NASDAQ:MSFT) has also been “integrating AI” into its commercial products. The company can reap the benefits of the AI frenzy because of its active involvement in this space.

Our hedge fund data for the first quarter shows 289 funds long Microsoft Corporation (NASDAQ:MSFT), with a total stake value of $57.9 billion.

See also 10 Jim Cramer Stocks This Month and Jim Cramer’s Top Stock Picks for 2023.