In this article, we discuss the 5 stocks Jim Cramer is recommending. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks Jim Cramer Is Recommending.
5. Ford Motor Company (NYSE: F)
Number of Hedge Fund Holders: 49
Ford Motor Company (NYSE: F) is ranked fifth on our list of 10 stocks Jim Cramer is recommending. The company is based in Michigan and makes and sells automotives. Last week, Cramer identified the stock as one of the cheapest ones on the market considering the high valuations of some other big firms, noting that the stock was trading at 8.5 times the earnings. He said that the firm had not created value in the past few years but that was changing with a fleet of new EVs in the pipeline and an improving balance sheet. Here is what he said:
“It has a full line of electric vehicles on the way, a rapidly improving balance sheet, and a commitment to stop building cars in countries where it has a long history of losing money. When I think of the new Ford, I don’t think of losses, I think of sold out, as in everything they make seems to be sold out.”
On July 16, investment advisory Bank of America kept a Buy rating on Ford Motor Company (NYSE: F) stock and raised the price target to $18 from $17, noting that the demand for vehicles was increasing in the post-pandemic economy and the firm would benefit.
At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Ford Motor Company (NYSE: F), up from 41 in the preceding quarter worth $1.6 billion.
In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE: F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”
4. D.R. Horton, Inc. (NYSE: DHI)
Number of Hedge Fund Holders: 50
D.R. Horton, Inc. (NYSE: DHI) is a Texas-based home-building company. It is placed fourth on our list of 10 stocks Jim Cramer is recommending. Last week, the firm was among a bunch of stocks that Cramer said were trading at between six and nine times their earnings. He said the stock was cheap and the share price did not reflect the rise in demand for housing created by the coronavirus crisis as well as the growth of population. The company has a market cap of $33 billion and posted $20 billion in revenue last year. Here is what he said:
“These stocks are all pricing in a future with much higher mortgage rates and no customers, yet they don’t reflect the relentless demand for new homes created by both COVID and plain-old population growth.”
On July 26, investment advisory Wedbush upgraded D.R. Horton, Inc. (NYSE: DHI) stock to Outperform from Neutral and raised the price target up to $125 from $94, noting that the land development and community growth efforts of the firm would soon catch up with demand.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Egerton Capital Limited is a leading shareholder in D.R. Horton, Inc. (NYSE: DHI) with 10.2 million shares worth more than $914 million.
3. Walmart Inc. (NYSE: WMT)
Number of Hedge Fund Holders: 58
Walmart Inc. (NYSE: WMT) is an Arkansas-based firm that owns and operates one of the largest retail-store chains in the world. It is ranked third on our list of 10 stocks Jim Cramer is recommending. In the first week of August, Cramer listed the firm as one of the undervalued stocks on the market and termed the stock anything but average. He added that the customer base of the firm was flush with cash from the pandemic, the stimulus, and higher wages which would benefit the firm in the coming months. Here is what he said:
“Walmart’s customer base is flush with cash from pandemic stimulus programs and higher wages due to the tight labor market.”
On August 10, investment advisory Bank of America reiterated a Buy rating on Walmart Inc. (NYSE: WMT) stock with a price target of $185, underlining that investors should buy the stock on the back of strong growth catalysts for the firm in the second half of 2021.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 12.2 million shares worth more than $1.6 billion.
2. Lyft, Inc. (NASDAQ: LYFT)
Number of Hedge Fund Holders: 60
Lyft, Inc. (NASDAQ: LYFT) is placed second on our list of 10 stocks Jim Cramer is recommending. The company owns and operates a marketplace for ridesharing. It is headquartered in California. In response to a question about the company on a lightning round of his show earlier this week, Cramer said that he preferred Lyft over rival Uber because of the better second quarter performance from the company. However, he also said that this was a speculative segment for investing. Here is what he said:
“I actually think that Lyft had a better quarter than Uber, so I would go with Lyft, but that is a very speculative segment, just so you know. Speculative segment.”
On August 5, investment advisory Citi maintained a Buy rating on Lyft, Inc. (NASDAQ: LYFT) stock and raised the price target to $88 from $80, noting that the firm had delivered a strong second quarter and earnings power had significantly improved.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Alkeon Capital Management is a leading shareholder in Lyft, Inc. (NASDAQ: LYFT) with 5 million shares worth more than $321 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Lyft, Inc. (NASDAQ: LYFT) was one of them. Here is what the fund said:
“New purchase Lyft, the No. 2 U.S. rideshare operator, is exclusively focused on the secular growth opportunity in the rideshare market and stands to be a direct economic reopening beneficiary. The company made tremendous progress on margins during 2020 and improved its ability to meet long-term targets. Lyft is also leveraged to the eventual transition to autonomous driving.”
1. Global Payments Inc. (NYSE: GPN)
Number of Hedge Fund Holders: 62
Global Payments Inc. (NYSE: GPN) is ranked first on our list of 10 stocks Jim Cramer is recommending. The firm is based in Georgia and markets payments technology and software solutions. Cramer talked about the stock in the lightning round of his show earlier this week, saying in response to a viewer question that he thought the stock was trading at a discounted price and that the management of the firm was very smart, noting that the CEO of the firm had impressed him and he would pick the stock up. Here is what he said:
“I think it’s a good discount to buy the stock. I think these guys are very, very smart guys, and I saw a giant insider buy by the CEO, whom we’ve had on the show and is very smart. I think this is a good level. I would pick some up.”
On August 5, investment advisory BMO Capital upgraded Global Payments Inc. (NYSE: GPN) stock to Outperform from Market Perform with a price target of $206, noting that the shares of the firm overreacted to conservative guidance numbers recently.
Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Lone Pine Capital is a leading shareholder in Global Payments Inc. (NYSE: GPN) with 4.2 million shares worth more than $855 million.
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.
