In this article, we discuss the 5 stocks to buy in April according to Jim Cramer. If you want to read about some stocks that Jim Cramer is buying, go directly to 10 Stocks to Buy in April According to Jim Cramer.
5. Marriott International, Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders: 43
Marriott International, Inc. (NASDAQ:MAR) owns and runs hotels and resorts. Jim Cramer brought up the stock during the Discussed Stock segment of his show on April 11, noting that the stock was trading at 30 times earnings but predicted that it would grow at a high rate as travel activity resumed around the world. He also placed it among a group of stocks likely to offer investors growth at a reasonable price.
On February 16, Wells Fargo analyst Dori Kesten maintained an Overweight rating on Marriott International, Inc. (NASDAQ:MAR) stock and raised the price target to $199 from $185, noting that “exposure to business transient/group and higher-end properties” had positioned the firm for outsized growth in the coming months.
At the end of the fourth quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $2.872 billion in Marriott International, Inc. (NASDAQ:MAR), up from 39 in the previous quarter worth $2.878 billion.
In its Q4 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Marriott International, Inc. (NASDAQ:MAR) was one of them. Here is what the fund said:
“Marriott International, Inc. (NASDAQ:MAR) is the world’s largest hotel company followed closely by Hilton (HLT) and Intercontinental Hotels Group plc (IHG). The company owns a portfolio of brands from the low end (Courtyard, SpringHill Suites, Aloft), through the mid-tier (Marriott, Sheraton, Westin, Renaissance Hotels), to the luxury high end (JW Marriot, Ritz-Carlton, St. Regis). In total the company had 7,642 properties with over 1.4 million rooms as of the end of Q1 2021.
The majority (85%) of Marriott’s revenue comes from hotels in the United States, with the rest almost evenly split between Asia Pacific and Europe. Like it’s smaller peer, Hilton, the company today is almost exclusively a manager and franchisor of hotels, not a hotel owner. The company owns 66 hotels, manages 2,083 and franchises 5,493. Like all franchise-based businesses Marriott requires very little capital to grow as it utilizes the investment capital of its hotel-owners/partners to expand. Marriott International, Inc. (NASDAQ:MAR) currently faces a difficult operating environment due to the Covid-19 pandemic and uncertainty about the future of business travel. However, the company is an excellent operator with a somewhat leveraged capital structure (the company acquired Starwood Properties in late 2016) – if pent-up demand for travel materializes post-Covid, as we expect it will, the company will quickly go from losing money to raking in profits.”
4. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 44
Dollar General Corporation (NYSE: DG) operates as a discount retailer. The veteran investor talked about the stock during the Discussed Stock segment of his show on April 11, giving it a positive mention. He had previously underlined his bull thesis for the stock in a show in late March. He also agreed with the point of view that consumer spending patterns were strong and Dollar General was one of the firms thriving at the low-end of this retail boom as brands with pricing power did well in the high-end segment.
On March 16, BMO Capital analyst Kelly Bania maintained an Outperform rating on Dollar General Corporation (NYSE:DG) stock and raised the price target to $265 from $250, noting that the fourth quarter earnings of the firm were solid despite gross margin pressures.
At the end of the fourth quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Dollar General Corporation (NYSE:DG), compared to 46 in the preceding quarter worth $1.9 billion.
In its Q3 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Dollar General Corporation (NYSE:DG) was one of them. Here is what the fund said:
“Executive Summary
At LRT Capital Management we are continuously searching the market for great investment opportunities. Our favorite finds are companies with moats and growth opportunities that justify a higher price than what the stock is trading for. One of our holdings (approximately 1.5% of our long exposure) is Dollar General Corporation (NYSE:DG), so today, we wanted to tell you a bit about this great company.
Company Overview
Dollar General Corporation (NYSE:DG) is a discount retailer with the largest brick-and-mortar presence in the United States by store count. The company’s largest concentration of stores can be found in the southern, southwestern, midwestern, and eastern parts of the United States.10 Dollar General Corporation (NYSE:DG) was founded in 1939 by J.L. Turner, who originally named the company “J.L. Turner and Son, Wholesale”. As the name suggests, the company began its life as a wholesaler, but quickly turned to a retailer of general store goods. By the early 1950s, the company had annual sales of $2 million per year,12 which is the equivalent of $22.95 million in 2021 dollars when adjusted for inflation.” (Click here to see full text)
3. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 68
NIKE, Inc. (NYSE:NKE) markets athletic footwear and apparel. The former hedge fund manager gave the stock a positive mention during the Discussed Stock segment of his show on April 11, taking the views of a senior executive of JPMorgan on the stock who believed the stock was thriving as it had pricing power in a period of high consumer spending. In late March, Cramer had discussed what set the stock apart from competitors.
On March 22, Truist analyst Beth Reed maintained a Buy rating on NIKE, Inc. (NYSE:NKE) stock and raised the price target to $176 from $164, noting that the fundamentals of the firm remained unchanged and the alleviation of concerns around the supply chain and China would serve to boost the shares in the coming months.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in NIKE, Inc. (NYSE:NKE) with 8.7 million shares worth more than $1.4 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NIKE, Inc. (NYSE:NKE) was one of them. Here is what the fund said:
“NIKE, Inc. (NYSE:NKE) is another play on e-commerce as well as the anticipated growth in consumer spending as we learn to live with COVID-19. After selling out of the stock in 2016 due to competitive concerns, we were motivated to repurchase shares because of optimism around a new management team’s focus on accelerating Nike’s shift toward e-commerce and direct-to-consumer (DTC) distribution. Near-term supply chain issues in Vietnam and retail weakness in China that we see as ephemeral provided a good buying opportunity. We do not believe the market is giving proper credit to Nike’s potential to deliver attractive, high-single-digit revenue growth while delivering operating margin expansion as more merchandise is sold direct. NIKE, Inc. (NYSE:NKE) is also still underindexed to the women’s category, which we see as a significant ongoing catalyst.”
2. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 82
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel firm. During the Discussed Stock segment of his show on April 11, Cramer identified six travel and leisure stocks expected to benefit from the “great reopening, even if the Fed really hits the brakes on the economy.” Expedia was among these stocks that Cramer noted would give investors growth at a reasonable price.
On April 7, Argus analyst John Staszak maintained a Buy rating on Expedia Group, Inc. (NASDAQ: EXPE) stock with a price target of $220, backing the firm to post above-peer-earnings growth this year as bookings increased.
At the end of the fourth quarter of 2021, 82 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Expedia Group, Inc. (NASDAQ:EXPE), up from 71 in the previous quarter worth $6.4 billion.
In its Q4 2021 investor letter, Heartland Advisors, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:
“The run-up in equity prices over the past year and a half has narrowed the pool of attractively valued businesses. Economically sensitive areas of the market, in particular, have seen valuations stretched—but the impact of investor exuberance is evident in share prices of companies throughout the broader market. In our view, the elevated valuations commanded by many stocks have heightened risks and dampened upside potential.
In response to this backdrop, we continue to focus on finding and owning companies that are poised to succeed against a variety of backdrops or those that are priced at significant discounts to peers regardless of the sector or industry. Recent addition Expedia Group, Inc. (NASDAQ:EXPE) is an example of the type of business we’ve found attractive.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 111
The Walt Disney Company (NYSE:DIS) is a media and entertainment firm. The journalist investor placed the stock among a basket of travel and leisure firms that were expected to give investors growth at a reasonable price in the coming months as the economy reopened. Cramer underlined that these stocks would benefit regardless of the interest rate hike by the Feds.
On April 4, Loop Capital analyst Alan Gould kept a Buy rating on The Walt Disney Company (NYSE:DIS) stock with a price target of $165, appreciating the performance of the parks business of the firm that had led to an increase in the estimates for operating income.
At the end of the fourth quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in The Walt Disney Company (NYSE:DIS), up from 101 the preceding quarter worth $9.4 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe The Walt Disney Company (NYSE:DIS) is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”
You can also take a peek at 10 Micro-Cap Stocks to Buy According to Cathie Wood and Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners.
