In this article, we discuss the 5 stocks that Jim Cramer and billionaire Ray Dalio are betting on. If you want to read about some more stocks that Cramer and Dalio are bullish on, go directly to Jim Cramer and Billionaire Ray Dalio Are Betting on These 10 Stocks.
5. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 67
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. On November 28, Walmart said it plans to donate $1 million to a United Way fund created following the mass shooting at one of the retailer’s locations in Virginia that left six dead. Regulatory filings show that Dalio owned more than 4 million shares in the company at the end of the third quarter of 2022 worth $522 million. Cramer has recently appreciated the strong earnings of the firm in light of inflation.
On November 17, Morgan Stanley analyst Simeon Gutman maintained an Overweight rating on Walmart Inc. (NYSE: WMT) stock and raised the price target to $164 from $150, highlighting the company’s beat & raise in the third quarter.
Among the hedge funds being tracked by Insider Monkey, Fort Lauderdale Florida-based investment firm GQG Partners is a leading shareholder in Walmart Inc. (NYSE:WMT) with 9.8 million shares worth more than $1.2 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including several entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
4. The Proctor and Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
The Proctor and Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide. On October 19, Procter & Gamble posted earnings for the first quarter of 2022, reporting earnings per share of $1.57, beating market estimates by $0.02. The revenue over the period was $20.61 billion, up 1.3% compared to the revenue over the same period last year and beating market estimates by $240 million. Securities filings show that Dalio owned more than 6.6 million shares in the company at the end of the third quarter of 2022 worth $835 million. Cramer recently said that consumer staples tend to do well during a recession as people will keep buying staples regardless of overall economic outlook. He has also highlighted the dividend history of the company, which goes back nearly six decades, as another reason to own the stock during an economic slowdown.
On November 22, Jefferies analyst Kevin Grundy maintained a Buy rating on The Procter & Gamble Company (NYSE:PG) stock and raised the price target to $164 from $149, noting that despite trade-down risks, the company’s key focus remains on supply, sustainability, digital acumen and human capital.
At the end of the third quarter of 2022, 71 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in The Proctor and Gamble Company (NYSE:PG), compared to 72 in the preceding quarter worth $6.1 billion.
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. On November 30, Johnson & Johnson said that it has developed digital solutions to reduce time spent in hospitals in Riyadh, Saudi Arabia. On November 24, Johnson & Johnson revealed that its esketamine nasal spray Spravato showed superior efficacy compared to quetiapine extended-release in adults with treatment-resistant major depressive disorder in a phase 3b trial. 13F filings show that Dalio owned more than 4.7 million shares in the company at the end of the third quarter of 2022 worth $769 million. Cramer has noted that the firm was one of the great American firms and that investors will not have time to buy the shares at such great prices if inflation were to fall.
On November 17, Credit Suisse analyst Trung Huynh initiated coverage of Johnson & Johnson (NYSE:JNJ) stock with a Neutral rating and $170 price target, noting that improved valuation for the remaining businesses could pressure the company’s new dividend.
Among the hedge funds being tracked by Insider Monkey, Westport, Connecticut-based firm Ayrshire Capital Management is a leading shareholder in Johnson & Johnson (NYSE:JNJ) with 34,860 shares worth more than $5.7 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales come from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spends a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 146
Mastercard Incorporated (NYSE:MA) is a technology company that provides transaction processing and other payment-related products and services. On November 28, Mastercard said that Mastercard, Block’s Square unit, and Equifax are among a group of 40 companies that have teamed up to form the lobbying group FinTechs Canada. Latest data shows that Dalio owned more than 577,000 shares in the company at the end of the third quarter of 2022 worth $164 million. Cramer has outlined that he prefers the stock for its growth trends over other payment names.
On November 29, Redburn analyst Fahed Kunwar initiated coverage of Mastercard Incorporated (NYSE:MA) stock with a Neutral rating, highlighting that the brand power of debit is fading as digital wallets grow.
At the end of the third quarter of 2022, 146 hedge funds in the database of Insider Monkey held stakes worth $13.9 billion in Mastercard Incorporated (NYSE:MA), compared to 137 in the previous quarter worth $14.99 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) operates as a payments technology company worldwide. On November 25, Visa revealed that its US payments volume in November increased 9% from a year ago, even after the company suspended its operations in Russia in March 2022, and was 10% in October 2022. Credit payments volume increased by 10% and debit volume rose by 8% Y/Y. Regulatory filings show that Dalio owned more than 1.2 million shares in the company at the end of the third quarter of 2022 worth $216 million. Cramer has lauded the firm as one with no risk from interest rate hikes.
On October 27, BMO Capital analyst James Fotheringham maintained an Outperform rating on Visa Inc. (NYSE:V) stock and lowered the price target to $241 from $257, noting that the company posted encouraging fourth-quarter results.
At the end of the third quarter of 2022, 166 hedge funds in the database of Insider Monkey held stakes worth $24 billion in Visa Inc. (NYSE:V), compared to 159 in the preceding quarter worth $28 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
You can also take a peek at 11 Best Micro-cap Dividend Stocks To Buy and 15 Best E-Commerce Stocks To Buy.
