In this article, we discuss the 15 stocks that Jim Cramer is bearish on. If you want to skip our detailed analysis of these stocks, go directly to Jim Cramer Is Bearish on These 5 Stocks.
Jim Cramer, the journalist investor with decades of success in the finance world, has developed an ardent fan base over the past few years as a television personality. As inflation results in a mass exodus from growth stocks towards value, the Cramer fan base has been eagerly looking forward to the latest calls of Cramer to guard their portfolios from risk.
Some of the stocks that Jim Cramer is bearish on include AT&T Inc. (NYSE:T), DocuSign, Inc. (NASDAQ:DOCU), and Okta, Inc. (NASDAQ:OKTA), among others discussed in detail below. Instead, Cramer recently advised his followers to pick up high-yield dividend stocks to ride the storm at the market. According to Cramer, “indiscriminate selling” at the market had created many stocks with “absurdly high yields” that were “dirt-cheap on earnings”. The investor labeled these stocks “accidentally high-yielders”.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC.
Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
Jim Cramer Is Bearish on These Stocks
15. Allbirds, Inc. (NASDAQ:BIRD)
Number of Hedge Fund Holders: 10
Allbirds, Inc. (NASDAQ:BIRD) markets footwear and apparel products. It has generated a lot of buzz on Wall Street since it debuted on the market last year. At the end of the fourth quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $19 million in Allbirds, Inc. (NASDAQ:BIRD).
Cramer discussed Allbirds, Inc. (NASDAQ:BIRD) during the Discussed Stock segment of his show on March 4, noting that the stock was too turbulent to predict movement and there was no telling when the stock would find the floor.
Just like AT&T Inc. (NYSE:T), DocuSign, Inc. (NASDAQ:DOCU), and Okta, Inc. (NASDAQ:OKTA), Allbirds, Inc. (NASDAQ:BIRD) is one of the stocks that elite investors have on their radar as inflation batters the market.
14. Desktop Metal, Inc. (NYSE:DM)
Number of Hedge Fund Holders: 16
Desktop Metal, Inc. (NYSE:DM) makes and sells additive manufacturing solutions. Cramer said he preferred HP stock over Desktop Metal while answering a question related to the latter during the Lightning Round of his show on March 3.
Hedge funds have been piling into Desktop Metal, Inc. (NYSE:DM) stock. At the end of the fourth quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $55 million in Desktop Metal, Inc. (NYSE:DM), compared to 13 in the preceding quarter worth $31 million.
13. Progress Software Corporation (NASDAQ:PRGS)
Number of Hedge Fund Holders: 17
Progress Software Corporation (NASDAQ:PRGS) operates in the systems software industry. Elite hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Progress Software Corporation (NASDAQ:PRGS) with 1.3 million shares worth more than $64 million.
While answering a question about Progress Software Corporation (NASDAQ:PRGS) during the Lightning Round of his show on March 4, Cramer said there were too many data-focused tech firms and he wouldn’t own the stock until he thought it would get a takeover.
12. On Holding AG (NYSE:ONON)
Number of Hedge Fund Holders: 22
On Holding AG (NYSE:ONON) is a Swiss firm that sells sports products. Cramer outlined his bearish outlook on the stock during the Featured Stock segment of his program on March 4, giving a Sell recommendation to viewers.
Hedge funds have been offloading On Holding AG (NYSE:ONON) stock in recent months. At the end of the fourth quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in On Holding AG (NYSE:ONON), compared to 30 the preceding quarter worth $832 million.
11. The RealReal, Inc. (NASDAQ:REAL)
Number of Hedge Fund Holders: 22
The RealReal, Inc. (NASDAQ:REAL) owns and runs an online marketplace for luxury goods. The hedge fund sentiment around the stock is largely positive. At the end of the fourth quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $124 million in The RealReal, Inc. (NASDAQ:REAL), up from 21 in the previous quarter worth $169 million.
Cramer discussed The RealReal, Inc. (NASDAQ:REAL) stock during the Featured Stock segment of his show on March 4, highlighting the “pretty discouraging” outlook for the firm in the quarterly earnings and saying “no, thank you” to a question about owning the stock.
10. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Number of Hedge Fund Holders: 24
Virgin Galactic Holdings, Inc. (NYSE:SPCE) is a human spaceflight firm. Cramer discussed the stock during the Lightning Round of his show on March 4, underlining that he agreed that space was the final frontier but noted that it was not an “investable frontier”.
Virgin Galactic Holdings, Inc. (NYSE:SPCE) is one of the top space stocks in the finance world. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Virgin Galactic Holdings, Inc. (NYSE:SPCE) with 3.3 million shares worth more than $45 million.
9. Bumble Inc. (NASDAQ:BMBL)
Number of Hedge Fund Holders: 25
Bumble Inc. (NASDAQ:BMBL) provides online dating and social networking services. Hedge funds have been shedding the stock from their portfolios. At the end of the fourth quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $297 million in Bumble Inc. (NASDAQ:BMBL), compared to 35 the preceding quarter worth $608 million.
Cramer was bearish on Bumble Inc. (NASDAQ:BMBL) stock during the Discussed Stock segment of his show on March 4, giving the online dating company a negative mention during discussions around online tech firms.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bumble Inc. (NASDAQ:BMBL) was one of them. Here is what the fund said:
“We also participated in two IPOs during the quarter (including) Bumble Inc. (NASDAQ:BMBL), which runs a popular social media dating app. Bumble Inc. (NASDAQ:BMBL) is a women-first dating app founded in 2014 and is the second-highest grossing dating app globally. The company will benefit from a near doubling of industry spend in the next five years plus company-specific initiatives in international expansion, improved app payer conversion and higher average revenue per user premium tier upgrades.”
8. Trex Company, Inc. (NYSE:TREX)
Number of Hedge Fund Holders: 28
Trex Company, Inc. (NYSE:TREX) markets outdoor living products. While answering a question on the Lightning Round of his show on March 4, Cramer said the company “did not do” what he wanted to see during the earnings season and the earnings per share for the quarter were “terrible”.
Trex Company, Inc. (NYSE:TREX) has attracted the interest of major hedge funds in the past few months. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Montanaro Asset Management is a leading shareholder in Trex Company, Inc. (NYSE:TREX) with 515,000 shares worth more than $69 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Trex Company, Inc. (NYSE:TREX) was one of them. Here is what the fund said:
“Just as the new home market has been hopping amid low interest rates and the greater need for space, the market for home improvement has also been robust for similar reasons. Decks have been perfect places for safe social gatherings during the pandemic, and ClearBridge portfolio holding Trex Company, Inc. (NYSE:TREX) has been meeting demand with its composite decking made from recycled wood fibers and plastic waste.
Trex’s high-performance decking portfolio is made using more than 95% recycled content. Trex Company, Inc. (NYSE:TREX) uses locally sourced reclaimed wood that would otherwise end up in landfills and so avoids cutting down trees to make its products. The recycled plastic film it uses comes from a variety of sources, including industrial shrink wrap, agricultural plastic sheeting and household plastic such as grocery and shopping bags. With the average 500-square foot composite Trex deck containing 140,000 recycled plastic bags, Trex is one of the largest plastic bag recyclers in the U.S. The company has also innovated ways of recycling dirtier plastics more likely to end up in landfills.
Trex Company, Inc. (NYSE:TREX) has seen already strong demand get stronger during the pandemic; the company was sold out during much of 2020 and began expanding capacity across the U.S. to meet heightened demand. With lumber prices soaring amid the strong housing market, Trex’s composite decks are increasingly gaining share, especially in price-sensitive areas of the market, which bodes well for both the environment and shareholders.”
7. Stitch Fix, Inc. (NASDAQ:SFIX)
Number of Hedge Fund Holders: 35
Stitch Fix, Inc. (NASDAQ:SFIX) owns and runs an online store that sells apparel and shoes. Top hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Stitch Fix, Inc. (NASDAQ:SFIX) with 1.6 million shares worth more than $30 million.
Stitch Fix, Inc. (NASDAQ:SFIX) was discussed during the Discussed Stock segment of Mad Money in early March. Cramer was not particularly bullish on the stock, giving it a negative mention that outlined his overall outlook on the firm.
In its Q2 2021 investor letter, RGA Investment Advisors LLC, an asset management firm, highlighted a few stocks and Stitch Fix, Inc. (NASDAQ:SFIX) was one of them. Here is what the fund said:
“We purchased a new position–Stitch Fix, Inc. (NASDAQ:SFIX)–which is attacking this problem of abundance and the friction of shopping digitally head on with curation and personalization.
Your Own Personal Clothing Store
Stitch Fix, Inc. (NASDAQ:SFIX) is incredibly interesting. Founded by Katrina Lake in 2011, Stitch Fix turned apparel shopping into a delightfully personalized, subscription-based platform. The company collects numerous data points when onboarding a customer from the generics and quirks of each individual’s size and shape to tastes in designers, colors and styles. This empowers the company’s stylists to curate a “fix” with five clothing items on a periodic cadence (monthly, quarterly, semi-annually, etc.) of the customer’s choosing. A box arrives with its contents formerly unseen by the customer, with the constant being each item is already a known fit based on the size and shape of the customer’s body type and the trove of data Stitch Fix has on other “look alikes” across their customer base. Of the 5 items, a customer can keep all or none, but they must pay $20 irrespective of whether they keep anything. After reviewing the items, a customer can keep all items (for which they would get a 25% keep five discount) or return some items and checkout online to pay full price.
We owe immense gratitude to Mario Cibelli for helping us think through this company the right way (Mario covered the company in depth with Elliot on a recent episode of This Week In Intelligent Investing).
It is a company we first analyzed and found interesting heading into IPO, deploying the same customer lifetime value framework that led us into our Roku position early. Stitch Fix was intriguing and challenging through this lens, because churn is high in the measurable data, making the CLTV of each individual customer very sensitive to small changes in churn. Mario insisted the more appropriate way to think about this company is comparing them to a retailer like Nordstrom. People start their journey with Stitch Fix, Inc. (NASDAQ:SFIX), buy a bunch of clothes over several months and then shut off the subscription once a satisfactory portion of their wardrobe has been replenished. Customers reengage once another round of refreshment is needed, but while some churn is the bad kind, not all fits that mold…” (Click here to see the full text)
6. Floor & Decor Holdings, Inc. (NYSE:FND)
Number of Hedge Fund Holders: 36
Floor & Decor Holdings, Inc. (NYSE:FND) is a home improvement retailer. Cramer called the company a “poor man’s Lowe’s” during his show on March 3, telling viewers that he preferred to own the stock of the latter than the former.
The hedge fund sentiment around Floor & Decor Holdings, Inc. (NYSE:FND) stock is positive. At the end of the fourth quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Floor & Decor Holdings, Inc. (NYSE:FND), compared to 33 the preceding quarter worth $1.4 billion.
Along with AT&T Inc. (NYSE:T), DocuSign, Inc. (NASDAQ:DOCU), and Okta, Inc. (NASDAQ:OKTA), Floor & Decor Holdings, Inc. (NYSE:FND) is one of the stocks that institutional investors are monitoring.
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Disclosure. None. Jim Cramer Is Bearish on These 15 Stocks is originally published on Insider Monkey.
