In this article, we discuss the 10 stocks that Jim Cramer is recommending in June. If you want to read about some more stocks that Jim Cramer is recommending in June, check out Jim Cramer is Recommending These 5 Stocks in June.
Jim Cramer, the journalist investor and hugely successful former hedge fund manager, has become one of the first prominent finance personalities on television to publicly endorse the buying of beaten-down tech stocks once again as inflation finally starts to cool down and the future earnings of these stocks come back into fashion. In his show on CNBC on June 7, Cramer explained how a recent announcement by retailer Target that it would be shedding inventory indicated that the Fed had been successful in slowing down inflation to some extent.
Cramer pointed to the gains in major indexes like the Dow Jones Industrial Average, the S&P 500, and the NASDAQ Composite since the Target announcement to argue his point. He claimed that as the prices of goods start to come down, the central bank can hold off on raising interest rates, or at least hold off on raising them too aggressively, which meant that they could navigate a “soft landing”. Cramer also noted that the Target news indicated that “inflation may be peaking” and this meant that investors could start buying growth stocks once again.
However, Cramer advised his viewers to stick to “high-quality” names in the tech sector for now, since the market was still not out of the woods just yet. Some of the stocks that Jim Cramer is recommending in June include Palo Alto Networks, Inc. (NYSE:PANW), Johnson & Johnson (NYSE:JNJ), and Broadcom Inc. (NASDAQ:AVGO). Cramer has also recommended that investors buy the dip in oil stocks since these companies stayed afloat even amid market sell-offs, as buyers tended to keep coming back for them.
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. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the popularity of each stock among hedge funds.
Jim Cramer is Recommending These Stocks in June
10. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 29
The J. M. Smucker Company (NYSE:SJM) makes and sells branded food and beverage products across the world. Jim Cramer gave the stock a Buy recommendation during the Discussed Stock segment of his show on June 7. Cramer advised his viewers to look into recession stocks like J. M. Smucker, from the consumer packaged goods sector, as investors “fled to safety” in light of concerns around a slowing economy. The stock has jumped over 5% in the past five days even as the overall market tumbles.
On March 2, Credit Suisse analyst Robert Moskow maintained a Neutral rating on The J. M. Smucker Company (NYSE:SJM) stock and lowered the price target to $130 from $140, appreciating the earnings beat of the firm in the quarterly results but noting the disappointing guidance.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investments is a leading shareholder in The J. M. Smucker Company (NYSE:SJM), with 1.2 million shares worth more than $172 million.
Just like Palo Alto Networks, Inc. (NYSE:PANW), Johnson & Johnson (NYSE:JNJ), and Broadcom Inc. (NASDAQ:AVGO), The J. M. Smucker Company (NYSE:SJM) is one of the stocks on the radar of elite investors.
9. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 31
Chubb Limited (NYSE:CB) is a Switzerland-based insurance firm. The journalist investor gave the stock a Buy recommendation during the Lightning Round segment of his show on June 7. Cramer has been bullish on the company for the past few months as interest rates rise. In early May, in response to a question about his views on the stock, Cramer had said that Chubb was a “great company”. He added that the management of the firm was “just delivering, delivering, and delivering”.
On April 28, Barclays analyst Tracy Benguigui maintained an Overweight rating on Chubb Limited (NYSE:CB) stock and raised the price target to $250 from $244, noting the firm had “demonstrated strong underlying underwriting margin expansion in the first quarter”.
At the end of the first quarter of 2022, 31 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Chubb Limited (NYSE:CB), compared to 34 the preceding quarter worth $1.7 billion.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Chubb Limited (NYSE:CB) was one of them. Here is what the fund said:
“Our investment in Chubb Limited (NYSE:CB) began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb Limited (NYSE:CB) successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”
8. MetLife, Inc. (NYSE:MET)
Number of Hedge Fund Holders: 39
MetLife, Inc. (NYSE:MET) is a financial services firm with core interests in insurance. The former hedge fund manager gave the stock a Buy recommendation during the Lightning Round segment of his show on June 7. While answering a question about the company, Cramer said that he was going to have to say a “yes” to buying the stock because it was “too cheap” to ignore even though he was not a “great fan of insurers”.
On April 5, JPMorgan analyst Jimmy Bhullar maintained an Overweight rating on MetLife, Inc. (NYSE:MET) stock and raised the price target to $75 from $69, backing the firm to outperform based on a “healthy balance sheet, ongoing share repurchases, and improving sales”.
At the end of the first quarter of 2022, 39 hedge funds in the database of Insider Monkey held stakes worth $945 million in MetLife, Inc. (NYSE:MET), compared to 36 in the previous quarter worth $1 billion.
7. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders: 47
Lyft, Inc. (NASDAQ:LYFT) owns and runs a ridesharing marketplace. The former Goldman Sachs employee gave the stock a Buy recommendation during the Guest Interview segment of his show on June 7. During the show, Cramer spoke to John Zimmer, the founder and president of the company, and discussed how the firm was planning to build a hybrid network of autonomous and driver vehicles. Zimmer also claimed that the firm was more productive as travel returned with 20% more rides per driver in 2022 compared to 2019.
On May 16, Argus analyst Jim Kelleher maintained a Buy rating on Lyft, Inc. (NASDAQ:LYFT) stock and lowered the price target to $41 from $72, noting the “strong growth” of the firm in the number of active riders, higher ride volume, and improved service levels.
Among 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 5.6 million shares worth more than $217 million.
In addition to Palo Alto Networks, Inc. (NYSE:PANW), Johnson & Johnson (NYSE:JNJ), and Broadcom Inc. (NASDAQ:AVGO), Lyft, Inc. (NASDAQ:LYFT) is one of the stocks that elite hedge funds are monitoring.
In its Q1 2022 investor letter, Rowan Street Capital LLC, an asset management firm, highlighted a few stocks and Lyft, Inc. (NASDAQ:LYFT) was one of them. Here is what the fund said:
“Lyft, Inc. (NASDAQ:LYFT): We sold Lyft, Inc. (NASDAQ:LYFT) in Q1 ’22 to fund the acquisitions of our 3 new positions as we’ve outlined. We had owned Lyft for a little less than 3 years and realized approximately 50% gain on the stock. The new companies we bought with the proceeds from the sale are significantly better businesses, in our view.”
6. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 50
American Tower Corporation (NYSE:AMT) is a Boston-based real estate investment trust that primarily operates communications infrastructure. Cramer gave the stock a Buy recommendation during the Discussed Stock segment of his show on June 1. Cramer highlighted the “pure play” potential of the stock in the data center and cell towers domain, and also said that AMT was a “better investment” than peers like DigitalBridge because of a less complicated corporate structure.
On June 5, Bank of America analyst David Barden resumed coverage of American Tower Corporation (NYSE:AMT) stock with a Buy rating and a price target of $315, noting that the firm had removed overhangs for investors with a private capital announcement recently.
At the end of the first quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $4.1 billion in American Tower Corporation (NYSE:AMT), compared to 53 in the previous quarter worth $4.7 billion.
In its Q3 2021 investor letter, Qualivian Investment Partners, an asset management firm, highlighted a few stocks and American Tower Corporation (NYSE:AMT) was one of them. Here is what the fund said:
“What Attracts Us
Superior Business:
- High barriers to entry resulting from low bargaining power of suppliers (land owners) and customers (wireless companies). Neither can find reasonable substitutes for existing cell towers. Combined with low possibility of disruption, this results in a business oligopoly and pricing power.
- Stable business with consistent high returns on equity, low maintenance capital required, and strong cash generation.
− Ten-year, non-cancelable contracts with built in pricing escalators and high renewal rates
− 1%-2% churn
Superior Reinvestment Opportunities:
- Strong growth for the foreseeable future due to increasing demand for wireless data usage, resulting in wireless carriers Capex equipment spend on existing and new towers.
- Low maintenance capital expenditure requirements; most of capital expenditure is for growth
Superior Management / Capital Allocation:
- Capital reinvested back in business has had returns well above cost of capital
- Company has purchased stock opportunistically…” (Click here to see the full text)
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Disclosure. None. Jim Cramer is Recommending These 10 Stocks in June is originally published on Insider Monkey.
