In this article, we will take a detailed look at some of the stocks Jim Cramer is recommending in June.
Jim Cramer in a latest program talked about the effect of inflation on US consumers and discussed how it’s impacting the Haves and the Have Nots. Cramer said while everyone is feeling the “pinch of inflation,” the Have Nots are feeling a “heck of a lot more” than the Haves. Cramer said that the difference between these two classes of consumers is very important for investment portfolios. He complained that many retailers don’t even know their consumers and that’s why they have a totally different reading of the current economic situation and its effects on consumers. Cramer criticized those who aren’t careful about the differences between consumers and use “the consumer” as a blanket term.
Cramer talked about several retail companies and how they are directly feeling the effects of inflation as consumers cut back on spending. The CNBC host said that Americans are making tough choices because of rising prices but we usually don’t talk about it.
Jim Cramer said that many strategists demand several rate cuts because “they want stocks higher.”
“I want higher stock prices too but if we get multiple rate cuts and inflation comes roaring back, it’s the Have Nots that will get hurt.”
Jay Powell Is Worried About Tens of Millions of People With Almost Nothing in the Bank, Cramer Says
Jim Cramer said that while many people won’t be happy to see a strong jobs report (because that decreases the chances of rate cuts), they should keep in mind the tough situation the Federal Reserve is in.
“Jay Powell isn’t worried about those of us with big portfolios. He’s worried about the tens of millions of people with almost nothing in the bank.”
For this article we watched several latest programs of Jim Cramer aired recently and picked 10 stocks he’s bullish about and recommending investors to buy or hold. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Number of Hedge Fund Investors: 18
Jim Cramer yet again praised Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) in a latest program, saying that he likes the company’s CEO Julie Felss Masino because she is taking all the tough but necessary decisions. Cramer said Masino’s initiatives depict leadership and courage.
“I am with her. I would not sell that stock.”
A few weeks ago, Cramer said that he is “amazed” that Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) stock has “dropped like a rock” and wondered how the company can “cover that dividend.”
Cramer analyzed Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) in detail recently, acknowledging Cracker Barrel Old Country Store, Inc.’s (NASDAQ:CBRL) struggles but saying he’s hopeful of a turnaround amid a new CEO and restructuring plans. At that time Cramer told investors to wait until we get clarity on Cracker Barrel Old Country Store, Inc.’s (NASDAQ:CBRL) dividend future.
Cracker Barrel Old Country Store, Inc.’s (NASDAQ:CBRL) CEO talked in detail about her planned transformation of the company during the latest earnings call:
“We did extensive research and really putting together the transformation plan. We talk to guests all over the country, all different kind of segments, all kinds of backgrounds and also listen to our team members and really took great stock and kind of where we find ourselves. And with traffic down almost 20% to 2019, they’re telling us they’re not choosing us. And so digging into the lives there was really, really important. We heard from them that the experience in Cracker Barrel just isn’t as relevant specifically at dinner. So we — and our dinner sales are down. When you look at that year-over-year, it’s 35% of our mix, and it’s an important daypart for us. We’ve held up quite well at breakfast.
But what guests have told us is that the Cracker Barrel experience, there are more relevant choices for them in the dinner daypart based on the experiential factors. So a lot of that is looking at the comfort of the tables, the lighting, the paint, all of those things.”
Read the full earnings call transcript here.
9. Ingersoll Rand Inc (NYSE:IR)
Number of Hedge Fund Investors: 32
Industrial products company Ingersoll Rand Inc (NYSE:IR) is one of the stocks Jim Cramer is recommending investors to hold on to. Cramer recently said in a program that “let’s just hold on” to IR.
“They are a reconstituted company that is doing a lot of things right.”
Cramer said the fact the stock hasn’t seen much movement tells him it’s about to “reaccelerate.”
In May, Ingersoll Rand Inc (NYSE:IR) posted Q1 results. Adjusted EPS in the period came in at $0.78, beating estimates by $0.09. Revenue in the quarter jumped 2.5% year over year to $1.67 billion but missed estimates by $30 million.
Ingersoll Rand Inc (NYSE:IR) is involved in producing mission-critical products in various industries including air, fluid, energy, specialty vehicle, and medical industries. Analysts believe Ingersoll Rand Inc’s (NYSE:IR) climate/energy-related business could see high growth as demand of these products increases. Ingersoll Rand Inc’s (NYSE:IR) energy efficiency solutions are supplied to life science, food & beverage, clean energy, general manufacturing, infrastructure, water, transport, electronics markets.
The company’s management talked about guidance in the latest earnings call:
“Given the solid performance in Q1, we’re raising our 2024 guidance. Total company revenue is expected to grow overall between 4% to 6%, which is down 100 basis points versus prior initial guidance, driven entirely by FX. We anticipate positive organic growth of 2% to 4%, consistent with prior guidance, where price and volume remains split at approximately 70/30…. adjusted EPS is projected to be within the range of $3.20 and $3.30, which is up 2% versus prior guidance, and approximately 10% year-over-year at the midpoint. On the bottom right-hand side of the page, we have included a 2024 full-year guidance bridge, showing the changes in our latest guidance as compared to our initial guidance provided in February. [read the full earnings call transcript here]”
IR’s growth estimates set by Wall Street is 10% for the next year. Average analyst price target on the stock is $100, which presents a 10% upside potential from the current levels. Ingersoll Rand Inc (NYSE:IR) could be a rewarding investment for patient investors.