In this article, we will take a detailed look at the Jim Cramer is Recommending These 10 Stocks.
Jim Cramer said in a latest program on CNBC that “all is not well in corporate America.” Cramer was referring to weak earnings which according to him show that the state of the economy is “sluggish.” Cramer said that we are “hearing” that the Fed might not be done tightening or at least be “reluctant to cut in the spring” because inflation remains sticky. Jim Cramer said that when the Fed began hiking interest rates stocks were punished and when the Fed pivoted near the end of 2023 stocks exploded which included many companies which, according to Cramer, didn’t “deserve” to see their stock prices soar.
Jim Cramer said that latest earnings show the effects of the Fed’s tightening. He said many companies that raised prices are now seeing sales declines, which means they will have to roll back price hikes which would affect their stock prices. Cramer said it’s “disturbing” but it’s part of the business cycle.
“Throw Out the Old Playbook”
In a separate program, Jim Cramer said the Fed’s tightening cycle is peculiar in nature in its effects on stocks. Cramer said homebuilder stocks like Pulte Group, Lennar and Toll Brothers are going higher despite rate hikes while in the past homebuilder stocks always got punished during rate hikes. Cramer said in any “normal” tightening cycle stocks from homebuilding, steel and industrials sectors would get slaughtered but in this cycle many of the stocks from these sectors touched new highs.
Cramer also said the “AI craze should have ended ages ago” but stocks like Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA) are still going higher. Cramer said that means AI was not a hype, after all.
Jim Cramer also said people kept complaining about lack of market breadth and the concentration of market gains in a few companies often called the Magnificent Seven group. Cramer said this lack of breadth has not mattered “one bit.”
Cramer said when the market is not sticking to the old playbook anymore, you’ve “got to throw out” the playbook and write a new one.
Methodology
For this article we saw several latest programs of Jim Cramer and picked 10 stocks he’s recommending investors to buy with the highest number of hedge fund investors. Why hedge funds? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
10. BioNTech SE – ADR (NASDAQ:BNTX)
Number of Hedge Fund Investors: 19
Jim Cramer recently recommended investors to “hold” BioNTech SE – ADR (NASDAQ:BNTX) stock. Cramer said he does not understand why this stock is so “inexpensive.” Over the past one year BioNTech SE – ADR stock has lost about 31%.
As of the end of the third quarter of 2023, 19 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in BioNTech SE – ADR. The most significant stakeholder of BioNTech SE – ADR during this period was Israel Englander’s Millennium Management which owns a $54 million stake in BioNTech SE – ADR.
Artisan Mid Cap Fund made the following comment about BioNTech SE in its Q3 2023 investor letter:
“Notable trims in the quarter included Zscaler, BioNTech SE (NASDAQ:BNTX) and Ingersoll Rand. BioNTech is a biotech company focused on developing immunotherapies to treat cancer and other serious diseases. Management has been using its COVID-19 vaccine cash flows to reinvest in building a substantial early stage pipeline. The company’s intellectual property in mRNA and COVID-funded manufacturing capacity leave it well positioned to develop new mRNA vaccines and cancer therapies. In addition, the company has non-mRNA technology (e.g., cell therapy assets) and blue-chip partnerships offering additional optionality. While we are optimistic that this pipeline will eventually yield promising medications within oncology and infectious diseases, patience will be required. In the meantime, demand for COVID-19 vaccine boosters continues to wane. Therefore, we decided to trim the position in favor of more compelling near-term opportunities.”
9. Stanley Black & Decker Inc (NYSE:SWK)
Number of Hedge Fund Investors: 19
A caller recently asked Jim Cramer during his program about his thoughts on buying some more Stanley Black & Decker Inc stock. Cramer said you “should” buy more shares of the industrial tools company. Cramer highlighted the stock’s over 3% dividend yield. Cramer said that if people are buying Home Depot on lows, they should be buying Stanley Black & Decker Inc.
As of the end of the third quarter of 2023, 19 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Stanley Black & Decker Inc.
8. Pan American Silver Corp (NYSE:PAAS)
Number of Hedge Fund Investors: 22
When asked about his thoughts on Pan American Silver Corp (NYSE:PAAS), Jim Cramer said it is the “best one of the silver companies.”
“Holy cow, they crushed it,” said Jim Cramer about the Canada-headquartered mining company.
For 2024, Pan American Silver Corp expects its total silver production to be between 21 million to 23 million ounces, while total gold production is expected to be between 880K – 1,000K ounces.
A total of 22 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Pan American Silver Corp. The most notable stakeholder of Pan American Silver Corp during this period was David Greenspan’s Slate Path Capital which owns a $76 million stake in Pan American Silver Corp.
7. Barrick Gold Corp (NYSE:GOLD)
Number of Hedge Fund Investors: 36
Jim Cramer recently recommended investors to buy gold stocks. Here’s what Jim Cramer said when he was asked whether Barrick Gold Corp (NYSE:GOLD) stock should be bought:
“When rates go up, people sell gold, and that means you should buy gold. Because we buy gold for insurance.”
In December, Barron’s published a list of its favorite stock picks for 2024. Barrick Gold Corp made it to the list. Barron’s likes Barrick Gold Corp’s (NYSE:GOLD) plans to increase mine output by 30% by the end of the decade. Barron’s thinks Barrick Gold Corp’s (NYSE:GOLD) CEO Mark Bristow is the industry’s “most effective leader.”
Like GOLD, Jim Cramer also likes Apple Inc, Amazon.com Inc and NVIDIA Corp.
The company in its Q3 earnings call talked about guidance and future plans:
“We are expecting a further improvement in production in the fourth quarter. But as I pointed to the annual production is now expected to be marginally below the low end of the 4.2 million to 4.6 million ounce range. Copper remains on track to achieve its guidance of 420 million to 470 million pounds. As you can see here, the financial results were strong with operating cash flows growing by 35% to more than $1 billion quarter-on-quarter, free cash flow up significantly to $359 million and a 26% increase in adjusted net earnings to $0.24 per share. Barrick’s robust balance sheet secures our capacity to continue investing in our growth projects independent of the market, both new and existing, while we continue to reward our shareholders through dividends.
While growing our business, we have also been driving a new safety culture, including a new set of standards and initiatives to keep improving this important part of our business. We call this the Journey to Zero. Sadly, this key priority was impacted by two fatalities during the quarter, which are deeply disappointing for me and the company. We remain highly motivated to achieve these Zero goals.”
Read the entire earnings call transcript here.
6. Moderna Inc (NASDAQ:MRNA)
Number of Hedge Fund Investors: 37
In a latest program on CNBC, while answering a question about Moderna Inc (NASDAQ:MRNA), Jim Cramer said that Moderna Inc’s (NASDAQ:MRNA) CEO Stéphane Bancel is the “real deal.” Cramer said that he would “back” Moderna Inc at the current levels.
As of the end of the third quarter of 2023, 37 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Moderna Inc.
Earlier this month, Goldman Sachs published a list of stocks with weak pricing power it believes can outperform. Moderna Inc made it to the list. In addition to Moderna, Jim Cramer is also bullish on Apple Inc, Amazon.com Inc and NVIDIA Corp.
Moderna during its Q3 earnings call talked about its guidance and future expectations:
For the U.S., we expect 2024 to be at least $2 billion and believe it will grow over time. Lastly, we expect approximately $1 billion from RSV and other international COVID sales. And finally, in 2025, we expect a return to growth. Let me finish by giving you a more fulsome view on 2024 and our thinking on 2025. Starting with 2024, as I just explained, we expect sales to be approximately $4 billion. Cost of sales are expected to be approximately 35% of sales. R&D expenses of approximately $4.5 billion in 2024, would be down 6%. In 2024, the majority of our R&D expenses are for registration trials, which are now mostly committed. I will speak to our view on 2025 R&D expenses in a moment. SG&A expenses of approximately $1.3 billion in 2024 would be down 13%.
We expect taxes to be negligible in 2024 and capital expenditures to be similar to 2023 at $0.9 billion. In summary for 2024, Spikevax will generate nearly $1 billion of income. When we combine that with our estimated investments in R&D and capital expenditures, our cash balance is projected to be approximately $9 billion at the end of 2024. Now for our preliminary thoughts on 2025. As mentioned earlier, sales will return to growth.
Read the entire earnings call transcript here.
5. American Electric Power Company Inc (NASDAQ:AEP)
Number of Hedge Fund Investors: 39
Jim Cramer earlier this month said American Electric Power Company Inc (NASDAQ:AEP) stock is a Buy as he praised American Electric Power’s Company Inc 4% dividend yield.
BMO Capital earlier this month issued a list of stocks that underperformed in January but the firm thinks these companies can outperform for the rest of the year. American Electric Power Company Inc was one of these stocks.
“January underperformers go on to produce relatively high January 31 through December 31 returns, on average, handily exceeding the overall index returns,” BMO analysts said.
4. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Investors: 50
Caterpillar Inc. (NYSE:CAT) is one of the notable stocks Jim Cramer is recommending investors for 2024. Earlier this month Jim Cramer said that 2024 is going to be a “terrific” year for Caterpillar Inc.. Cramer told his viewers not to be “dissuaded” about China, oil prices, whatever” as he believes Caterpillar Inc.’s (NYSE:CAT) main growth catalyst will be infrastructure spending this year.
As of the end of the third quarter of 2023, 50 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Caterpillar Inc.. The biggest hedge fund stakeholder of Caterpillar Inc. during this period was Ken Fisher’s Fisher Asset Management which owns a $2.2 billion stake in Caterpillar Inc..
Diamond Hill Large Cap Strategy made the following comment about Caterpillar Inc. in its Q3 2023 investor letter:
“Caterpillar Inc. (NYSE:CAT), the world’s leading manufacturer of construction and mining equipment, also performed well this quarter. Caterpillar has managed to leverage increased capital investment from various end markets, contributing to better than expected fiscal results for Q2. The company is poised to be one of the largest beneficiaries of several government funding initiatives, including the IRA (Inflation Reduction Act) bill, CHIPS Act and infrastructure bill. These measures are expected to support construction spending for several years, providing a robust backdrop for Caterpillar’s continued growth.”
3. General Electric Co (NYSE:GE)
Number of Hedge Fund Investors: 76
General Electric Co (NYSE:GE) ranks third in our list of the top stocks Jim Cramer is recommending. In a latest program, Jim Cramer said the following about General Electric Co CEO Lawrence Culp:
“Larry Culp is just making money left and right…He is a lock.”
On January 5, Jim Cramer said that General Electric Co was an “inexpensive stock” even at current highs.
General Electric Co shares have gained about 62% over the past one year.
Longleaf Partners Fund made the following comment about General Electric Company in its Q3 2023 investor letter:
“After a busy first half of the year, we initiated one new position in the quarter in a business we have successfully owned previously and were able to buy again at a discount within a new corporate structure. We opportunistically trimmed and added to several positions throughout the quarter, and we exited General Electric Company (NYSE:GE) and our small position in Hasbro after the share price ran away from us. GE was a multi-year portfolio holding for us that started out rocky but ultimately was a good illustration of owning a “quality” business that was temporarily viewed as “value” (aka, perceived as low quality) before ultimately being weighed properly by the market. CEO Larry Culp was a great partner, creating significant value for shareholders and closing the price-to-value gap. Under his leadership, GE materially improved its operations and is well under way on plans to simplify the business by separating it into three world-class companies. The market has finally caught up with reality versus perception and is pricing GE accordingly. Unfortunately, this means we no longer see a margin of safety for the business but will continue to watch GE and Culp closely and hope to have the opportunity to partner with him again.”
2. Booking Holdings Inc (NASDAQ:BKNG)
Number of Hedge Fund Investors: 81
Jim Cramer was recently asked about low-cost US carrier Allegiant in a program on CNBC. Cramer instead recommended the questioner to buy Booking Holdings Inc (NASDAQ:BKNG).
“Why don’t you just go buy Booking Holdings…Just go buy that one.”
A total of 81 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Booking Holdings Inc. The biggest hedge fund stakeholder of Booking Holdings Inc during this period was Ken Fisher’s Fisher Asset Management which owns a $1.1 billion stake in Booking Holdings Inc.
Ensemble Capital Management stated the following regarding Booking Holdings Inc. in its fourth quarter 2023 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) (7.60% weight in the Fund): Earlier this year, Booking Holdings rolled out an AI trip planner. Traditionally Booking helps users find the right hotel by offering a search engine to define which city you want to stay in and apply various filters to narrow down the hotel options. With Booking’s AI Trip Planner, a user can use natural language such as “plan a road trip on Route 66, starting in Chicago and ending to Los Angeles.” The Trip Planner then engages with the user like a travel agent, suggesting which cities to stay in each night and various sights to see along the way. Once the trip is planned out, the user can use natural language to generate hotel options, such as by writing “My budget is $200 to $300 a night. It will be my husband and I traveling together.”
Booking’s experiments in AI demonstrate the value of proprietary data sets. While general AI systems such as ChatGPT are designed to answer questions about anything, focused AI systems that leverage a company’s unique data can be far more powerful when applied to specific use cases. With Booking’s AI Trip Planner, the system is unable to answer questions unrelated to making travel reservations. But on the other hand, it is far more likely to understand what the user wants since it already knows that the entire conversation will be about travel. Importantly, Booking’s AI Trip planner has access to the company’s enormous dataset that includes hotel ratings, popular hotels, and all sorts of detailed information about each hotel.”
1. Micron Technology Inc (NASDAQ:MU)
Number of Hedge Fund Investors: 90
“Buy, buy, buy!”
This was Jim Cramer’s call on Micron Technology Inc (NASDAQ:MU) when he was asked about the stock earlier this month.
Jim Cramer on December 21 called the bottom on Micron Technology Inc shares. Over the past six months the stock has gained about 33%.
As of the end of the third quarter of 2023, 90 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Micron Technology Inc. The most notable stakeholder of Micron Technology Inc during this period was Ken Griffin’s Citadel Investment Group which owns a $552 million stake in Micron Technology Inc.
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Disclosure. None. Jim Cramer is Recommending These 10 Stocks was initially published on Insider Monkey.
