This article presents an overview of Jim Cramer is Recommending These 5 Stocks. For a detailed overview of such stocks read our article, Jim Cramer is Recommending These Stocks.
5. Constellation Energy Corp (NASDAQ:CEG)
Number of Hedge Fund Investors: 41
A questioner recently asked Jim Cramer whether it would make sense to start a new position in Constellation Energy Corp (NASDAQ:CEG). Cramer said that he’s “for it.”
Cramer said Constellation Energy Corp (NASDAQ:CEG) is the type of power company all “hyper-scalers want.”
“It’s the cleanest power, it’s nuclear power.”
Sound Shore Management made the following comment about Constellation Energy Corporation (NASDAQ:CEG) in its Q3 2023 investor letter:
“On the plus side of the ledger, we had strong contributions from independent power producers Vistra and Constellation Energy Corporation (NASDAQ:CEG). Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Meanwhile, Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”
4. Ecolab Inc (NYSE:ECL)
Number of Hedge Fund Investors: 47
Water and food safety company Ecolab Inc (NYSE:ECL) is one of the stocks Jim Cramer likes. Cramer hit the “buy, buy, buy” button on the stock in a recent program when he was asked about the stock. Cramer, however, had a complaint with Ecolab Inc (NYSE:ECL):
“We were too small to be important for them, but it’s really a good business.”
Of the 933 hedge funds tracked by Insider Monkey, 47 hedge funds reported owning stakes in Ecolab Inc (NYSE:ECL).
Mairs & Power Growth Fund stated the following regarding Ecolab Inc. (NYSE:ECL) in its fourth quarter 2023 investor letter:
“All of our Materials holdings—Ecolab Inc. (NYSE:ECL), HB Fuller (FUL), and Sherwin Williams (SHW)—also posted strong results in 2023, a stark reversal from the prior year. After oil prices spiked above $100 in 2022 due to the Ukraine-Russia Conflict, oil has since pulled back to the low $70s. Oil and its by-products are major inputs for all of our Materials holdings; as such, lower oil prices have led to a rebound in profits. For example, our largest Materials holding—Ecolab—is expected to increase earnings more than 15% this year after declining 5% last year.”
3. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Investors: 64
Cramer is cautious on Abbott Laboratories (NYSE:ABT) after its rival Reckitt Benckiser lost a case after which it’d have to pay $60 million over claims that a premature child died after consuming its baby formula. Abbott Laboratories (NYSE:ABT) is also facing lawsuits over its decision to recall some baby formula brands due to fears of contamination, which led to a nationwide shortage in 2022.
Cramer, however, said that he expects this is “not going to be a big deal.” Cramer said he’s waiting for the stock to come down to $100 to be “able to buy more.” He said he “believes” in Abbott Laboratories (NYSE:ABT).
Polen Focus Growth Strategy stated the following regarding Abbott Laboratories (NYSE:ABT) in its first quarter 2024 investor letter:
“We increased our positions in ThermoFisher Scientific, Visa, Zoetis, Nike, and Abbott Laboratories (NYSE:ABT). Each of these companies is durable and available at attractive valuations, in our view, for the growth we see ahead. In fact, in the case of ThermoFisher, Nike, and Abbott Labs, we expect accelerating earnings growth in the back half of 2024 after more difficult earnings growth periods pass for each of these companies. ThermoFisher and Abbott will finally wind down most of their COVID-19 testing and vaccine-related efforts due to a lack of demand, so these should no longer be revenue growth headwinds.”
2. Pfizer Inc (NYSE:PFE)
Number of Hedge Fund Investors: 79
Jim Cramer thinks Pfizer Inc (NYSE:PFE) is “making a big turn” but a lot of people seem to be unaware of it. He said he “likes” Pfizer Inc (NYSE:PFE) at the current levels. Cramer also praised Pfizer Inc’s (NYSE:PFE) high dividend yield and said Pfizer Inc (NYSE:PFE) has “a lot of cash.”
“Yes! Pfizer is a Buy!”
Diamond Hill Large Cap Strategy stated the following regarding Pfizer Inc. (NYSE:PFE) in its fourth quarter 2023 investor letter:
“Among our bottom contributors in Q4 were BorgWarner and Pfizer Inc. (NYSE:PFE). Biopharmaceutical company Pfizer was pressured as COVID sales were slower than expected in Q4. However, outside COVID-related sales, the base business is performing as expected, and the company is starting a cost-cutting program that should restore margins to pre-pandemic levels. We continue to like Pfizer for its diversified business, strong cash flow generation capabilities and balance sheet, and solid leadership under a quality CEO.”
1. Alibaba Group Holding Ltd – ADR (NYSE:BABA)
Number of Hedge Fund Investors: 116
Jim Cramer said in a latest program on CNBC that Alibaba Group Holding Ltd – ADR (NYSE:BABA) is the “cheapest stock in the world.” Cramer highlighted David Tepper’s (of Appaloosa Management) huge stake (worth $814 million) in Alibaba Group Holding Ltd – ADR (NYSE:BABA) and said:
“I was talking to my buddy Dave Tepper, he’s got a huge position in Alibaba. He’s one of my thousand bosses I had at Goldman. And we both admit.. I mean this is one of the cheapest stocks.. it’s the cheapest stock in the world.”
Cramer said that if you can “stomach” owning a Chinese stock, you should buy Alibaba Group Holding Ltd – ADR (NYSE:BABA) and then buy more if it goes down.
Artisan Select Equity Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its fourth quarter 2023 investor letter:
“Pretty much all of our holdings rose during the quarter. Only one stock declined by more than a couple of percent—Alibaba Group Holding Limited (NYSE:BABA), which was down 9% for the quarter and 12% for the year. This investment continues to be a disappointment. We estimate the shares are trading at around 5X EBITA—a valuation normally reserved for a company with evaporating profits. While it’s true Alibaba is underperforming its peers in the market, the fact is it remains the market leader in its core businesses, and the business is still growing. In the most recent quarter, revenues grew 9% and profits grew 26%.It’s not evaporating.
The management seems to be making meaningful changes designed to enhance shareholder value, including structural changes to improve profitability and restore its competitive position. It is monetizing non-core assets and making improvements in capital allocation. A lot of good things are happening that are not yet recognized in the share price. There are reasons—primarily geopolitical—for this, but at the current valuation, we could easily see the shares double and they would still be cheap.”
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