In this article, we will look at 10 stocks that Jim Cramer is talking about in September. If you want to explore more stocks that journalist investor, Jim Cramer, is talking about in September, you can also take a look at Jim Cramer is Talking About These 5 Stocks in September.
Jim Cramer has acquired a massive following on social media from his finance TV show, Mad Money on CNBC, where he gives his opinion on stocks and financial markets. Jim Cramer is a law graduate from Harvard, and also a former hedge fund manager. Jim Cramer averaged a return of above 20% during his hedge fund career. He stepped down from his roles at Cramer & Co. in 2001.
What Does Powell Want?
Jim Cramer has been a prominent commentator on financial markets. Jim Cramer thinks that the Fed is more likely to continue raising interest rates until the economy slows down. On September 1, Jim Cramer spoke on what, in his view, it will take for the Fed to stop tightening. Firstly, Jim Cramer thinks that one of the Fed’s primary concerns is wage inflation. Cramer thinks the Fed “wants to see an end to the incessant job hopping”. Cramer said:
“He (Fed chair Jerome Powell) needs companies to lay off their workers, or even go under, to cool down the labor market…”
Another thing that according to the journalist investor will help the Fed ease monetary policy is a “fintech collapse.” Here is the journalist investor’s view on “buy now, pay later places” :
“These buy now, pay later companies think that they have the ability to lend with impunity, and Powell needs that impunity to go away. Now it may take a scandal before this could happen, or maybe it will just take a spike in bad loans… These pseudo banks are a thorn in the side of the Fed…”
Jim Cramer thinks that if special purpose acquisition corporations and private venture capital firms go bankrupt, the Fed is more likely to “stop bringing the pain”. Jim Cramer said:
“We have had this endless job hopping in silicon valley, it’s time for these startups to have down rounds or run out of funding entirely. That would be an immense help to Powell.”
The journalist investor also thinks that the Fed would stop hiking interest rates if some “high profile financiers run out of money”. Finally, Jim Cramer said that the Fed is “waiting for the pain from all the double ordering in this country to kick in”. Here is what he said:
“Right now, for instance, the automakers are still scrambling from double ordered chips. But by the time they get those chips, potential car buyers will be too scared to buy or lease. Then the price in the car lot goes down and the price of the used car lot goes down, and the next thing you know, inflation subsides…
We’re now in ‘good news is bad news’ mood. Because the Fed’s not gonna stop bringing the pain until we see real deterioration… From the mall, to the store, to the house, to the yacht, and to the car lots, it’s all gotta change”
With the Fed not showing any signs of stopping its aggressive rate hike schedule and inflation running at all-time highs, Jim Cramer is recommending a variety of stocks that investors can hold long to reap handsome gains and also use to recession-proof their portfolios. Some of the most notable stocks that Jim Cramer is talking about in September include Cheniere Energy, Inc. (NYSE:LNG), The Coca-Cola Company (NYSE:KO), and CVS Health Corporation (NYSE:CVS).
Our Methodology
To determine the 10 stocks Jim Cramer is talking about in September, we watched the September episodes of his show, Mad Money on CNBC, which included ‘lightning rounds’. We narrowed down our selection to stocks that Cramer was most bullish on and offered detailed commentary on to cement his view. We have ranked our picks in ascending order of the number of hedge funds that have stakes in them.
Jim Cramer is Talking About These 10 Stocks in September
10. Tellurian Inc. (NASDAQ:TELL)
Number of Hedge Fund Holders: 23
Tellurian Inc. (NASDAQ:TELL) is an emerging natural gas with operations worldwide. The company’s first LNG project, which is under development, is its Driftwood LNG facility in Louisiana, a 27.6 million tons per annum LNG project. Jim Cramer sees potential in Tellurian Inc. (NASDAQ:TELL) and named it among his top pure-play LNG stocks. Cramer thinks the stock is attractive at its current share price, which as of September 9, sits at $4.38.
On August 3, Tellurian Inc. (NASDAQ:TELL) announced earnings for the second quarter of fiscal 2022, in which it beat EPS estimates by $0.04. The company generated a revenue of $61.3 million, up 142% year over year, and outperformed expectations by $25.7 million. As of September 9, Tellurian Inc. (NASDAQ:TELL) has gained 42.5% over the past twelve months.
On August 9, BofA analyst Julien Dumoulin-Smith upgraded Tellurian Inc. (NASDAQ:TELL) to Buy from Neutral and revised his price target on the stock to $4.50 from $6.50.
At the end of Q2 2022, 23 hedge funds held stakes in Tellurian Inc. (NASDAQ:TELL) worth $139 million. Of those, D E Shaw was the top shareholder with stakes worth $37.5 million.
In addition to Tellurian Inc. (NASDAQ:TELL), Cramer has also expressed bullish views this September for Cheniere Energy, Inc. (NYSE:LNG), The Coca-Cola Company (NYSE:KO), and CVS Health Corporation (NYSE:CVS).
9. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 25
Enbridge Inc. (NYSE:ENB) is an energy infrastructure company that operates through five business divisions: Liquid Pipelines, Gas Transmission & Midstream, Gas Distribution & Storage, Renewable Power Generation, and Energy Services. Jim Cramer likes Enbridge Inc. (NYSE:ENB) and sees the stock gaining more market share in the LNG space. Cramer noted that on July 29, Enbridge Inc. (NYSE:ENB) announced a strategic partnership with Pacific Energy Ltd. by which the two will jointly develop the Woodfibre LNG project, a 2.1 million tonne per annum facility located in British Columbia. Cramer said that though Enbridge Inc. (NYSE:ENB) has a long way to go with the project, it currently awards investors for their patience with a hefty dividend yield. As of September 8, Enbridge Inc. (NYSE:ENB) is offering a forward dividend yield of 6.36% and has free cash flows of $3.3 billion to support it.
On July 29, Enbridge Inc. (NYSE:ENB) announced earnings for the second quarter of fiscal 2022. The company reported earnings per share of $0.52 and generated a revenue of $10.32 billion, up 17.6% year over year, and beating estimates by $711 million. As of September 9, Enbridge Inc. (NYSE:ENB) has gained 6.16% year to date.
On August 2, Industrial Alliance analyst Matthew Weekes upgraded Enbridge Inc. (NYSE:ENB) to Buy from Hold and reiterated his C$60 price target. This August, National Bank analyst Patrick Kenny raised his price target on Enbridge Inc. (NYSE:ENB) to C$61 from C$60 and reiterated a buy-side Outperform rating on the shares.
At the end of Q2 2022, 25 hedge funds held stakes in Enbridge Inc. (NYSE:ENB) worth $2.36 billion. This is compared to 24 positions in the previous quarter with stakes worth $2.39 billion.
As of June 30, GQG Partners is the largest shareholder in Enbridge Inc. (NYSE:ENB) and owns more than 51.8 million shares of the company.
8. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 27
Jim Cramer included Hormel Foods Corporation (NYSE:HRL) among his top defensive stock picks for 2022. He likes the stock because of its inflation-resistant business model and believes it can be a “good trade-down play”. He likes the company’s signature brands including Spam, Jennie-O, Applegate, Skippy, and Planters.
On September 1, Hormel Foods Corporation (NYSE:HRL) announced earnings for the fiscal third quarter of 2022. The company reported earnings per share of $0.40 and generated a revenue of $3 billion, beating market expectations by $32 million.
On September 2, Piper Sandler analyst Michael Lavery revised his price target on Hormel Foods Corporation (NYSE:HRL) to $47 from $48 and reiterated a Neutral rating on the shares.
As of September 8, Hormel Foods Corporation (NYSE:HRL) has returned 11.16% to investors over the past twelve months and is offering a forward dividend yield of 2.21%, which the company free cash flows of $1 billion.
At the end of the second quarter of 2022, 27 hedge funds were long Hormel Foods Corporation (NYSE:HRL) and held stakes worth $434.5 million in the company. Of those, Renaissance Technologies was the top shareholder with stakes worth $140.8 million.
7. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 42
Cramer is bullish on General Dynamics Corporation (NYSE:GD) given the ongoing situation in Europe. He is bullish on the defense sector as a whole but likes General Dynamics Corporation (NYSE:GD) specifically because of the company’s management, the stock’s current valuation, and dividend yield. As of September 9, General Dynamics Corporation (NYSE:GD) has gained 9.75% year to date and is offering a forward dividend yield of 2.24%, which the company backs with free cash flows of $4.8 billion.
Jim Cramer also mentioned a recent deal General Dynamics Corporation (NYSE:GD) made with the government of Poland. On August 25, General Dynamics Corporation (NYSE:GD) announced that it has secured a $1 billion order to supply 250 Abrams battle tanks to Poland.
On August 29, RBC Capital analyst Ken Herbert initiated coverage of General Dynamics Corporation (NYSE:GD) with a buy-side Outperform rating and a $275 price target.
At the close of Q2 2022, 42 hedge funds held stakes in General Dynamics Corporation (NYSE:GD) worth $7.7 billion. Of those, Longview Asset Management was the leading shareholder with stakes of roughly $6.6 billion.
Here is what Oakmark Fund had to say about General Dynamics Corporation (NYSE:GD) in its second-quarter 2022 investor letter:
“Finally, General Dynamics Corporation (NYSE:GD)’s defense business enabled the stock to resist the bear market’s downward pressure. We eliminated the position to fund more attractive holdings.”
6. Archer Daniels Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
Cramer is bullish on Archer Daniels Midland Company (NYSE:ADM) and likes the stock as a “play on supply chain disruptions.” He also likes ADM because of its dividend payouts and current valuation. As of September 9, Archer Daniels Midland Company (NYSE:ADM) has a trailing twelve-month PE ratio of 14.3 and is offering a forward dividend yield of 1.77%, which the company supports with free cash flows of $1.6 billion.
Wall Street analysts are also bullish on Archer Daniels Midland Company (NYSE:ADM). On August 12, Wolfe Research analyst Sam Margolin initiated coverage of Archer Daniels Midland Company (NYSE:ADM) with an Outperform rating and a $117 price target. On July 27, Baird analyst Ben Kallo raised his price target on Archer Daniels Midland Company (NYSE:ADM) to $94 from $87 and reiterated an Outperform rating on the shares.
As of September 9, Archer Daniels Midland Company (NYSE:ADM) has gained 33.2% year to date.
At the end of Q2 2022, 42 hedge funds were long Archer Daniels Midland Company (NYSE:ADM) and held stakes worth roughly $659 million. This is compared to 42 positions in the preceding quarter with stakes worth $625.6 million.
As of June 30, Markel Gayner Asset Management owns 1.4 million shares of Archer Daniels Midland Company (NYSE:ADM) and is the largest shareholder in the company.
Here is what Diamond Hill Capital had to say about Archer-Daniels-Midland Company (NYSE:ADM) in its first-quarter 2022 investor letter:
“ADM is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”
Some other stocks Jim Cramer is talking about in September include Cheniere Energy, Inc. (NYSE:LNG), The Coca-Cola Company (NYSE:KO), and CVS Health Corporation (NYSE:CVS).
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Disclosure. None. Jim Cramer is Talking About These 10 Stocks in September is originally published on Insider Monkey.
