This article presents an overview of Jim Cramer is Talking About These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer is Talking About Trump Media and 11 Other Stocks.
5. Cisco Systems Inc (NASDAQ:CSCO)
Number of Hedge Fund Investors: 60
A caller recently asked Jim Cramer whether she should hold onto her stake in Cisco Systems Inc (NASDAQ:CSCO). Cramer recommended the caller to stay invested in Cisco Systems Inc (NASDAQ:CSCO) since he likes the dividend yield of Cisco Systems Inc (NASDAQ:CSCO) and the growth prospects following Cisco Systems Inc’s (NASDAQ:CSCO) $28 billion acquisition of Splunk.
Oakmark Fund made the following comment about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2023 investor letter:
“Cisco Systems, Inc. (NASDAQ:CSCO) is the leading networking solutions company. Networking equipment becomes more important as businesses modernize their IT infrastructure, and Cisco is well positioned to capture this demand given its broad portfolio and highly effective go-to-market strategy. Cisco is transitioning away from selling mainly transactional hardware and toward selling more software and subscriptions. This shift is expected to accelerate revenue growth, improve operating margins and build recurring revenue. Despite these notable business improvements, Cisco still trades near a trough valuation relative to the S&P 500 Index. More recently, Cisco announced its intention to acquire Splunk, a leader in security and observability, adding to its already strong position in the increasingly important security market. At a low-teens multiple of our estimate of normalized earnings, Cisco is trading comfortably below our estimate of intrinsic value.”
4. Charter Communications Inc (NASDAQ:CHTR)
Number of Hedge Fund Investors: 69
Jim Cramer called Charter Communications Inc (NASDAQ:CHTR) an “awful” stock recently during his program on CNBC. Cramer said he’s putting Charter Communications Inc (NASDAQ:CHTR) in the “pantheon of awful.”
Jim Cramer also said that Charter Communications Inc (NASDAQ:CHTR) would actually be the “most awful stock that I know.”
Here is what Weitz Conservative Allocation Fund has to say about Charter Communications, Inc. (NASDAQ:CHTR) in its Q3 2023 investor letter:
We swapped the Fund’s Liberty Broadband Corporation (NASDAQ:LBRDK) shares back to Charter Communications, Inc. (NASDAQ:CHTR) (Charter is by far Liberty Broadband’s largest asset), and the combined position was the most notable quarterly contributor. Investor sentiment around broadband’s competitive position became less negative, and the stocks rebounded nicely from what we considered oversold levels.
3. UnitedHealth Group Inc (NYSE:UNH)
Number of Hedge Fund Investors: 113
Jim Cramer recently talked about some of the worst performers in the Dow during the first quarter. UnitedHealth Group Inc (NYSE:UNH) shares got clobbered in the period and Cramer believes that was because of higher medical costs and the hacking attack on UnitedHealth Group Inc (NYSE:UNH) which Cramer said was one of the worst data breaches in the history of the industry. Cramer said his “friends” in the cybersecurity industry say it was “just horrendous.” However, Cramer said of the six losers of the Dow he was covering in his program, UnitedHealth Group Inc (NYSE:UNH) had the highest chance of a rebound.
Sequoia Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2023 investor letter:
“The return in UnitedHealth Group Incorporated (NYSE:UNH) shares was essentially flat last year, whereas the Index was up sharply. In 2022, the return in UnitedHealth shares was modestly positive, whereas the Index was down sharply. The company’s financial performance, however, has been quite steady all along. In 2022, United’s revenues and earnings per share were up approximately 13% and 17%, respectively. We expect them both to be up low-teens in 2023. These pleasing financial results are consistent with United’s historical track record and with what we believe we will see for years to come.
Last year, sentiment across the managed care space was negatively impacted by concerns over reimbursement levels for Medicare Advantage, a perceived increase in the risk of adverse regulation for pharmacy benefit managers, and a slight deterioration of medical loss trends. While we do not dismiss these factors as irrelevant, we consider them in the context of the scale and diversity of United’s business as well as the resulting essential role the company plays in the admittedly imperfect US healthcare system…” (Click here to read the full text)
2. Alibaba Group Holding Ltd – ADR (NYSE:BABA)
Number of Hedge Fund Investors: 116
Jim Cramer recently reiterated that he isn’t a “fan” of Chinese stocks but if you were to have a Chinese name in your portfolio, Cramer thinks it should be Alibaba Group Holding Ltd – ADR (NYSE:BABA). The CNBC host said Alibaba Group Holding Ltd – ADR (NYSE:BABA) has the most “American-like financials.”
“BABA is the one if you want to go there.”
Alibaba Group Holding Ltd – ADR (NYSE:BABA) shares are down about 25% over the past one year. Recently, the Chinese ecommerce giant said it bought back a whopping 524 million ordinary shares in the first quarter of 2024 for $4.8 billion. This was Alibaba Group Holding Ltd – ADR’s (NYSE:BABA) biggest quarterly buyback ever.
Alibaba Group Holding Ltd – ADR (NYSE:BABA) is also quite popular among the 933 hedge funds tracked by Insider Monkey since 116 funds reported owning stakes in Alibaba Group Holding Ltd – ADR (NYSE:BABA) as of the end of 2023, compared to 110 funds in the previous quarter.
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.”
1. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 131
Jim Cramer seemed worried about Apple Inc (NASDAQ:AAPL) in a latest program on CNBC. He said there’s an “inventory bubble” developing amid slowing phone sales and Apple Inc (NASDAQ:AAPL) might report “no growth” or even “down revenue.” If that’s the case, Cramer said the stock might struggle to stay at $160. Cramer also said despite the declines the “darn thing” still sells for 25 times earnings which is too high a multiple. However, he believes the upcoming Developers Conference in June could bring growth catalysts for Apple Inc (NASDAQ:AAPL) if the company positions its Vision Pro for the enterprise. Cramer also said that Nvidia CEO Jensen Huang has talked about his interest in doing business with Apple Inc (NASDAQ:AAPL). If the two companies join hands in the AI domain, Apple Inc (NASDAQ:AAPL) stock could be a “screaming buy.” Cramer said that his long-term view on Apple Inc (NASDAQ:AAPL) remains unchanged and he still urges investors to “own it, not trade it.”
Orbis Global Equity Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2023 investor letter:
“Never before has following the crowd made so much money. Nor, in our estimation, so little sense. But just look at the opportunities the crowd has left for those of us willing to take a different view. We could wax lyrical about the glaring difference in value between Korean banks priced at 4 times earnings, versus Apple Inc. (NASDAQ:AAPL) at 28 times, despite diverging fundamentals—Apple is increasingly at risk of bans in China, while Korean banks could double their dividends.”
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