In this article, we discuss the 5 stocks that Jim Cramer just turned bullish on. If you want to read about some stocks in the Cramer portfolio, go directly to Jim Cramer Just Turned Bullish on These 10 Stocks.
5. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
Archer-Daniels-Midland Company (NYSE:ADM) makes and sells agricultural commodities and related products. In early September, Jim Cramer said that the firm was a “conservative, decent stock” and that he liked it as a play on supply chain disruptions. He added that the stock was on the road to recovery from a mid-July bottom as crop prices rebounded.
On August 12, Wolfe Research analyst Sam Margolin initiated coverage of Archer-Daniels-Midland Company (NYSE:ADM) with an Outperform rating and a price target of $117, noting the stock offered highly competitive dividend growth.
At the end of the second quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $658 million in Archer-Daniels-Midland Company (NYSE:ADM), the same as in the preceding quarter worth $625 million.
4. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 50
McDonald’s Corporation (NYSE:MCD) owns and runs fast food restaurants. On September 1, the former hedge fund manager placed the company among a group of dividend-paying stocks that he was bullish on for the coming months. He said that it can resume the long march higher real soon and was the perfect “bounce-back candidate” despite recent overhangs like cost inflation and a strong dollar.
On August 16, BMO Capital analyst Andrew Strelzik maintained an Outperform rating on McDonald’s Corporation (NYSE:MCD) stock and raised the price target to $300 from $285, noting that the firm was realizing accelerated growth and share gains in Europe.
At the end of the second quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in McDonald’s Corporation (NYSE:MCD), compared to 58 the preceding quarter worth $2.7 billion.
3. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 56
Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas firm. The journalist investor outlined his bullish stance on the firm during the Lightning Round of his show on September 1, saying that the firm had “the largest dividend in the S&P” and it was his stock. He added that Scott Sheffield, the CEO of the firm, “knows what he’s doing and is terrific”.
On August 31, Barclays analyst Jeanine Wai maintained an Overweight rating on Pioneer Natural Resources Company (NYSE:PXD) stock and lowered the price target to $309 from $324, noting that energy production names had top-tier free cash flow yields.
Among the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Pioneer Natural Resources Company (NYSE:PXD) with 51,665 shares worth more than $11.5 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pioneer Natural Resources Company (NYSE:PXD) was one of them. Here is what the fund said:
“Our underweight to the energy sector weighed on performance, as energy prices skyrocketed from inflationary pressures and the threat of reduced supply. We have a limited footprint within the sector but continue to look for companies that will generate strong, long-term returns such as Pioneer Natural Resources Company (NYSE:PXD). Pioneer is an oil and gas exploration and production company that offers a combination of a strong asset base, quality balance sheet and compelling free cash flow yield at current commodity prices. We believe Pioneer Natural Resources Company (NYSE:PXD) has strong underlying drivers that will generate attractive risk-adjusted returns beyond shorter-term fluctuations in energy prices.”
2. The Coca-Cola Company (NYSE:KO)
Number of hedge fund holders: 60
The Coca-Cola Company (NYSE:KO) is a Georgia-based beverage company. The former Goldman Sachs employee recently named the firm among a basket of dividend-paying firms he was bullish on. Cramer said that the firm was “textbook defensive stock” since the high dividend yield offered investors protection from market swings.
On September 6, HSBC analyst Carlos Laboy maintained a Buy rating on The Coca-Cola Company (NYSE:KO) stock and raised the price target to $76 from $72, noting the firm had new revenue drivers in Latin America.
Among the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE:KO) with 400 million shares worth more than $25 billion.
1. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 65
CVS Health Corporation (NYSE:CVS) is a Rhode Island-based company that provides healthcare services. The journalist investor recently turned bullish towards the stock, saying on August 31 that he just saw that the firm was going to authorize those new shots and he thought that the stock is “a buy and a buy and a buy”.
On September 7, Evercore ISI analyst Elizabeth Anderson maintained an Outperform rating on CVS Health Corporation (NYSE:CVS) stock and raised the price target to $125 from $120, appreciating the decision of the firm to merge with Signify Health.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based firm AQR Capital Management is a leading shareholder in CVS Health Corporation (NYSE:CVS) with 3.3 million shares worth more than $312 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:
“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of CVS Health Corporation (NYSE:CVS), which is well-positioned to help define the future of health care in terms of costs, quality and convenience.”
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