In this article, we take a look at 5 stocks that received bullish comments from Jim Cramer recently. If you want to read the discussion on Jim Cramer’s history and investment philosophy, go directly go to Jim Cramer Loves These 10 Stocks.
5. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 72
Total Value of Hedge Funds’ Holding: $6,064,726,000
The Procter & Gamble Company (NYSE:PG) is an Ohio-based fast-moving consumer goods company.
Jim Cramer has termed the stock a great pick for recession as the sales for The Procter & Gamble Company (NYSE:PG) are expected to not fall during an economic downturn. Cramer highlighted the company’s position in the Dividend Aristocrat List for increasing its dividend for the past 65 consecutive years. The analysts are also bullish on the stock as Lauren Lieberman at Barclays increased the price target on The Procter & Gamble Company (NYSE:PG) from $167 to $176 in a note issued to investors on April 22. The analyst maintained an Overweight rating on the stock and highlighted that The Procter & Gamble Company (NYSE:PG) is in a position to set an extremely high bar for the industry.
Of the 912 hedge funds being tracked by Insider Monkey, 72 funds held a stake in The Procter & Gamble Company (NYSE:PG) at the end of Q1 2022.
4. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 64
Total Value of Hedge Funds’ Holding: $29,170,833,000
The Coca-Cola Company (NYSE:KO) is an Atlanta, Georgia-based non-alcoholic beverages company that received a Buy rating by Jim Cramer on April 25 following its Q1 2022 results. Cramer appreciated the management team for an outstanding quarter and termed The Coca-Cola Company (NYSE:KO) stock as an endurable and investable stock.
A similar sentiment was reiterated by the equities research team at Bank of America, which included The Coca-Cola Company (NYSE:KO) stock in the “US 1” list. The list comprises the best investment ideas among the stocks that have been given a Buy rating. The Coca-Cola Company (NYSE:KO) reported stronger-than-expected revenue and earnings results for the quarter as the company revealed an 8% rise in volume due to positive demand for drinks like Powerade and Coke Zero Sugar.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in their second-quarter investor letter for 2021. Here’s what was said by the asset management company:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
Overall, 64 funds held a stake in The Coca-Cola Company (NYSE:KO) at the end of Q1 2022.
3. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 41
Total Value of Hedge Funds’ Holding: $982,324,000
Constellation Brands, Inc. (NYSE:STZ) is a New York-based beer, wine, and spirits company. On May 5, Cramer initiated a position in the stock. During an interview on Mad Money, CEO Bill Newlands highlighted that the Modelo brand fulfills the demand of the consumers and has robust growth prospects.
Furthermore, Constellation Brands, Inc. (NYSE:STZ) intends to fulfill its share repurchase program to boost shareholder return. Newlands also highlighted that the pressures due to cost have been unreal, but he anticipates inflation to ease down going forward. Brands like Corona and Modelo cater to the growing Hispanic community. Cramer stated that beer consumption rises during periods of recession, making Constellation Brands, Inc. (NYSE:STZ) a great pick.
As of Q1 2022, 41 hedge funds held a stake in Constellation Brands, Inc. (NYSE:STZ).
2. AutoZone, Inc. (NYSE:AZO)
Number of Hedge Fund Holders: 38
Total Value of Hedge Funds’ Holding: $1,525,776,000
AutoZone, Inc. (NYSE:AZO) is a Memphis, Tennessee-based retailer of parts and accessories for automobiles with 6,400 Stores across the US.
Cramer has termed AutoZone, Inc. (NYSE:AZO) as a great stock pick because of its numbers and the strong share repurchase program. The company provides a strong hedge against inflation due to its high gross margin. Furthermore, AutoZone, Inc. (NYSE:AZO) is expected to be only “marginally” impacted by the chip shortage in comparison to other automobile stocks. Instead, it could be a beneficiary if people forego the purchase of new cars and invest more in their current vehicles in terms of repairs and new spare parts.
Altron Capital Management, an investment management firm, mentioned AutoZone, Inc. (NYSE:AZO) in its Q4 2021 investor letter. Here’s what it said:
“AutoZone has been a winner since we built a position in the company last quarter. Given the current supply challenges in the automotive sector, we believe the long-standing trend of America’s aging automotive fleet will continue for the foreseeable future with AutoZone as a primary beneficiary.”
As of Q1 2022, 38 funds held a stake in AutoZone, Inc. (NYSE:AZO).
1. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 44
Total Value of Hedge Funds’ Holding: $1,241,827,000
Cloudflare, Inc. (NYSE:NET) is a San Francisco, California-based content delivery network and DDoS mitigation company.
According to Cramer, Cloudflare, Inc. (NYSE:NET) is a “fine” company. Cloudflare has observed a 50% YoY growth in revenue for the last seven consecutive quarters. In a report issued on May 16, Alex Henderson at Needham gave Cloudflare, Inc. (NYSE:NET) stock a Buy rating with a price target of $100. Despite the recent sell-off in growth stocks, the analyst terms Cloudflare as a long-term holding in all aspects. Henderson recommended buying the stock on recent weakness.
Baron Funds mentioned Cloudflare, Inc. (NYSE:NET) in its Q1 2022 investor letter. Here’s what the firm said:
“Cloudflare, Inc., another new purchase during the quarter, is a web infrastructure and website security provider. Cloudflare disrupts legacy networking vendors by enabling customers to rent their network solutions in the cloud (and pay for usage) instead of buying firewalls, load balancers and secure web gateway devices. Using a global network in over 100 countries, Cloudflare delivers content and security within 50 milliseconds of 95% of the internet-connected population in the world. Shares contributed 12bps to results on impressive fourth quarter earnings as it continues to successfully layer high-value services such as zero trust, network services, and edge programmability on top of its modern global network. The company is attracting a broader set of investors as Cloudflare now matches durable 50%-plus top-line growth (this was the fifth straight quarter of 50%-plus revenue growth, and 56% current bookings growth suggests strong durability into 2022) with positive operating margins and break-even free cash flow. We believe that Cloudflare will benefit from a long-duration of growth disrupting a $100 billion addressable market across application services, network services, and zero-trust services.”
Overall, 44 hedge funds held a stake in Cloudflare, Inc. (NYSE:NET) in Q1 2022.
You can also take a peek at the 10 LNG Shipping Stocks to Buy Now and 10 Stocks to Buy According to Canyon Capital Advisors.
