Jim Cramer October Calls: Top 10 Stocks

4. Sharkninja Inc (NYSE:SN)

Number of Hedge Fund Investors: 52

When asked about Sharkninja in a program on CNBC, Cramer said:

“These guys execute like you wouldn’t believe. I wish I had bought that for the trust instead of Next Tracker. But I didn’t. Would have, should have, could have. What a stock.”

Sharkninja Inc (NYSE:SN) makes vacuum cleaners, air fryers, multi-cookers, coffee makers, cookware, food preparation appliances, blenders, juicers, etc.  The company’s margins have improved significantly over the past few years as it focuses on recurring revenue streams and high-margin items. Sharkninja Inc (NYSE:SN) growth strategy is built on three pillars. First, the company is expanding into new product categories, adding 18 subcategories since 2021, including the Ninja FrostVault coolers and Shark FlexBreeze fans, which offer innovative features at competitive prices. Second, SharkNinja is boosting its presence in existing categories by launching 25 new products annually, 20 of which enhance existing lines like the industry-leading Double Stack XL air fryer. Third, Sharkninja Inc (NYSE:SN) is aggressively expanding internationally, entering six new countries in 2023 and expecting international growth to outpace domestic growth, with strong prospects in regions like Latin America and Europe. With a $120 billion total addressable market, SharkNinja is well-positioned to grow its less than 4% market share through this strategy.

The stock has a PEG ratio of 1.1, significantly lower than the 3.1 average for the Furnishings, Fixtures, & Appliances industry, indicating potential upside as the company grows.

Ave Maria World Equity Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q2 2024 investor letter:

“Top contributors to performance included SharkNinja, Inc. (NYSE:SN) and Taiwan Semiconductor Manufacturing Company Limited. SharkNinja, Inc. is a global product design and technology company focused on creating solutions that increase efficiency, convenience and enjoyment of consumers’ daily tasks and improve everyday lives. The company has built two billion-dollar brands, Shark and Ninja, and has a proven track record of establishing leadership positions by disrupting numerous household product categories, including cleaning, cooking, food preparation, home entertainment and beauty.”