We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Cramer expressed some degree of belief in the chatter surrounding Apple Inc.’s (NASDAQ:AAPL) iPhone 16 launch. Here’s what Mad Money’s host had to say:
“Thursday can top Wednesday because that’s when Apple and Amazon report. Now we’ve heard lots of negative chatter about the iPhone 16 launch. I think that the chatter is right. I think people will rush to sell. I say hold on, we’ve seen this movie before. Apple’s had suboptimal launches before and the best strategy has been to own it, don’t trade it. I bet we’ll be right again. Now, I want you to gird yourself for a weak number. Everyone’s expecting a weak number. When you get a weak number, guess what? The stock goes down and then you have to buy. Be ready to do so.”
Apple (NASDAQ:AAPL), renowned for its iPhone, has established itself as one of the most respected companies in the technology sector. Recent market reactions, however, suggest a note of caution among analysts and investors regarding the iPhone 16. On October 28, as per TipRanks, JPMorgan analyst Samik Chatterjee reported on the firm’s Apple product availability tracker, noting that in the seventh week since the introduction of the iPhone 16 lineup, delivery lead times across all models have moderated.
This trend is particularly evident in the Pro models. While this moderation is slightly higher than observed in the same week last year, overall lead times remain comparable to those for the iPhone 15. According to the analyst, this suggests that demand for the new models is still present, though it appears modestly below the levels seen at this time last year.
Chatterjee’s analysis also highlights expectations for Apple’s (NASDAQ:AAPL) upcoming September quarter results, which may exceed initial forecasts, but guidance for the December quarter is anticipated to be weaker. He pointed out that sell-through for the iPhone 16 series began slower than for the iPhone 15.
Although recent weeks have shown improved momentum, the increase is not significant enough to reach volumes seen in previous launches. As a result, forecasts for iPhone revenues in fiscal Q1 are expected to be below consensus estimates. Nonetheless, JPMorgan maintained an Overweight rating on the stock, with a price target set at $265.
Overall AAPL ranks 5th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
