Jim Cramer Says “Hang On To Stocks” and Recommends 10 Stocks

Published on May 6, 2024 at 12:01 pm by Fahad Saleem in Hedge Funds, News

In this article, we will take a detailed look at Jim Cramer Says “Hang On To Stocks” and Recommends 10 Stocks to Buy. If you want to skip our detailed analysis and see the top 5 stocks in this list, click Jim Cramer Says “Hang On To Stocks” and Recommends 5 Stocks.

Cramer Thanks Powell for “All-Clear” Sign

Jim Cramer last week thanked Fed Chair Jerome Powell for giving an “all-clear” sign by keeping interest rates unchanged. Cramer said that the Fed’s dovish comments catapulted the market from the pits of deep red to new highs.

Jerome Powell: “The Bull’s Best Friend”

He thinks Jerome Powell has become “the bull’s friend for the moment, maybe best friend.” Jim Cramer said that despite the signs of “softness all over the place,” Powell is currently “more of a dove than a hawk” since he believes inflation will “go away on its own.”

Powell Takes Another Rate-Hike Scenario Off the Table

Cramer said Jerome Powell was “badgered” by the media about the possibility of another rate hike. But Powell, according to Cramer, is “too smart” as he didn’t take the “bait” and took the “dreaded” rate hike scenario “off the table.”

Cramer Says Hang On To Stocks

” I think Jay Powell has realized that these brown shoots are doing the work for him and his consistent messaging in the face of endless Fedspeak tells me that I think you should hang on to stocks.”

Cramer Laments About The Market’s Obsession with Fed

Jim Cramer in another program last week again voiced his frustrations about the market’s obsession with the Federal Reserve’s policy comments, saying jobs numbers, inflation, possibility of rate cuts and the Fed’s future moves is “all we talk about.” Cramer said that some analysts were expecting the Fed chair Jerome Powell to “lower the boom” of the stock market by “saying something hawkish.” Cramer is surprised that some circles in the market are talking about another raise.

“We are once again hostage to everyone’s worries about the Fed which is another way of saying, everyone’s worries about inflation.”

Jim Cramer on What Should You Buy in the Current Environment

After analyzing the current market situation, Cramer came straight to what matters the most for an average investor:

“So, what wins in this environment? What do you do? Well, pretty much everything is going to kind of work here,” Cramer said before analyzing different stocks some of which we will discuss in this article.

Don’t Miss: Jim Cramer’s Stock Picks Heading into May 2024

Jim Cramer Says "Hang On To Stocks" and Recommends 10 Stocks to Buy

For this article we watched latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s recommending investors in the current market environment. Some top names in the list include Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA). With each stock we have mentioned the number of hedge fund investors. Why is it important to pay attention to hedge fund sentiment? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

10. Wynn Resorts, Limited (NASDAQ:WYNN)

Number of Hedge Fund Investors: 46

Jim Cramer is anxiously waiting for the latest quarter report from Wynn Resorts, Limited (NASDAQ:WYNN) as his charitable trust owns a position in the company. In a latest program, Cramer highlighted that Wynn Resorts, Limited (NASDAQ:WYNN) has two casinos in Macau. Cramer is bullish on the China business of Wynn Resorts, Limited (NASDAQ:WYNN) because he thinks the Chinese are “willing to travel locally.”

Wynn Resorts, Limited (NASDAQ:WYNN) is scheduled to post earnings May 7 after markets close.

Baron Real Estate Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its fourth quarter 2023 investor letter:

“The shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, declined modestly in the most recent quarter, in part due to concerns about economic weakness in China.

We remain optimistic about the multi-year prospects for the company. We believe the ongoing re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase 30% to 50% higher than where they have recently traded.

We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”

9. Okta Inc (NASDAQ:OKTA)

Number of Hedge Fund Investors: 47

A caller reminded Jim Cramer during his program that he was bullish on Cloud software company Okta Inc (NASDAQ:OKTA) last month. The stock is down about 3.3% over the past 30 days. The questioner asked whether Cramer is still bullish on the company.

“Oh am I ever, I think Okta is terrific.”

Cramer also praised Okta, Inc. (NASDAQ:OKTA) CEO Todd McKinnon and said that he was “humbled” by the hacking attack and “learned” from it. Cramer was referring to the attack on Okta, Inc. (NASDAQ:OKTA) in which hackers, according to the company, stole data of almost all users of its customer support system.

Meridian Growth Fund made the following comment about Okta, Inc. (NASDAQ:OKTA) in its Q3 2023 investor letter:

“Okta, Inc. (NASDAQ:OKTA) is the largest independent identity software company, serving enterprises, small- and medium-sized businesses, universities, non-profits, and government agencies across the globe. Its solutions provide higher-level security authentication services, a business-critical function that has the attention of CEOs and IT leaders everywhere. The company’s integration with 7,000 other software vendors and system providers is a competitive advantage that enables rapid and seamless implementations. Okta’s complete product suite allows customers to deploy an enterprise-wide identity platform that serves both the workforce segment (clients’ employees) and the customer segments (clients’ customers). The stock has started to recover after falling nearly 85% from post-COVID bubble levels due to a stabilization in the overall macro environment for security services. The company has also seen a normalization in salesforce attrition which had hampered growth. The stock moved higher during the quarter when it reported higher than expected revenues and a much-improved adjusted operating margin of 11% versus -3% in the prior year quarter. Beyond its core capabilities, which are in high demand, we are also encouraged by the company’s ability to expand into product adjacencies such as privileged access management and identity governance. Due to these improving fundamentals, we added to our position in the company during the period.”

8. Dell Technologies Inc (NYSE:DELL)

Number of Hedge Fund Investors: 56

Jim Cramer earlier this month hit the “buy, buy, buy” button on Dell Technologies Inc (NYSE:DELL), saying the stock is “cheap.” Cramer said Dell Technologies Inc (NYSE:DELL) CEO Michael Dell is “terrific.” Cramer said Dell Technologies Inc (NYSE:DELL) is a “good stock to own” and he wants people to buy it. In addition to DELL, he’s also recommending Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).

As of the end of the fourth quarter of 2023, 56 hedge funds tracked by Insider Monkey had stakes in Dell Technologies Inc (NYSE:DELL). The most notable stake in Dell Technologies Inc (NYSE:DELL) is owned by Panayotis Takis Sparaggis’s Alkeon Capital Management which owns a $383 million stake in Dell Technologies Inc (NYSE:DELL).

7. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Investors: 57

Jim Cramer was recently asked about Costco Wholesale Corporation (NASDAQ:COST). He said he “likes Costco very much.” Last month Costco Wholesale Corporation (NASDAQ:COST) upped its dividend by 13.7%. Jim Cramer praised this news and said the hike shows the stock has the potential to go higher.

6. HCA Healthcare Inc (NYSE:HCA)

Number of Hedge Fund Investors: 72

Jim Cramer is bullish on HCA Healthcare Inc (NYSE:HCA), saying HCA Healthcare Inc’s (NYSE:HCA) latest quarter was “good.”

“I’m going to have to go with it. I know it’s been uneven last year but it’s been a great long-term horse.”

HCA Healthcare Inc (NYSE:HCA) recently posted first quarter results. GAAP EPS in the period came in at $5.93. Revenue in the quarter jumped 11.2% year over year to $17.34 billion.

Of the 933 hedge funds tracked by Insider Monkey, 72 hedge funds reported owning stakes in HCA Healthcare Inc (NYSE:HCA).

In addition to HCA, investors are also watching Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).

Oakmark Equity and Income Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its first quarter 2024 investor letter:

“We eliminated one position, HCA Healthcare, Inc. (NYSE:HCA), during the quarter as the stock traded at our estimate of fair value. HCA was a very good investment and more than quadrupled from our original investment price in 2016. We believe HCA is a well-managed business with the best collection of assets in the hospital space. Hospital stocks tend to be much more volatile than their actual intrinsic value, and we would gladly purchase HCA again if the discount to value warrants.”

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