In this article, we will take a detailed look at Jim Cramer Says You Should ‘Buy, Buy, Buy’ These 11 Stocks. For a quick overview of such stocks, read our article Jim Cramer Says You Should ‘Buy, Buy, Buy’ These 5 Stocks.
Jim Cramer in his latest program talked about CNBC’s Alpha Stock Survey according to which a “majority” of investors believe the market is headed for a pullback. Cramer is not at all worried about a possible decline in the market.
“Hallelujah about that survey,” Cramer said.
Jim Cramer said that the S&P 500 is up 10% in the first three months of 2024, registering the best quarter since 2019. This makes Cramer believe that the market is indeed heading for a pullback. But he said we should “welcome it, not fear it.”
Jim Cramer “Welcomes” Market Sell-Offs
Jim Cramer said that sell-offs are “inevitable.” He said even though we don’t know when they will hit, they are always expected and we should take them as buying opportunities. Cramer said he learned the concept of welcoming sell-offs from the legendary investor Peter Lynch, who famously said that you should expect a 10% pullback on average after every two years and a 25% “beatdown” every six years. Peter Lynch, Cramer reminded, said about 30 years ago that despite pullbacks and sell-offs the market tends to do well in the long term since according to his estimates corporate profits grow 8% per year. Lynch said the stock market follows corporate earnings and as a result made almost accurate predictions about the Dow Jones growing at about 8% per year.
Cramer Thinks Market’s “Breadth Problem” is Solved
Jim Cramer also said that anyone who still “insists” that this market is just about major tech names like Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) and other Mag. 7 stocks, they should rethink since he believes there are “so many winners” in the market that “it’s insane.” Cramer believes the market no longer has the “breadth” problem because returns are expanding across the board, sometimes at the “expense” of mega-cap technology stocks.
Jim Cramer thinks that it’s of no use to stay fixated on the Federal Reserve for now, with all indications saying the central bank is in no hurry to cut interest rates. Cramer wants investors to instead focus on earnings and the performance of individual companies. Cramer said we haven’t seen mass rounds of layoffs that many in the “hard landing” camp were expecting. He said we are prepared to see another hot jobs report, but if it comes softer-than-expected, we will go into the next earnings season with a “pleasant backdrop.”
Methodology
For this article we watched latest programs of Jim Cramer aired on CNBC over the past few days and picked 11 stocks he recommended investors to buy. With each stock we have mentioned the number of hedge fund investors. 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).
11. New Fortress Energy Inc (NASDAQ:NFE)
Number of Hedge Fund Investors: 24
Jim Cramer hit the ‘Buy, Buy, Buy’ button on LNG company New Fortress Energy Inc (NASDAQ:NFE) during one of his recent programs on CNBC. Cramer said Wes Edens (New Fortress Energy Inc (NASDAQ:NFE) CEO) is “absolutely terrific at what he does.” Cramer said he likes the stock at the current levels.
10. Samsara Inc (NYSE:IOT)
Number of Hedge Fund Investors: 28
Jim Cramer was recently asked about Samsara Inc (NYSE:IOT). Here’s what he said about the sock.
“Oh my god, this is the hottest stock, it’s gonna make money too.”
Cramer said that Samsara Inc (NYSE:IOT) is a “DevOps shop.” Cramer said that it’s a “hardware-software platform” and people “love these kinds of stocks” and they cannot “live without them.”
Earlier this month, Samsara Inc (NYSE:IOT) posted Q4 results. Adjusted EPS in the period came in at $0.04, beating estimates by $0.01. Revenue in the period jumped 48.1% year over year to $276.27 million, beating estimates by $17.96 million.
9. Rio Tinto Plc ADR Common Stock (NYSE:RIO)
Number of Hedge Fund Investors: 34
Jim Cramer thinks Rio Tinto Plc ADR Common Stock (NYSE:RIO) is a “great company to buy here.” Cramer said that this mineral company is a “terrific” and “really good” idea.
Over the past one year Rio Tinto Plc ADR Common Stock (NYSE:RIO) shares have gained about 4% over the past one year.
Earlier this month, the stock was downgraded by Liberum to Hold from Buy amid softening demand and China-related concerns.
8. Coherent Corp (NYSE:COHR)
Number of Hedge Fund Investors: 35
Pennsylvania-based optical materials and semiconductors company Coherent Corp (NYSE:COHR) is one of the stocks Jim Cramer is recommending investors to buy. Cramer said Coherent Corp (NYSE:COHR) has “a lot of lasers, a lot of optics, a lot of good stuff.” Cramer said Coherent Corp (NYSE:COHR) is “gonna make money this year.” He said investors should buy some of Coherent Corp (NYSE:COHR) stock now and then wait for the stock to come down to buy some more.
In addition to COHR, Cramer also likes Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG).
As of the end of the fourth quarter of 2023, 35 hedge funds had stakes in Coherent Corp (NYSE:COHR).
Diamond Hill Select Strategy stated the following regarding Coherent Corp. (NYSE:COHR) in its fourth quarter 2023 investor letter:
“In addition to Diamondback Energy, we also initiated positions in Coherent Corp. (NYSE:COHR) and HCA Healthcare in Q4. Coherent supplies engineered materials and devices to semiconductor equipment companies, data center and telecom companies, and it also produces lasers for industrial applications. The company has a long history of successfully innovating in these areas and is well-positioned to benefit from demand for advanced transceivers as artificial intelligence (AI) investments increase. As near-term cyclical headwinds have weighed on the share price, we capitalized on what we view as an attractive price relative to our estimate of intrinsic value to initiate a position.”
7. Pure Storage Inc (NYSE:PSTG)
Number of Hedge Fund Investors: 37
When asked about Pure Storage Inc (NYSE:PSTG), Cramer said that it’s making money and since the stock has run a lot, investors should buy some of it now and then wait for a pullback before buying more.
Pure Storage Inc (NYSE:PSTG) shares have gained 50% year to date through March 29.
During its earnings call last month, the company talked about shareholder returns and guidance:
“We have approximately $145 million remaining on our existing $250 million repurchase authorization, and we are announcing today a new share repurchase authorization of $250 million. Now turning to our guidance for FY ’25. We expect to return to double-digit revenue growth in FY ’25, growing 10.5% to $3.1 billion. We expect demand across our entire data storage platform will strengthen while also remaining cautious of the macro spending environment. Our annual revenue guide of 10.5% growth also contemplates approximately 50% growth in TCV sales for our collective Evergreen/One and Evergreen/Flex service offerings, which are expected to be $600 million.
To help better understand the short-term impact that growth of our consumption and subscription offerings have on our annual revenue growth rate we estimate that our forecasted FY ’25 revenue growth would be in the mid-teens when adjusting for the expected growth of both our Evergreen/One and Evergreen/Flex service offerings. Slightly offset by expected additional revenue arising from past TCV sales in FY ’24. Consistent with our philosophy in driving profitable growth, we expect FY ’25 operating profit to be $532 million, and operating margin to be 17%. Margin for FY ’25 is in line with our longer-term goal of expanding operating margin by a percentage point or 2 each year and represents a 2-point increase from our FY ’24 guide that we communicated at the beginning of the year.”
Read the full earnings call transcript here.
6. Cummins Inc (NYSE:CMI)
Number of Hedge Fund Investors: 39
Generators and power systems company Cummins Inc (NYSE:CMI) is one of the stocks Jim Cramer is highly bullish on. Recently, a questioner asked Jim Cramer during his program whether he should sell Cummins Inc (NYSE:CMI) to buy another stock. Cramer said, “ I forbid you to sell Cummins.” Cramer said that Jennifer Rumsey (Cummins’ CEO) is doing “such a fabulous job.” In addition to CMI, Cramer also likes Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG).
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Disclosure. None. Jim Cramer Says You Should ‘Buy, Buy, Buy’ These 11 Stocks is originally published on Insider Monkey.