This article presents an overview of Jim Cramer Says You Should ‘Buy, Buy, Buy’ These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer Says You Should ‘Buy, Buy, Buy’ These 11 Stocks.
5. Constellation Energy Corp (NASDAQ:CEG)
Number of Hedge Fund Investors: 41
Jim Cramer was recently asked about his thoughts on hydrocarbon exploration company California Resources. Cramer said instead of buying this stock, investors should pile into Constellation Energy Corp (NASDAQ:CEG).
“I’d rather be in Constellation Energy. Let’s just go right to the source. Let’s go to Constellation.”
Sound Shore Management made the following comment about Constellation Energy Corporation (NASDAQ:CEG) in its Q3 2023 investor letter:
“On the plus side of the ledger, we had strong contributions from independent power producers Vistra and Constellation Energy Corporation (NASDAQ:CEG). Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Meanwhile, Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”
4. Core & Main Inc (NYSE:CNM)
Number of Hedge Fund Investors: 43
When asked about Missouri-based distributor of water, wastewater, storm drainage and fire protection products, Core & Main Inc (NYSE:CNM), Jim Cramer said that Core & Main Inc (NYSE:CNM) is at the “heart of this infrastructure boom market I keep talking about.” Cramer said the stock is “perfectly positioned” and “believe it or not” it can go higher from here even though it has already been a “horse.” Core & Main Inc (NYSE:CNM) shares have gained about 154% over the past one year.
Out of the 933 hedge funds tracked by Insider Monkey, 43 hedge funds reported owning stakes in Core & Main Inc (NYSE:CNM). The biggest stake in Core & Main Inc (NYSE:CNM) is owned by Robert Joseph Caruso’s Select Equity Group which owns a $370 million stake in Core & Main Inc (NYSE:CNM).
Polen U.S. Small Company Growth Strategy stated the following regarding Core & Main, Inc. (NYSE:CNM) in its fourth quarter 2023 investor letter:
“Core & Main, Inc. (NYSE:CNM) is an industrial distributor specializing in waterworks and fire protection markets, distributing an extensive range of over 200,000 products, including pipes, valves, fittings, water meters, storm drainage, and fire protection equipment. As one of the two largest players in a fragmented industry, the company has a solid track record of capital allocation skill that will serve them well as they continue to consolidate the industry through disciplined acquisitions. We view CNM as a high-quality business that is currently undervalued by the market given the structural tailwinds around an urgent need to repair and replace aging municipal water infrastructure. In our view, this positions the company for potential earnings surprises and multiple expansion, making it a compelling investment opportunity with an estimated IRR of approximately 20%.”
3. Crown Castle Inc (NYSE:CCI)
Number of Hedge Fund Investors: 45
A questioner recently asked Jim Cramer whether he should buy, sell or hold shares of Crown Castle Inc (NYSE:CCI), the Texas-based telecom infrastructure company. Cramer said that at the current levels and with a 6% dividend yield, Crown Castle Inc (NYSE:CCI) is a Buy.
As of the end of the fourth quarter of 2023, 45 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Crown Castle Inc (NYSE:CCI). The most significant stake in Crown Castle Inc (NYSE:CCI) is owned by Ken Fisher’s Fisher Asset Management which owns a $524 million stake in Crown Castle Inc (NYSE:CCI).
2. Capital One Financial Corp. (NYSE:COF)
Number of Hedge Fund Investors: 51
Jim Cramer recently gave highly bullish comments about Capital One Financial Corp. (NYSE:COF). He said that Capital One Financial Corp. (NYSE:COF) is “terrific” and Capital One Financial Corp.’s (NYSE:COF) management is “great.” Cramer said that it would be “amazing” if Capital One Financial Corp. (NYSE:COF) is able to close its deal to acquire Discover. Cramer reiterated that Capital One Financial Corp. (NYSE:COF) is a “good company” and recommended a questioner who asked about the stock to “stick with” it.
As of the end of the last quarter of 2023, 51 hedge funds out of the 933 funds tracked by Insider Monkey reported having stakes in Capital One Financial Corp. (NYSE:COF). The most significant stake in Capital One Financial Corp. (NYSE:COF) is owned by Natixis Global Asset Management’s Harris Associates which owns a $2.4 billion stake in Capital One Financial Corp. (NYSE:COF).
Sound Shore Management made the following regarding Capital One Financial Corporation (NYSE:COF) in its fourth quarter 2023 investor letter:
“Long-term holding Capital One Financial Corporation (NYSE:COF) was also one of our better performers this quarter. The company boasts a diversified deposits base with about 80% FDIC insured, well above industry average. It is the only major bank 100% in the cloud, which enables better underwriting and quicker response to changes in the environment. This technology also helps reduce operating and fraud cost while freeing up cash flow for reinvestment in marketing to grow products (Venture X card) and build its brand. Periods of stress, like we saw in the banking sector during March, are a reminder of the underwriting acumen and high quality deposits of Capital One. We added to our position after the fallout, knowing that the company’s seasoned management team had steered capably through previous cycles. Today, as credit card delinquencies have risen to more normal levels, Capital One is already reporting a slowing in delinquency growth. Conversely, some peers saw prior underwriting missteps begin to surface in 2023. Currently trading at 9 times 2024 consensus earnings and around book value, we remain enthusiastic about the investment.”
1. Becton Dickinson and Co (NYSE:BDX)
Number of Hedge Fund Investors: 60
Jim Cramer is puzzled about New Jersey-based medical device company Becton Dickinson and Co (NYSE:BDX) and said during one of his recent programs that the stock is inexpensive since “nobody” seems to like it and it’s getting “crushed.” Cramer thinks it’s time to buy the stock. Over the past six months the stock is down about 4%.
Out of the 933 funds tracked by Insider Monkey, 60 hedge funds reported owning stakes in Becton Dickinson and Co (NYSE:BDX). The biggest stakeholder of Becton Dickinson and Co (NYSE:BDX) during this period was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $476 million stake in Becton Dickinson and Co (NYSE:BDX).
Aristotle Atlantic Core Equity Strategy stated the following regarding Becton, Dickinson and Company (NYSE:BDX) in its fourth quarter 2023 investor letter:
“Becton, Dickinson and Company (NYSE:BDX) detracted from portfolio performance in the quarter, as the company announced lower-than-expected guidance for fiscal year 2024. The weaker guidance was mainly driven by adverse moves in foreign exchange markets; however, the guidance seemed to surprise investors, even though we believe the underlying business trends remain solid.”
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