This article presents an overview of the Jim Cramer Says You Should Stay Away from These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer Says You Should Stay Away from These 10 Stocks.
5. Plug Power Inc (NASDAQ:PLUG)
Number of Hedge Fund Investors: 26
While talking about a few renewable energy stocks, Cramer recently said:
“Plug Power? ….Grenade! Fire in the hole!”
In December 2023 Cramer had categorically said that he was pulling the plug on Plug Power Inc (NASDAQ:PLUG).
4. JetBlue Airways Corporation (NASDAQ:JBLU)
Number of Hedge Fund Investors: 20
Jim Cramer was recently asked about his thoughts on JetBlue Airways Corporation (NASDAQ:JBLU). Cramer, who’s been bearish on airlines stocks over the past few months, said airline stocks should have been making “a lot more money.”
Cramer said he will not “start inventing reasons why we should own them”
As of the end of the third quarter of 2023, 20 hedge funds had stakes in JetBlue Airways Corporation (NASDAQ:JBLU), according to Insider Monkey’s database of 910 hedge funds. The most notable hedge fund stakeholder of JetBlue Airways Corporation (NASDAQ:JBLU) during this period was Ken Griffin’s Citadel Investment Group which owns a $13.8 million stake.
3. Crocs Inc (NASDAQ:CROX)
Number of Hedge Fund Investors: 41
Jim Cramer has been skeptical and hesitant about Crocs Inc (NASDAQ:CROX) but recently recommended investors to avoid investing in Crocs Inc (NASDAQ:CROX).
When asked about the American footwear company Crocs Inc (NASDAQ:CROX) shares, Cramer said:
“No, too dicey.”
A few months back Cramer had said that he “likes” Crocs Inc (NASDAQ:CROX) but was worried about the “fad” aspect.
As of the end of the third quarter of 2023, 41 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Crocs Inc (NASDAQ:CROX). The most notable stakeholder of Crocs Inc (NASDAQ:CROX) during this period was Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $247 million stake in Crocs Inc (NASDAQ:CROX).
Patient Capital Management stated the following regarding Crocs, Inc. (NASDAQ:CROX) in its fourth quarter 2023 investor letter:
“This quarter we entered four new positions, while exiting four positions. Our largest new position was Crocs, Inc. (NASDAQ:CROX). Crocs is a well-known consumer brand in the footwear industry. Despite continual calls over the years as a fad, Crocs has shown impressive growth and staying power. Since 2017 the company has increased sales at a 20%compound annual growth rate (CAGR) while maintaining industry leading operating margins of 27%. The stock sold off recently as the HEYDUDE brand it purchased in 2022 faced challenges. A combination of market oversaturation, and still limited brand awareness has made HEYDUDE a drag on the overall business. This is more than priced in at current levels with the stock trading at a P/E of 8.5x below peers at 14.3x and their historical average of 15x since 2019. The company is making progress on fixing HEYDUDE with growth expected to return in the 2H24. Overall, we view the child piece of the core Crocs product as a consumer staple and believe people are underappreciating its staying power as well as the ongoing improvements in the HEYDUDE brand. We believe you can buy a high-quality company, at a low multiple, with top FCF yield (13%) that is committed to both debt paydown and buybacks.”
2. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Investors: 53
Cramer recently said airline stocks are “just trades” and recommended investors to stay away from Delta Air Lines.
Carillon Scout Mid Cap Fund made the following comment about Delta Air Lines, Inc. (NYSE:DAL) in its Q3 2023 investor letter:
“The third largest detractor was Delta Air Lines, Inc. (NYSE:DAL), which pulled back after a sharp rally earlier in the year and as higher oil prices hurt sentiment on airlines overall. While weaker domestic fare prices have weighed on the stock price, stronger demand for international travel has improved the company’s profitability.”
1. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 81
Cramer believes Tesla does not deserve to be a part of the Magnificent Seven group of stocks. After the company’s latest quarterly results, Cramer tweeted:
“We could look the other way and just decide this Tesla quarter was an anomaly. Or we could just say “and then there were six.” But to ignore what is happening to Tesla’s stock or to avert your ears from last night’s call seems too glib right now.
O’keefe Stevens Advisory stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2023 investor letter:
“In my Q4 2022, l made three predictions: 1. One of our top 25 holdings gets acquired 2. TSLA is a sub $200B market cap by the end of 2023 3. Crypto, the final blow.
Tesla, Inc. (NASDAQ:TSLA) is a sub $200B market cap by the end of 2023. Grade: D. TSLA performed contrary to expectations, appreciating approximately 100% in 2023 and ending the year with an $880 billion market cap. We were “just a bit outside,” but I’m not convinced our reasoning was flawed.
The typical strong correlation between earnings estimates and stock prices did not hold for TSLA during the year. Positive revisions suggest a company outperformed expectations, resulting in a higher price/valuation. Negative revisions suggested estimates were too high, and the stock should decline to meet a weaker outlook…” (Click here to read the full text)
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