In this article, we discuss 10 recent additions to Jim Cramer stock portfolio.
CNBC’s Jim Cramer said on November 15 that he believes the Federal Reserve could manage to control inflation without the economy spiraling into a recession. Some of the stocks recently backed by Jim Cramer ahead of a potential market recovery include Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). He explained:
“If we can see the end of the purchasing spree … It’s a huge positive for stocks. It helps that we’ve finally worked out the kinks in the supply chain that were creating shortages all over the place. Put it all together, and there’s a real possibility the Fed can indeed engineer a fabled soft landing for the economy.”
On November 21, Cramer forecasted that the S&P 500 will potentially rally next month. He referred to the market scenario where stocks climb close to the end of the year. He interpreted Larry Williams’ model of the S&P 500 index’s seasonal pattern, noting:
“Between the seasonal pattern and the short-term cycle, and also the extremely positive long-term cycle that we covered a few weeks ago, he’s seeing a lot of green lights to start buying.”
Our Methodology
These stocks were picked keeping in mind the latest calls that Jim Cramer made on these equities during his appearances on news platform CNBC in November 2022.
Jim Cramer Stock Portfolio: Recent Additions
10. MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 36
MP Materials Corp. (NYSE:MP) is a Las Vegas-based company that owns and operates rare earth mining and processing facilities, offering rare earth minerals including cerium, lanthanum, neodymium, praseodymium, and samarium. In Cramer’s lightning round on November 18, he told viewers:
“It’s doing a great job, they’ve got a contract with GM … GM’s a winner, and so is MP.”
MP Materials Corp. is one of the recent stock picks of Jim Cramer.
On November 3, MP Materials Corp. reported a Q3 non-GAAP EPS of $0.36 and a revenue of $124.45 million, outperforming Wall Street estimates by $0.06 and $6.73 million, respectively. Revenue for the period climbed approximately 25% year-over-year, supported by an increase in the realized price of rare earth oxide.
Canaccord analyst George Gianarikas on September 28 maintained a Buy rating on MP Materials Corp. but lowered the price target on the shares to $40 from $47. The analyst reduced his estimates due to weakness in NdPr prices, a trend he observed from late August. However, he justified his rating given the value creation path in stages 2 and 3 of the company’s evolution and MP Materials Corp.’s increasing strategic importance.
According to Insider Monkey’s data, 36 hedge funds were bullish on MP Materials Corp. at the end of September 2022, compared to 26 funds in the prior quarter.
Like Amazon.com, Inc., Microsoft Corporation, and Apple Inc., MP Materials Corp. is one of the stocks favored by Jim Cramer.
ClearBridge Investments made the following comment about MP Materials Corp. in its Q3 2022 investor letter:
“ClearBridge has visited and engaged with holding MP Materials Corp., for example, a U.S. mining company with a facility that supplies neodymium and praseodymium, two rare earth minerals used to make powerful magnets found in 90% of EV motors. The facility recycles all water from its process such that recycled water meets 95% of the facility’s water needs, while the rest comes from groundwater. In the recycling process, wastewater is piped to an on-site water treatment plant where it is treated using reverse osmosis and then reused. In a recent engagement with the company, we encouraged it to disclose the groundwater extraction quantities that make up the other 5% and compare these to peers.”
9. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holders: 46
Howmet Aerospace Inc. (NYSE:HWM) is a Pennsylvania-based company that specializes in advanced engineered solutions for the aerospace and transportation industries worldwide. It operates through four segments – Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The company expects 2023 revenue growth versus 2022 to be up approximately 10%.
On November 21, on Mad Money’s Lightning Round, Jim Cramer backed Howmet Aerospace Inc., saying:
“I think aerospace exposure is incredibly important, and Howmet will give it to you.”
On October 12, Truist analyst Michael Ciarmoli downgraded Howmet Aerospace Inc. to Hold from Buy with a price target of $31, down from $43. Along with his Q3 preview for the sector, he is “taking a decidedly more cautious view” on cyclically exposed commercial aerospace and diversified equities.
According to Insider Monkey’s third quarter database, 46 hedge funds were bullish on Howmet Aerospace Inc., compared to 39 funds in the earlier quarter. Paul Singer’s Elliott Management is the largest stakeholder of the company, with more than 36 million shares worth $1.11 billion.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 89
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based semiconductor company operating worldwide. On November 22, the Mad Money host said:
“Once the Fed relents, I’d much rather be in Big Tech, or the top cloud plays, or the better-run chipmakers like AMD and Nvidia.”
Advanced Micro Devices, Inc. is one of the latest stocks backed by Cramer.
On November 15, Credit Suisse analyst Chris Caso initiated coverage of Advanced Micro Devices, Inc. with an Outperform rating and a $90 price target. He expects improved server share gains and cloud market growth, the analyst wrote in a research note.
Among the hedge funds tracked by Insider Monkey, 89 funds reported owning stakes worth $5 billion in Advanced Micro Devices, Inc. at the end of the third quarter of 2022, compared to 87 funds in the prior quarter worth $4.8 billion. Ken Fisher’s Fisher Asset Management held the largest stake in the company, consisting of 19.4 million shares valued at $1.2 billion.
Here is what Baron Opportunity Fund has to say about Advanced Micro Devices, Inc. in its Q2 2022 investor letter:
“Advanced Micro Devices, Inc. is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.
AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology.
Additionally, the recently closed acquisitions of Xilinx and Pensando enhance AMD’s positioning within the data center, a key growth engine for the semiconductor industry, and Xilinx specifically opens up several new growth opportunities in new end markets like industrial, automotive, and communications. The company also generates significant cash flow, giving it capital allocation optionality for further M&A and returning capital to shareholders.”
7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 89
NVIDIA Corporation (NASDAQ:NVDA) is a California-based company that provides graphics, computing, semiconductors, and networking solutions in the United States, Taiwan, China, and internationally. NVIDIA Corporation is one of the semiconductor stocks backed by Jim Cramer. Cramer’s Charitable Trust owns shares of NVIDIA Corporation.
On November 17, Needham analyst Rajvindra Gill raised the price target on NVIDIA Corporation to $200 from $155 and kept a Buy rating on the shares. The company’s Q3 results were “solid” with data center revenue outlook somewhat higher despite soft China data center sales and accelerating H100 adoption, the analyst told investors in a research note. He added that while China is weighing on overall results, NVIDIA Corporation is executing nicely despite these headwinds.
According to Insider Monkey’s Q3 data, 89 hedge funds were long NVIDIA Corporation, compared to 84 funds in the last quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 3.3 million shares worth $410.8 million.
Vulcan Value Partners made the following comment about NVIDIA Corporation in its Q3 2022 investor letter:
“We also sold NVIDIA Corporation during the quarter to allocate capital to new purchases and to add to existing positions in the portfolio. NVIDIA is facing multiple headwinds. Data center revenue growth is slowing, gaming revenue growth is declining, and the United States has issued new export controls to China that impact NVDIA’s products. We believe NVDIA’s competitive advantages are intact, and it remains on our MVP list. In the right circumstances we would be delighted to own it in the future.”
6. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 112
The Walt Disney Company (NYSE:DIS) is one of the leading American entertainment conglomerates. On November 21, CNBC’s Jim Cramer said that he is bullish on The Walt Disney Company now that Bob Iger is back to the chief executive role. He further elaborated:
“Disney’s the defining story of the day. This is a good example of how you can stick with an iconic company … and make money when they bring in a better leader. And that’s exactly what I see happening as Iger takes the helm.”
Tigress Financial analyst Ivan Feinseth on November 22 maintained a Buy rating on The Walt Disney Company but lowered the price target on the shares to $177 from $229 given a re-rating of value due to near-term linear network pressure. Nonetheless, the analyst sees the return of former CEO Bob Iger leading the company back to creativity, and likes the ongoing release of blockbuster content, which will continue to drive growth. The Walt Disney Company’s robust balance sheet, cash flow, and prudent capital allocation will allow it to invest in content development, new theme park attractions, and growth initiatives, the analyst added. The Walt Disney Company is on his Research Focus List and Focus Opportunity Portfolio.
According to Insider Monkey’s Q3 data, 112 hedge funds were bullish on The Walt Disney Company, compared to 109 funds in the earlier quarter. Arrowstreet Capital held a prominent position in the company, with 3.5 million shares worth about $331 million.
Like Amazon.com, Inc., Microsoft Corporation, and Apple Inc., The Walt Disney Company is one of the stocks recently backed by Jim Cramer.
Here is what Third Point specifically said about The Walt Disney Company in its Q3 2022 investor letter:
“As disclosed in our Q2 letter, we reinitiated a significant position in The Walt Disney Company when the company retested its Covid lows earlier this year. At the current price, Disney is trading for little more than the stand-alone value of its Parks business and a mere 15x ’24 “street” consensus. The company remains early in its Direct to Consumer (“DTC”) transition with a leading market position, and yet the current stock price ascribes negligible value to the streaming business. We believe this is due to questions around the terminal economics of streaming, given large losses being generated today at Disney (>$1 billion dollars last quarter) and stagnating margins at peers such as Netflix. On the last earnings call, management highlighted three items that could lead to an inflection in DTC profitability over the next 12 months: a 38% price increase for Disney+ in the US; moderating growth in cash content expense; and an advertising tier for Disney+ launching in two months that can drive additional ARPU given high demand for the Disney brand amongst advertisers.
While the company has guided Disney+ achieving breakeven sometime within the fiscal year ending September 2024, the valuation suggests the market remains skeptical. Disney only trades at ~14x the $7 in earnings generated prior to the Fox acquisition, which implies investors don’t expect earnings to meaningfully exceed this figure in the coming years. Hence, the first value driver we highlighted in our last letter is the opportunity for management to optimize Disney’s cost base to drive earnings growth. We believe Disney has ample means to rationalize costs across its operating platform and deliver targeted content for home viewing that does not entail the same cost structure of exclusive theatrical releases…” (Click here to view the full text)
5. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 117
Salesforce, Inc. (NYSE:CRM), an American customer relationship management company, is one of the recent additions to Jim Cramer’s stock portfolio. On November 22, Jim Cramer listed a handful of beaten down tech stocks that he thinks can make a comeback after the Fed eases up on economic tightening. Salesforce, Inc. was one of these tech stocks backed by Cramer. Cramer’s Charitable Trust owns a stake in Salesforce.
On November 29, KeyBanc analyst Michael Turits maintained an Overweight rating on Salesforce, Inc. but trimmed the price target on the shares to $200 from $210 ahead of Q3 results. The analyst also slashed fiscal 2024 estimates. He remains optimistic about the long-term outlook for Salesforce, Inc. as a front office applications leader, and was encouraged by the company’s fiscal 2026 $50 billion revenue, 25% margin analyst day targets, and by the impact of activist investor Starboard on margins.
According to Insider Monkey’s data, 117 hedge funds were bullish on Salesforce, Inc. at the end of the third quarter of 2022, compared to 116 funds in the prior quarter. Ken Fisher’s Fisher Asset Management held the largest stake in the company, comprising 12.7 million shares worth $1.8 billion.
Aristotle Atlantic made the following comment about Salesforce, Inc. in its Q3 2022 investor letter:
“We sold Salesforce, Inc. to reduce our weighting in the Information Technology sector. Salesforce held their investor day, and the company reiterated their organic Fiscal Year 2026 revenue target of $50 billion. This target remains more back-end loaded based on current slowing macroeconomic conditions and requires new annual contract growth well ahead of what the company has been averaging for the past few years. We are skeptical that the company will be able to achieve this revenue target organically and see Merger & Acquisitions (M&A) being key to achieving the growth. While we believe Salesforce has shown good success in growing its non-CRM clouds, we do see more competitive pressures emerging for the Marketing and Customer Service Clouds, specifically on the pricing side during a global economic slowdown.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 140
Apple Inc. is one of the stocks in Cramer’s Charitable Trust portfolio. He said on November 22:
“Once the Fed relents, I’d much rather be in Big Tech.”
Apple was one of Cramer’s top choices recently.
On November 28, Wedbush analyst Daniel Ives said that with the “head scratching” zero COVID policy in China now reaching a peak and protests across the country, Apple Inc. is basically caught in the middle heading into the all-important Christmas season. He estimates that Apple Inc. now has huge iPhone shortages that could take off nearly 5% of units in the quarter and potentially up to 10% depending on the next few weeks in China around Foxconn production and protests. In many Apple Inc. stores, the analyst is seeing large iPhone 14 Pro shortages of up to 35%-40% of normal inventory heading into December, with digital channels pushing deliveries into early January in many cases based on model/storage/color. The analyst has an Outperform rating and a price target of $200 on Apple shares.
According to Insider Monkey’s data, 140 hedge funds were bullish on Apple Inc. at the end of Q3 2022, compared to 128 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with nearly 895 million shares worth $123.6 billion.
Here is what Wedgewood Partners specifically said about Apple Inc. in its Q3 2022 investor letter:
“Apple Inc. grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”
3. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 142
Uber Technologies, Inc. (NYSE:UBER) is an American mobility technology company. On November 16, Cramer said on a Mad Money Lightning Round:
“Uber is a stock that you have to own for a while … It’s going to be the last man standing, and that’s why I like Uber.”
On October 24, Cowen analyst John Blackledge maintained an Outperform rating on Uber Technologies, Inc. but lowered the price target on the shares to $70 from $76. The analyst expects Uber Technologies, Inc.’s Q3 2022 Gross Bookings at the high end of the guide, supported by the continuous recovery in Mobility and expansion of core EBITDA margins.
Among the hedge funds tracked by Insider Monkey, 142 funds reported owning stakes worth $6.2 billion in Uber Technologies, Inc. at the end of September 2022, compared to 129 funds in the last quarter worth $5.2 billion. Philippe Laffont’s Coatue Management is a significant position holder in the company, with 16.6 million shares valued at $440.6 million.
Artisan Partners made the following comment about Uber Technologies, Inc. in its Q3 2022 investor letter:
“During the quarter, we began new GardenSM campaigns in Uber Technologies, Inc. and Shopify. In July, we initiated our position in Uber, a leader in global ride-hailing and online food delivery. We believe the company is well positioned to benefit from strong secular tailwinds in both of its core businesses. Earlier this year, management outlined a plan at its investor day to achieve $4 billion of free cash flow by 2024, an encouraging commitment given investors have maligned the company for years of being unprofitable. We witnessed solid progress toward achieving this goal in the company’s most recent earnings results, where it beat expectations for the quarter on both fronts and delivered positive FCF for the first time. The company also indicated it isn’t seeing any evidence of slowing demand. We recognize the execution risk associated with Uber achieving its long-term targets, and the path likely won’t be linear, which is why we are keeping our position size modest until we see signs of continued operational momentum in the coming quarters.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. is one of the Big Tech names backed by Jim Cramer, and Cramer’s Charitable Trust also owns a stake in the company. On November 29, Amazon.com, Inc. announced several updates at its annual AWS cloud computing conference, including new data and security services, new AWS-designed chips, and more. Some of its latest offerings include AWS Clean Rooms, AWS Supply Chain, AWS SimSpace Weaver, Amazon Security Lake, and Amazon DataZone.
On November 22, Piper Sandler analyst Thomas Champion maintained an Overweight rating on Amazon.com, Inc. but lowered the price target on the shares to $119 from $125. The analyst assessed the company’s Q3 results with a focus on Web Services. The analyst noted that AWS retains industry dominant infrastructure-as-a-service market share of 50% among the “Big-4” providers. The analyst trimmed estimates to factor in industry headwinds but remains bullish on Amazon.com, Inc. shares.
According to Insider Monkey’s data, 269 hedge funds were bullish on Amazon.com, Inc. at the end of Q3 2022, compared to 252 funds in the prior quarter. Fisher Asset Management held a leading position in the company, consisting of nearly 50 million shares worth $5.6 billion.
Baron Funds made the following comment about Amazon.com, Inc. in its Q3 2022 investor letter:
“Amazon.com, Inc. is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-over-year. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 269
Microsoft Corporation is part of Cramer’s Charitable Trust portfolio and the Mad Money host believes that it is one of the hammered tech stocks that can rebound after the Federal Reserve finishes tightening the economy. On November 30, Microsoft Corporation declared a quarterly dividend of $0.68 per share, in line with previous. The dividend is payable on March 9, 2023 to shareholders of record on February 16.
On November 29, Morgan Stanley analyst Keith Weiss said investors are concerned that Microsoft Corporation’s estimates have not been derisked and noted that short-term concerns normally fall into two categories – margins and revenue growth. However, he sees a resilient demand signal in the commercial businesses that should result in improving revenue and EPS growth in the second half of 2023, said the analyst, who argued that Microsoft Corporation’s “unique positioning as a consolidator” should drive demand. The analyst has an Overweight rating and a $307 price target on Microsoft Corporation shares.
According to Insider Monkey’s Q3 data, 269 hedge funds were bullish on Microsoft Corporation, compared to 258 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest investor in the company, with a position worth over $9 billion.
Diamond Hill made the following comment about Microsoft Corporation in its Q3 2022 investor letter:
“Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.”
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This article is originally published at Insider Monkey.
