In this article, we will take a detailed look at Jim Cramer Stock Portfolio for Q4: Top 11 Stocks to Buy and Sell.
Jim Cramer in a latest program on CNBC talked about the importance of using short-term rallies to your advantage. He said that investors should know when to take the chips off the table.
“The idea that you should buy and hold through both the best of times and worst of times is probably incredibly foolish, with only very few exceptions,” Cramer said.
Cramer said that if the stock you bought is going higher and higher and you keep resisting the urge to take some profits, you won’t make any actual money from these gains if the stock comes down later paring all these profits. This seems straightforward but the idea of buying low and selling high is easier said than done, Cramer said.
“Don’t get carried away by the optimism. Instead, keep your head on straight, check your emotions, focus on long term and think about ringing the register, especially on stocks that might be getting too high,” Cramer added.
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. We also picked an interesting prediction Cramer made back in 2021 about a stock and saw how it turned out. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11. SoFi Technologies Inc (NASDAQ:SOFI)
Number of Hedge Fund Investors: 29
When asked about SoFi Technologies Inc (NASDAQ:SOFI) during a program on CNBC, Cramer said the following:
“Now the rates are coming down you are gonna see actually it’s more of a technology stock but it’s gonna go higher.”
SoFi Technologies Inc (NASDAQ:SOFI) stock is indeed poised to grow amid rate cuts. The company’s CEO Anthony Noto’s prediction in early September that the Federal Reserve would cut rates by 75 basis points by the end of 2024 seems to be playing out. The Fed has already cut rates by 50 basis points, and it’s likely that Noto’s forecast will prove accurate by year’s end. Lower rates should give SoFi more flexibility and improve profitability.
For the second quarter, SoFi Technologies Inc (NASDAQ:SOFI) reported total GAAP net revenue of $598.6 million, up 20% year-over-year, and adjusted net revenue of $597 million, a 22% increase. This performance is impressive, especially given the high interest rate environment.
SoFi’s shift towards diversifying revenue sources is evident, particularly after its $1 billion acquisition of Galileo and the merger with Golden Pacific last year. This move away from traditional lending addresses critics who still see SoFi Technologies Inc (NASDAQ:SOFI) as a typical bank.
The company is expected to see earnings per share (EPS) grow at a compound annual growth rate (CAGR) of 47.3% over the next six years. By fiscal year 2029, this could lead to a price-to-earnings (P/E) ratio of around 7.9x. Based on the growth SoFi Technologies Inc (NASDAQ:SOFI) is seeing, the stock looks undervalued.
10. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Investors: 32
Jim Cramer recently said in a program on CNBC that Consolidated Edison, Inc. (NYSE:ED) has a “great yield” and the stock can “project itself higher.”
While Consolidated Edison, Inc. (NYSE:ED) dividend yield is low when compared to other utilities, its regulated natural gas and electric utilities are expected to keep generating stable, recurring income despite the challenging regulatory environment. The 2023 settlement for ConEd’s New York City operations raised its return on equity (ROE) to 9.25%, an improvement from the previous 8.8%, which was the lowest among its utility peers. Consolidated Edison, Inc. (NYSE:ED), with a BBB+/A- credit rating and a market cap of over $31 billion, reported steady first-quarter earnings driven by its strong rate base, and the company continues to push toward its goal of providing 100% clean energy.
The company is decreasing risk by selling off non-core assets, such as clean energy and gas pipelines. For example, the company sold its clean energy assets to RWE.
Consolidated Edison, Inc. (NYSE:ED) is projecting a 6.4% annual growth in its rate base through 2028, driven by continued investments in cleaner energy.
9. Ralph Lauren Corp (NYSE:RL)
Number of Hedge Fund Investors: 36
Ralph Lauren Corp (NYSE:RL) reported its latest quarterly results in August. Commenting on the numbers, Jim Cramer said this was a “stronger European and Asian” quarter than the US.
Cramer was surprised that the company did well in China, while its competitors are getting clobbered in the country.
“The brand is very very strong.”
Cramer said Ralph Lauren Corp (NYSE:RL) CEO Patrice Louvet will be able to tell a “fabulous, fabulous story.”
“Because they’ve gotten rid of anything that is low end, they are all high end and they are quality. I salute them.”
Cramer said that Ralph Lauren is “consistent” in a business that is “episodic.”
8. LyondellBasell Industries NV (NYSE:LYB)
Number of Hedge Fund Investors: 41
When asked about LyondellBasell, Cramer said that while it’s a very “well-run company” it’s not a stock he’s recommending.
LyondellBasell Industries NV (NYSE:LYB) has a dividend yield of over 5.6%. The company’s profitability is driven mainly by its Olefins & Polyolefins (Americas) and Intermediates & Derivatives segments. However, the company’s margins are being dragged down by its Olefins & Polyolefins (Europe, Asia & International) and Refining segments, which generate substantial revenue but contribute little to EBITDA.
LyondellBasell Industries NV (NYSE:LYB) management is on track to exit the refining business by next year. However, they are committed to improving the performance of the Olefins & Polyolefins segment in Europe, Asia, and international markets. This is evident from the company’s capital expenditures in these regions and its recent acquisition of a 35% stake in the NATPET polypropylene joint venture in Saudi Arabia. EBITDA margins in these segments have been in the red or at low single digits for several quarters, so exiting refining and improving the international O&P segment could significantly boost overall profitability.
Over the past 12 months, capital expenditures were 138% of the company’s annual depreciation, signaling that management is reinvesting in the business beyond just maintaining existing operations.
7. Target Corp (NYSE:TGT)
Number of Hedge Fund Investors: 52
When asked about Target Corp (NYSE:TGT), Jim Cramer said the retailer’s 3% dividend yield is “quite good” and it had a “very very good quarter.”
Target Corp (NYSE:TGT) recently reported strong Q2 results and analysts are hopeful about the stock amid the upcoming holiday season.
What was so special about the quarter? Target reported a 2.7% year-over-year revenue growth to $25 billion, surpassing estimates. Notably, comparable sales turned positive after four straight quarters of decline, driven by increased customer traffic, which compensated for a drop in the average selling price (ASP) compared to a year ago.
Target Corp (NYSE:TGT) loyalty program, Target Circle, also gained traction, adding 2 million new members in the quarter, bringing the total to 100 million. The company added hundreds of thousands of new cardholders and Target Circle 360 members during its July promotion.
Target Corp (NYSE:TGT) raised its adjusted EPS guidance to between $9.00 and $9.70, signaling a focus on returning to pre-pandemic profitability levels. Analysts expect adjusted EPS to grow faster than revenue, suggesting margin expansion as the company leverages its merchandising strategies, brand portfolio, and loyalty program to boost engagement and sales. By FY26, adjusted EPS is projected to reach $11.37, with a present value of $9.75 when discounted at 8%.
Given the S&P 500’s average earnings growth of 8% over 10 years and a typical P/E range of 15-18, Target Corp (NYSE:TGT), with its improving fundamentals, could justify a P/E of 18-19. This points to a price target of $175-$185, offering roughly 15% upside from current levels.
Diamond Hill Large Cap Strategy stated the following regarding Target Corporation (NYSE:TGT) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation (NYSE:TGT) and ConocoPhillips. US-based mass retailer Target faces concerns about a slowing consumer discretionary spending environment, which weighed on shares in the quarter.”
6. IBM Common Stock (NYSE:IBM)
Number of Hedge Fund Investors: 54
When asked about IBM Common Stock (NYSE:IBM), Jim Cramer said the company is “doing quite well.” Cramer said that he gets “more and more impressed” with IBM.
“Arvind Krishna (IBM CEO) has really re-invented the company, he’s doing a terrific job,” Cramer added.
Can IBM Common Stock (NYSE:IBM) become a top AI stock and compete with peers like Oracle, Salesforce and Microsoft?
The company recently released its Telum II Processor and Spyre Accelerator at Hot Chips 2024, designed to boost the next-gen IBM Z mainframe system. Telum II offers 8 cores at 5.5GHz with 36MB L2 cache per core and a 40% increase in total on-chip cache. Spyre adds AI capabilities with 32 compute cores and 1TB memory. Both chips, built by Samsung on a 5nm process, will launch in 2025, supporting IBM’s AI initiatives. IBM Common Stock (NYSE:IBM) also acquired Accelalpha to strengthen its Oracle consulting expertise, further enhancing its cloud and AI capabilities for enterprise clients.
IBM’s latest quarterly results were driven by software, consulting, and infrastructure, boosted by accelerated enterprise AI adoption. Revenue grew 4% year-over-year, and free cash flow rose 24%, reflecting the company’s strong financial health. IBM Common Stock (NYSE:IBM) is well-positioned to capitalize on AI trends with its watsonx AI platform and Granite models, offering secure and transparent solutions that address data privacy concerns, critical for enterprise AI implementation. Their unique blend of consulting, software, and AI solutions supports large-scale AI projects.
Diamond Hill Capital Long-Short Fund stated the following regarding International Business Machines Corporation (NYSE:IBM) in its first quarter 2024 investor letter:
“Among our bottom Q1 contributors short positions in Dick’s Sporting Goods, International Business Machines Corporation (NYSE:IBM) and Palomar Holdings. Though we believe the quality and durability of IBM’s free cash flow-generating capabilities remain questionable, investor sentiment has improved amid optimism for the company’s still-nascent AI product suite.”
5. FedEx Corp (NYSE:FDX)
Number of Hedge Fund Investors: 59
Talking about FedEx Corp (NYSE:FDX) latest results, Jim Cramer said it was not a “blowout” quarter despite CEO Raj Subramaniam doing a great job. Cramer said FedEx is facing headwinds amid macroeconomic problems and he’d be watching how the company performs after the recent rate cut.
Cramer said while FedEx Corp (NYSE:FDX) revenue did not “explode” the bottom line was “amazing.”
FedEx’s fiscal Q1 results were not impressive, partly due to tough comparisons year over year when the company had a 7.2% operating margin, the highest prior to Q4 2024’s 8.3% margin.
The first fiscal quarter, ending in August, is typically FedEx’s weakest of the year.
However, revenue expectations for fiscal 2025 have been reduced. The market initially expected 3% growth, but that’s now been cut to 1%. FedEx Corp (NYSE:FDX) hasn’t posted significant revenue growth for eight straight quarters. It would be interesting to see the company’s performance in the coming quarters to see if a decline in rate cuts helps the company’s fundamentals.
Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its first quarter 2024 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx performed well for the period. The company beat consensus estimates in the quarter and showed material progress in its DRIVE cost reduction program that we have written about previously. FedEx also repurchased substantial stock in the quarter. Its 6% annualized repurchase pace is very strong compared to its history, and the company authorized another $5 billion share repurchase program. FedEx also lowered capital expenditures guidance for the fiscal year, further helping FCF generation. We believe the company is approximately halfway through its cost cutting program with more room to go that is still not appreciated by the market.”
4. Zoetis Inc (NYSE:ZTS)
Number of Hedge Fund Investors: 61
When asked about Zoetis Inc (NYSE:ZTS), Jim Cramer said he likes the stock “very much.”
Cramer said CNBC recently had CEO Kristin Peck on and the executive is doing a “great job.”
Zoetis Inc (NYSE:ZTS) makes vaccines and medicines for pets and livestock.
Barclays recently published a list of recession-resilient stocks. Zoetis was part of the list.
The firm’s analyst Anshul Gupta said these stocks have daily average option notional volumes of more than $5M and have strong upside.
Investors are watching Zoetis Inc (NYSE:ZTS) because of Librela, its new medication for treating osteoarthritis (OA) in dogs, a chronic joint condition with no cure.
The U.S. Food and Drug Administration (FDA) approved Librela in May 2023, and it was cleared for use in Europe in 2020. According to the company’s Q2 report, Librela and Solensia, a similar medication for cats, generated $116 million and $150 million in sales combined.
The U.S. has about 90 million dogs, and around 80% visit a vet annually. This suggests a market of roughly 72 million dogs that could be diagnosed and treated. Prices for the drug vary by weight, but vets typically charge over $80 per dose, with Zoetis Inc (NYSE:ZTS) earning about $40 per treated dog each month, or $480 annually.
Andvari Associates stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q2 2024 investor letter:
“Zoetis Inc. (NYSE:ZTS) was spun out of Pfizer in 2013 and is the largest company serving the animal health market. They make medicines, vaccines, diagnostics, devices, and technology solutions for their pet owners and veterinarians. Their revenues are split 65% for pet care and 35% for livestock.
The nice thing about Zoetis, and the pet healthcare market in general, is the trend of increasing pet ownership and the increasing willingness to spend more money on pets every year. When compared to overall consumer spending, spending on pets has nearly doubled since 1990. The resilience of the pet healthcare industry is particularly exceptional—the industry has never had a year of negative growth in the last 15 years. Zoetis in particular has grown several percentage points faster than the industry.
The financials of Zoetis are also exceptional. It has steady revenue growth, gross margins in the 70s, an ability to reinvest in the business at 20% returns, and is still able to return billions to shareholders with dividends and share repurchases. Despite having the highest ratio of capex to revenues in this group of new holdings, Zoetis is still very cash generative. The company generated $1.8 billion of free cash over the last twelve months off of $8.7 billion of revenues, a healthy 20% margin. In its first five years after being spun from Pfizer in 2013, Zoetis averaged 4.1% of capex to revenues. The reason for capex trending higher over the last five years is to support a slate of fast-growing new products, inventory buildups, and productivity enhancements. We believe this capex ratio will slowly come down over time as revenues come in for its newer products and as customers draw down inventories.”
3. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Investors: 67
Jim Cramer was recently asked about Procept Biorobotics. Cramer said this stock has been a “rocket” but recommended investors to buy Intuitive Surgical, Inc. (NASDAQ:ISRG) instead.
Bank of America called the robotic surgery-focused company a best-of-breed stock for the third quarter in a latest report. Intuitive Surgical Inc (NASDAQ:ISRG) bulls believe the stock is poised for long-term growth as robots will play a key role in surgeries and the broader healthcare industry in the coming years. The company’s revenue has grown at a 17.8% CAGR after the pandemic, compared with the pre-pandemic revenue CAGR of 18.3%. There are about 8,600 da Vinci systems (Intuitive Surgical robot) installed at healthcare facilities across the globe. Some estimates suggest the robotic surgery market is expected to grow at a CAGR of 11% through fiscal 2026. With a close to 70% market share, Intuitive Surgical is positioned well to benefit from this organic growth. Wall Street expects Intuitive Surgical Inc (NASDAQ:ISRG) earnings to grow 17% next year and at 12.6% over the following five years on a per-annum basis.
Baron Health Care Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2024 investor letter:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive procedures. The stock performed well due to excitement about the company’s new robotic surgical system, the da Vinci 5, which offers enhanced imaging, force feedback, and other improvements. We continue to believe Intuitive has durable competitive advantages and will remain the market leader in robotic surgery. We think the company has a long runway for growth as more procedures are performed with the company’s equipment.”
2. Exxon Mobil Corp (NYSE:XOM)
Number of Hedge Fund Investors: 92
When asked about Exxon Mobil Corp (NYSE:XOM), Cramer said the stock is “expensive” when compared to Devon Energy.
“This is not the moment to own oil. It is finally cratering. Because the demand was never there I don’t understand why it was up so much.”
While Exxon Mobil Corp (NYSE:XOM) is investing in other forms of energy, the company still has a long runway in the traditional oil business.
According to Goldman Sachs, oil demand won’t peak until 2034, even with the push for electric vehicles and green energy. Goldman forecasts peak oil demand at 110 million barrels per day by 2034, potentially rising to 113 million barrels by 2040 if EV adoption is slower.
In Q2 2024, Exxon Mobil Corp (NYSE:XOM) posted adjusted net profits of $9.24 billion, or $2.14 per share, up from $7.88 billion, or $1.94 per share, a year earlier. The 10.3% increase in diluted EPS was driven by higher commodity prices and increased production following its acquisition of Pioneer Natural Resources in May. Revenue surpassed $93 billion, beating consensus estimates.
Exxon continues to manage its debt effectively, lowering its debt-to-market-cap ratio to 13.5% from 16.7%. The company’s debt-to-equity ratio remains well below that of its peers, while its liquidity ratios significantly exceed the industry median.
Recent acquisitions and expansion into areas like carbon capture, hydrogen, and renewable fuels should keep the company stable, even if oil prices slump. At the Barclays Energy-Power Conference, Exxon Mobil Corp (NYSE:XOM) CEO emphasized the company’s focus on decarbonization, including the Baytown hydrogen project, which is set to be the world’s largest low-carbon hydrogen facility by 2029.
Madison Dividend Income Fund stated the following regarding Exxon Mobil Corporation (NYSE:XOM) in its first quarter 2024 investor letter:
“This quarter we are highlighting Exxon Mobil Corporation (NYSE:XOM) as a relative yield example in the Energy sector. XOM is a leading integrated oil and natural gas company. It has upstream assets that develop and produce oil and natural gas, along with downstream refining and chemical manufacturing assets. We believe it has attractive low-cost acreage in the Permian basin and has a sizeable growth opportunity in Guyana. Further, we think XOM has a sustainable competitive advantage due to size and scale, and its ability to integrate refining and chemical assets provides a low-cost advantage versus competitors.
Our thesis on XOM is that it will grow production volumes of oil and gas moderately over the next few years, while limiting excessive capital investment that plagued the industry from 2014-2020. Production growth will come from its 2023 acquisition of Pioneer Natural Resources, which is the largest producer in the Permian basin. XOM plans to double its Permian output by 2027, to 2 million barrels per day. Capital spending will be limited to $20-25 billion per year through 2027, which should allow for significant amounts of cash to be returned to shareholders including a $35 billion share repurchase program and continued dividend increases. Higher oil prices would provide a tailwind to our thesis but are not necessary. We think XOM can grow earnings and cash flow if oil prices remain above $60 per barrel…” (Click here to read the full text)
1. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 179
In December 2021, long before ChatGPT was launched or using trending words like “hyperscalers” or “LLM” was fashion, Jim Cramer made some prescient comments about the chipmaker during a program on CNBC.
“I just went there and I saw things, I went time-traveling with Jensen Huang. I am being a pig in NVIDIA Corp (NASDAQ:NVDA) because this maybe a $10 trillion stock.”
Back then, NVDA was trading at around $29 and today it’s at $123.
Nvidia’s declines after the latest quarterly results were more or less expected amid Blackwell delay reports confirmed by management. However, the delays were mainly due to a change in Blackwell GPU mask. That does not affect the main functional logic or design of the chip, according to analysts. While Blackwell has been delayed for a few months, it does not change the core growth thesis for Nvidia.
Nvidia is set to see huge growth on the back of the data center boom amid the AI wave.
At Nvidia’s GPU Technology Conference in March 2024, CEO Jensen Huang estimated annual spending on data center infrastructure at about $250 billion. Over the next decade, this could total between $1 trillion and $2 trillion, depending on how long this level of investment continues. During the same Q&A session, Bank of America’s Vivek Arya echoed this estimate, suggesting the total addressable market would fall in the $1-2 trillion range, particularly as countries invest in their own AI infrastructure. By the end of the decade, spending could be at the high end of that range.
Of course, Nvidia won’t dominate the entire $2 trillion opportunity, as it faces competition from companies like AMD and internally developed AI accelerators from Google, Amazon, and even Apple. Some analysts believe Nvidia’s data center market share between 2025 to 2029 will be over $950 billion—less than half of the total market—but still enough to make it the leader in the sector.
Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”
While we acknowledge the potential of NVIDIA Corp (NASDAQ:NVDA), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
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