In this article, we will take a detailed look at Jim Cramer’s 10 Latest Stock Picks This Week. For a quick overview of such stocks, read our article Jim Cramer’s 5 Latest Stock Picks This Week.
Jim Cramer in his latest program talked about the ever-growing appetite for semiconductor chips in the market, demonstrating the enormous gains of semiconductor ETFs, in addition to semiconductor stocks like Nvidia, which Cramer yet again called the “undisputed” leader of the industry.
A Tale of Two Chips
While Cramer said semiconductor chips have seen a huge improvement in their performance over the past few months, there’s another kind of chips that is the epitome of the inflation crisis. You guessed it right, Cramer is talking about potato chips. Cramer said a standard bag of potato chips has seen a 45% jump in price over the last few years, but the quality and quantity of these chips remained the same. Cramer said the rise in food prices after the pandemic has been disastrous for Americans. Cramer said not everybody could invest in stocks like Nvidia because of the burden of food prices and no extra income. But for those who can, which Cramer called the “haves”, the rise in food prices amounts to “nothing” because of the riches they are making in the stock market. Cramer said that’s the “beauty” of investing.
GPT Vs GLP-1
Jim Cramer drew an interesting contrast between two factors to demonstrate the forces at work when it comes to the demand of semiconductor chips and potato chips. Cramer said the launch of ChatGPT infused a generative AI revolution which is behind the insatiable demand of semiconductor chips. Companies like Meta Platforms are gobbling up hundreds of thousands of Nvidia’s expensive chips to power their generative AI systems. On the other hand, in the healthcare industry, top American companies are working on weight loss drugs which are also known as GLP-1. These drugs increase willpower and diminish cravings and temptation of tasty but unhealthy foods like potato chips.
Cramer said the “paths” of people who invested in microchips and those who buy potato chips are very different and perhaps would never meet.
In addition to Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT), which Cramer loves, there are some new names he recommended this week. In this article we will talk about these new stock picks of Jim Cramer.
For this article we watched several latest programs of Jim Cramer on CNBC aired this week and picked 10 stocks he’s bullish on. With each stock we have also mentioned the number of hedge fund investors. Why do we pay attention to hedge fund sentiment? 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).
10. Powell Industries, Inc (NASDAQ:POWL)
Number of Hedge Fund Investors: 19
Jim Cramer was recently asked during his program about Powell Industries, Inc (NASDAQ:POWL). The questioner said the stock is already up about 100% year to date. Cramer said “it’s not done” as he thinks the stock has more room to run. Cramer said Powell Industries, Inc (NASDAQ:POWL) is a “just a really good company” and it reminds him of Eaton Corporation which Cramer’s charitable trust owns. Jim Cramer said he wish the stock would come down a bit so he could “put it in” his charitable trust’s portfolio.
Liberty Park Capital Management made the following comment about Powell Industries, Inc. (NASDAQ:POWL) in its Q3 2023 investor letter:
“Powell Industries, Inc. (NASDAQ:POWL) reported another quarter of better-than-expected earnings and bookings. The company is benefiting from record demand for large industrial projects. Investors are assigning a record multiple for POWL shares despite management communicating that orders have likely peaked.”
9. Cabaletta Bio Inc (NASDAQ:CABA)
Number of Hedge Fund Investors: 24
T-cell therapy company Cabaletta Bio Inc (NASDAQ:CABA) is one of the stocks Jim Cramer is bullish on. Recently, a questioner asked Jim Cramer about his investment in the biotech company and said he’s worried about the volatility in this stock. Cramer said he’s always felt that this is an “incredible, hopeful” product. Jim Cramer said he “typically” does not like a lot of biotech stocks but this is the kind of therapy he “believes in” and that’s why he’s “OK” with the stock.
Cabaletta Bio Inc (NASDAQ:CABA) shares have gained about 154% over the past one year.
As of the end of the fourth quarter of 2023, 24 hedge funds tracked by Insider Monkey had stakes in Cabaletta Bio Inc (NASDAQ:CABA).
Alger Small Cap Growth Fund stated the following regarding Cabaletta Bio, Inc. (NASDAQ:CABA) in its fourth quarter 2023 investor letter:
“Cabaletta Bio, Inc. (NASDAQ:CABA) is a clinical-stage biotechnology company focused on the discovery and development of targeted cell therapies for autoimmune diseases. The company’s leading candidate, CABA-201, usd a cell therapy approach for the treatment of lupus and myositis, where the U.S. Food and Drug Administration has accepted CABA-201 for New Drug Applications, setting the stage for initial phase 1/2 readouts in the first half of 2024. We believe CABA-201 represents a multibillion-dollar opportunity for the treatment of autoimmune diseases. During the quarter, shares contributed to performance where biotechnology stocks rallied on lower interest rates and several acquisitions, Additionally, the company has reported positive clinical developments throughout the year which encouraged investors to anticipate an effective regulatory pathway to approval in our view.”
8. New Fortress Energy Inc (NASDAQ:NFE)
Number of Hedge Fund Investors: 24
Energy infrastructure company New Fortress Energy Inc (NASDAQ:NFE) is one of the stocks Jim Cramer is recommending these days. When asked about the stock in a latest program on CNBC, Jim Cramer said:
“I want you to buy it.”
Jim Cramer said some people are trying to “stifle” Wesley Robert Edens’ (New Fortress CEO) “brilliance.” Cramer said “don’t count me in one of those people” since he’d want to buy the stock because of the leadership skills of Edens.
As of the end of the fourth quarter of 2023, 24 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in New Fortress Energy Inc (NASDAQ:NFE). The most notable stake in New Fortress Energy Inc (NASDAQ:NFE) is owned by Michael Novogratz’s Fortress Investment Group which owns a $506 million stake in New Fortress Energy Inc (NASDAQ:NFE).
Like New Fortress, Jim Cramer also likes Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT).
7. On Holding AG (NYSE:ONON)
Number of Hedge Fund Investors: 31
Jim Cramer in a latest program on CNBC recommended a caller to “stay interested” in On Holding AG (NYSE:ONON). Cramer said he agrees with a latest note from UBS about On Holding AG (NYSE:ONON) in which the investment firm said On Holding AG (NYSE:ONON) is doing really well. Cramer said he’s been saying On Holding AG (NYSE:ONON) is doing well for a “very long time” and said he is “sticking by” his bullish view on the stock.
Baron Asset Fund made the following comment about On Holding AG (NYSE:ONON) in its Q3 2023 investor letter:
“In the third quarter, we purchased shares of On Holding AG (NYSE:ONON), a developer and distributor of athletic footwear, apparel, and accessories. On is one of the fastest-growing scaled athletic sports companies in the world. Management’s vision is to build a premium global sportswear brand based on innovation, design, and sustainability. Its products are sold through approximately 10,000 premium retail stores, which account for 65% of revenue. The balance of sales occur through its direct-to-consumer channel, encompassing its own branded and operated stores, as well as its website.
On was founded in Switzerland, but it has expanded quickly across the globe. Its products have exhibited sales momentum in the U.S., Europe, and Asia. The company is rapidly growing its base of roughly 10 flagship retail stores, and it plans to end this year with 47 stores across 18 cities in China. Roughly half of its revenue is generated in North America, 45% in Europe, and 5% in Asia Pacific. On is addressing a large market opportunity: the $355 billion global sportswear industry. This market has seen its growth driven by continued trends toward athleisure. Consumers continue to pivot their spending towards more comfortable and casual attire as they lead healthier, more active lifestyles.
We believe On should be able to grow its revenues faster than 20% for many years, while also expanding its margins. We expect its growth to be driven by expanding brand awareness leading to market share gains in its core running shoe category, particularly as On expands its geographic footprint. We expect the company to continue to reinvest into its business at high rates of return. We believe On has a large opportunity to take market share in newer shoe categories, such as tennis (Roger Federer is an investor and advisor), training, and outdoor. The company also has a significant opportunity to grow its offerings in the apparel category.”
6. Chewy Inc (NYSE:CHWY)
Number of Hedge Fund Investors: 33
Jim Cramer said in a latest program that Chewy Inc (NYSE:CHWY) is bottoming and that he is sticking to his bullish call made on the stock earlier. In January, while discussing Barclay’s bullish note on the pet retailer, Jim Cramer had said that he agrees with the notion that Chewy Inc (NYSE:CHWY) has gotten too cheap. Like Chewy, Jim Cramer also likes Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT).
As of the end of the fourth quarter of 2023, 33 hedge funds tracked by Insider Monkey had stakes in Chewy Inc (NYSE:CHWY).
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Disclosure. None. Jim Cramer’s 10 Latest Stock Picks This Week was initially published on Insider Monkey.
