This article presents an overview of Jim Cramer’s 5 Latest Stock Picks This Week. For a detailed overview of such stocks, read our article, Jim Cramer’s 10 Latest Stock Picks This Week.
5. Generac Holdings Inc (NYSE:GNRC)
Number of Hedge Fund Investors: 34
Generators and backup power solutions company Generac Holdings Inc (NYSE:GNRC) is one of the stocks Jim Cramer is bullish on. In a recent program Cramer said as long as interest rates are expected to go lower Generac Holdings Inc (NYSE:GNRC) is “fine with me.” Jim Cramer said he likes the stock and he had the management on his program.
Of the 933 hedge funds in Insider Monkey’s database, 34 hedge funds had stakes in Generac Holdings Inc (NYSE:GNRC). The biggest stakeholder of Generac Holdings Inc (NYSE:GNRC) as of the end of 2023 was John W. Rogers’ Ariel Investments which owns a $280 million stake in Generac Holdings Inc (NYSE:GNRC).
Polen U.S. Small Company Growth Strategy stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its fourth quarter 2023 investor letter:
“Generac Holdings Inc. (NYSE:GNRC) is the leading brand for a wide range of power equipment including standby generators for homes and backup power for commercial and industrial markets. Generac is uniquely positioned due to its scale–it’s the largest manufacturer in the U.S. and has the largest dealer/distributor network with 75% market share in the residential business and elevated market share in commercial/industrial depending on the end market. Generac was previously held in the U.S. SMID strategy prior to exiting the position in 2021 due to concerns around the supply chain and a wider range of potential outcomes given a surge in demand through the pandemic. Since then, earnings have declined as pandemic era pull-forward demand normalized and the valuation is far more attractive. We believe long-term earnings per share (EPS) growth is in the mid to high teens but that EPS will grow significantly faster over the next two years as margins inflect post COVID re-set—something we are already observing in the business fundamentals.”
4. Coterra Energy Inc (NYSE:CTRA)
Number of Hedge Fund Investors: 42
Jim Cramer was recently asked about Schlumberger during his Lightning Round segment of his program on CNBC. While Cramer praised Schlumberger, he pitched Coterra Energy Inc (NYSE:CTRA) as a stock to buy and said his charitable trust also owns the stock.
Diamond Hill Mid Cap Strategy made the following comment about Coterra Energy Inc. (NYSE:CTRA) in its Q3 2023 investor letter:
“Other top contributors included Ciena Corporation, Coterra Energy and Webster Financial. Oil exploration and production company Coterra Energy Inc. (NYSE:CTRA) is capitalizing on good assets in the Permian Basin, and its Upper Marcellus holdings are showing promise as well — giving a boost to shares in the quarter.”
3. Palantir Technologies Inc (NYSE:PLTR)
Number of Hedge Fund Investors: 44
A caller recently asked Jim Cramer whether he should buy Palantir Technologies Inc (NYSE:PLTR) now or wait since the stock recently hit its 52-week high. Cramer said he believes the stock would go higher from here. Cramer highlighted Palantir Technologies Inc’s (NYSE:PLTR) latest $178.4 million contract win from the US Army.
As of the end of the fourth quarter of 2023, 44 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Palantir Technologies Inc (NYSE:PLTR). The most significant stake in Palantir Technologies Inc (NYSE:PLTR) is owned by D E Shaw which owns a $356 million stake in Palantir Technologies Inc (NYSE:PLTR).
Carillon Scout Mid Cap Fund made the following comment about Palantir Technologies Inc. (NYSE:PLTR) in its Q3 2023 investor letter:
“Palantir Technologies Inc. (NYSE:PLTR)’s stock moved higher on hopes that it could win business from the U.K.’s National Health Services and as customer counts grew rapidly in the latest quarterly report for the company’s new Artificial Intelligence Platform (AIP). Palantir also won a significant new contract with the U.S. Army in September, which should last through 2026. The debate on the street is how fast Palantir can monetize its new commercial customers. After the quarter closed, the company announced an enhanced marketing deal with a major auditing and consulting firm.”
2. BlackRock Inc (NYSE:BLK)
Number of Hedge Fund Investors: 48
BlackRock Inc (NYSE:BLK) is one of the latest stock picks of Jim Cramer. When asked about BlackRock Inc (NYSE:BLK), Cramer said “it’s going higher.” Cramer thinks BlackRock Inc (NYSE:BLK) is a “great financial repository for our nation.” Jim Cramer said “you should own it” and also praised BlackRock Inc’s (NYSE:BLK) acquisition of Global Infrastructure Partners (GIP).
Cramer said BlackRock Inc (NYSE:BLK) is still “inexpensive.”
During its Q4 earnings call BlackRock Inc’s (NYSE:BLK) management talked about BlackRock Inc’s (NYSE:BLK) GIP deal:
“The combination will mark a transformational change in our private market scale and growth. GIP is the world’s leading independent infrastructure manager with current client AUM of over $100 billion and fee-based AUM of over $60 billion. The acquisition will create a highly complementary pro forma $150 billion infrastructure platform post-closing tripling BlackRock’s infrastructure client assets.
The integration will nearly double our private markets management fees to over $1.5 billion and add over $400 million in post-tax annual FRE with FRE margins above 50%. Since its founding in 2006, GIP has successfully scaled its equity flagship series from its $5.6 billion Fund I to $20-plus billion in the most recent vintages. GIP’s current team of approximately 400 employees across 11 global offices has delivered strong long-term performance for clients and is expected to generate approximately $760 million of management fee revenue in 2023. Turning to the financial terms of the transaction, we are acquiring 100% of the business and assets of GIP for total consideration of $3 billion in cash and approximately 12 million shares of BlackRock stock.”
Read the full earnings call transcript here.
The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its fourth quarter 2023 investor letter:
“BlackRock, Inc. (NYSE:BLK) – BLK rallied in 4Q after underperforming earlier in the year. BLK performance from quarter to quarter is often a function of market performance, which drives the company’s assets under management. Our conviction in BLK remains high, based on the company’s durable competitive position.”
1. Wells Fargo & Co (NYSE:WFC)
Number of Hedge Fund Investors: 72
While talking about a regional bank during his latest program on CNBC, Jim Cramer said his favorite bank stock right now is Wells Fargo & Co (NYSE:WFC). Cramer believes Wells Fargo has been a “juggernaut” for his charitable trust.
As of the end of the fourth quarter of 2023, 72 hedge funds tracked by Insider Monkey had stakes in Wells Fargo & Co (NYSE:WFC).
Here is what Davis New York Venture Fund has to say about Wells Fargo & Company (NYSE:WFC) in its Q3 2023 investor letter:
“In spring 2023, a number of high-profile regional banks, none of which we owned, collapsed over the course of a few weeks. In contrast, the select, large banks we own, including Wells Fargo & Company, actually saw deposit inflows and increasing profits, reinforcing our thesis that high-quality financial services companies remain among the most misunderstood and attractive sectors of the market. This stress test models a dramatic recession—one meaningfully worse than the great financial crisis of 2008-2009. It includes a 3.5% decline in gross domestic product, a 10% unemployment rate, a 37% decline in residential real estate, a 40% decline in commercial real estate and a 55% decline in the stock market. The resilience and strength required to weather such an economic storm combined with proven economies of scale in branding and technology should drive DNYVF market share gains and growth for years to come. Trading at some of the lowest valuations in the market, our financial sector holdings—such as Wells Fargo & Company, deserve to be revalued upwards over time. In the meantime, increasing dividends and a shrinking share base create value while we wait.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Jim Cramer’s 11 Latest Stock Picks and the Jim Cramer Says You Should Stay Away from These 10 Stocks.
