Jim Cramer’s 5 New Stock Picks for March 2024

1. Salesforce Inc (NYSE:CRM)

Number of Hedge Fund Investors: 131

Jim Cramer was recently asked about HubSpot in a recent program on CNBC. Cramer said everybody calls HubSpot a “junior Salesforce.” But Cramer said he believes “Salesforce is the Salesforce.” Cramer said that his charitable trust has owned Salesforce for a long time and he does not need to “go down the list” for HubSpot when he has Salesforce. Jim Cramer has time and again talked about his preference for best of breed stocks and how investors should pick the top quality stocks in industries instead of second- or third-grade players.

Polen Focus Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2023 investor letter:

“In the fourth quarter, the top relative and absolute contributors to the Portfolio’s performance were Netflix, ServiceNow, and Salesforce, Inc. (NYSE:CRM).

Salesforce has continued to grow its revenues at what we see as a healthy rate despite market concerns about the impact of the weaker macroeconomy on its business and penetration rates in its core CRM offering. Even its most mature and largest offerings, Sales Cloud and Service Cloud, are still growing revenue at double-digit rates. In addition, management realized that their cost structure, especially in salespeople, had gotten too bloated. Over the past year and a half, the company has run a much more streamlined expense structure that has led to strong operating margin expansion and earnings growth. Importantly, we do not feel Salesforce has cut into its innovation or sales muscle through these cost cuts but has eliminated unnecessary excess fat from the organization.”

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