This article presents an overview of Jim Cramer’s 5 New Stock Picks for March 2024. For a detailed overview of such stocks, read our article, Jim Cramer’s 10 New Stock Picks for March 2024.
5. Constellation Brands, Inc (NYSE:STZ)
Number of Hedge Fund Investors: 53
In the latest Lightning Round program on CNBC, a caller asked Jim Cramer about his thoughts on Anheuser-Busch Inbev SA (NYSE:BUD).
Jim Cramer said that he “looked time and time again” and came to believe that Constellation Brands has “better cash flow, more opportunities.” Cramer also said that Constellation Brands has a “wine business that it could sell.” Jim Cramer said because of these reasons his charitable trust owns the stock.
4. Royal Caribbean Cruises Ltd (NYSE:RCL)
Number of Hedge Fund Investors: 54
Jim Cramer recently praised Royal Caribbean’s quarterly earnings and said the company is doing “incredible things.” Cramer likes the strong travel demand all over the world. Cramer said Royal Caribbean “has been the best.”
Cramer said people who are travelling are “long on money, short on time” and that’s why cruises provide a “bargain” for them to see the world.
Ariel Fund made the following comment about Royal Caribbean Cruises Ltd. (NYSE:RCL) in its Q2 2023 investor letter:
“Several stocks in the portfolio had strong returns over the period. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), was one of the top 3 performers in the S&P 500 during the quarter. Shares surged following a significant top- and bottom-line earnings beat, as stronger than anticipated consumer demand is driving a record WAVE season. Forward booking trends are also ahead of historical ranges at record pricing. These factors combined with further improvement in onboard spend and solid cost containment led management to increase RCL’s full-year 2023 guidance. We believe the revised revenue and earnings outlook lays the foundation for RCL to exceed its’ three-year strategic imperative, the Trifecta Program.”
3. Palo Alto Networks Inc (NASDAQ:PANW)
Number of Hedge Fund Investors: 77
Jim Cramer in a program earlier this week said that at the annual investing club meeting he recommended people to buy Palo Alto Networks on the recent weakness. Cramer said that the latest weak quarter had nothing to do with demand. Cramer believes the recent change in business model of Palo Alto would make it richer than it was. Cramer mentioned the recent hacking attack at UnitedHealthcare and said these kinds of attacks happen almost daily and that’s why you can’t just “write off” Palo Alto.
TimesSquare Capital U.S. Mid Cap Growth Strategy made the following comment about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q3 2023 investor letter:
“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. Palo Alto Networks, Inc. (NASDAQ:PANW) supplies network and cloud-based security solutions to enterprises, service providers, and government entities. The latest quarter was mixed with the company falling shy versus the Street on billings, in line for revenues, and outpacing earnings. Palo Alto’s updated guidance was materially ahead of lowered Street expectations. Nevertheless, its shares pulled back by -8%.”
2. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Fund Investors: 102
Jim Cramer has been bullish on Eli Lilly for a long time. Recently, during his program, he said that Eli Lilly could be the first pharma company to hit the $1 trillion market cap.
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2023 investor letter:
“Stock selection was also positive in the sub-industry owing to strong gains from therapeutics-focused pharmaceutical giant Eli Lilly and Company (NYSE:LLY). Lilly’s stock continued to outperform driven by strong sales of blockbuster diabetes medicine Mounjaro and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises, particularly after Novo Nordisk released its SELECT trial results showing a 20% relative risk reduction in overweight patients with cardiovascular disease and no prior history of diabetes.
Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to strong third quarter sales of blockbuster diabetes medicine Mounjaro and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.
We own Eli Lilly and Company, which we believe will remain a leader in the GLP-1 medicine class with Mounjaro, Zepbound, and the company’s deep pipeline of next generation GLP-1 medicines.”
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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