On Wednesday’s Mad Money episode, Jim Cramer took a deep dive into ten stocks, each worth over $1 billion, that have seen significant growth this year. While acknowledging that many of these stocks are speculative, he emphasized that they still hold potential as smart investments.
Cramer suggested that when looking back on this year, two trends will stand out: a steady rise in the S&P 500, and a series of moves that initially seemed almost magical, but were grounded in reality.
Cramer also reflected on the common investment approach of sticking with index funds, noting that it is a popular strategy because it requires minimal effort. But, according to him, simply parking your money in an index fund might not be the best way to maximize returns. Instead, he argued that investors should consider individual stocks with unique characteristics, many of which are speculative since they offer opportunities for much larger gains.
Cramer criticized the tendency among experts to dismiss individual stock investments beyond index funds, saying:
“Far too often we become snobs when we talk stocks. So many experts think that if you venture past the index, you could fall off some sort of intellectual cliff. It makes any gains null and void. It’s as if the huge swath of points you could have gained simply don’t count. But that, people, is nonsense.”
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During Wednesday’s episode, Cramer highlighted several stocks that have surged by over 200% this year, choosing to focus only on those with a market cap of more than $1 billion. He did clarify, however, that he was not endorsing these stocks, especially given how much they have already appreciated. Instead, his point was that speculative stocks, despite their volatility, have a valid place in an investment portfolio.
While they come with risks, a small stake in one of these stocks could outperform a much larger investment in an index fund. For Cramer, it is not about avoiding speculative stocks altogether, but recognizing their potential when balanced alongside more stable investments like index funds.
Cramer wrapped up by stressing the importance of considering these high-flying, speculative stocks and said:
“The bottom line: Let’s remember this list of frothy stocks and think of them the next time you’re about to ignore a stock for being too speculative because these names are often the epitome of speculating wisely, which can be the key for terrific long-term performance, of course, only when melded with index funds.”
Jim Cramer’s List of 10 Stocks That Have Rallied Over 200% This Year
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 13 and listed the stocks in the order that Cramer mentioned them.
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).
Jim Cramer’s List of 10 Stocks That Have Rallied Over 200% This Year
10. NuScale Power Corporation (NYSE:SMR)
Cramer acknowledged that NuScale Power Corporation (NYSE:SMR) is spending a lot to develop nuclear reactors but went on to say that it has the possibility of raising money. Here’s what he had to say:
“Finally, the best performer: Viewers are crazy for nuclear power, you know that, you hear it all the time, but how about NuScale… This one’s on the come, so to speak because it’s losing a fortune, developing the nukes of the future, so-called small modular reactors. Yet it’s so beloved that I bet it can raise a ton of money once it lands a big hyperscaler contract. I’m clearly not alone here, the stock… is up 659% for the year.”
NuScale (NYSE:SMR) is a company specializing in the design and sale of modular light water reactor (LWMR) nuclear power plants. These reactors are intended for a variety of applications, including electricity generation, district heating, desalination, hydrogen production, and process heat. The company’s work aligns with broader national energy goals, as the White House recently outlined a roadmap aimed at significantly expanding nuclear energy production in the U.S.
By 2050, the administration plans to “at least” triple nuclear energy production, adding 200 gigawatts of new capacity. This ambitious expansion is seen as a means to create jobs, enhance energy reliability, and contribute to achieving a net-zero emissions economy by mid-century. In this context, SMRs, which the company specializes in, are expected to play a key role. The U.S. government has recognized the importance of advancing nuclear energy, with particular attention given to the development of small modular reactors.
The White House’s energy roadmap even specifically mentioned NuScale (NYSE:SMR) under the plan to expand nuclear energy. In particular, it noted how the U.S. Nuclear Regulatory Commission (NRC) is reforming its licensing and permitting processes to facilitate the deployment of new reactors. The company has been a significant part of this process, with its SMR design becoming the first to be certified by the NRC.
9. AppLovin Corporation (NASDAQ:APP)
Cramer highlighted AppLovin Corporation’s (NASDAQ:APP) recent earnings beat and mentioned the stock’s gains for the year during Mad Money’s episode.
“Not all these big speculative winners are money losers. Take AppLovin, which helps software developers create apps. While it’s been in business for 12 years, it still feels like AppLovin burst out of nowhere, doesn’t it? Reporting earnings of $434 million, analysts were expecting $319 million, that’s called a beat. It has mobile analytics and [an] in-house gaming division and it’s got an AI-powered acquisition platform that apparently everybody loves and that’s how you get more than 612% gain year to date. That’s right, 612% on a company that really isn’t all that speculative.”
AppLovin (NASDAQ:APP) provides software solutions that help advertisers optimize marketing and monetization, including tools for app measurement, analytics, and in-app bidding, while also operating a portfolio of free-to-play mobile games. Its business took a significant leap forward in 2023 with the launch of its Axon 2 advertising technology. Introduced in the second quarter of 2023, Axon 2 utilizes artificial intelligence to improve ad targeting and optimization, and its impact on the company has been notable.
As per its third-quarter earnings call, Axon 2’s self-learning capabilities, combined with ongoing updates from the company’s engineering team, have significantly improved the platform’s performance. Management highlighted that these advancements led to a notable step change in growth, with Axon 2 being the primary driver behind the company’s success in the quarter.
As a result of the improved technology, AppLovin’s (NASDAQ:APP) software platform revenue surged by 66%, reaching $835 million for the third quarter. In contrast, the company’s legacy apps business, which consists of its portfolio of gaming apps, saw more modest growth, with revenue increasing by just 1% to $363 million.
8. MicroStrategy Incorporated (NASDAQ:MSTR)
Cramer mentioned that many companies have tried to copy MicroStrategy Incorporated (NASDAQ:MSTR) but advised his viewers to go for the stock and not the imitators.
“Next, if the president wants to do a strategic Bitcoin reserve, he might as well buy stock in MicroStrategy, which owns 252,220 Bitcoin at the end of September… This was another company that seemed cockeyed because… it was known as a business intelligence software company. There are many other smaller companies that have tried to mimic MicroStrategy’s pivot but why own a pretender when you can own the real thing, the one that’s up nearly 419% for the year.”
MicroStrategy (NASDAQ:MSTR) offers AI-powered enterprise analytics software and services, and various support, consulting, and educational services. The company is also involved in Bitcoin development. In July, at a conference, founder and executive chairman, Michael Saylor, was vocal about his bullish outlook on Bitcoin. Saylor shared his belief that Bitcoin could reach a price of $13 million by 2045, in what he described as his base case scenario.
Saylor also outlined a more optimistic scenario, suggesting that Bitcoin could rise to $49 million and account for as much as 22% of global wealth. On the flip side, he presented a bear case in which Bitcoin might only reach $3 million, making up 2% of global wealth. The company’s commitment to Bitcoin has continued to grow, with the company actively increasing its holdings over the past few quarters. This aggressive acquisition strategy is part of a broader vision that Saylor refers to as the “21/21 Plan.”
In October, Saylor announced a new phase of this plan, which involves raising $42 billion over the next three years to fund further Bitcoin purchases. Half of the funds would be raised through new at-the-market offerings of company shares, while the other half would come from new fixed-income offerings, primarily in the form of convertible debt.
Saylor’s plan reflects his belief that we are currently in the midst of what he describes as a decade-long Bitcoin “gold rush.” As part of this vision, MicroStrategy (NASDAQ:MSTR) aims to transform itself from an enterprise software company into what Saylor now calls a “Bitcoin Treasury Company” or BTC.
7. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Cramer acknowledged that AST SpaceMobile, Inc. (NASDAQ:ASTS) has been burning money but pointed out that space stocks are in favor presently.
“Alright, seventh: AST SpaceMobile is another company that I’ve gotten a lot of calls about lately. It’s a satellite maker but it has deals with Verizon, AT&T. It helps smartphone connectivity. While it’s losing gobs and gobs of money, it’s a space stock, and space is loved right now, hence why AST’s up over 362% this year.”
AST SpaceMobile (NASDAQ:ASTS), a company focused on creating a space-based cellular broadband network for smartphones, is actively working on expanding its operations and technology to provide global mobile connectivity, especially in areas lacking terrestrial coverage. On November 14, the company released its third-quarter earnings report, revealing progress across several fronts, including new contracts and government partnerships.
During the third quarter, the company notably expanded its customer base and ecosystem, securing three new contract awards with the U.S. Government. These agreements allow the company to build on its existing in-orbit technology and strengthen its offerings for both commercial and government applications. It was also selected by the Space Development Agency (SDA) to compete directly as a prime contractor under the Hybrid Application for Proliferated Low Earth Orbit (HALO) program.
In addition to government contracts, AST SpaceMobile (NASDAQ:ASTS) continued its ongoing discussions with commercial partners. The company has established a growing list of global commercial partnerships, which include major players like AT&T, Verizon, Google, and Vodafone.
These collaborations give the company access to a vast network of more than 45 mobile operators, which collectively serve over 2.8 billion subscribers worldwide. The company also highlighted its financial position at the end of the quarter, reporting a balance sheet with $518.9 million in cash, cash equivalents, and restricted cash.
6. Carvana Co. (NYSE:CVNA)
Cramer discussed how Carvana Co. (NYSE:CVNA) reduced its debt and called it “getable”.
“Six: When Carvana dropped to single digits last year, I pounded the table, saying that people buy, buy, buy, buy, buy, buy. Love these low prices and generous return policy, having bought a car from them and then sent it back… Carvana was in trouble but then they got big backing from their creditors, allowing them to reduce their debt and the rest is history. The stock’s now up 353% for the year and again, I think it was getable if you’re willing to take some risk.”
Carvana (NYSE:CVNA) operates a prominent e-commerce platform for buying and selling used cars in the United States. The company initially grew at a rapid pace, expanding into new markets and increasing its customer base. However, this rapid expansion came with significant financial challenges, as it burned through large amounts of cash while scaling its operations. This resulted in the company accumulating substantial debt.
In an effort to address its financial difficulties, the company entered into a debt exchange agreement with its bondholders last year. As part of this restructuring, the new notes were fully secured by the company’s assets, providing a more stable financial foundation.
Despite these efforts, Carvana (NYSE:CVNA) continues to face a considerable debt load. As of the third quarter of 2024, the company reported total liabilities of $7.08 billion. However, the company’s financial position showed signs of improvement in its latest quarterly results. The company reported a net income of $148 million for the third quarter, with diluted EPS of $0.64, meeting analysts’ expectations. Total revenue for the quarter reached $3.655 billion, marking an impressive 32% increase compared to the same period the previous year.
5. Vistra Corp. (NYSE:VST)
Cramer mentioned Vistra Corp.’s (NYSE:VST) energy mix and its investments in renewable energy.
“Next up, speaking of data centers, they consume just seemingly endless amounts of electricity, don’t they? Which is why an integrated power producer Vistra is on the list, up almost 269% for the year. While the vast majority of its power generation comes from fossil fuels, it’s 60% natural gas, 20% coal. Vistra’s got nuclear exposure and it’s making some big investments in renewables.”
Vistra (NYSE:VST) is a leading electricity retail and power generation company that serves around 5 million customers, positioning it as a significant player in the energy sector. Recently, Jim Burke, President and CEO, highlighted that the company’s upcoming acquisition of a 15% minority stake in Vistra Vision is expected to increase shareholder ownership in Vistra’s zero-carbon assets.
Specifically, the acquisition will boost the company’s nuclear generation capacity by roughly 970 megawatts and add around 200 megawatts in solar and energy storage capacity. During the company’s third-quarter earnings call, management revealed that the company is actively engaged in discussions with multiple development firms regarding a number of its gas sites.
In addition to these talks, the company is exploring early-stage conversations with hyperscale data center operators about the potential for nuclear power uprates and new build projects. Furthermore, management said that Vistra (NYSE:VST) is in discussions with two major companies about building new gas plants designed to support large data center projects.
4. Powell Industries, Inc. (NASDAQ:POWL)
Talking about Powell Industries, Inc. (NASDAQ:POWL), Cramer said it supplies to companies requiring critical electrical infrastructure, often for data centers.
“Fourth: We highlighted Powell Industries back in August. Here’s an old-line industrial that makes custom-engineered equipment to control electricity. Their machinery was primarily used by oil and gas companies, but lately, Powell’s become the supplier of choice for those who need critical electrical infrastructure… up almost 259% for the year.”
Powell Industries (NASDAQ:POWL) is engaged in designing, manufacturing, and servicing custom-engineered electrical equipment and systems, including substations, motor control centers, switchgear, and related components. Over the past few quarters, the company has been making strides in expanding its footprint in the AI-driven data center market. While this segment remains a relatively small part of overall revenue, it shows promising potential for future growth.
The Commercial and Other Industrial sector—including data-center-related projects—accounted for 15% of the company’s revenue during the last quarter. Powell Industries (NASDAQ:POWL) Chief Financial Officer Michael Metcalf noted that commercial activity, in general, has been strong, providing a favorable tailwind as the company enters the final quarter of the fiscal year 2024. Brett A. Cope, Chairman and Chief Executive Officer, remarked that the largest growth in the last quarter came from the Electric Utility sector, with revenues in this segment rising by 30% compared to the same period last year.
3. Palantir Technologies Inc. (NYSE:PLTR)
Cramer acknowledged that Palantir Technologies Inc. (NYSE:PLTR) stock is performing better than Nvidia for the year and attributed the gains to defense contracts.
“CEO Alex Karp talked a big game until the recent quarter when Palantir soared on an amazing, amazing three months. They verified his chest pounding and ratified the stock’s run. It’s now up 253% for the year. Yeah, it’s doing better than Nvidia. The big gains have come from revolutionary Defense Department contracts. They could bring our stodgy military bureaucracy more in the cyber warfare era. By the way, these guys really excel at one thing most definitely, the procurement process.”
Palantir (NYSE:PLTR) is a leading developer of advanced software platforms that specialize in integrating and analyzing complex data to support decision-making. The company has long been known for its work with government agencies, providing critical tools for data-driven operations. In its third-quarter earnings report, it showed strong growth, with revenue climbing 30% year-over-year to reach $726 million.
CEO Alex Karp attributed this growth to the increasing adoption of artificial intelligence (AI) by U.S. government clients. This period also saw a significant increase in the size of the deals the company was securing. The company signed 104 contracts worth over $1 million during the quarter, indicating a rising demand for its services.
Palantir (NYSE:PLTR) saw particularly strong growth within its government business. Revenue from government contracts rose 33% year over year to $408 million, with U.S. government revenue alone surging by 40%, reaching $320 million. This marked the highest growth the company had experienced from its largest customer in 15 quarters. The company’s international government revenue also grew, increasing by 13% year over year to $89 million.
2. CAVA Group, Inc. (NYSE:CAVA)
On Wednesday, Cramer discussed CAVA Group, Inc. (NYSE:CAVA) being accessible and its recently released third-quarter earnings report.
“The second smallest gainer in this group of just hallowed stocks is the most salient and that’s Cava Group, which reported last night. This casual dining chain aspires to be the Mediterranean version of Chipotle. It’s up over 242% for the year, including today’s 1.5% gain. At one point, it was up so much more because the same-store sales were up 18% and Wall Street was only looking for 12.4%. The best thing about Cava is this one was indeed accessible. Many of you have eaten there and enjoyed it.
Right now, the stock’s stretched a little thin with each restaurant in the chain worth nearly $48 million on average. Eh, way too expensive. But who’s to say that the $17 billion chain might not eventually make its way to Chipotle’s levels, which is over $80 billion.”
CAVA Group (NYSE:CAVA) is a leading player in the fast-casual dining sector, operating a growing network of Mediterranean-inspired restaurants across the United States. The company has made significant strides in expanding its footprint, as evidenced by its impressive financial performance for the third quarter. During the quarter, its same-store sales surged by 18%, driven largely by a nearly 13% increase in customer traffic. This growth contributed to a 39% rise in total revenue, which reached $241.5 million for the quarter.
The success at the unit level is also noteworthy, with average unit volumes improving from $2.6 million to $2.8 million, reflecting a rise in the amount of business individual restaurants are generating. At the same time, the restaurant-level profit margin stood at 25.6%. The company saw a substantial increase in net income, which nearly tripled from $6.8 million to $18 million. Diluted EPS also saw a significant jump, rising from $0.06 to $0.15.
CAVA Group’s (NYSE:CAVA) expansion strategy continues to gain momentum, with CEO Brett Schulman emphasizing the company’s growth in both new and existing markets. During the earnings call, Schulman mentioned that the company added 11 new locations in Q3, marking a continuation of its nationwide expansion.
1. Rocket Lab USA, Inc. (NASDAQ:RKLB)
Cramer noted Rocket Lab USA, Inc.’s (NASDAQ:RKLB) revenue growth and its expanding satellite business.
“First: Last night was a tremendous night for wealth creation, including the outstanding gains from Rocket Lab. That’s a soup-to-nuts space company. It’s been putting up a plethora of satellites that will only grow exponentially over time. They just reported 55% revenue growth with a $1.05 billion backlog. I got asked about this one all the time in the lightning round, you know that. I’m calling it accessible because you could’ve listened to our callers and you would’ve bought it. In today’s run, that darn thing’s up over 240% for the year.”
Rocket Lab (NASDAQ:RKLB) provides launch services, spacecraft design and manufacturing, and on-orbit management solutions for the space and defense industries, including its Electron and Photon rockets, as well as developing the Neutron launch vehicle.
Its shares were up after it reported third-quarter earnings on Tuesday. It reported sales of $104.8 million, alongside a loss of $0.10 per share. Additionally, in the quarter, the company secured $55 million in new contracts for Electron launches.
Rocket Lab’s (NASDAQ:RKLB) financial outlook for the fourth quarter shows significant growth, with projected revenue between $125 million and $135 million, which would represent a substantial increase from last year’s Q4 revenue of just under $60 million. Furthermore, the company has committed to providing even more launch services through its Neutron vehicle, which is designed to cater to medium-lift needs. Although the specific customer for these future launches has not been disclosed, the agreement reflects the company’s continued expansion into larger-scale launch services.
While we acknowledge the potential of Rocket Lab USA, Inc. (NASDAQ:RKLB) as an investment, our conviction lies in the belief that 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 RKLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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