In this article, we will discuss the favorite energy and bank stock picks of Jim Cramer. If you want to explore similar stocks, you can go to Jim Cramer’s 5 Favorite Energy and Bank Stock Picks.
Jim Cramer is an American television personality, former hedge fund manager, and best-selling author. He is the host of CNBC’s Mad Money and co-founder of TheStreet.com. Cramer is known for his energetic and often bombastic on-air style and outspoken views on the stock market and investing.
“We’re in a Bull Market”
After a series of aggressive rate hikes in 2022, on February 1, the Federal Reserve issued another rate hike at its first meeting of 2023. However, this time the Fed raised interest rates by 25 basis points, bringing its federal funds rate target range to between 4.5% and 4.75%. On February 2, Jim Cramer talked about the Fed’s latest rate hike and why he thinks that “everything Powell said in his press conference was positive”. Cramer said “it’s crazy that stocks ever sold off in the first place” because the Fed is now moving towards getting “disinflation going, not slowing of inflation, but disinflation”. According to Jim Cramer, “we’re in a bull market”.
“It (the bull market) started last fall when long-term interest rates peaked, along with the dollar peaking. Now many stocks have clearly bottomed, even tech.”
According to Cramer, “the Fed is just trying to strike a balance between inflation and price stability”.
Jim Cramer noted that selling stocks before the peak in long-term interest rates and the dollar was the right thing to do. However, now that “the Fed says the rate hikes are working and we’re pretty far along the tightening cycle”, selling stocks may not be the right thing to do. According to Cramer, this “mistaken selling creates the opportunity for you (investors) to buy the dips”.
Jim Cramer thinks that there are “some legitimate, sizable bull markets going on” and one of them is the banks.
This piece will explore some of the favorite energy and bank stock picks of Mad Money host, Jim Cramer. Some of Cramer’s favorite energy and bank stocks include SLB (NYSE:SLB), Chevron Corporation (NYSE:CVX), Wells Fargo & Company (NYSE:WFC), and JPMorgan Chase & Co. (NYSE:JPM). Continue reading to explore more energy and bank stocks that Jim Cramer is bullish on.
Our Methodology
To determine Jim Cramer’s favorite energy and bank stock picks, we watched each episode of Mad Money on CNBC aired over the past two weeks. We also included Cramer’s “Lightning Rounds” in our watchlist. We identified Cramer’s favorite energy and bank stock picks and also noted down his comments about why he likes these stocks. Along with each stock, we have included analyst ratings and Cramer’s bull case for it. Further, we consulted Insider Monkey’s database of over 900 elite money managers, as of Q3 2022, and used the hedge fund sentiment to rank these stocks. These stocks are ranked in ascending order of the number of hedge funds having positions in them.
Jim Cramer’s Favorite Energy and Bank Stock Picks
15. MPLX LP (NYSE:MPLX)
Number of Hedge Fund Holders: 6
MPLX LP (NYSE:MPLX) is a US-based company that owns and operates midstream energy infrastructure and logistics. It has two divisions: Logistics & Storage and Gathering & Processing. Jim Cramer talked about this stock in one of his lightning rounds. He likes the company, the company’s cash flow, and the company’s pipelines. Moreover, he called the stock a “winner”. As of February 3, MPLX LP (NYSE:MPLX) has gained 13% over the past six months and has free cash flow of $5 billion.
On January 9, Wolfe Research analyst Keith Stanley upgraded MPLX LP (NYSE:MPLX) to Outperform from Peer Perform and reiterated his $36 price target. The analyst noted that MPLX LP (NYSE:MPLX) has a “highly stable business, sector-leading total return of capital yield, and a top tier balance sheet”.
At the end of Q3 2022, 6 hedge funds were bullish on MPLX LP (NYSE:MPLX) and disclosed positions worth $24.8 million in the company. Of those, Heronetta Management was the leading investor in the company with a position worth $13.13 million.
Some of Jim Cramer’s favorite energy and bank stocks include MPLX LP (NYSE:MPLX), SLB (NYSE:SLB), Chevron Corporation (NYSE:CVX), Wells Fargo & Company (NYSE:WFC), and JPMorgan Chase & Co. (NYSE:JPM).
14. HighPeak Energy, Inc. (NASDAQ:HPK)
Number of Hedge Fund Holders: 7
HighPeak Energy, Inc. (NASDAQ:HPK) operates as an independent oil and natural gas company. The company is involved in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids reserves. Cramer talked about the stock in one of his lightning rounds and said that it is “a very inexpensive stock versus every single other oil company”. As of February 3, HighPeak Energy, Inc. (NASDAQ:HPK) is trading at a PE multiple of 15.75 and at $27.57 per share.
According to the Wall Street Journal, HighPeak Energy, Inc. (NASDAQ:HPK) currently has 2 Buy ratings from Wall Street analysts and a high forecast of $46.75. The stock’s median price target sits at $43.38.
7 hedge funds were long HighPeak Energy, Inc. (NASDAQ:HPK) at the end of the third quarter of 2022. These funds held collective stakes worth $5.7 million in the company. Of these funds, Renaissance Technologies was the leading investor with a stake worth $3.5 million.
13. RPC, Inc. (NYSE:RES)
Number of Hedge Fund Holders: 18
RPC, Inc. (NYSE:RES) is another one of Cramer’s favorite energy stocks. The Mad Money host mentioned the stock in one of his lightning rounds and recommended holding it. RPC, Inc. (NYSE:RES) is a leading provider of oilfield services and equipment for companies in the oil and gas industry. The company has two divisions: Technical Services and Support Services. As of February 3, RPC, Inc. (NYSE:RES) has returned 27.34% to investors over the past six months and is trading at a PE multiple of 9x.
On January 25, RPC, Inc. (NYSE:RES) declared a quarterly cash dividend of $0.04 per share, double its prior dividend of $0.02. The dividend is payable on March 10 to shareholders of record on February 10. As of February 3, the stock is offering a forward dividend yield of 1.65%.
According to WSJ, RPC, Inc. (NYSE:RES) currently has a consensus Hold rating from 4 Wall Street analysts. One analyst has given an Overweight rating to the stock. The stock has a high forecast of $13 and is trading at $9.27 per share, as of February 3.
Out of the hedge funds being tracked by Insider Monkey, 18 disclosed positions in RPC, Inc. (NYSE:RES) worth $61.5 million at the end of Q3 2022. As of December 31, Navellier & Associates is the dominant shareholder in the company and has a position worth $0.725 million.
12. Baker Hughes Company (NYSE:BKR)
Number of Hedge Fund Holders: 30
Baker Hughes Company (NYSE:BKR) is a Texas-based oil & gas services and equipment company. The company has two divisions: Oilfield Services & Equipment and Industrial & Energy Technology. Baker Hughes Company (NYSE:BKR) is one of Cramer’s favorite energy stock picks from the oil services space.
On January 23, Baker Hughes Company (NYSE:BKR) announced that its EPS for the fiscal fourth quarter of 2022 was $0.38 and the company generated a revenue of $5.91 billion in the quarter. As of February 3, the stock has gained 30.38% over the past six months.
This January, HSBC analyst Abhishek Kumar raised his price target on Baker Hughes Company (NYSE:BKR) to $39 from $33.30 and maintained a Buy rating on the shares.
At the end of Q3 2022, 30 hedge funds were eager on Baker Hughes Company (NYSE:BKR) and disclosed positions worth $284.6 million in the company. As of December 31, Bourgeon Capital is the top investor in the company with a position worth $6.42 million.
Here is what Carillon Tower Advisers had to say about Baker Hughes Company (NASDAQ:BKR) in its Q4 2022 investor letter:
“Baker Hughes Company (NASDAQ:BKR) is a diversified energy technology and equipment company. After lagging the broader energy complex for the first quarters of 2022 amid some unfortunate operational hiccups related to ongoing supply-chain issues and the ceasing of operations in Russia, the stock rebounded meaningfully in the fourth quarter. Investors hope these recent headwinds are now in the rearview mirror and the company is poised to benefit from a number global tailwinds, including the multiyear upturn in upstream spending on exploration and production, the ongoing build-out of liquefied natural gas infrastructure, and the increased development of emerging technologies such as green hydrogen and carbon capture.”
11. Regions Financial Corporation (NYSE:RF)
Number of Hedge Fund Holders: 32
Regions Financial Corporation (NYSE:RF) is one of Jim Cramer’s favorite bank stocks. Cramer mentioned Regions Financial Corporation (NYSE:RF) in one of his lightning rounds and said that “it’s an excellent stock” and also “a terrific buy even at these levels”. Regions Financial Corporation (NYSE:RF) provides banking and related services to both individuals and corporate customers. The company is based in Birmingham, Alabama.
As of February 3, Regions Financial Corporation (NYSE:RF) is trading at a PE multiple of 10x and has returned 12.41% to investors over the past six months.
On January 23, Truist analyst Jennifer Demba raised her price target on Regions Financial Corporation (NYSE:RF) to $27 from $24 and maintained a Buy rating on the shares.
Regions Financial Corporation (NYSE:RF) was spotted on 32 investors’ portfolios at the end of Q3 2022. These funds disclosed positions worth $330.9 million. As of December 31, Pzena Investment Management is the leading shareholder in Regions Financial Corporation (NYSE:RF) and has a position worth $52.73 million.
10. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: 39
While Jim Cramer has not recently spoken on Coterra Energy Inc. (NYSE:CTRA), Cramer’s investing club has a position in the company. Coterra Energy Inc. (NYSE:CTRA) operates as an independent oil and gas company and is involved in the development, exploration and production of oil, natural gas, and natural gas liquids in the United States.
This January, Mizuho analyst Nitin Kumar took coverage of Coterra Energy Inc. (NYSE:CTRA) with a Buy rating and revised his price target on the stock to $41 from $42.
At the end of Q3 2022, 39 hedge funds were bullish on Coterra Energy Inc. (NYSE:CTRA) and disclosed positions worth $399.85 million. As of December 31, Navellier & Associates is the top shareholder in the company and has a stake worth $6.12 million.
Here is what Palm Valley Capital Management had to say about Coterra Energy Inc. (NYSE:CTRA) in its Q3 2022 investor letter:
“For the full calendar year, the Fund’s top performers includes Coterra Energy Inc. (NYSE:CTRA). Coterra Energy Inc. (NYSE:CTRA)’s stock rose sharply along with energy prices at the beginning of 2022.”
9. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Holders: 48
Halliburton Company (NYSE:HAL) is another one of Cramer’s favorite energy stocks that he also has a stake in through his investing club. Halliburton Company (NYSE:HAL) is a global oil and gas equipment and services company. The company operates through two segments: Completion & Production and Drilling & Evaluation.
On January 24, Halliburton Company (NYSE:HAL) posted strong earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $0.72 and outperformed consensus by $0.05. The company’s revenue for the quarter amounted to $5.58 billion, up 30.51% year over year.
On January 30, HSBC analyst Abhishek Kumar raised his price target on Halliburton Company (NYSE:HAL) to $57 from $43.90 and maintained a Buy rating on the shares.
Halliburton Company (NYSE:HAL) was spotted on 48 investors’ portfolios at the end of Q3 2022. The total stakes of these hedge funds amounted to $1 billion. As of December 31, Pzena Investment Management has a position worth $310.6 million in Halliburton Company (NYSE:HAL) and is the leading shareholder.
Here is what Carillon Tower Advisers had about Halliburton Company (NYSE:HAL) in its Q4 2022 investor letter:
“Halliburton Company (NYSE:HAL) provides equipment and services to the global energy industry. Shares have been on an impressive trajectory recently, outpacing the notable move in the overall oilfield services and equipment group. Halliburton benefits from the ongoing upswing in global upstream spending and should play a pivotal role in helping exploration and production companies navigate the recent productivity declines in North American shale. The tight services and equipment market has resulted in strong pricing gains and margin expansion, and when coupled with a disciplined approach to capital spending, has paved the way for the stock’s outperformance.”
8. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 49
Pioneer Natural Resources Company (NYSE:PXD) is one of Cramer’s favorite energy stock picks. Cramer has a position in Pioneer Natural Resources Company (NYSE:PXD) through his investing club. Cramer also mentioned Pioneer Natural Resources Company (NYSE:PXD) in one of his recent lightning rounds and said that he thinks Pioneer Natural Resources Company (NYSE:PXD) is “one of the best investments you can make” because “it’s got a 10% yield and it’s backed up by cash”. As of February 3, Pioneer Natural Resources Company (NYSE:PXD) is offering a forward dividend yield of 11.36% and has free cash flows of $7.19 billion.
This January, Mizuho analyst Nitin Kumar started coverage of Pioneer Natural Resources Company (NYSE:PXD) with a Buy rating and a $294 price target.
At the close of Q3 2022, Pioneer Natural Resources Company (NYSE:PXD) was a part of 49 investors’ portfolios that held collective positions worth $851.4 million in the company. As of December 31, Yacktman Asset Management is the top investor in the company and has a position worth $165.5 million.
7. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 51
Cramer likes Devon Energy Corporation (NYSE:DVN) and recommends investors should “keep buying” the stock. Cramer mentioned Devon Energy Corporation (NYSE:DVN) in one of his lightning rounds recently and he also holds a position in the stock through his investing club.
On January 13, Piper Sandler analyst Mark Lear revised his price target on Devon Energy Corporation (NYSE:DVN) to $96 from $98 and maintained an Overweight rating on the shares.
Devon Energy Corporation (NYSE:DVN) was spotted on 51 investor’ portfolios at the end of Q3 2022. These funds held collective stakes worth $1.51 billion in the company. As of December 31, Yacktman Asset Management is the top shareholder in Devon Energy Corporation (NYSE:DVN) and has a position worth $172.5 million in the company.
6. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 52
U.S. Bancorp (NYSE:USB) is one of Jim Cramer’s favorite bank stocks. Cramer mentioned the stock among his top picks from the banks and said that he likes U.S. Bancorp (NYSE:USB) because the company reported a “monster quarter” with “great loan growth” and “very low defaults”.
On January 25, U.S. Bancorp (NYSE:USB) reported earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $0.57 and generated a revenue of $6.34 billion, up 12% year over year.
This January, UBS analyst Erika Najarian upgraded U.S. Bancorp (NYSE:USB) to Buy from Neutral and raised her price target on the stock to $55 from $47.
At the end of Q3 2022, 52 hedge funds were long U.S. Bancorp (NYSE:USB) and disclosed positions worth $4.79 billion in the company. As of December 31, Yacktman Asset Management is the leading shareholder in the company and has a stake worth $208 million.
In addition to U.S. Bancorp (NYSE:USB), Cramer is also bullish on SLB (NYSE:SLB), Chevron Corporation (NYSE:CVX), Wells Fargo & Company (NYSE:WFC), and JPMorgan Chase & Co. (NYSE:JPM).
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Disclosure: None. Jim Cramer’s Favorite Energy and Bank Stock Picks is originally published on Insider Monkey.
