In this article, we will take a detailed look at Jim Cramer’s February Portfolio: Top 10 Stocks.
Jim Cramer in a latest program on CNBC talked about the importance of investing in companies with good management teams. Cramer said that sometimes struggling companies could be turned around because of smart leadership.
“I have to tell you, I do want more out of my stocks and just better than feared. I am tired of tech just sitting there and people arguing about it all the time. It’s getting boring to me. And that’s why I want to go far afield tonight and suggest that we look for the companies with the best new coaches, because we know a great new coach with a fresh look can easily turn around a company.”
Cramer then talked about several companies where strong leadership teams and intelligent CEOs turned around struggling businesses.
“Not all publicly traded companies are hostages to forces beyond their control, like a Chinese outfit we never heard of that has just made it so all we talk about is. Sometimes when you bring in a great new CEO, they can turn around the whole business, giving the investor spectacular gains, even when tech blinds us like mustard gas.”
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article we picked 10 stocks Jim Cramer talked about in his recent programs. With each stock, we have mentioned the number of hedge fund investors. 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).
10. SoundHound AI Inc (NASDAQ:SOUN)
Number of Hedge Fund Investors: 11
Jim Cramer was recently asked about SoundHound AI Inc (NASDAQ:SOUN). He said it’s a “meme” stock and he cannot recommend it.
“Okay, this is a meme stock, and they are kind of getting it going. I’m never going to get in the way of a meme stock because you never know how high they can go.”
SoundHound AI Inc (NASDAQ:SOUN) operates in a growing $150 billion voice AI market and is shifting toward recurring revenue. Its top customer which accounted for about 72% of revenue in 2023 now accounts for just 12%. However, competition and valuation are risks for the stock. Amazon’s Alexa, Google’s Assistant, and Apple’s Siri limit SoundHound AI Inc (NASDAQ:SOUN)’s potential growth. However, SoundHound AI Inc (NASDAQ:SOUN)’s Deep Meaning Understanding technology stands out with its advanced natural language processing and real-time capabilities, unlike competitors that use sequential processing. Nonetheless, the stock’s valuation is concerning and value-conscious investors can look elsewhere for better options.
9. Enterprise Products Partners LP (NYSE:EPD)
Number of Hedge Fund Investors: 25
Jim Cramer was recently asked about midstream energy company Enterprise Products Partners LP (NYSE:EPD). He said it’s his “absolute favorite” in the industry.
“Oh my God, it’s my absolute, absolute favorite of the group. I think you just have to stand there and buy it. It’s cheap, it’s got a good yield, and its business is fabulous.”
Enterprise Products Partners LP (NYSE:EPD) bulls believe the stock is positioned to thrive under the new Republican administration. The company expects to spend between $3.5 billion and $3.75 billion on capital projects this year. Outlays will decline to $2.5 billion in 2025, but expenditures should stay significant through the decade. All of this will strengthen Enterprise Products Partners LP (NYSE:EPD)’s ability to connect the country’s exploration hubs with domestic consumers and global markets.
8. SoFi Technologies Inc (NASDAQ:SOFI)
Number of Hedge Fund Investors: 31
Jim Cramer in a latest program on CNBC talked about the selloff around SoFi Technologies Inc (NASDAQ:SOFI) after the company reported earnings. Cramer said the selloff had more to do with the DeepSeek-related panic in the market than the actual results.
“No, the actual quarter was good. It must be the forecast…Why would I sell it over a forecast and not the fact that it’s doing quite well? And the answer is DeepSeek. In other words, it’s just getting caught up, caught up because it’s not because it’s had such a great year and a great move. Obviously, it’s kind of that secondary of like, well, wait a second, have we overstayed in a red-hot stock? And I think, David, the red-hot stocks today are trading as a unit, and SoFi Technologies Inc (NASDAQ:SOFI) is being caught up in that.”
SoFi Technologies Inc (NASDAQ:SOFI)’s latest quarterly results were solid but guidance spooked investors. For 2025, the company projects adjusted net revenue of $3.2-3.275 billion, a 23%-26% year-over-year growth, which is impressive. However, adjusted EBITDA guidance of $845-865 million fell short of the $906 million estimate. The incremental adjusted EBITDA margin of 30% aligns with the company’s goals, but it doesn’t indicate much margin expansion compared to last year.
Patient Capital Management stated the following regarding SoFi Technologies, Inc. (NASDAQ:SOFI) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like SoFi Technologies, Inc. (NASDAQ:SOFI) and Coinbase Global Inc. (COIN) during the year. Both companies rebounded strongly in the fourth quarter.
Sofi Technologies Inc. (SOFI) was a standout in the quarter, climbing 95% and up 156% from the intra-day lows in June. The company benefited from Fed rate cuts and the market’s growing optimism that the economy will avoid a recession. The company continues to grow its customer count while successfully cross selling into their loans and financial service products. In the quarter, we saw the company take on a new revenue stream by originating loans for third parties, creating an attractive balance sheet-light revenue source, helping improve return on equity and margins. Sofi is early in its life cycle, currently being a small player in a very large total addressable market (TAM). With their strong management team, we believe the company will continue to deliver on their guidance of strong growth and expanding margins.”
7. Wingstop Inc (NASDAQ:WING)
Number of Hedge Fund Investors: 39
Jim Cramer in a latest program on CNBC said he’s “worried” about Wingstop Inc (NASDAQ:WING) because he is not getting the answers to his questions on the company’s underperformance.
“I am worried about Wing now. See, Wingstop Inc (NASDAQ:WING), when they reported last, did not give me an explanation about why they didn’t do well, and so, therefore, I went off on them. Now, I have to tell you, I don’t personally dislike them. I have to like the product. But when you come on the show and you talk a good game, you know, and say good things, and I say good things about you, and then you don’t give me the information I need to say why I should continue to like you, then I have to turn on you. It’s just what I do, and it’s not just because I’m from Philadelphia.”
Carillon Eagle Mid Cap Growth Fund stated the following regarding Wingstop Inc. (NASDAQ:WING) in its Q4 2024 investor letter:
“Wingstop Inc. (NASDAQ:WING) is a franchisor and restaurant operator that specializes in cooked-to order chicken wings in a fast-casual setting. The stock pulled back sharply as quarterly earnings came in short of very high expectations. Additionally, forward guidance pointed to more slowing in the business than expected as Wingstop laps extremely strong comparable sales.”
6. Palantir Technologies Inc (NASDAQ:PLTR)
Number of Hedge Fund Investors: 43
Jim Cramer in a latest lightning round program on CNBC mentioned Palantir Technologies Inc (NASDAQ:PLTR) while answering a question about AppLovin and said the tech company, like Palantir, has no end in sight when it comes to stock performance. Cramer said both AppLovin and Palantir Technologies Inc (NASDAQ:PLTR) will keep going higher.
“I’m going to give you a two-for-one—I’m going to say the same thing about Palantir. Palantir Technologies Inc (NASDAQ:PLTR) and AppLovin should go get married,” Cramer said after praising AppLovin’s gains.”
Alger Mid Cap Focus Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”
5. Lululemon Athletica Inc (NASDAQ:LULU)
Number of Hedge Fund Investors: 45
Jim Cramer in a latest program praised Lululemon Athletica Inc (NASDAQ:LULU) and said the company’s CEO Calvin McDonald is “excelling.”
“There’s a lot of negativity today, so I figured I’d put something positive in. Lululemon Athletica Inc (NASDAQ:LULU) pre-announced its positive upside. Now, they had already delivered a really terrific last quarter. Calvin McDonald is just excelling here. They had just a fabulous season. But they, David, have the most momentum of anyone right now in retail—quite extraordinary.”
