Jim Cramer’s Hidden Gems: 10 Undervalued Stocks You Need to Know

1. Shake Shack Inc. (NYSE:SHAK)

Number of Hedge Fund Holders In Q3 2024: 35

Date of Cramer’s Comments: 8-19-24

Performance Since Then: 26.51%

Shake Shack Inc. (NYSE:SHAK) is a fast food chain that sells meals such as fries, hot dogs, hamburgers, and of course, shakes. On the surface, the firm’s business model of depending on consumer spending would have left the stock vulnerable in 2024. However, Shake Shack Inc. (NYSE:SHAK)’s shares are up by 80% year-to-date as the firm has bucked the trend of budget-conscious consumers looking to extract greater value out of their meals. The ability to retain customers and grow profits has come on the back of several initiatives such as the firm improving kiosk checkout times, new product launches, and upscale outlets that are typically more resilient to drops in consumer spending. Cramer, in his remarks, covered an August note from Piper Sandler that worried about the effects of Shake Shack Inc. (NYSE:SHAK)’s menu pricing on the firm’s long-term performance, downgraded the stock to Neutral from Overweight, and set a $114 price target:

“Piper Sandler has taken a more moderate view toward the fast-casual sector overall and also downgraded Shake Shack.”

SHAK was a stock Jim Cramer mentioned in August. While we acknowledge the potential of SHAK as an investment, our conviction lies in the belief that some 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 SHAK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.