In this article, we will take a detailed look at Jim Cramer’s Latest Calls: 10 Stocks You Should Not Miss.
Jim Cramer in a latest program on CNBC talked about earnings results from some of the top consumer and retail companies and said, as a compliment, that America has become a nation of “cheapskates” where consumers are unwilling to pay more when there’s little or no value.
“There’s something happening here, and what it is is exactly clear: we’ve become a nation of cheapskates. I say that as a compliment. Nobody gets away with charging too much anymore—not in this country, no matter the industry, perhaps even the drug industry. It’s happening now, it’s happening fast, and many companies are being left behind by the change. I see it everywhere I go—in the grocery store, online, in the mall, and, of course, in the stock market.”
Cramer talked about how restaurants that offer cheaper but quality meals are seeing a surge in their stock prices amid rising revenues. He also discussed how weight-loss drugs are impacting companies that sell alcohol products.
“American people are tired of paying up. They feel gou, they feel betrayed, they feel that the only thing about brand loyalty is that it isn’t worth a dime. They want a better deal. They’ll eagerly switch lifetime habits in order to save some money because prices are up so much that you feel like an idiot if you’re paying up.”
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For this article we watched latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company 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. Dow Inc (NYSE:DOW)
Number of Hedge Fund Investors: 32
Talking about Dow Inc. in a latest program, Jim Cramer said:
“Dow is very hard to own here. I had thought that it would stay with a 5% yield like Pfizer. You know, you get these companies and you see a 5% yield, you’ve got to go, but they’re value traps. Dow has to do an upside surprise, Dow has to get the cost lower, Dow has to see an order increase, and they don’t have that in the cards right now. So, I feel very badly to believe that, but that’s the case.”
Dow Inc (NYSE:DOW) is one of the biggest chemical companies in the world. The company operates in three segments: Packing & Specialty Plastics, Intermediates & Infrastructure and Materials & Coatings. The stock is down about 20% so far this year as pricing headwinds, unfavorable environment amid elevated interest rates and lower volumes continue to take a toll on business. But analysts believe the stock is poised for growth in the long term, especially after the interest rate decrease cycle begins.
Dow Inc (NYSE:DOW) thrived when interest rates fell to near-zero levels in the midst of the COVID-19 pandemic. Amid an unfavorable environment Dow Inc (NYSE:DOW)’s management has been cutting costs and improving efficiency.
9. BlackRock Inc (NYSE:BLK)
Number of Hedge Fund Investors: 47
Talking about BLK in a latest program, Jim Cramer said:
“I’ve got to tell you Northern Trust is very good but I’ll tell you one that we’ve been buying for the travel trust, which is BlackRock, and I think it’s better. I think it’s got better growth and more consistent management.”
BlackRock Inc (NYSE:BLK) has consistently exceeded expectations on both EPS and revenues, with strong growth in both the top and bottom lines. EPS growth has been robust due to ongoing buybacks and operational improvements, while revenue growth has re-accelerated, fueled by higher asset prices, strong asset inflows, and fee growth. This strength is largely driven by significant net inflows, particularly in BlackRock Inc (NYSE:BLK)’s profitable ‘ETF’ segment. BlackRock Inc (NYSE:BLK)’s $10+ billion in cash comfortably covers the company’s core liabilities, effectively giving it a very low level of operating leverage.
However, the stock’s valuation has been a concern for many. Its P/S has increased to 7.6x, and the P/E ratio has climbed to over 25x.
The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q3 2024 investor letter:
“BlackRock, Inc. (NYSE:BLK) – Shares of BLK rallied during 3Q as organic growth improved sequentially. Our long-term view of BLK has not changed. In the near-term, strong equity market performance is supportive of AUM and fee growth, and, visibility on declining interest rates is a potential tailwind to the fixed income ETF business. We continue to view BLK as a long-term share gainer with a broad spectrum of solutions, and we appreciate the strong balance sheet and steady capital return.”
8. IBM Common Stock (NYSE:IBM)
Number of Hedge Fund Investors: 54
Answering a question about IBM (NYSE:IBM), Jim Cramer said in a latest program on CNBC that you can “hold” the stock or even buy more.
“I think we can hold it. I think we can hold it. Part now my old friend and business partner Stephanie Link actually was saying that maybe this is the time to actually buy more IBM today. I’m not going to go against her; she’s too smart. Let’s go with her judgment.”
Can IBM Common Stock (NYSE:IBM) become a top AI stock and compete with peers like Oracle, Salesforce and Microsoft?
IBM Common Stock (NYSE:IBM) recently released its Telum II Processor and Spyre Accelerator at Hot Chips 2024, designed to boost the next-gen IBM Z mainframe system. Telum II offers 8 cores at 5.5GHz with 36MB L2 cache per core and a 40% increase in total on-chip cache. Spyre adds AI capabilities with 32 compute cores and 1TB memory. Both chips, built by Samsung on a 5nm process, will launch in 2025, supporting IBM’s AI initiatives. IBM Common Stock (NYSE:IBM) also acquired Accelalpha to strengthen its Oracle consulting expertise, further enhancing its cloud and AI capabilities for enterprise clients.
IBM Common Stock (NYSE:IBM)’s latest quarterly results were driven by software, consulting, and infrastructure, boosted by accelerated enterprise AI adoption. Revenue grew 4% year-over-year, and free cash flow rose 24%, reflecting the company’s strong financial health. IBM Common Stock (NYSE:IBM) is well-positioned to capitalize on AI trends with its watsonx AI platform and Granite models, offering secure and transparent solutions that address data privacy concerns, critical for enterprise AI implementation. Their unique blend of consulting, software, and AI solutions supports large-scale AI projects.
7. Block Inc (NYSE:SQ)
Number of Hedge Fund Investors: 59
Jim Cramer was recently asked about Block Inc (NYSE:SQ) during a program on CNBC. He said the stock has more room to run.
“I don’t know Jack Dorsey but Amita (Block CFO) does a terrific job. I will tell you this: I’ve been behind the stock for a very, very long time, even since the previous CFO. The stock has now had a major move at last, and it’s not done.”
In the third quarter, Block Inc (NYSE:SQ) gained from steady gross profit momentum across its core businesses, with Cash App now accounting for the bulk of Block’s gross profit. Cash App Card users reached 24 million in the September quarter, marking an 11% year-over-year increase. The growing adoption of the Cash App Card remains a key driver. Block Inc (NYSE:SQ)’s forward price-to-earnings ratio stands at 16.7X, placing its valuation in line with PayPal (PYPL). However, Block Inc (NYSE:SQ) is projected to grow its EPS roughly 3.4 times faster than PayPal over the long term, making its valuation appear particularly attractive. At 16.7X forward earnings, the stock trades at a 51% discount to its historical average P/E ratio.
Columbia Contrarian Core Fund stated the following regarding Block, Inc. (NYSE:SQ) in its Q2 2024 investor letter:
“Block, Inc. (NYSE:SQ) – It is hard to pinpoint why the stock moved lower in the last two months of the quarter, but the most likely reason seems to be simply that investor sentiment on the stock remains generally quite negative for the near term. Investors seem to be taking recent comments from Jack Dorsey (CEO of Square, who also heads Square’s parent company, Block) to mean that a lot still needs to be fixed, rather than the perspective that Mr. Dorsey is being honest and straightforward that things weren’t working and that Square now has a clear plan and a lot of urgency behind its initiatives. The reinvigoration of Square appears very real, with a bold vision to become a generational technology company. The organization is aligned on making Square and Cash App a vertically integrated commerce platform for both sellers and consumers. For Square, this means achieving a growth rate similar to its early days with much better technology while, for Cash App, success is defined as becoming the leading primary bank for those making less than $150,000 per year, along with significant success combining the two ecosystems. The experimentation and innovation culture is back with buy-in across the organization, with a key focus on engineering discipline and exceptional products. This discipline had been lost and is now coming back and should create much better product experiences that are customer-problem focused and enable the company to regain its prior pace of market share gains.”
6. Cisco Systems Inc (NASDAQ:CSCO)
Number of Hedge Fund Investors: 61
Talking about Cisco Systems Inc (NASDAQ:CSCO)’s latest results, Jim Cramer said that the company’s CEO Chuck Robbins sounded very bullish on the latest earnings call. However, Cramer was disappointed to see the stock falling after the results.
“Does anyone really know what they’re doing? Did they listen to the call? Did they watch Chuck? It was very bullish. The stock was up 30% between quarters, but this was the most diffusive he’s been, and it was enjoyable to hear him so upbeat.”
Why did Cisco Systems Inc (NASDAQ:CSCO) fall after the results? Cisco Systems Inc (NASDAQ:CSCO)’s revenue fell 5.7% YoY in the quarter. However, it was ahead of Wall Street estimates. Citi maintained its buy rating and lifted its price target to $64 from $62. Bank of America (BAC) kept its buy rating and increased its target price to $72 from $60.
Cisco Systems Inc (NASDAQ:CSCO) is set to grow on several organic growth catalysts. Market projections for networking equipment revenue are anticipated to grow from $61.45 billion to $86.02 billion between 2024 and 2030.
Cisco Systems Inc (NASDAQ:CSCO) is expected to report $3.65 in EPS this year and $4.22 in 2026, representing a 15.62% increase over the next two years. It trades at 15.81 times this year’s earnings and 13.67 times 2026 earnings. In comparison, the average of its peers trades at 68.47 times this year’s earnings and 42.29 times 2026 earnings. ANET, a similar company, trades at 44.15 times this year’s earnings and 33.7 times 2026 earnings.
The London Company Large Cap Strategy stated the following regarding Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2024 investor letter:
“Exited: Cisco Systems, Inc. (NASDAQ:CSCO) – Sale reflects slowing growth prospects and risk of value-destroying M&A. Valuation of the shares is attractive, and CSCO offers a 3.3% dividend yield at the current price, which makes it a more attractive holding for our Income Equity portfolio.”
5. GE Vernova Inc (NYSE:GEV)
Number of Hedge Fund Investors: 92
Jim Cramer in a latest program praised GE Vernova Inc (NYSE:GEV)’s performance. However, he said the stock needs a “pause” and recommended investors to buy it on the dip. GE Vernova Inc (NYSE:GEV) shares are up 151% so far this year.
“People are really desperate to find some sort of clean energy play that is not compromised or feared that would be not sold over Trump Administration. This is actually a natural gas pipeline company that has wind all right and has maybe nuclear down the road,” Cramer said.
GE VERNOVA Inc (NYSE:GEV) Power segment growth is driven by advanced gas turbines and related services. The Electrification segment is also expanding quickly, supported by trends such as AI data centers and the need for grid modernization and high-voltage direct current (HVDC) technologies.
The renewable segment is expected to break even in 2024 and become profitable by 2025, indicating significant potential for growth.
GE VERNOVA Inc (NYSE:GEV) business is diversified since it operates across three segments: Power, Wind, and Electrification. GE Vernova Inc (NYSE:GEV) operates across both the upstream and downstream channels of power generation. Its products are deployed across 100 countries, contributing to around 30% of global electricity generation. The stock is poised to grow on the back of secular growth trends. Electricity demand is expected to jump 55% by 2040, driven by data centers, EVs and broader energy transition.
Carillon Eagle Mid Cap Growth Fund stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q2 2024 investor letter:
“GE Vernova Inc. (NYSE:GEV) is a global electric power company that was recently spun out of a much larger industrial conglomerate. The company’s shares performed well in their first quarter as a standalone company, primarily as a result of the increasing outlook for power demand growth, both domestically and abroad. We believe GE Vernova is well positioned to capitalize on this growing trend across its various products and services, but most notably within its large-scale gas turbine equipment and related services, as well as in its high-voltage electrical transmission products.”
