In this article, we will take a detailed look at Jim Cramer’s Latest Portfolio Heading Into 2025: Top 10 Stocks.
Jim Cramer in a latest program reiterated his view that the market is currently oversold and told investors about his methodology of analyzing market selling and buying indicators based on an oscillator.
“Once it touches minus 5, you need to hold your nose and start buying, no matter how bad it looks. Minus 5 means we’re oversold and due for a bullish bounce. When the oscillator goes below minus 8, as it did last night, the only thing you can do is buy hand over fist. Under no circumstances should you sell with the oscillator below minus 8 because, at that point, the selling ship has sailed. The odds are against you if you sell into an extremely oversold market.”
Cramer then mentioned a few historical data points explaining the returns one could get if one invests when the market is in the oversold territory.
“If you bought the S&P 500 Index when the oscillator hit minus 8, you would have averaged a 2.88% gain within the next 30 days. That’s over a 10-year period, with the median up 4.7%. It gets even better 60 days out— the average gain was 8.93%, and the median was over 9%. Those are some huge moves. How about the odds? Thirty days after the oscillator hits minus 8, as it did last night, the market was up 70% of the time. Sixty days after, the market was up 80% of the time. That’s an extraordinarily reliable pattern, people. Nothing in the market is a sure thing, of course, but the frequency of those gains means the odds are heavily in your favor if you buy in an oversold market this time.”
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we watched several latest programs of Jim Cramer and picked 10 stocks he is talking about. With each company, we have mentioned its latest hedge fund sentiment. 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. Magna International Inc (NYSE:MGA)
Number of Hedge Fund Investors: 15
Jim Cramer was recently asked about Canadian auto parts company Magna International Inc (NYSE:MGA). He recommended investors to stay away from the stock. Here is why:
“Autos are the worst place to be. I mean, there are two economies: the auto and housing economy, and then there’s everything else. And you’re in the heart of the bad part. I don’t want—I wouldn’t want to own that stock. That’s the way I would look at it. I just would not want to own it. I’m seeing terrible things going on in the auto industry.”
Aristotle Capital International Equity Strategy stated the following regarding Magna International Inc. (NYSE:MGA) in its Q2 2024 investor letter:
“Magna International Inc. (NYSE:MGA), a Canada‐based global auto parts, systems and assembly company, was one of the largest detractors for the period. The company lowered its 2024 sales guidance, having seen a slowdown in electric vehicle (EV) adoption across its customer base and expecting a halt in Fisker Ocean production. Despite concerns over automakers delaying EV rollouts, we continue to believe in the longer-term investment catalysts for Magna. These include the company’s ability to enhance margins from operational improvements and leverage its distinctive capabilities to supply parts for an increasingly electrified and autonomous fleet of vehicles. Magna specializes in lightweighting—a necessity for heavy internal combustion engines and electric vehicles—and has made years of investments in self-driving technologies. In addition, with leading market share positions in many of its core markets and products, we believe Magna remains well positioned to benefit as content‐per‐ vehicle increases and automotive parts and systems become more complex.”
9. Under Armour Inc (NYSE:UAA)
Number of Hedge Fund Investors: 28
Talking about Under Armour Inc (NYSE:UAA), Cramer recommended investors to be careful as Nike prepares to make a turnaround:
“I think it’s a great spec. We have to have a couple of quarters that are good. Remember, Nike just had a real hard time. Hard to imagine everybody doing well if Nike’s coming back with a vengeance. So let’s be careful, but it is a spec and a good one.”
Under Armour Inc (NYSE:UAA) recently outlined its long-term merchandising strategy and reaffirmed its financial outlook for FY25.
“As a global Sports House – capable of equipping athletes head to toe on and off the field, pitch, or court – we are hard at work putting in place the people, structures, and strategies essential to realizing Under Armour full potential over the long-term,” CEO Kevin Plank stated during Thursday’s investor meeting in New York City.
For the current fiscal year, Under Armour Inc (NYSE:UAA) now expects to earn between $0.24 and $0.27 per share, up from its previous guidance of $0.19 to $0.21 per share, and exceeding the consensus estimate of $0.23.
Under Armour Inc (NYSE:UAA) product strategy centers on streamlining its creation process, launching major marketing campaigns to boost brand awareness, revitalizing its focus on Team Sports to engage young athletes, growing brand recognition in EMEA and Asia-Pacific, and motivating employees, all while improving efficiency within its leadership teams.
“With a significantly strengthened product lineup coming in Fall 2025, a clear underdog brand positioning, and purposeful, disciplined marketplace management, I am confident that our actions are gaining traction,” Plank added.
Rowan Street Capital made the following comment about Under Armour, Inc. (NYSE:UA) in its second quarter 2023 investor letter:
“Now, the bottom 3 performers from all the companies that we’d sold were Docusign (DOCU) -76%, TripAdvisor (TRIP) -59% and Under Armour, Inc. (NYSE:UA) -57%. These represent the losses we would have incurred had we held on to these positions until now. We must note that all 3 of these were sold for purely fundamental reasons and we ended up being correct on all of them.”
8. M&t Bank Corp (NYSE:MTB)
Number of Hedge Fund Investors: 30
Asked about M&t Bank Corp (NYSE:MTB), here is what Cramer said:
“M&t Bank Corp (NYSE:MTB) is a very, very good company. I would be buying here. I don’t have a problem with that. I actually like the bags. I’m going against the grain.”
7. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Investors: 33
Asked about Royalty Pharma plc (NASDAQ:RPRX), here is what Cramer said in a recent program on CNBC:
“Disappointing stock, man. I can’t believe it. Really well-run, but disappointing. I don’t know what to say. I don’t know what gets it going. It’s healthcare with a great earning stream, and it just doesn’t seem to matter. I want you to stick with it. I would not get rid of the stock here—it’s too good a company.”
Royalty Pharma plc (NASDAQ:RPRX) controls about 60% of the pharma royalty market. What makes the company stand out is its long-term royalty agreements, primarily backing drugs that are nearing full approval. This approach reduces risk for Royalty Pharma, as it invests in drugs with a clearer path to market. Currently, the average duration of Royalty Pharma plc (NASDAQ:RPRX) portfolio is around 13 years.
Royalty Pharma plc (NASDAQ:RPRX) has a dividend yield of about 3.4%.
Patient Capital Opportunity Equity Strategy stated the following regarding Royalty Pharma plc (NASDAQ:RPRX) in its Q2 2024 investor letter:
“While Royalty Pharma plc (NASDAQ:RPRX) is in the health care space, it is more like an investment firm that buys royalty assets in the healthcare space. The company has an extremely strong track record, running the business for over 20 years as a private fund before bringing it public. The market opportunity for external royalty funding has only grown as early-stage start-ups need funding and legacy players are looking to lower their debt levels. We think Royalty Pharma is perfectly positioned as the partner of choice. The company is disciplined, maintaining deal internal rate of returns (IRRs) in the low-teens despite the higher interest rate environment. We think as the company continues to deliver as a public company, the market will start paying attention.”
6. Lockheed Martin Corp (NYSE:LMT)
Number of Hedge Fund Investors: 58
Jim Cramer in a recent program recommended investors to stay away from Lockheed Martin:
“I think that this, I love Jim Taiclet (LMT CEO). I think he’s terrific but I don’t like in terms of Ukraine it would not be it’s not good for the… war is unfortunately better for Lockheed Martin Corp (NYSE:LMT) than not and I think the Stock’s going down correctly I would not touch this thing until it broke 500 but it’s run by Jim he’s really fabulous let’s but it just doesn’t matter at this point.”
For the full year 2024, Lockheed expects a 5% increase in sales. Long-term contracts is a key strength for the company. In the third quarter, Lockheed Martin Corp (NYSE:LMT) shipped 48 F-35 jets and anticipates delivering between 90 and 110 aircraft by year-end. The company is also experiencing solid growth in its Missiles & Fire Control division, with an 8% year-over-year increase in sales and a strong 14.4% operating margin. The upcoming Trump administration and expected increase in the defense budget could prove to be a long-term growth catalyst for the stock.
Ariel Focus Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:
“Additionally, leading global defense contractor Lockheed Martin Corporation (NYSE:LMT) increased following a top- and bottom-line earnings beat and subsequent raise in full year guidance. The company also announced three significant F-35 contracts underscoring the growing tailwinds for sustainment efforts and continued engineering advancements as the fleet continues to expand. LMT continues to be well positioned in the defense sector.”
5. Cheniere Energy Inc (NYSE:LNG)
Number of Hedge Fund Investors: 62
Answering a question about Cheniere in a latest program on CNBC, Jim Cramer said:
“I like the Cheniere Energy Inc (NYSE:LNG) market now that we have President-elect Trump coming in because he’s pro-LNG, and Cheniere is a terrific stock. It’s up 22% this year, and I think you could still do well.”
Cheniere Energy Inc (NYSE:LNG) is one of the biggest LNG companies in the world. According to a report by Shell earlier this year, the global gas demand is expected to rise 50% by 2040 amid increasing LNG appetite in Asia. Cheniere Energy Inc (NYSE:LNG) is operating with a wide moat since it’s the second biggest LNG company with a huge production infrastructure. Cheniere has facilities with 45 million metric tonnes per annum as of this year. Its Sabine Pass LNG Terminal in Louisiana has six operational trains. Cheniere Energy Inc (NYSE:LNG) has already secured orders or agreements for 95% of its anticipated production capacity extending into the middle of the year 2030.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Cheniere Energy, Inc. (NYSE:LNG) in its Q3 2024 investor letter:
“We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Cheniere Energy, Inc. (NYSE:LNG) operates liquefied natural gas terminals in New Orleans and Corpus Christi. Second quarter results were largely as expected and forward guidance was increased. Management’s comments featured the timely completion of maintenance at both facilities as well as optimization efficiencies. That boosted the stock by 3%.”
