In this article, we discuss Jim Cramer’s latest predictions and 10 stock recommendations. If you want to read about some more stocks that Jim Cramer recommends, go directly to Jim Cramer’s Latest Predictions and 5 Stock Recommendations.
Investors have been worried about rampant inflation and the macroeconomic effects of the efforts of the central bank to tame it, leading to recession predictions and a panicked stock market. Jim Cramer, the former hedge fund manager and host of Mad Money on CNBC, has given his two cents on the matter, noting that in his experience, a market that was at odds with inflationary growth versus a recession may actually end up in the middle. He cautioned against taking investment decisions based on extreme views.
Cramer highlighted the three-day win streak of the S&P 500 and the NASDAQ Composite to back up his claims, saying there was “genuine confusion” in the market and investors were looking towards the Fed to bring not just commodity but wage inflation under control. He said it was important to do both before “the pain was over”. Cramer claimed that until this happened, investors could “go both ways”. The journalist investor also noted that the Fed meeting from June indicated a commitment to raise rates but nothing about a “big hike”.
The former hedge fund manager has also said that a lot of the market correction is related to the pandemic and the stocks which did very well during the crisis but are now tanking were “just returning to normalcy”. He gave examples of sectors such as streaming, video games, and fintech to drive his point home. Cramer said that “over-earning” was a problem in the market and responsible for much of the decline in these growth equities. Cramer said the sectors had “excellent companies” but needed rate cuts.
Some of the top stocks that Cramer has been monitoring in light of the developing situation include Meta Platforms, Inc. (NASDAQ:META), Applied Materials, Inc. (NASDAQ:AMAT), and Eli Lilly and Company (NYSE:LLY). During his show in early July, Cramer has also highlighted another problem – the declining use of the internet. He said that research from several firms had shown that internet use was declining this year, something “no one thought would happen”. Per the former hedge fund manager, this had hurt all internet-related stocks.
Cramer identified over-earning as just a “reversing”, pointing out that investors should turn away from panicked selling and instead focus on the “return to normal” that had opened up several buying opportunities in the market. Cramer acknowledged that the decline in the market could be related to a recession but it could equally correspond to speculators taking advantages of the supply shortages resulting from the Russian invasion of Ukraine. He pointed out that these shortages had failed to materialize, especially in the oil sector.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities during his appearances on news platform CNBC. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the popularity of each stock among hedge funds.
Jim Cramer’s Latest Predictions and Stock Recommendations
10. Medical Properties Trust, Inc. (NYSE:MPW)
Number of Hedge Fund Holders: 16
Medical Properties Trust, Inc. (NYSE:MPW) is a real estate investment trust that focuses on hospital facilities. Cramer was bullish on the stock during the Lightning Round of his show on June 15. In response to a viewer’s question about the company, Cramer underlined that he “liked” the company and thought “it was in a good situation”. Cramer also added that the company could “back the yield up” and that he believed that there was going to be a “slow and methodical rally of rising yields” as the Fed cooled down on the rate hikes.
On July 11, Truist analyst Michael Lewis maintained a Hold rating on Medical Properties Trust, Inc. (NYSE:MPW) stock and lowered the price target to $18 from $23, noting that despite macroeconomic factors, property values would hold up well.
Among the hedge funds being tracked by Insider Monkey, Wisconsin-based investment firm Cardinal Capital is a leading shareholder in Medical Properties Trust, Inc. (NYSE:MPW), with 5.1 million shares worth more than $108 million.
Just like Meta Platforms, Inc. (NASDAQ:META), Applied Materials, Inc. (NASDAQ:AMAT), and Eli Lilly and Company (NYSE:LLY), Medical Properties Trust, Inc. (NYSE:MPW) is one of the stocks on the radar of elite investors.
9. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 22
Nucor Corporation (NYSE:NUE) makes and sells steel products. During the Lightning Round of his show on July 6, the former hedge fund manager highlighted Nucor as one of the only steel stocks that he would recommend buying in the present economic environment in which steel prices were coming down. Cramer was outlining his overall views on the steel industry during a question about his thoughts on United States Steel Corp. He noted that there was too much “negativity around steel” and he would wait for prices to drop lower before buying.
On July 6, Morgan Stanley analyst Carlos De Alba maintained an Equal Weight rating on Nucor Corporation (NYSE:NUE) stock and lowered the price target to $121 from $144, noting that steel prices had fallen from record highs faster than expected in the past few months.
At the end of the first quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $260 million in Nucor Corporation (NYSE:NUE), compared to 26 in the preceding quarter worth $186 million.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Nucor Corporation (NYSE:NUE) was one of them. Here is what the fund said:
“Our active approach also applies to being disciplined in managing positions in companies in more cyclical industries and taking profits during stronger periods of each cycle. We closed a position in steelmaker Nucor Corporation (NYSE:NUE) during the quarter after the shares had more than doubled over the last year as a direct participant in the recovery of the U.S. economy and rebound in industrial activity. At this point in the cycle, we no longer view the risk/reward as compelling and feel more confident in deploying the proceeds in more attractive areas discussed in this and previous letters.”
8. AMN Healthcare Services, Inc. (NYSE:AMN)
Number of Hedge Fund Holders: 25
AMN Healthcare Services, Inc. (NYSE:AMN) provides healthcare workforce solutions. In response to a viewer’s question about his thoughts on the company during the Lightning Round of his show on June 15, Cramer noted that he thought the firm was a “great stamping company”. Cramer also added that he thought it was “really the time for AMN” and there was a “great opportunity to buy” the stock in the present environment. AMN shares have climbed over 14% in the past twelve months.
On May 24, Jefferies analyst Brian Tanquilut maintained a Buy rating on AMN Healthcare Services, Inc. (NYSE:AMN) stock and raised the price target to $175 from $170, noting the shares had been “oversold on excessive fears around volume and rate normalization”.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in AMN Healthcare Services, Inc. (NYSE:AMN), with 890,147 shares worth more than $92 million.
7. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders: 29
Toll Brothers, Inc. (NYSE:TOL) is a firm that develops and sells homes in luxury residential communities. On July 6, Cramer discussed the stock during the Lightning Round of his show. He was responding to a question about his views on Skyline Champion Corp and advised viewers to buy Toll Brothers instead of Skyline. Previously in June, Cramer had noted that Toll Brothers was among a group of stocks that looked cheap and investable but were not always “recession-proof”.
On July 12, JPMorgan analyst Michael Rehaut maintained a Neutral rating on Toll Brothers, Inc. (NYSE:TOL) stock and lowered the price target to $48 from $53.50, noting that sector headwinds would persist for the housing sector in the near term.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Greenhaven Associates is a leading shareholder in Toll Brothers, Inc. (NYSE:TOL), with 5.2 million shares worth more than $245 million.
6. Whirlpool Corporation (NYSE:WHR)
Number of Hedge Fund Holders: 33
Whirlpool Corporation (NYSE:WHR) makes and sells home appliances and related products. On June 15, Cramer discussed the stock during his show and placed it among a basket of equities with “insanely low price-to-earnings multiples” that could be “great bets if the economy stays stable”. However, he also highlighted that these stocks were not recession proof and investors should keep this in mind “when taking the risk”.
On April 20, JPMorgan analyst Michael Rehaut maintained an Overweight rating on Whirlpool Corporation (NYSE:WHR) stock and lowered the price target to $205 from $221, noting that key investor concerns around the firm were likely to remain unresolved in the near term.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Greenhaven Associates is a leading shareholder in Whirlpool Corporation (NYSE:WHR), with 2.8 million shares worth more than $489 million.
In addition to Meta Platforms, Inc. (NASDAQ:META), Applied Materials, Inc. (NASDAQ:AMAT), and Eli Lilly and Company (NYSE:LLY), Whirlpool Corporation (NYSE:WHR) is one of the stocks that hedge funds are buying.
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Disclosure. None. Jim Cramer’s Latest Predictions and 10 Stock Recommendations is originally published on Insider Monkey.
