In this article, we discuss Jim Cramer’s latest predictions and 5 stock recommendations. If you want to read about some more stocks that Jim Cramer recommends, go directly to Jim Cramer’s Latest Predictions and 10 Stock Recommendations.
5. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 46
Ford Motor Company (NYSE:F) is an automobile manufacturer. Cramer discussed the stock during an appearance on CNBC in early July, noting that he thought Jim Farley, the CEO of the firm, would “surprise” the upside. Cramer had previously been bearish on the stock but has since changed his position, saying that he was not altogether convinced why people thought Farley would not deliver on EV plans. He also added that supply chain issues were getting “better” and Ford had “tremendous order growth”.
On June 1, Goldman Sachs analyst Mark Delaney maintained a Neutral rating on Ford Motor Company (NYSE:F) stock and lowered the price target to $14 from $18, noting that global auto production would fall in the coming months compared to analyst estimates.
At the end of the first quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Ford Motor Company (NYSE:F), compared to 53 the preceding quarter worth $1.7 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“Ford Motor Company (NYSE:F) is another example of typical industrial manufacturing business executive mindsets. The April 18, 2022, Bloomberg Businessweek cover story features Ford CEO Jim Farley behind the wheel of an electrified Ford Motor Company (NYSE:F) F-150 Lightning. The article is titled, “Hey Elon, THIS is a truck.” I thought the article was terrific. One idea especially stood out to me. Since the F-150 is such a popular vehicle, it “argued for a gradual approach to electrification. Essentially the company retrofitted an existing F-150 with an electric powertrain rather than develop an entirely new truck.” No all-in financial and operation bet by this company on electrification.”
4. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 53
Eli Lilly and Company (NYSE:LLY) develops and markets human pharmaceuticals. On June 15, Cramer said in response to a viewer question about drug firm Prothena that the Investing Club of CNBC, which he leads, is recommending and owns Eli Lilly stock. Cramer has backed drug giants to outperform the wider market even in a recession environment.
On July 8, Morgan Stanley analyst Terence Flynn maintained an Overweight rating on Eli Lilly and Company (NYSE:LLY) stock and raised the price target to $395 from $369, noting that biopharma revenues would remain “resilient” even if the economy slows down.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company (NYSE:LLY), with 1.6 million shares worth more than $485 million.
In its Q1 2022 investor letter, Baron Funds highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company with a diverse offering primarily focused on therapeutics. Performance was strong mostly due to consistent financial growth powered by its core diabetes (and future obesity) franchise, as well as the constant drumbeat surrounding the Alzheimer’s therapeutic market, of which Eli Lilly and Company (NYSE:LLY) has one of the three potential winning blockbuster candidates in Donanemab. We retain conviction in Eli Lilly given the company’s strong long-term growth outlook.”
3. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 66
Cisco Systems, Inc. (NASDAQ:CSCO) provides internet-based networking and related products. The journalist investor has advised his viewers to make use of the buying opportunity created in the growth sector as a result of increasing interest rates, identifying Cisco Systems as one of the stocks that looks attractive based on the earnings guidance of the firm in the coming months and its solid dividend history.
On July 12, Rosenblatt analyst Mike Genovese initiated coverage of Cisco Systems, Inc. (NASDAQ:CSCO) stock with a Neutral rating and a price target of $48, noting that the firm was losing market share in key tech areas.
At the end of the first quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Cisco Systems, Inc. (NASDAQ:CSCO), up from 57 in the previous quarter worth $3.4 billion.
In its Q1 2022 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Cisco Systems, Inc. (NASDAQ:CSCO) was one of them. Here is what the fund said:
“During the height of the tech bubble, Cisco’s stock peaked at ~$80 in March 2000, reaching up to a $500BN+ valuation (~26x Price / Sales, with ~17% operating margins or 156x operating profits). However, by the time it bottomed in September 2002, shares were trading at just ~$8.60 per share (~3.2x Price / Sales, ~21x operating profits). A little over a year later, the share price had doubled to ~$20, but then continued to trade around those levels in a range for the next 10 years.
So why were Amazon and Mercado Libre able to recover so quickly from their large drawdowns, while Cisco’s stock price remained anemic?
It seems the answer is in their differing growth profiles in the years afterwards. For example, Cisco Systems, Inc. (NASDAQ:CSCO) revenues were $18.9BN in 2000, $22.3BN in 2001, $18.9BN in 2002, $18.9BN in 2003, and $22.0BN in 2004. By contrast, Amazon was able to grow its business by ~120% in the 3 years after the stock bottomed, and Mercado Libre grew by ~118% in the following 3 years. For Cisco Systems, Inc. (NASDAQ:CSCO), it wasn’t until 2012 (11 years later) that revenues managed to double (to $46BN) from its original peak. Compare this to Amazon, who during those same 11 years, managed to grow its business 22x.”
2. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 74
Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for the semiconductor industry. During the Lightning Round of his show on June 15, Cramer said in response to a question from a viewer that he liked AMAT stock “very, very much” and thought that it was a “great buy”.
On June 29, Bank of America analyst Vivek Arya maintained a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) stock and lowered the price target to $118 from $135, noting that chip demand would be pressured in the coming months due to consumer weakness.
At the end of the first quarter of 2022, 74 hedge funds in the database of Insider Monkey held stakes worth $4.3 billion in Applied Materials, Inc. (NASDAQ:AMAT), compared to 78 the preceding quarter worth $5.4 billion.
In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Applied Materials, Inc. (NASDAQ:AMAT) was one of them. Here is what the fund said:
“Applied Materials, Inc. (NASDAQ:AMAT), another material contributor for the quarter, provides materials engineering solutions for semiconductor fabrication equipment and manufacturing tools for advanced displays. Similar to Lam Research, Applied Materials, Inc. (NASDAQ:AMAT) is executing well and continuing to experience the tailwinds from consolidation and growth within the industry.”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 200
Meta Platforms, Inc. (NASDAQ:META) is a tech firm that owns and runs social media platforms. Cramer was bullish on the stock when asked about his views on the company during the Lightning Round of his show on June 15. Cramer said that he believes Meta was “the best metaverse stock” to invest in and that he thought that the company was going to be a “winner” in the space in the coming years.
On July 7, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Meta Platforms, Inc. (NASDAQ:META) stock with a price target of $466, noting that subscriber and revenue growth for the firm was driving a strong recovery in the shares.
At the end of the first quarter of 2022, 200 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 224 in the preceding quarter worth $31 billion.
In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (NASDAQ:META) (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”
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