Jim Cramer on Friday analyzed the market rally following the latest CPI data which showed inflation was easing in April. Cramer said bears are clearly fighting an “uphill” battle and unless they could get any clear sign that inflation is heating up, he expects the rally to continue.
Cramer Thinks The Market is “Outrageously Bullish”
In another program last week Cramer said this market feels “almost blasphemous” to him because it’s led by an “outrageously bullish” combination of stocks, many of which he believes don’t deserve to rally.
Jim Cramer said that the NASDAQ, S&P 500 and the Dow recently touching record “defies” the conventional wisdom on “what could happen” at this stage of the business cycle.
“Shut Up and Drive”
Cramer yet again let it out on the bears and market skeptics, saying the bears “have had it wrong.” Cramer said when you look at the stocks they tell you that market naysayers continuously warning about a hot economy, high CPI, budget deficit and low consumer sentiment are “awful.” According to Cramer, the stocks are saying:
“Shut up and drive!”
Jim Cramer highlighted that in the past, when one group of stocks was going higher, usually its opposite camp declined. But this trend has been defied in the recent market rallies where apparently “mutually exclusive” group of stocks are surging at the same time — banks, tech, industrials, utilities, to name a few.
Cramer Awaits the “Biggest Earnings Report of the Entire Year”
Cramer is also on tenterhooks, waiting for NVIDIA Corp (NASDAQ:NVDA) earnings, which he called the “biggest earnings report of the entire year.”
For this article we saw several latest programs of Jim Cramer aired in May and picked 5 stocks he’s recommending investors in the current environment. Instead of Cramer’s famous picks like NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc Class C (NASDAQ:GOOG), you will see some new, lesser-known names in the list.
Mind Medicine (MindMed) Inc (NASDAQ:MNMD)
Number of Hedge Fund Investors: 4
Mind Medicine (MindMed) Inc (NASDAQ:MNMD) is working on treatments for psychiatry, addiction, pain and neurology. Cramer said in a latest program that he likes any company working on treatments that help people “do good” and “get rid of pain” without getting them “hooked.” He also said that he is a “believer” in Mind Medicine (MindMed) Inc (NASDAQ:MNMD).
He also said he doesn’t “care” if such stocks don’t make a lot of money for now because people should “recognize” that this is an “unmet need” and it “will make money in the end.”
SAP SE (NYSE:SAP)
Number of Hedge Fund Investors: 22
While talking about IT consulting company Accenture, Jim Cramer said in a latest program that he thinks SAP SE (NYSE:SAP) is better than Accenture.
As of the end of the fourth quarter of 2023, 22 hedge funds tracked by Insider Monkey had stakes in SAP SE (NYSE:SAP). The most notable stake in SAP SE (NYSE:SAP) is owned by Ken Fisher’s Fisher Asset Management which owns a $983 million stake in the company.
SAP SE (NYSE:SAP) is up about 28% so far this year.
Polen Global Growth Strategy stated the following regarding SAP SE (NYSE:SAP) in its first quarter 2024 investor letter:
“The largest relative contributors to the Portfolio’s performance during the first quarter were SAP SE (NYSE:SAP), Apple (not owned), and Amazon.
After delivering a robust fourth quarter, SAP’s stock price again rose significantly in the first quarter of 2024 on solid 4Q23 earnings and full-year guidance that was revised modestly higher. Importantly, SAP’s transition to the cloud (a core part of our thesis on the business) continues at pace, and the company is seeing both strong cloud revenue growth and expanding cloud gross margins. Management is guiding cloud sales growth through 2025 in the mid-20% range, which we view as reasonable and attractive. We view SAP as one of the more resilient software business models as it is an essential part of their customers’ day-to-day operations and cannot easily be turned off or scaled back. Additionally, we think CEO Christian Klein is honest, competent, and long-term minded— traits we value highly in leadership.”
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Number of Hedge Fund Investors: 24
We recently covered that Jim Cramer was in a wait-and-see mode on Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) ahead of a key decision in which Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) was expected to give a verdict on its hefty dividend and business outlook. Cramer was expecting the company to cut its dividend, which he believed would be a logical decision to make. Lo and behold, Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) rattled investors by slashing its dividend by a whopping 80%. After the cut, while the stock tumbled to new lows, Cramer sounded bullish on the stock, expressing his full trust in CEO Sandra B. Cochran.
Cramer thinks Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) CEO will “succeed” with the new transformation because “she is a hitter.”
In addition to NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc Class C (NASDAQ:GOOG), Cramer is also bullish on Cracker Barrel.
Modine Manufacturing Co (NYSE:MOD)
Number of Hedge Fund Investors: 28
Jim Cramer is extremely bullish on Modine Manufacturing Co (NYSE:MOD). When asked about the Wisconsin-based thermal management company during his latest program, Cramer said, while hitting the buy, buy, buy button:
“Ok, that kind of metal-bending industrial company is precisely what’s working here.”
Cramer also said that Modine Manufacturing Co (NYSE:MOD) is a “Club-like” name, saying his investing club propends investing in stocks similar to Modine Manufacturing Co (NYSE:MOD).
In addition to MOD, Cramer also likes NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc Class C (NASDAQ:GOOG).
Carillon Chartwell Small Cap Value Fund made the following comment about Modine Manufacturing Company (NYSE:MOD) in its Q3 2023 investor letter:
“Modine Manufacturing Company (NYSE:MOD) was another strong performer. Modine’s performance technologies segment is experiencing high demand as it provides thermal solutions for electronic vehicle (EV) and hybrid vehicle manufacturers. The company also has focused on growth opportunities in the data-center market, selling data center cooling solutions needed for energy intensive artificial intelligence (AI) projects.”
Moderna Inc (NASDAQ:MRNA)
Number of Hedge Fund Investors: 39
When asked about Moderna Inc (NASDAQ:MRNA) recently, Jim Cramer said that he’s a “believer” in the stock and he never “backed away” from his thesis on the stock. Cramer said Moderna Inc (NASDAQ:MRNA) went “crazy” during the pandemic, then crashed:
“Ever since it crashed, I’m in, I’m in,” Cramer said.
Jim Cramer is recommending many more stocks in May.
Click to see 5 More Jim Cramer Stock Picks in May 2024.
Disclosure. None.