In this article, we will take a detailed look at Jim Cramer’s New Picks: 10 Stocks to Buy. For a quick overview of such stocks, read our article Jim Cramer’s New Picks: 5 Stocks to Buy.
Jim Cramer said during his program on April 17 that we would need to see at least two months of “cooling numbers” before the Fed even considers to start cutting interest rates. He said many investors have been “clinging” to rate cut hopes but the economic activity, jobs market, M&A and IPO activity remains hot, giving the Fed no impetus to ease its monetary policy.
Cramer lamented that the market is “ignoring” the positives and instead continues to react to weak earnings reports posted by some companies including JB Hunt and Prologis. Jim Cramer added that while he would “never ever fight” his viewers who want to sell their stocks right now amid the current market pullback and declines, selling stocks when they are low is not his “style.”
Cramer said that some “big picture negatives” were also weighing the market down. The CNBC host said long-term interest rates were rising, commodity and oil prices were soaring before seeing a decline recently amid hopes that Israel won’t react to Iran’s missile attacks. However, Cramer said these “green shoots” are crushed by the bear quickly, leaving no room for positivity.
A Market That “Wants to Go Down”
Jim Cramer said that this is a “market that wants to go down” and since major stocks like Apple and Tesla are no longer giving a push to the broader market like they did in the recent past, people might think it would make sense to sell out. But Cramer questioned the temptation to immediately sell out of the current market, saying it’s never a good idea to sell everything at once.
Cramer’s Charitable Trust is Selling Stocks
Jim Cramer revealed that his charitable trust kept selling stocks “every day in the last four weeks.” But Cramer said he didn’t sell his stocks on a decline. Instead, his charitable trust used a strategy called “scaling out.”
“As the stock went higher we sold some shares to raise some cash. If it ever comes back down we can always use that cash to scale back in.”
The Fed Might Have “Jumped the Gun” Again
Cramer said he thinks the market is seeing a “short-term peak” because the Fed might have “jumped the gun” even after indicating earlier in the year that there won’t be any need for more rate hikes.
Cramer Said He’d Keep Buying Abbott Laboratories (NYSE:ABT)
Cramer sounded agitated on Abbot’s pullback despite posting a quarter that according to Cramer was “terrific.” Cramer said when he saw Abbot’s stock getting “annihilated” despite strong numbers, he knew that the market has gone “too negative.” Cramer said he bought more Abbot shares on the latest decline. ABT is one of the stocks Cramer is recommending in April.
Methodology
For this article we saw several latest programs of Jim Cramer and picked 10 stocks he’s bullish on. With each stock we have mentioned the number of hedge fund investors. Why do we pay attention to hedge fund sentiment of stocks? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Some top stocks both hedge funds and Cramer love include Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT).
10. HighPeak Energy (NASDAQ:HPK)
Number of Hedge Fund Investors: 8
Jim Cramer said during his program on April 4 that he likes HighPeak Energy (NASDAQ:HPK). Cramer said he had recommended the stock before and it “shot up” before coming down. Cramer said he’s surprised to see the stock price of HighPeak Energy (NASDAQ:HPK) so low given the skyrocketing oil price.
“I want you to buy High Peak, right here!” Cramer said.
Wasatch Micro Cap Value Strategy made the following comment about HighPeak Energy, Inc. (NASDAQ:HPK) in its Q3 2023 investor letter:
“We also added HighPeak Energy, Inc. (NASDAQ:HPK), an exploration & production (E&P) company that performs geological and geophysical services, petroleum engineering and drilling. HighPeak is focused on developing unconventional oil and natural gas reserves primarily in the Midland Basin of Texas. We like that the company’s energy reserves contain fewer byproducts than typically found in the reserves of competitors. Prior to our purchase, the stock was down because HighPeak had taken on too much debt. Under the leadership of Jack Hightower, the new chairman and CEO, the company has raised equity—largely from the management team—and has refinanced the debt. Going forward, we think HighPeak is attractive as an independent company or as an acquisition target of a larger competitor. Our confidence in HighPeak is enhanced by Mr. Hightower’s track record of success in the E&P industry and his willingness to put his own money where his mouth is.”
9. Viper Energy Inc (NASDAQ:VNOM)
Number of Hedge Fund Investors: 17
Jim Cramer was recently asked about his thoughts about Texas-based Viper Energy Inc (NASDAQ:VNOM). He said Viper Energy Inc (NASDAQ:VNOM) is a “good stock” and praised the company’s dividend yield. Cramer also said that Viper Energy Inc (NASDAQ:VNOM) has got mineral rights which make it a suitable play in the current environment since according to Cramer we are in an “inflationary environment” when it comes to oil and minerals.
“I think you’ve got a good one,” Cramer said.
As of the end of the fourth quarter of 2023, 17 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Viper Energy Inc (NASDAQ:VNOM).
Viper talked about guidance and other important updates during its earnings call in February:
“Our GRP acquisition, which closed in the fourth quarter, clearly laid out the framework that we look for in large-scale M&A. First, it must be accretive on all relevant financial measures. Second, there must be high-quality, undeveloped inventory that supports our long-term growth profile and provides clear visibility to future development. And third, the acquisition must provide significant scale that results in a pro forma business that is both bigger and better. Separately, Viper also completed its conversion into a Delaware corporation during the fourth quarter. We believe this conversion has delivered increased governance rights for our shareholders and positions Viper to grow our business and fully highlight the advantaged nature of mineral and royalty ownership.
Looking ahead to 2024, we’ve initiated production guidance for both Q1 and the full year. While Q1 is expected to the weakest quarter of the year, primarily as a result of the timing of large pads, we continue to see strong activity levels across our acreage position and expect significant growth to occur throughout the year with 20 — with Q4 2024 production expected to be at or above the high end of our guidance range. This continued production growth, along with our best-in-class cost structure, should enable Viper to continue to return a substantial amount of capital to our shareholders primarily through our base plus variable dividend.”
Read the full earnings call transcript here.
8. CAVA Group Inc (NYSE:CAVA)
Number of Hedge Fund Investors: 19
Jim Cramer called CAVA Group Inc (NYSE:CAVA) a “very strong stock” in a latest program on CNBC. He said “I love this” stock and recommended existing CAVA Group Inc (NYSE:CAVA) investors to “stay long.” For those who don’t own the restaurant chain company stock, Cramer’s advice is to “consider” the stock.
In addition to CAVA, Cramer also likes Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT).
7. Tyson Foods Inc (NYSE:TSN)
Number of Hedge Fund Investors: 29
Earlier in April, Jim Cramer called Tyson Foods Inc (NYSE:TSN) a “horrendous” stock but said that it’s “about to go up.” Cramer said while input costs in the chicken industry are doing down, we are “about to have a chicken price explosion.”
When asked why doesn’t he like Tyson Foods Inc (NYSE:TSN) when its margins are going up, Cramer reiterated that he’s actually recommending people to buy the stock; he just wants Tyson Foods Inc (NYSE:TSN) to lower chicken prices.
As of the end of the fourth quarter of 2023, 29 hedge funds tracked by Insider Monkey had stakes in Tyson Foods Inc (NYSE:TSN) .
Citing expected profits from chicken and pork segment, Citi recently hiked its price target for Tyson Foods Inc (NYSE:TSN) to $62.
Jim Cramer also recommends buying Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT) for long term.
6. Nextracker Inc. (NASDAQ:NXT)
Number of Hedge Fund Investors: 33
Solar energy tracking and optimization solutions company Nextracker Inc. (NASDAQ:NXT) is one of the latest stock recommendations of Jim Cramer. A questioner asked Cramer about a recent analyst downgrade for Nextracker Inc. (NASDAQ:NXT). Cramer said that he “read that downgrade” and believes it was just “someone trying to create a little noise.”
Jim Cramer thinks Nextracker Inc.’s (NASDAQ:NXT) “story” is good and said he’d be a buyer of the stock “right here at $52”. Nextracker Inc. (NASDAQ:NXT) shares have pulled back since and as of April 15 morning the stock was trading at around $47.
Click to continue reading and see Jim Cramer’s New Picks: 5 Stocks to Buy.
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Disclosure. None. Jim Cramer’s New Picks: 10 Stocks to Buy is originally published on Insider Monkey.
