We recently published a list of Jim Cramer’s Latest Portfolio: 10 Best Stocks to Buy. Since AeroVironment Inc (NASDAQ:AVAV) is on the list, it deserves a deeper look.
Jim Cramer in his latest program talked about discipline during short-term market rallies and emphasized the importance of knowing when to take some profits off the table when things are going your way. According to Cramer, the “most important lesson” in short-term rallies is that “you always have to work hard to prepare yourself for the future.”
Cramer said that you should not “give in” to the market euphoria and hit “buy, buy, buy” when the market is “roaring.” The CNBC host said for many it becomes difficult to sell because they feel they were late to the rally and want to hold on to their best-performing stocks during bull runs. But Cramer questioned this thinking: if your portfolio sees big gains and you let it “ride” the rally without selling any stocks and eventually those gains begin to “evaporate,” how is that different from totally missing out on the rally? “It isn’t,” Cramer said.
Cramer talked about the post-COVID rally of 2020 and 2021 where the market saw an “unbelievable” bull run, only to pare those gains after the Fed’s pivot and its “war” on inflation. Jim Cramer advised investors to always remain “tethered” to reality.
“If you would have sold stocks gradually on their way up as I told you to do you’d have been in a much better shape as the market spent the next 11 months getting obliterated,” said Cramer.
For this article we watched several latest programs of Jim Cramer aired over the past few days and picked 10 stocks he’s bullish on. With each stock we have mentioned the number of hedge fund investors. 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).
AeroVironment Inc (NASDAQ:AVAV)
Number of Hedge Fund Investors: 20
American defense contractor AeroVironment Inc (NASDAQ:AVAV) is one of the stocks Jim Cramer is bullish on. Cramer said in a latest program that while the stock had a “very big run” – up 77% so far this year – he believes AeroVironment Inc (NASDAQ:AVAV) will get “more money” and recommended investors to hold on to the stock. Jim Cramer referred to US President Joe Biden’s visit to Europe and the “new” deal he’s signing. President Joe Biden and Ukrainian President Volodymyr Zelenskyy signed a 10-year bilateral security agreement that includes a multibillion-dollar loan for Ukraine.
AeroVironment Inc (NASDAQ:AVAV) bulls believe the stock is poised to grow as the company makes advanced drone systems and robotics products that are in high demand amid the current geopolitical landscape. AeroVironment Inc (NASDAQ:AVAV) reported fiscal Q3 results in March, according to which its revenue jumped 40% in the period. Unmanned Systems segment revenue rose 23% year over year to $113 million. AeroVironment Inc (NASDAQ:AVAV) also raised its full-year guidance. It now expects about 30% full-year revenue growth and 38% higher adjusted EBITDA. Adjusted earnings in 2024 are now expected to rise by 119%. Based on these strong growth projections and catalysts, analysts believe now is the right time to pile into the stock.
Overall, AeroVironment Inc (NASDAQ:AVAV) ranks 9th on Insider Monkey’s list titled Jim Cramer Latest Portfolio: 10 Best Stocks to Buy. While we acknowledge the potential of AVAV, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AeroVironment Inc (NASDAQ:AVAV) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published on Insider Monkey.
