In this article, we discuss the 10 best Jim Cramer stocks to buy.
Jim Cramer is an American investor and media personality. He is a former hedge fund manager and is currently hosting the famous finance show, Mad Money, on CNBC. His interest in the stock market dates back to his childhood when he used to memorize stock symbols for his future stock portfolio. He found a renewed interest in stocks when he enrolled in Harvard Law School in 1981. He landed a job at Goldman Sachs in 1984 and left it in 1987 to open his own hedge fund, Cramer Levy Partners. As of 2021, Cramer’s net worth stands at $150 million.
According to Jim Cramer, investors should pick stocks that are undervalued and always diversify their portfolio. He believes that research is the essence of stock picking as this determines the value and growth potential of such stocks. Cramer is regarded as one of the most successful investors of all time, as his hedge fund delivered an average annual return of 24% for fourteen years, according to a report by Bloomberg. The last two years of his hedge fund were the most profitable, as he managed to return 47% in 1999 and 28% in 2000, outperforming the S&P 500.
Jim Cramer is also an author of some critically acclaimed books, such as Get Rich Carefully, Getting Back to Even, and Stay Mad for Life. His books involve his personal insights into investing, with a detailed discussion of how one should invest in stocks. Some of Cramer’s recent stock picks include, Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS).
Our Methodology:
Let’s analyze our list of the 10 best Jim Cramer stocks to buy today. The list is compiled by using his recent videos uploaded on YouTube and recent related articles on CNBC. In addition to this, we took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.
Jim Cramer
Why pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Best Jim Cramer Stocks To Buy Today
10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 21
Bed Bath & Beyond Inc. (NASDAQ:BBBY) is an American in-store and online retail company that sells products related to home furnishings, such as bedding, furniture, and kitchen accessories. The company ranks tenth on our list of best Jim Cramer stocks to buy today.
Recently, Bed Bath & Beyond Inc. (NASDAQ:BBBY) launched Studio 3B, which will display contemporary home decor products inspired by modern design. The products include accent furniture, bath, decor, and bedding. In Q2 2021, Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported revenue of $1.99 billion. This July, B. Riley initiated its coverage on Bed Bath & Beyond Inc. (NASDAQ:BBBY) with a ‘Buy’ rating and a $44 price target. Jim Cramer appreciated the company’s use of tech in its operations. On August 1, the company’s board announced a quarterly dividend of $0.17 per share, yielding 4.08%.
As of Q2 2021, 21 hedge funds tracked by Insider Monkey have positions in Bed Bath & Beyond Inc. (NASDAQ:BBBY), compared with 23 in the previous quarter. These stakes are valued at $363.6 million.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), Bed Bath & Beyond Inc. (NASDAQ:BBBY) is also favored by Jim Cramer in 2021.
Heartland Advisors mentioned Bed Bath & Beyond Inc. (NASDAQ:BBBY) in its Q2 2021 investor letter. Here is what the firm has to say:
“The gyrations of story stocks touted on message boards have resulted in distortions in the market but on rare occasions have also swept up a few compelling opportunities. Bed Bath & Beyond (BBBY), a national retailer of home goods, babywear and health and beauty products, is one example.
Even before Bed Bath & Beyond made headlines earlier this year when day traders drove the price of shares up in an effort to squeeze short sellers, the company had caught our attention for the results its new management team was delivering since taking over in late 2019.
CEO Mark Tritton, who came to BBBY after a successful tenure at Target, quickly got to work installing new corporate leadership, closing underperforming stores, selling non-core businesses to firm up the balance sheet, and implementing retail best practices across the company. He also worked to improve store efficiency and revamped the company’s online presence.
The moves by Tritton made an impact. In its 2020 fiscal year, BBBY closed 144 under-performing stores, grew new digital customers by 95%, reduced debt by $1 billion, and returned $375 million of capital to shareholders. Despite the meaningful improvements, and the strong performance year-to-date, shares of the retailer are trading at just .35X sales and less than 5X estimated 2022 earnings before interest, taxes, depreciation, and amortization—roughly half of the multiple commanded by peer Williams- Sonoma Inc.
At current valuations, we view BBBY as offering attractive upside as recent improvements gain traction. It appears we’re not alone as executives have also been buying shares in recent months.”
9. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 27
Best Buy Co., Inc. (NYSE:BBY) ranks ninth on our list of the best Jim Cramer stocks to buy today. It is an American company that deals in consumer electronics. Along with this, the company also offers a range of related services to its consumers.
On September 27, Piper Sandler listed Best Buy Co., Inc. (NYSE:BBY) as the best idea stock pick as the company launched its new membership program, Best Buy Total Tech, which was also noted by Jim Cramer. The firm thinks that the rollout of this new program can result in a 3% growth in comparable sales. Piper Sandler lifted its price target on Best Buy Co., Inc. (NYSE:BBY) to $150, while keeping an ‘Overweight’ rating on the shares. In Q2 2021, the company posted an EPS of $2.98, beating the estimates by $1.09. On August 25, Best Buy Co., Inc. (NYSE:BBY) declared a quarterly dividend of $0.70 per share, yielding 2.3%. In 2021, the stock returned 6.73% to shareholders.
As of Q2 2021, 27 hedge funds tracked by Insider Monkey have positions in Best Buy Co., Inc. (NYSE:BBY), compared with 33 in the previous quarter. These stakes are valued at $984.2 million. AQR Capital Management is the company’s leading shareholder, with 2.4 million shares.
8. AGCO Corporation (NYSE:AGCO)
Number of Hedge Fund Holders: 38
AGCO Corporation (NYSE:AGCO) is an American agricultural machinery company that designs and produces agriculture-related products such as foragers, tractors, hay tools, among others. The company stands eighth on our list of the best Jim Cramer stocks to buy today.
In August, Goldman Sachs upgraded AGCO Corporation (NYSE:AGCO) to ‘Buy’ while keeping a $161 price target, which represents a 23% upside. The firm’s analyst believes that the company will benefit from growth in agriculture equipment demand as the economy continues to reopen.
In Q2 2021, AGCO Corporation (NYSE:AGCO) posted an EPS of $2.88, beating the estimates by $0.66. The company’s revenue for the quarter stood at $2.87 billion, showcasing a 42.8% growth from the prior-year quarter. On July 15, AGCO Corporation (NYSE:AGCO) announced a quarterly dividend of $0.20 per share, yielding 0.63%.
The number of hedge funds having stakes in AGCO Corporation (NYSE:AGCO) grew to 38 in Q2 2021, from 36 in the previous quarter. The total value of these stakes is $429.2 million.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), investors and analysts are also paying attention to AGCO Corporation (NYSE:AGCO).
7. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 52
Deere & Company (NYSE:DE) stands seventh on our list of the best Jim Cramer stocks to buy. It is an American manufacturing company that specializes in agricultural machinery. Along with this, the company also manufactures equipment used in construction and forestry.
Recently, Jim Cramer appreciated Deere & Company (NYSE:DE) for the use of tech which will help farmers save billions in wages. On August 25, Deere & Company (NYSE:DE) increased its quarterly dividend by 17% to $1.05 per share, paying a yield of 1.11%. Recently, Evercore ISI lifted its price target on Deere & Company (NYSE:DE) to $470, while keeping an ‘Outperform’ rating on the shares.
As of Q2 2021, 52 hedge funds tracked by Insider Monkey have positions in Deere & Company (NYSE:DE), compared with 51 in the previous quarter. The total value of these stakes is $2.17 billion.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), Deere & Company (NYSE:DE) is also one of Jim Cramer’s top stock picks.
Harding Loevner mentioned Deere & Company (NYSE:DE) in its Q2 2021 investor letter. Here is what the firm has to say:
“In the US, where we increased our weight as part of our recent portfolio manager transition, two of our industrial holdings stood out (one is) John Deere. John Deere delivered stronger-than-expected quarterly earnings and raised its guidance for the full-year. Sales of Deere’s tractors and combine harvesters are underpinned by Chinese demand for agriculture products and the bioethanol market rebounding with oil prices.”
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 63
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor company that manufactures computer processors and related products, such as motherboard chipsets and flash memories. The company ranks sixth on our list of the best Jim Cramer stocks to buy today.
Recently, Piper Sandler lifted its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $120, while keeping an ‘Overweight’ rating on the shares. The firm’s analyst Harsh Kumar appreciated the company’s Q2 earnings beat and expects the company to benefit from both PC and server markets. In Q2 2021, Advanced Micro Devices, Inc. (NASDAQ:AMD) posted an EPS of $0.63, beating the estimates by $0.09. The company’s revenue for the quarter stood at $3.85 billion, presenting a 99.5% year-over-year growth. Jim Cramer noted the company’s acquisition of semiconductor manufacturing company, Xilinx, under the competent leadership of Lisa Su. Advanced Micro Devices, Inc. (NASDAQ:AMD) delivered a 24.6% return to shareholders in the past year.
As of Q2 2021, 63 hedge funds tracked by Insider Monkey have positions in Advanced Micro Devices, Inc. (NASDAQ:AMD), worth $4.6 billion. The number of hedge funds having stakes in the company stood at 62 in the previous quarter.
Like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), Wells Fargo & Company (NYSE:WFC), NVIDIA Corporation (NASDAQ:NVDA), and Morgan Stanley (NYSE:MS), Advanced Micro Devices, Inc. (NASDAQ:AMD) is also one of the most notable stocks in 2021.
5. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 69
Morgan Stanley (NYSE:MS) is an American investment banking company that also offers financial services to its consumers. The company stands fifth on our list of the best Jim Cramer stocks to buy today.
Jim Cramer appreciated the wealth advisory service of Morgan Stanley (NYSE:MS) and listed it as one of his best stock picks recently. In Q2 2021, the firm posted an EPS of $1.89, beating the estimates by $0.23. Morgan Stanley (NYSE:MS) reported revenue of $14.8 billion, showcasing an 8.3% growth from the prior-year quarter. On July 15, the firm increased its quarterly dividend by 100% to $0.70, yielding 3%. In October, Jefferies Financial Group lifted its price target on Morgan Stanley (NYSE:MS) to $119, while keeping a ‘Buy’ rating on the shares. Since the beginning of the year, the stock delivered a 46.4% return to shareholders, while it gained 97.16% in the past year.
As of Q2 2021, 69 hedge funds tracked by Insider Monkey have positions in Morgan Stanley (NYSE:MS), compared with 79 in the previous quarter. These stakes are valued at $$5.34 billion. Eagle Capital Management is the company’s leading shareholder, with shares worth $1.4 billion.
ClearBridge Investments mentioned Morgan Stanley (NYSE:MS) in its Q2 2021 investor letter. Here is what the firm has to say:
“The Strategy also benefited from strong showings from financials holdings such as recent addition Morgan Stanley, a leading bank holding company offering a variety of financial services worldwide, and one of the largest broker-dealers, investment banks and wealth managers in the U.S. Morgan Stanley has been a leader in helping direct capital to address global sustainability challenges. Its sustainability efforts include capital markets actions such as issuing green bonds and it was early in its support for sustainability in investing and its concern for the environment. Morgan Stanley reported a great quarter with record revenues and strength across the businesses as it works to integrate and find synergies with recent acquisition E*TRADE. Following stress tests for banks, Morgan Stanley increased its dividend and share repurchase plan more than expected.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
NVIDIA Corporation (NASDAQ:NVDA) stands fourth on our list of the best Jim Cramer stocks to buy today. It is an American multinational technology company that specializes in GPUs for a range of markets. Along with this, the company also manufactures chip units for smartphones and the automotive market.
Recently, NVIDIA Corporation (NASDAQ:NVDA) acquired Oski Technologies, a formal verification firm, which has been NVIDIA’s partner for the past 10 years. This acquisition will enable NVIDIA Corporation (NASDAQ:NVDA) to expand its investment in formal verification strategies. In October, KeyBanc raised its price target on NVIDIA Corporation (NASDAQ:NVDA) to $260 from $245, with an ‘Overweight’ rating on the shares. Jim Cramer recently noted that the company has the potential to become of the most important semiconductor companies of this time, owing to its leadership. In the past year, NVIDIA Corporation (NASDAQ:NVDA) gained 46.4%.
Of the 873 hedge funds tracked by Insider Monkey, 86 hedge funds have positions in NVIDIA Corporation (NASDAQ:NVDA) in Q2 2021, compared with 80 in the previous quarter. The total value of these stakes is over $9.09 billion.
Harding Loevner mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2021 investor letter. Here is what the firm has to say:
“Within IT, shares of US-based computer chip developer NVIDIA continued their climb as rising demand across segments-from work-from-home laptops to data centers to cryptocurrency mining rigs-led to shortages that translated into surging prices for its chips. Such was the windfall that NVIDIA even made technical changes to some of its products to make them towards waht it believes are more sustainable uses. Less attractive to cryptocurrency miners, to steer scarce supply viewed by geography, the lion’s share of excess returns came from good stock performance in the US. In addition to the contributions from NVIDIA and our health care holdings, a pair of IT software and service providers also aided relative returns.”
3. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 94
Wells Fargo & Company (NYSE:WFC) is an American financial services company that deals in banking, investment, and mortgage services to its consumers. The company ranks third on our list of the best Jim Cramer stocks to buy today.
In September, Deutsche Bank lifted its price target on Wells Fargo & Company (NYSE:WFC) to $55, while keeping a ‘Buy’ rating on the shares. In Q2 2021, the company reported total average deposits of $1.44 trillion, versus the estimates of $1.41 trillion. Wells Fargo & Company (NYSE:WFC) posted an EPS of $1.38, beating the estimates by $0.40. Jim Cramer named the firm as one of its best stock picks and he expects it to reach $50 per share soon, as it has been delivering improvements for quite some time now. Since the beginning of the year, Wells Fargo & Company (NYSE:WFC) delivered a 61.6% return to shareholders, while its 12-month returns came in at 86.9%.
As of Q2 2021, 94 hedge funds tracked by Insider Monkey have positions in Wells Fargo & Company (NYSE:WFC), compared with 96 in the previous quarter. The total value of these stakes is over $7 billion.
L1 Capital recently published its Q2 2021 investor letter and mentioned Wells Fargo & Company (NYSE:WFC) in it. Here is what the firm has to say:
“Wells Fargo (Long +16%) was the strongest contributor to portfolio performance over the quarter. Wells Fargo shares rallied given a better outlook for bad debts driven by improving employment and house price trends. The company had been very undervalued due to excessive fears around likely bad debts due to the pandemic, the continued regulatory “asset cap” (a punishment that was put in place in 2017 for numerous compliance failures) and an inability to commence buybacks. The share price has subsequently recovered strongly in recent months as the company has progressed its turnaround program under the leadership of the well-regarded CEO, Charles Scharf (former CEO of Visa and BNY Mellon). Wells Fargo is now closer to getting the asset cap lifted and has announced a huge cost out program (US$8b+) as well as an $18b buyback program to be completed over the next 12 months. Wells Fargo shares have rallied more than 50% since we initiated the position in late 2020. Given the strong rally, we elected to exit our position and rotate into stocks with larger valuation upside.”
2. salesforce.com, inc. (NYSE:CRM)
Number of Hedge Fund Holders: 108
salesforce.com, inc. (NYSE:CRM) is an American software company, with a focus on customer relationship management (CRM) and also provides cloud-based solutions to its consumers. The company ranks second on our list of the best Jim Cramer stocks to buy today.
In September, RBC Capital lifted its price target on salesforce.com, inc. (NYSE:CRM) to $325, while maintaining an ‘Outperform’ rating on the shares. The firm’s analyst noted the company’s Q1 earnings beat, growth in nearly all segments, and its acquisition of Slack Technologies in a deal worth $27.7 billion. In fiscal Q1 2022, salesforce.com, inc. (NYSE:CRM) posted an EPS of $1.21, beating the estimates by $0.33. The company’s revenue for the quarter stood at $5.9 billion, showcasing a 22.4% year-over-year growth. In 2021, salesforce.com, inc. (NYSE:CRM) has delivered a 23.6% return to shareholders.
As of Q2 2021, the number of hedge funds having stakes in salesforce.com, inc. (NYSE:CRM) grew to 108, from 91 in the previous quarter. The total value of these stakes is over $11.7 billion.
RV Capital Management mentioned salesforce.com, inc. (NYSE:CRM) in its Q2 2021 investor letter. Here is what the firm has to say:
“Part 5: A New Investment in Salesforce.com
The assertion that mega caps can also be mispriced is a good segue to our second new investment in Salesforce.com. Salesforce is one of the largest software companies in the world with a market value of around US$ 250 bn. It is best known for its customer relationship management or “CRM” solution, known as its Sales Cloud. It has three additional clouds (“Service,” “Marketing” and “Commerce”) as well as a thriving platform business with both owned and 3rd party software solutions.
I first came across Salesforce in 2013. I was invested in Bechtle, a German company that provides companies with their in-house IT. I kept hearing about a strange new concept called “the Cloud” and wanted to get up to speed on the topic in case it was a risk to Bechtle. As a result, I picked up a copy of “Behind the Cloud”. It documents how Salesforce.com pioneered cloud-based software and revolutionised the software industry.
Since then, I have followed Salesforce from a distance and visited it several times in San Francisco. I did not consider it seriously as an investment though as for much of the period, I had not yet overcome my aversion to loss-making companies.
This changed in December last year when Salesforce announced the acquisition of Slack (a former investment of the Business Owner Fund, described in my 2020 half-year letter) for US$ 27 bn. On the date of announcement, Salesforce’s market value fell by around US$ 20 bn. Effectively, the market was saying that Slack was almost worthless, which, as an enthusiastic owner of Slack, I disagreed with. Initially, I decided to keep our Slack stock and roll it into Salesforce (as part of the consideration was in Salesforce’s own stock). As Salesforce’s price fell further in the subsequent months, I bought its stock directly to make it a full-size position post the closing of the Slack acquisition…”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Holders: 138
Apple Inc. (NASDAQ:AAPL) tops our list of the best Jim Cramer stocks to buy today. It is an American multinational company that specializes in smart devices and also offers software services to its consumers.
In Q2 2021, Apple Inc. (NASDAQ:AAPL) reported revenue of $81.4 billion, showcasing a 36.4% year-over-year growth. The company’s market share in personal computers stands at 9.3% as the Mac shipment grew by 14.4% to 7.8 million units during the quarter. In October, Morgan Stanley lifted its price target on Apple Inc. (NASDAQ:AAPL) to $168, while keeping an ‘Overweight’ rating on the shares. In the past year, the stock gained 15.43%.
As of Q2 2021, 138 hedge funds tracked by Insider Monkey have positions in Apple Inc. (NASDAQ:AAPL), up from 127 in the previous quarter. These stakes are valued at $145.5 billion. With over 887 million shares, worth $121.5 billion, Berkshire Hathaway is the company’s leading shareholder.
ClearBridge Investments mentioned Apple Inc. (NASDAQ:AAPL) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
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Disclosure. None. 10 Best Jim Cramer Stocks To Buy Today is originally published on Insider Monkey.
