In this article, we discuss the 10 Best Jim Cramer Stocks to Watch in December.
CNBC’s Mad Money host Jim Cramer is one of the most followed financial experts in the market today. In 1987, Cramer left Goldman Sachs and launched his own hedge fund, Cramer & Co., which was later named Cramer, Berkowitz & Co. Cramer’s compounded rate of return after fees as a hedge fund manager was 24% over 14 years. Cramer also co-founded the financial news and financial literacy website TheStreet.
Some of Cramer’s top stock picks are high-performing tech stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Alphabet Inc. (NASDAQ:GOOG). In this article, we’ll look at the stocks on Jim Cramer’s watchlist, which he recently highlighted on CNBC’s Mad Money show.
Despite the market’s volatility due to the new Omicron COVID-19 type, Cramer believes earnings reports and investor events in the second week of December could indicate the start of a late-December rebound.
Our Methodology
These were chosen based on the stocks Jim Cramer recently discussed on CNBC’s Mad Money show.
Insider Monkey’s data on 867 hedge funds was used to gauge hedge fund sentiment toward each stock.
Best Jim Cramer Stocks to Watch in December
10. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 27
UiPath Inc. (NYSE:PATH) is an enterprise automation company headquartered in New York. The automation software company went public in April 2021. The company raised $1.3 billion post-IPO and had a market valuation of around $36 billion.
UiPath Inc. (NYSE:PATH) is among the stocks Jim Cramer is watching in December as the company recently announced its Q3 earnings. The company’s revenue in the period came in at $221 million and beat revenue estimates by nearly $12 million.
Following strong third-quarter results, market analysts expressed optimism about UiPath Inc. (NYSE:PATH). Cowen analyst Bryan Bergin maintained an Outperform rating on UiPath Inc. (NYSE:PATH) on December 13 and named the company a “best idea for 2022,” citing PATH’s strong growth foundations. Bergin has set a $72 price target for the stock.
With nearly 24 million shares worth $1.26 billion, Cathie Wood’s ARK Investment Management is the biggest shareholder of UiPath Inc. (NYSE:PATH) at the end of the September quarter. At the end of the third quarter of 2021, 27 hedge funds in Insider Monkey’s database held stakes in UiPath Inc. (NYSE:PATH) worth $3.63 billion, compared to 46 in the previous quarter worth $3.46 billion.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Alphabet Inc. (NASDAQ:GOOG), UiPath Inc. (NYSE:PATH) is also one of the notable tech stocks to watch now, according to market analysts.
In its Q2 2021 investor letter, ClearBridge Investments mentioned UiPath Inc. (NYSE:PATH) and discussed its stance on the firm. Here is what the fund said:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing, and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem, and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
9. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 29
Hormel Foods Corporation (NYSE:HRL) produces food and meat products internationally. Among the company’s most popular brands are Hormel, SPAM, Skippy, Natural Choice, and Jennie-O. Even though Hormel Foods Corporation (NYSE:HRL) has been down from its highs in the previous year, the food stock gained 26% in the past five years.
Jim Cramer referred to Hormel Foods Corporation (NYSE:HRL) as a “tried and true” name in the food market. The Minnesota-based food manufacturer recently partnered with The Better Meat Co, a California-based sustainable food start-up. The partnership was announced in early October with the goal of accelerating Hormel Foods Corporation’s (NYSE:HRL) expansion in the plant-based food market.
On November 22, the company increased its quarterly dividend by 6.1% to $0.26 per share. The food stock offers a forward dividend yield of 2.42%.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Hormel Foods Corporation (NYSE:HRL) with 2.9 million shares worth $120 million.
In its Q3 2021 investor letter, mentioned Hormel Foods Corporation (NYSE:HRL) and discussed its stance on the firm. Here is what the fund said:
“Hormel Foods Corporation (HRL) – the maker of SPAM and Applegate Turkey (among many other products), is down over 20% since peaking last year, largely on fears of higher cost. We expect the company will be able to raise prices to offset cost inflation as they have always been able to do win their past.”
8. Stitch Fix, Inc. (NASDAQ:SFIX)
Number of Hedge Fund Holders: 30
Stitch Fix, Inc. (NASDAQ:SFIX) is an online personal styling platform that caters to millions of clients in the US and UK. According to Jim Cramer, the San Francisco-based apparel company bears resemblance to tech stocks that have hit the bottom and are poised to surge again.
Morgan Stanley analyst Lauren Schenk upgraded Stitch Fix, Inc. (NASDAQ:SFIX) to Equal Weight from Underweight with a price target of $27 on December 3. Stitch Fix, Inc. (NASDAQ:SFIX) gained 2.55% after Morgan Stanley upgraded its rating.
Of the 867 elite funds tracked by Insider Monkey, 30 were long Stitch Fix, Inc. (NASDAQ:SFIX) at the end of September, compared to 35 in the second quarter of 2021. Slate Path Capital, a New York-based investment group, upped its holding in Stitch Fix, Inc. (NASDAQ:SFIX) by 18% between June and September, increasing the total number of shares to 2.98 million worth $119 million.
Jim Cramer is bullish on Stitch Fix, Inc. (NASDAQ:SFIX) along with other senior growth stocks like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Alphabet Inc. (NASDAQ:GOOG).
7. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders: 31
BofA analyst Rafe Jadrosich reinstated a Buy rating on Toll Brothers, Inc. (NYSE:TOL) in November with a price target of $75. Jadrosich sees positive market opportunities for the Pennsylvania-based luxury home builder as demand for luxury homes and price momentum are expected to remain strong through 2022.
According to Jim Cramer, Toll Brothers, Inc. (NYSE:TOL) is one of the companies to watch in December, as the high-end home builder has multiple tailwinds which have enabled the company to come up with impressive results. One of the tailwinds mentioned by Cramer is Toll Brothers, Inc.’s (NYSE:TOL) strong profit margin, which increased to 22.7% in Q3 2021 from a 21% home sales gross margin in Q3 2020.
In the third quarter of 2021, the company’s home sales revenue grew 37% year over year to $2.23 billion. Additionally, Toll Brothers, Inc. (NYSE:TOL) delivered 2,597 homes in Q3, up 28% year over year.
With 5.2 million shares worth $287 million, New York-based investment firm Greenhaven Associates is the biggest stakeholder of Toll Brothers, Inc. (NYSE:TOL) at the end of the September quarter.
6. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 41
Lululemon Athletica Inc. (NASDAQ:LULU) is a Canadian athletic apparel retailer that sells its products internationally. The Vancouver-based company expects sales of between $6.1 billion and $6.3 billion in fiscal 2021. Jim Cramer recently stated that Lululemon Athletica Inc. (NASDAQ:LULU) is slated to release a “fantastic” third-quarter report on December 9.
At the end of the third quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $709 million in Lululemon Athletica Inc. (NASDAQ:LULU).
Argus analyst John Staszak expressed positive sentiment about the fitness apparel company. According to Staszak, the company’s brand image and expanding retail sales are catalysts. The analyst increased his price target for Lululemon Athletica Inc. (NASDAQ:LULU) to $530 from $500 and kept a Buy rating on the apparel stock on December 1.
Additionally, Lululemon Athletica Inc. (NASDAQ:LULU) is among the retail stocks favored by BTIG analysts. Analyst Camilo Lyon believes that the Canadian fitness apparel retailer is well-positioned to fulfill strong demand throughout the holiday season.
5. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 44
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a biotech company that is based in New York, is one of the stocks Jim Cramer is watching in December. The company develops RNA-based therapies for chronic diseases. During his Mad Money episode aired on December 10, Cramer stated that Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a profitable biotech company that trades at a very low price.
Meanwhile, the biotech company recently reported positive Phase 3 clinical data on its lead drug Dupixent. The study found that Regeneron Pharmaceuticals, Inc.’s (NASDAQ:REGN) Dupixent significantly improved skin clearance and reduced overall disease severity and itch in infants and children with severe atopic dermatitis aged 6 months to 5 years. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stock has risen 37% year to date.
On December 8, Wells Fargo analyst Mohit Bansal initiated an Overweight rating on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) with a price target of $750 per share. Overall, 44 hedge funds tracked by Insider Monkey were long Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) at the end of the third quarter of 2021.
Here is what Oakmark Funds has to say about Regeneron Pharmaceuticals, Inc. in its Q2 2021 investor letter:
“We restored Regeneron Pharmaceuticals from a rather trivial to a more normal position size. You may recall Regeneron performed well for the Fund during the Covid-19 crisis, so we significantly reduced our position as its price-value gap narrowed. During the past several quarters, however, the market has experienced the now infamous “reopening trade,” in which companies that performed well during the pandemic trailed as the economy reopened. Regeneron suffered a similar fate and its shares have lagged the S&P 500 by roughly 4000 basis points, despite the company’s strong fundamentals and robust pipeline of new products. The underperformance widened Regeneron’s price-value gap, so we restored it to a more normal position size.”
4. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders: 50
Centene Corporation (NYSE:CNC), the largest Medicaid-managed company in the US, is a healthcare company that provides government-sponsored healthcare plans. As of the end of September, the Missouri-based company has 26.5 million members in the US, UK, Central Europe, and Spain.
Centene Corporation (NYSE:CNC) was one of the stocks on Jim Cramer’s watchlist for December. The company recently released a revenue forecast for 2022 of $135.9 billion to $137.9 billion, which is higher than the $131.5 billion expected by Wall Street analysts. Shares of Centene Corporation (NYSE:CNC) popped 5.5% following the announcement of its Value Creation Plan which aims to enhance its portfolio and net assets.
Centene Corporation (NYSE:CNC) posted earnings for the third quarter on October 26, reporting earnings per share GAAP of $0.04, beating estimates by $0.04. The revenue over the period was $32.4 billion, topping estimates by $927 million.
As of the end of the September quarter, Connecticut-based hedge fund firm Viking Global is the biggest stakeholder of Centene Corporation (NYSE:CNC). The fund holds 9.8 million shares of the healthcare company worth $615 million.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 50
In his Mad Money segment on December 3, Jim Cramer described Broadcom Inc. (NASDAQ:AVGO) as “remarkably consistent in an inconsistent world.” The California-based chipmaker is one of the winners of the stay-at-home era that started during the pandemic. Shares of Broadcom Inc. (NASDAQ:AVGO) increased 40% in the past twelve months.
JPMorgan analyst Harlan Sur upped his price target on Broadcom Inc. (NASDAQ:AVGO) to $655 from $650 on December 6, while maintaining an Overweight rating on the stock. Further, 50 hedge funds tracked by Insider Monkey were long Broadcom Inc. (NASDAQ:AVGO) at the end of the third quarter of 2021, up from 47 in Q2 2021.
Broadcom Inc. (NASDAQ:AVGO) is one of the tech companies that pays out an annual dividend of $14.40 per share.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned Broadcom Inc. (NASDAQ:AVGO) and discussed its stance on the firm. Here is what the fund said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience, and consistency for the Strategy. We think these companies should comprise just under half of the portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
Broadcom has delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
2. RH (NYSE:RH)
Number of Hedge Fund Holders: 57
Cramer expressed optimism about RH’s (NYSE:RH) past performance, implying that every decline in RH stock has “been a reason to buy, not sell.” On December 6, Wedbush analyst Seth Basham maintained a Buy rating on the furniture stock with a price target of $600.
The California-based luxury furnishings retailer offers everything from textiles to lighting to children’s and teen furniture. RH (NYSE:RH) sells products through its galleries and e-commerce platforms.
RH (NYSE:RH) is one of the most popular Google searches in the previous four weeks, gaining traction among investors and potential customers. The furniture company saw an 18% increase in its search trend year over year.
With a stake worth $1.2 billion, Berkshire Hathaway is the biggest shareholder of the company as of the third quarter of 2021. Overall, 57 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in RH (NYSE:RH) at the end of September 2021, up from 54 in the preceding quarter.
Here is what Polen Capital has to say about RH (NYSE:RH) in its Q1 2021 investor letter:
“RH was also a top contributor during the quarter. RH is a leading luxury retailer in home furnishings, including high-end luxury furniture, home décor, lighting, textiles, etc. The company has experienced high demand for its products over the past year, despite many of its galleries and integrated restaurants being closed, at least temporarily, in 2020. We think the management team has continued to make thoughtful investments in the core business as well as other adjacencies to further meet customer needs. We believe RH has a long runway to further expand into other home furnishings categories, expand its footprint both domestically and internationally, and launch other luxury adjacent categories.”
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 62
One of the stocks Jim Cramer is watching this month is pharmaceutical giant Eli Lilly and Company (NYSE:LLY). The Indiana-based drug manufacturer is scheduled to have its annual meeting on December 15 where the company is to announce new data for its diabetes and Alzheimer’s drugs. Shares of Eli Lilly and Company (NYSE:LLY) increased 47% in the past twelve months.
The pharmaceutical company reported third-quarter earnings in late October that exceeded analyst expectations by $136.6 million, with total revenue of $6.77 billion.
Eli Lilly and Company (NYSE:LLY) was given an Equal Weight rating by Wells Fargo analyst Mohit Bansal on December 8. Bansal set a price target of $270 for the pharmaceutical stock and shared his bullishness on the company’s Alzheimer’s drug.
At the end of the September quarter, 62 hedge funds were reported having stakes in Eli Lilly and Company (NYSE:LLY) worth $4.29 billion, compared to 64 in the preceding quarter worth $2.99 billion.
You can also take a peek at the 15 Best Stocks to Buy for 2022 According to Analysts and 10 Long-Term Stocks to Buy According to Warren Buffett.
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Disclosure. None. 10 Best Jim Cramer Stocks to Watch in December is originally published on Insider Monkey.
