In this article, we discuss the 10 Jim Cramer stocks to buy in Q1 2022. If you want to skip our detailed analysis of these stocks, go directly to the 5 Jim Cramer Stocks to Buy in Q1 2022.
Investors have been scrambling to identify the “real value” of stocks as reports suggest that as many as four interest rate hikes by the Federal Reserve are on the horizon for 2022. Growth-heavy portfolios, the darlings of the pandemic, have quickly started losing money as the market shifts in the direction of value plays. At this confusing yet crucial juncture, many young investors, still new to the market, are looking to Jim Cramer, the host of Mad Money on CNBC and a former hedge fund manager, for advice.
Cramer rose to prominence in the finance world through a successful career in the hedge fund industry where he averaged a return rate of around 24% over fourteen years as a fund manager, making a record-breaking 36% return at the turn of the millennium during the height of the dotcom boom. Since retiring, Cramer, a big believer in disruptive tech, has amassed a huge fan following on television and social media. As growth investors stumble, many are looking to the experience of Cramer to guide them through the storm.
Cramer gives out his overall view on the economy through his Mad Money show on CNBC regularly. Some of the Jim Cramer stocks to buy in Q1 2022, per his latest calls on the show, include Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C), among others discussed in detail below.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC.
Jim Cramer Stocks to Buy in Q1 2022
10. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Number of Hedge Fund Holders: 44
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) makes and sells therapies for people with life-threatening rare diseases. Jim Cramer is bullish on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) and discussed the growth catalysts for the company during his show on January 11. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is conducting one of the largest ever study of Hemophilia A patients and Phase III trials for a promising treatment, Roctavian, are underway in this regard. In the coming months, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) also has a $3 billion market opportunity for selling an achondroplasia treatment.
Hedge funds seem exceedingly bullish on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) as well. At the end of the third quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), the same as in the preceding quarter worth $1.3 billion.
Just like Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C), BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the stocks on the radar of elite investors.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) was one of them. Here is what the fund said:
“The Strategy closed out of five positions (including BioMarin). We sold BioMarin Pharmaceutical after a number of its clinical catalysts had played out.”
9. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 50
Roblox Corporation (NYSE:RBLX) has been touted as one of the best plays for the metaverse future. Hedge funds largely concur with this bullish view of the company. At the end of the third quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in Roblox Corporation (NYSE:RBLX), up from 49 in the previous quarter worth $4.9 billion.
While answering a question on the Lightning Round segment of his show on January 7, the journalist investor underlined that he was willing to stick with Roblox Corporation (NYSE:RBLX) through a difficult period for growth stocks in general because the firm was “an original, terrific way to play the metaverse”.
In its Q2 2021 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.
Today, Roblox Corporation (NYSE:RBLX) has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.
Over the first quarter of 2021, Roblox Corporation (NYSE:RBLX) reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”
8. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 50
During the Guest Interview segment of his show on January 12, Cramer spoke about Devon Energy Corporation (NYSE:DVN) and highlighted key catalysts that were likely to help the company register another solid year of growth in 2022 after being the best performing S&P 500 stock in 2021. Cramer discussed the merger of Devon Energy Corporation (NYSE:DVN) with energy firm WPX and how the deal would help the former realize synergies and combine attractive assets. The focus on sustainability and the various programs that Devon Energy Corporation (NYSE:DVN) energy was pursuing in this regard were also discussed.
The mini boom for the energy sector and companies like Devon Energy Corporation (NYSE:DVN) has turned heads in the hedge fund industry as well. Among the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Devon Energy Corporation (NYSE:DVN) with 7.5 million shares worth more than $219 million.
Cramer’s picks like Devon Energy Corporation (NYSE:DVN), Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C) are also famous among hedge funds.
In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy Corporation (NYSE:DVN) – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
7. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 53
DexCom, Inc. (NASDAQ:DXCM) makes and sells healthcare equipment. It is one of the favorite health stocks among hedge funds. At the end of the third quarter of 2021, 53 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in DexCom, Inc. (NASDAQ:DXCM), up from 49 in the previous quarter worth $1.6 billion.
Cramer discussed DexCom, Inc. (NASDAQ:DXCM) during his show on January 10 and underlined the bull case for the firm. One of the primary reasons to invest in DexCom, Inc. (NASDAQ:DXCM) is a the launch of a new generation of a glucose monitoring system that the company says will bring people further away from prickly needles as the standard care for diabetes.
In its Q4 2020 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and DexCom, Inc. (NASDAQ:DXCM) was one of them. Here is what the fund said:
“DexCom, Inc. (NASDAQ:DXCM) , a developer and manufacturer of continuous glucose monitors (CGMs) for people with diabetes, saw its share price suffer in the quarter after an announcement from its largest competitor that it had finally developed a CGM that appears to be competitive with Dexcom’s flagship G6 sensor. Until the competitive dynamics are sorted out, we feel as though the firm’s shares could remain range-bound, leading us to exit the position.”
DexCom is also popular among elite money managers, just like Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C).
6. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 56
Oracle Corporation (NYSE:ORCL) provides enterprise cloud computing and information technology services. On January 7, while discussing the future prospects of Oracle Corporation (NYSE:ORCL) on the Discussed Stock segment of his television show, Cramer underlined that the purchase of Cerner by Oracle had resulted in a negative reaction from Wall Street that had led to a pullback in the share price. He identified the pullback as an “amazing” opportunity to pick up the shares in “cheap” given the strong fundamentals of Oracle Corporation (NYSE:ORCL).
Oracle Corporation (NYSE:ORCL) has featured among the favorite hedge fund stocks for many years now. At the end of the third quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in Oracle Corporation (NYSE:ORCL), up from 55 in the preceding quarter worth $2.8 billion.
Alongside Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C), Oracle Corporation (NYSE:ORCL) is one of the stocks attracting the attention of hedge funds.
Here is what Ariel Investments has to say about Oracle Corporation (NYSE:ORCL) in its Q1 2021 investor letter:
“A temporary factor might be a downturn in the high-yield bond market driving up LBO financing costs for the decline in 2021 GAAP revenue for Oracle Corporation (ORCL) due to a change in accounting methods. In all these examples, stock prices were driven well-below our calculations of intrinsic value. We invested in each company with good outcomes. Later, we will offer instances when this strategy is not successful.”
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Disclosure. None. 10 Jim Cramer Stocks to Buy in Q1 2022 is originally published on Insider Monkey.
