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10 Junior Growth Stocks Jim Cramer is Talking About

In this article, we will be taking a look at 10 junior growth stocks Jim Cramer is talking about. If you want to explore similar stocks, you can take a look at 5 Junior Growth Stocks Jim Cramer is Talking About.

“Buy, Buy, Buy”

On May 19, Jim Cramer noted that the Dow Jones Industrials Index gained 115.14%, the S&P 500 gained 0.94%, and the Nasdaq gained 1.51%. Considering the fact that the market has begun doing so well this far into 2023, right now may be the best time for optimistic parents to start pouring their money into stocks to secure the futures of their children, according to Cramer. Yet, at the same time, it’s important to keep in mind that even as late as May, the Federal Reserve has been hiking up interest rates and has remained in a seemingly never-ending fight against inflation. As we saw in an earlier Mad Money episode, Cramer supports the idea of staying cash-heavy in the current market environment. However, he also believes that growth stocks might actually benefit from the Fed’s “commitment to fighting inflation” in the long run.

It’s no surprise that the economy is shaky at present, but the performance of several stock indexes on May 19 may be good news for investors. While stock performances and the positive upside climb of these different indexes is one factor to consider before investing, Cramer seems to think that parents today are also considering which stocks and companies would be of more interest to their children. And while many of these companies may be new and “admittedly more risky,” Cramer notes that this is something he doesn’t “shy away from.”

While most parents and older investors, in general, seem to be satiated by investing in big tech and generally well-reputed blue chip stocks, most “kids want more” out of a stock portfolio, according to Cramer. They want stocks like DraftKings Inc. (NASDAQ:DKNG), e.l.f. Beauty, Inc. (NYSE:ELF), and Wingstop Inc. (NASDAQ:WING), he said. These are the companies that are working on things that are more engaging and in tune with the interests of younger traders or children whose parents might be investing for them. And while these companies do involve a higher degree of risk than a renowned and stable blue-chip stock, they are also capable of offering high rewards in return for the bumpy ride.

What Are Junior Growth Stocks and Why Does Cramer Like Them?

Stocks like these, which Cramer refers to as “junior growth stocks,” are the ones young traders are, and should be, showing more interest in. Based on Cramer’s evaluation, if the Fed retains its commitment to fighting inflation, growth stocks such as these will be the ones to benefit in the long run, even if they do take a beating in the short term. Additionally, Cramer implies that the younger you are as a trader, the more risk you can take in a rapidly changing market because youth offers you the chance to make up for “any near-term losses”. In Cramer’s own words, younger traders have their “whole lives ahead of them.”

The companies that are the focus of this episode on Mad Money are mostly younger companies that are incredibly risky to invest in – making them part of the cohort of corporations that are often left out on Mad Money. However, as Cramer highlights, that does not mean they are not worth any investor’s time. Cramer implies that these companies may grow to become huge names, maybe even the future generation of blue-chip stocks, provided they do not stray from the path. He refers to these companies as “plain old fast-rollers that are easily accessible to the younger generation.”

Cramer sees these companies as the “10 companies of the future” as long as they continue on the same course of growth and profitability. More than that, he believes these are some of the only companies “where parents and kids would shop together and maybe buy the stock together.” Many children today “want their own set of companies,” those they hold a degree of interest in, and most parents can benefit by connecting more with their children, even in financial matters. In light of this, Cramer brought to his audience a dedicated list of “child-friendly” stock options, and we have covered the same below.

Our Methodology

To get the stocks for this list, we watched Jim Cramer’s Mad Money episode from May 19. These are the stocks Cramer thinks are high-risk, high-reward, and perfect for young traders looking to venture into the market today. To rank them, we have used Insider Monkey’s hedge fund data from the first quarter. The stocks are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number.

10 Junior Growth Stocks Jim Cramer is Talking About

10. Dutch Bros Inc. (NYSE:BROS)

Number of Hedge Fund Holders: 5

Cramer calls Dutch Bros Inc. (NYSE:BROS) a “regional-to-national story that may have temporarily lost its way”, making the stock a good buy right now, considering its immense growth. While the company’s growth seems “too quick” to many, Cramer seems to think the company is coursing absolutely correctly.

Five hedge funds held Dutch Bros Inc. (NYSE:BROS) in the first quarter. Their total stake value was $26.2 million.

Analyst John Ivankoe at JPMorgan holds a Neutral rating on Dutch Bros Inc. (NYSE:BROS), with a $38 price target as of May 10.

Citadel Investment Group was the largest stakeholder in Dutch Bros Inc. (NYSE:BROS) at the end of the first quarter, holding 537,800 shares.

9. Logitech International S.A. (NASDAQ:LOGI)

Number of Hedge Fund Holders: 14

At the end of the first quarter, 14 hedge funds held Logitech International S.A. (NASDAQ:LOGI). Their total stake value was $142 million.

Cramer believes Logitech International S.A. (NASDAQ:LOGI) is benefiting from a large market of gamers, remote employees, and more. This may give the stock a “work-from-home-related upside” because of rising reliance on the company’s technology.

On May 3, Asiya Merchant at Citigroup reiterated a Buy rating on Logitech International S.A. (NASDAQ:LOGI) shares while raising the price target on the stock from $60 to $73. The shares are currently trading at $65.82.

Logitech International S.A. (NASDAQ:LOGI) also generated revenues of $960.08 million in the fiscal fourth quarter of 2023, beating analyst estimates by $38.55 million.

VGI Partners mentioned Logitech International S.A. (NASDAQ:LOGI) in its fourth-quarter 2021 investor letter:

“We did progressively resume single-stock shorting throughout the year in addition to using baskets to avoid the risk of short squeezes. Logitech, the manufacturer of office and gaming equipment, was an example of a successful short for us during 2021. The business was a large beneficiary of stay-at-home orders which drove a demand spike for home office and video communication equipment as most employees shifted to working remotely. This not only drove a pull-forward of growth, but margins also experienced a step-up due to the lack of promotions. The market started to extrapolate these dynamics as a permanent change in Logitech’s economics, whereas we took the opposite view which has proved closer to reality given a string of disappointing results.”

According to Cramer, Logitech International S.A. (NASDAQ:LOGI), like DraftKings Inc. (NASDAQ:DKNG), e.l.f. Beauty, Inc. (NYSE:ELF), and Wingstop Inc. (NASDAQ:WING), is a high-risk, high-reward stock young traders should consider today.

8. Xponential Fitness Inc. (NYSE:XPOF)

Number of Hedge Fund Holders: 18

Cramer finds Xponential Fitness Inc.’s (NYSE:XPOF) “franchise model” offering “top-tier boutique gyms” to be a highly profitable opportunity.

Xponential Fitness Inc. (NYSE:XPOF) was spotted among the portfolios of 18 hedge funds in the first quarter. Their total stake value was $169 million.

Guggenheim’s John Heinbockel is also bullish on Xponential Fitness Inc. (NYSE:XPOF) shares, seeing as he holds a Buy rating on the shares and has raised his price target from $31 to $34 as of May 8.

Cramer sees Xponential Fitness Inc. (NYSE:XPOF) as a company with “excellent economics,” considering it has “no losses from COVID and no closed stores” since the pandemic.

Driehaus Capital held 2.2 million shares in Xponential Fitness Inc. (NYSE:XPOF) at the end of the first quarter, making it the largest shareholder in the company.

7. On Holding AG (NYSE:ONON)

Number of Hedge Fund Holders: 22

According to Cramer, On Holding AG (NYSE:ONON) is “the fastest-growing sneaker company in the world.” It also reported a 78% increase in revenues versus its revenue last year.

Jay Sole at UBS holds a Buy rating on On Holding AG (NYSE:ONON) shares as of May 17. The analyst also raised his price target on the stock from $39 to $42.

In total, 22 hedge funds were long On Holding AG (NYSE:ONON) at the end of the first quarter. Their total stake value was $733 million.

On Holding AG (NYSE:ONON), like DraftKings Inc. (NASDAQ:DKNG), e.l.f. Beauty, Inc. (NYSE:ELF), and Wingstop Inc. (NASDAQ:WING), is a junior growth stock Jim Cramer is recommending to investors today.

6. Celsius Holdings, Inc. (NASDAQ:CELH)

Number of Hedge Fund Holders: 24

According to Cramer, Celsius Holdings, Inc. (NASDAQ:CELH) “may be the next Monster Beverage.” It “reported record sales, up 95% year-over-year” in the first quarter, showing the company’s potential.

On May 23, analysts at BofA raised the price target on Celsius Holdings, Inc. (NASDAQ:CELH) from $125 to $145 while retaining a Buy rating on the stock.

Cramer also noted that the company reported “inconceivable” sales growth in the first quarter relative to the previous one, considering its sales grew by 46% during this period. He sees Celsius Holdings, Inc. (NASDAQ:CELH) as perhaps a “great non-tech growth company for the ages.”

In the first quarter of 2023, 24 hedge funds held Celsius Holdings, Inc. (NASDAQ:CELH), with a total stake value of $323 million.

Citadel Investment Group was the most prominent shareholder in Celsius Holdings, Inc. (NASDAQ:CELH) at the end of the first quarter, holding 673,044 shares in the company.

Carillon Tower Advisers made the following comment about Celsius Holdings, Inc. (NASDAQ:CELH) in its third-quarter 2022 investor letter:

Celsius Holdings, Inc. (NASDAQ:CELH) develops, markets, sells, and distributes functional fitness and lifestyle beverages. The company’s shares outperformed in the period as it was announced that a major global soft drink company would take a minority ownership stake in the company in a deal that also would involve a strategic distribution agreement. In addition, Celsius reported a strong quarter, and it continues to gain market share in the energy drink category.”

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Disclosure: None. 10 Junior Growth Stocks Jim Cramer is Talking About is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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