In this article, we discuss 11 best Jim Cramer stocks to buy now. If you want to read about some more Jim Cramer stocks, go directly to 5 Best Jim Cramer Stocks to Buy Now.
High growth names at the stock market have been battered in the past few months as rising rates and soaring inflation push investors away from risky bets. Jim Cramer, the host of Mad Money on CNBC and a former hedge fund manager, predicted this turn of events earlier this year. Cramer, who was also at Goldman Sachs during the early part of his career, has recently made the bold claim that finance stocks were replacing tech names as “market leaders” as the Fed was allowing these firms incredible leeway.
Cramer said that he thought that the group had the potential to become a leader again, but the banks could never pull it off because the Fed kept rates so low that it was hard for them to make money. However, he underlined that this set of circumstances was changing as the Fed was allowing these companies to make a ton of money. He explained this by saying that banks were paying next to nothing for deposits and then reinvesting that money risk-free in short-term Treasury, whose rates were climbing.
Cramer also remarked that unemployment would increase if the central bank takes the federal funds rate close to 5%, which could result in a high number of bad loans for banks. However, the journalist investor noted that banks would be able to offset any damage even though there will be more defaults and delinquencies, but the net interest margin expansion will more than make up for it. Some of the stocks that Cramer has been monitoring lately include Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C).
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities during his appearances on news platform CNBC. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the popularity of each stock among hedge funds.
Best Jim Cramer Stocks to Buy Now
11. Domino’s Pizza, Inc. (NYSE:DPZ)
Number of Hedge Fund Holders: 32
Domino’s Pizza, Inc. (NYSE:DPZ) operates as a pizza company internationally. It is one of the best Jim Cramer stocks to invest in. On October 12, Cramer placed the firm among a basket of companies whose shares could pop in the coming weeks and months.
At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Domino’s Pizza, Inc. (NYSE:DPZ), compared to 27 in the previous quarter worth $1.8 billion.
Just like Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C), Domino’s Pizza, Inc. (NYSE:DPZ) is one of the best Jim Cramer stocks to buy now.
In its Q2 2022 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Domino’s Pizza, Inc. (NYSE:DPZ) was one of them. Here is what the fund said:
“Domino’s Pizza, Inc. (NYSE:DPZ) is the world’s largest franchisor of pizza restaurants with over 13,800 locations in 85 countries. As for any restaurant operator, the key metric to consider for Domino’s Pizza is same-store-sales (SSS) growth. Growing same-store-sales are ultimately how a restaurant business increases earnings from its existing assets. The company continues to impress in this criterion with SSS having grown in the U.S. for 40 consecutive quarters, and an astounding 109 straight quarters internationally (…read more)
10. Service Corporation International (NYSE:SCI)
Number of Hedge Fund Holders: 32
Service Corporation International (NYSE:SCI) provides care products and services in the United States and Canada. It is one of the top Jim Cramer stocks to invest in. During the Lightning Round of his show on October 11, the former hedge fund manager outlined his bullish stance on the company. While answering a viewer question about the firm, Cramer said that it was “a good stock to own” in the present macro environment.
On October 7, Truist analyst Tobey Sommer initiated coverage of Service Corporation International (NYSE:SCI) stock with a Buy rating and a $72 price target, citing the company’s stable demand stream, recent operational improvements, and excellent track record in the return of shareholder capital.
At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $576.5 million in Service Corporation International (NYSE:SCI), compared to 29 in the previous quarter worth $357 million.
In its Q2 2022 investor letter, Steel City Capital, an asset management firm, highlighted a few stocks and Service Corporation International (NYSE:SCI) was one of them. Here is what the fund said:
“Our short position in Service Corporation International (NYSE:SCI) began to bear fruit when the company reported 2Q’22 results and I think there continues to be room for the shares to fall further. At the company’s analyst day in May, management articulated long-term financial targets that included EPS growth of 8-12%, inclusive of 5-7% from organic activity and another 3-5% from inorganic activity (M&A and greenfield expansion). There are lots of moving variables associated with the outlook, but ultimately, reaching the goal is predicated upon continued strong growth in pre-need cemetery sales (which have favorable revenue recognition conditions). My view is that the recent boom in pre-need activity was a function of 1) a consumer flush with cash and “wealth-effect” driven spending with markets at all-time highs and 2) elevated awareness driven by COVID mortality, and that sooner-or-later the attractiveness of pre-paying $10,000+ for a cemetery plot that you (hopefully) won’t need for many years would become less attractive. When the company reported 2Q results pre-need growth unexpectedly rolled over. As investors come to terms with the fact that SCI is unlikely to deliver on its long-term guidance, shares should continue to retreat.”
9. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 34
Generac Holdings Inc. (NYSE:GNRC) designs, manufactures, and sells power generation equipment, energy storage systems, and other power products. It is one of the major Jim Cramer stocks to invest in. The former hedge fund manager recently said the firm was among a group of stocks that could pop in the weeks ahead as the bear market comes to an end.
On August 8, JPMorgan analyst Mark maintained an Overweight rating on Generac Holdings Inc. (NYSE:GNRC) stock and raised the price target to $421 from $415, noting the firm would benefit from the Inflation Reduction Act.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in Generac Holdings Inc. (NYSE:GNRC), with 846,161 shares worth more than $177 million.
In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Generac Holdings Inc. (NYSE:GNRC) was one of them. Here is what the fund said:
“On a securities level, our top contributors (includes) Generac Holdings Inc. (NYSE:GNRC). All these businesses performed well fundamentally. For Generac, the leading provider of residential standby generators, fundamentals remained strong, but there was little to highlight from the quarter.”
8. Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hedge Fund Holders: 38
Stanley Black & Decker, Inc. (NYSE:SWK) markets tools and storage for industrial users. It is one of the premier Jim Cramer stocks to invest in. On October 12, Cramer placed the firm among a basket of companies whose shares could pop in the coming weeks and months.
On August 11, Morgan Stanley analyst Joshua Pokrzywinski maintained an Overweight rating on Stanley Black & Decker, Inc. (NYSE:SWK) stock and lowered the price target to $110 from $130, noting that the firm has been at the center of the biggest challenge in the sector in the past five years and that execution on new programs is necessary to drive EPS growth.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Stanley Black & Decker, Inc. (NYSE:SWK), with 1 million shares worth more than $141 million.
Here is what Saturna Capital has to say about Stanley Black & Decker, Inc. (NYSE:SWK) in its Q3 2021 investor letter:
“Stanley Black & Decker, Inc. (NYSE:SWK) performed well through the first part of the year but struggled over the summer. China accounts for much of its production, and their zero-tolerance approach to pandemic safety measures has led to disruption, compounded by shipping difficulties and rising materials expenses. We still believe one outcome of the pandemic will be a buoyant home improvement market, given that one never knows when the next pandemic lockdown may occur.”
7. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients. It is one of the elite Jim Cramer stocks to invest in. The financial expert recently outlined his bullish stance on the company, underlining that the shares were a play on the supply chain disruptions that were wreaking havoc with the marketplace.
On August 11, investment advisory Wolfe Research initiated coverage of Archer Daniels-Midland Company (NYSE:ADM) with an Outperform rating and a $117 price target. Analyst Sam Margolin issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Markel Gayner Asset Management is a leading shareholder in Archer-Daniels-Midland Company (NYSE:ADM), with 1.5 million shares worth more than $113.6 million.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Archer-Daniels-Midland Company (NYSE:ADM) was one of them. Here is what the fund said:
“Archer-Daniels-Midland Company (NYSE:ADM) is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”
6. Valero Energy Corporation (NYSE:VLO)
Number of Hedge Fund Holders: 43
Valero Energy Corporation (NYSE:VLO) manufactures, markets, and sells transportation fuels and petrochemical products. It is one of the premier Jim Cramer stocks to invest in. The finance guru has been bullish on the energy sector as prices rise due to supply chain issues and production disagreements. On October 11, Cramer said that data interpreted by commodity trading adviser Carolyn Boroden suggested that Valero could rally soon, and he agreed with these predictions.
On October 11, investment advisory Piper Sandler maintained an Overweight rating on Valero Energy Corporation (NYSE:VLO) stock and lowered the price target to $147 from $148. Analyst Ryan Todd issued the ratings update.
At the end of the second quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $759.8 million in Valero Energy Corporation (NYSE:VLO), compared to 47 the preceding quarter worth $438 million.
In addition to Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C), Valero Energy Corporation (NYSE:VLO) is one of the best Jim Cramer stocks to buy now.
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Disclosure. None. 11 Best Jim Cramer Stocks to Buy Now is originally published on Insider Monkey.