In this article, we discuss the 5 best Jim Cramer stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Jim Cramer Stocks to Buy Now.
5. Cisco Systems, Inc. (NASDAQ: CSCO)
Number of Hedge Fund Holders: 59
Cisco Systems, Inc. (NASDAQ: CSCO) is a technology firm based in California. It is ranked fifth on our list of 15 best Jim Cramer stocks to buy now. The company’s shares have offered investors returns exceeding 14% over the course of the past twelve months. In the lightning round on his show, during which he answers questions from callers, Cramer said in April that he believed that Cisco Systems was set to climb higher as the firm marketed itself to enterprises, sending the share price soaring.
On June 21, investment advisory Evercore ISI raised the price target on Cisco Systems, Inc. (NASDAQ: CSCO) stock to $62 from $58, implying an upside potential of 17% and highlighting the new IT contracts for the firm that added to bullish tailwinds.
At the end of the first quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $5.1 billion in Cisco Systems, Inc. (NASDAQ: CSCO), down from 60 in the previous quarter worth $4.9 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Cisco Systems, Inc. (NASDAQ: CSCO) was one of them. Here is what the fund said:
“Also in IT, we added Cisco Systems, which provides IT and networking services in the form of network security, software development and cloud computing. Cisco continues to derive over 50% of its sales from on-premise deployments of its products of enterprise and small and midsize customers, while recurring revenues from software are becoming a larger part of the mix. Return-to-office enterprise spending should offer upside to its core campus business. Cisco was an early technology leader in sustainability over two decades ago, through its Internet-connecting capabilities which supported live concerts in partnership with the United Nations Development Program to raise awareness and funds to fight poverty. Cisco has very strong environmental standards (including driving lower energy consumption in IT departments through new product innovations and a longstanding goal to reduce emissions and reliance on non-renewable energy sources). Its data privacy and supply chain management policies are best in class.”
4. Chipotle Mexican Grill, Inc. (NYSE: CMG)
Number of Hedge Fund Holders: 41
Chipotle Mexican Grill, Inc. (NYSE: CMG) is placed fourth on our list of 15 best Jim Cramer stocks to buy now. The stock has offered investors returns exceeding 39% over the course of the past year. The company runs a chain of restaurants around the world. In April, while discussing the stock on his show, Cramer highlighted the pandemic business of Chipotle and the market share captured through a shift to digitization, a crucial factor that would lead to the stock soaring as the economy reopened with fewer restaurants operational compared to 2020.
On July 14, investment advisory Wells Fargo raised the price target on Chipotle Mexican Grill, Inc. (NYSE: CMG) stock to $1,780 from $1,720 and maintained an Outperform rating, backing the firm to deliver to investors as it prepares to post quarterly results.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Pershing Square is a leading shareholder in Chipotle Mexican Grill, Inc. (NYSE: CMG) with 1 million shares worth more than $1.5 billion.
In its Q4 2020 investor letter, Pershing Square, an asset management firm, highlighted a few stocks and Chipotle Mexican Grill, Inc. (NYSE: CMG) was one of them. Here is what the fund said:
“Chipotle’s superb 2020 performance amid a challenging backdrop was due to the successful business transformation led by CEO Brian Niccol and his team. Improved digital access, which has been a pillar of management’s transformation strategy and a growing sales driver in recent years, enabled the company to serve customers with digital pickup and delivery as the pandemic began. Only three months after the onset of COVID-19 in the U.S., Chipotle returned to growth, achieving same-store sales growth of 6% in Q4, or 20% over two years.
The pandemic accelerated a shift in the company’s digital sales mix from just under 20% of sales at the end of 2019 to 70% in April, before settling to about 50% in July, a level which has been maintained through the start of 2021. Management believes that the majority of these digital sales are incremental, noting that in the 60% of stores with dining rooms open, 80% to 85% of digital sales gains are being retained while 50% to 60% of in-store sales have been recovered.
Management remains confident that the company will emerge even stronger from the COVID-19 pandemic as it continues to execute on a number of long-term strategic initiatives. Chipotle plans to open 200 new restaurants in 2021, a 24% increase from 2020 opening levels, with more than 70% of these new locations featuring a Chipotlane, the company’s high-return, digital drive-thru format.
Chipotle has already launched two new menu innovations in 2021, including cauliflower rice, which was introduced in January and has garnered very favorable early feedback, and the much-anticipated quesadilla, which was launched as a digital-only menu item on March 11th. Chipotle Rewards, a highly effective marketing tool for the company, continues to see enrollment growth with over 19.5 million members as of year-end, compared to 8.5 million members at the end of 2019.
Chipotle is extremely well positioned to execute on the company’s long-term strategy, which should drive substantial shareholder value in the future.”
3. Darden Restaurants, Inc. (NYSE: DRI)
Number of Hedge Fund Holders: 49
Darden Restaurants, Inc. (NYSE: DRI) is an Orlando-based restaurant operator. It is ranked third on our list of 15 best Jim Cramer stocks to buy now. The company’s shares have returned 86% to investors in the past year. On April 12, during a segment in his show, Cramer underlined that big businesses like Darden were the few still standing in the restaurant business after the pandemic took a heavy toll on the industry, with several small eateries forced to shut down, a scenario that was not likely to change anytime soon.
On June 28, investment advisory Deutsche Bank raised the price target on Darden Restaurants, Inc. (NYSE: DRI) stock to $152 from $145 but maintained a Hold rating. The ratings update followed the earnings report of the firm for the fourth quarter.
At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Darden Restaurants, Inc. (NYSE: DRI), up from 42 in the previous quarter worth $1.4 billion.
2. CME Group Inc. (NASDAQ: CME)
Number of Hedge Fund Holders: 60
CME Group Inc. (NASDAQ: CME) stock has returned 26% to investors in the past twelve months. It is placed second on our list of 15 best Jim Cramer stocks to buy now. The firm operates a global derivatives marketplace that also offers trades related to cryptocurrencies. On April 13, while answering a question from a caller on his show, Cramer said that he was a believer in the stock, a catchphrase that he uses as code for those seeking advice to buy the stock since it offers growth potential.
On June 1, investment advisory Morgan Stanley initiated coverage on CME Group Inc. (NASDAQ: CME) stock with an Equal Weight rating and a price target of $228, noting that the firm had a wide moat to protect transactional revenue.
At the end of the first quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in CME Group Inc. (NASDAQ: CME), up from 58 the preceding quarter worth $2.2 billion.
In its Q1 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and CME Group Inc. (NASDAQ: CME) was one of them. Here is what the fund said:
“CME has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
1. Coinbase Global, Inc. (NASDAQ: COIN)
Number of Hedge Fund Holders: N/A
Coinbase Global, Inc. (NASDAQ: COIN) is ranked first on our list of 15 best Jim Cramer stocks to buy now. The company operates the largest cryptocurrency exchange platform in the world in terms of transactional value. Ahead of the initial public offering of the company earlier this year, in which it was valued at close to $86 billion at the end of the first day of trading, Cramer urged those investing in the company to stay invested for the long haul as the new technology offered great growth potential moving forward, even if governments cracked down on it.
On July 7, investment advisory Oppenheimer raised the price target on Coinbase Global, Inc. (NASDAQ: COIN) stock to $444 from $434 and maintained an Outperform rating, backing the firm to deliver in the second quarter results after a record start to the fiscal year.
On July 8, news publication Business Insider reported that Coinbase Global, Inc. (NASDAQ: COIN) had joined hands with payments firm Visa to allow users across the world to use the platform of the latter for crypto payments.
You can also take a peek at 10 Popular Penny Stocks on Robinhood and 10 Best Cryptocurrency Startups to Watch.
