In this article, we discuss the 5 best recession stocks to buy according to Jim Cramer. If you want to read about some more recession stocks to buy according to Jim Cramer, go directly to 10 Best Recession Stocks to Buy According to Jim Cramer.
5. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 67
Zoetis Inc. (NYSE:ZTS) is a drug company. Cramer had previously said that he is bullish on the “humanization of pets” business and forecasts lots of growth in the area. The journalist investor claims Zoetis is a “well-run” company and one of the best positioned to benefit from drug trends in the pet space. In recent advice for young investors on how to invest during a recession, Cramer highlighted that companies that had historical ability to weather storms, like in the drug sector – Zoetis is a spinoff of drug giant Pfizer – could be a solid bet.
On March 9, investment advisory Citi maintained a Neutral rating on Zoetis Inc. (NYSE:ZTS) stock and lowered the price target to $208 from $232. Navann Ty, an analyst at the firm, issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Zoetis Inc. (NYSE:ZTS), with 3.3 million shares worth more than $627 million.
In its Q3 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Zoetis Inc. (NYSE:ZTS) was one of them. Here is what the fund said:
“Finally, exiting our position in Zoetis Inc. (NYSE:ZTS) was purely a function of valuation. With the business trading for up to 45x forward earnings, we felt we had more attractive alternatives. We maintain high conviction in the company and their competitive advantages and hope to be owners again, at a more attractive valuation. In short, we sold what we believe to be very a high-quality business at relatively high valuations to fund the purchase of equally high-quality businesses trading at lower valuations and even better long-term earnings growth prospects. While we are certainly not tactical in approach, we do aim to make prudent adjustments over time.”