In this article, we discuss 5 inverse Jim Cramer stocks to buy today. If you want to read about some more inverse Jim Cramer stocks to buy today, go directly to 10 Inverse Jim Cramer Stocks to Buy Today.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 35
Rivian Automotive, Inc. (NASDAQ:RIVN) develops and sells electric adventure vehicles. Jim Cramer has been bearish on the electric vehicles sector in general over the past few as recession fears gather pace and affect consumer spending power. On August 17, during the Lightning Round of his show, Cramer noted that he wanted viewers to sell the stock because it was “up too much”. Rivian is one of the firms poised to benefit from the recently passed climate bill that incentivizes EV production and ownership.
On July 18, Deutsche Bank analyst Emmanuel Rosner maintained a Buy rating on Rivian Automotive, Inc. (NASDAQ:RIVN) stock and lowered the price target to $46 from $69, backing the firm to maintain a solid outlook for the second half of 2022 despite a soft first half of the year.
At the end of the second quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Rivian Automotive, Inc. (NASDAQ:RIVN), up from 29 in the previous quarter worth $3.9 billion.
In its Q4 2021 investor letter, Greenlight Capital, an asset management firm, highlighted a few stocks and Rivian Automotive, Inc. (NASDAQ:RIVN) was one of them. Here is what the fund said:
“We made a material gain in Rivian Automotive, Inc. (NASDAQ:RIVN) as a result of its IPO. We met RIVN’s sponsors in 2018 as part of our continued work on electric vehicles, and were favorably impressed by their technology and discipline. In mid-2020, we made a small investment at a $10 billion valuation. In November, Rivian Automotive, Inc. (NASDAQ:RIVN) went public at a $70 billion valuation and traded to a peak valuation of $162 billion. We hedged in the options market to lock in a minimum valuation of about $120 billion for a good chunk of our position. While we are believers in the company, we did not have material exposure at year end.”
4. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 38
Trane Technologies plc (NYSE:TT) is a building products firm based in Ireland. On August 16, during the Lighting Round of his show, the former Goldman Sachs employee underlined his bearish stance on the firm, advising his viewers to “get off this train” and asking them to invest in peers like Carrier instead. Trane stock is up over 18% in the past four weeks after the firm handsomely beat market estimates on earnings for the second quarter of 2022 and raised guidance numbers for the coming months.
On August 15, BMO Capital analyst Joel Tiss maintained a Buy rating on Trane Technologies plc (NYSE:TT) stock and raised the price target to $180 from $155, backing the firm to benefit from a greater push toward air-quality assessments and retrofits.
At the end of the second quarter of 2022, 38 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Trane Technologies plc (NYSE:TT), the same as in the previous quarter worth $1.7 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Trane Technologies plc (NYSE:TT) was one of them. Here is what the fund said:
“Trane Technologies plc (NYSE:TT), another energy efficiency play in the industrials sector that should benefit from trends highlighted in the REPowerEU energy security plan, was a top detractor for the quarter, mainly due to continued supply chain headwinds raising costs. We think there is a strong secular tailwind for the cost and emissions savings Trane provides: the company makes products that help reduce energy consumption and emissions for residential and commercial HVAC and transport refrigeration, the minimization of food waste and other perishable goods and the increased productivity for Trane’s customers. Trane Technologies plc (NYSE:TT) estimates ~15%-25% of all greenhouse gas emissions in the world are emitted through HVAC systems and buildings.”
3. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 53
Enphase Energy, Inc. (NASDAQ:ENPH) markets home energy solutions and has operations across the world. The former hedge fund manager has been bearish on Enphase in the past few weeks. In mid-June, Cramer underlined that the stock was too expensive and there were many “better stocks” in the sector to choose from. Since then, the stock is up more than 30% on the back of an earnings beat in the second quarter and the successful passage of the climate bill in the US Congress.
On August 11, KeyBanc analyst Sophie Karp maintained an Overweight rating on Enphase Energy, Inc. (NASDAQ:ENPH) stock and raised the price target to $363 from $230, noting the firm would benefit from the recently passed Inflation Reduction Act.
At the end of the second quarter of 2022, 53 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Enphase Energy, Inc. (NASDAQ:ENPH), compared to 57 the preceding quarter worth $749 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Enphase Energy, Inc. (NASDAQ:ENPH) was one of them. Here is what the fund said:
“Enphase Energy, Inc. (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY) is an integrated oil and gas firm. During the Lightning Round of his show on August 16, Cramer outlined his bearish outlook on Occidental. Responding to a viewer question, Cramer asked why people would invest in Occidental when they had options like Devon to choose from. Occidental shares have shot up by oer 129% in the past year. Compared to this, Devon shares are only up 50%. Legendary value investor Warren Buffett is one of the biggest bulls of the oil and gas firm.
On July 26, investment advisory Barclays maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) stock and lowered the price target to $79 from $84. Analyst Jeanine Wai issued the ratings update.
At the end of the second quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $13.7 billion in Occidental Petroleum Corporation (NYSE:OXY), compared to 67 the preceding quarter worth $12.6 billion.
In its Q2 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation (NYSE:OXY) was one of them. Here is what the fund said:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum Corporation (NYSE:OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!”
1. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 68
Warner Bros. Discovery, Inc. (NASDAQ:WBD) operates as a media firm. Cramer has been bearish on the stock recently. On August 18, during the Lightning Round of his show, Cramer compared the stock to the part of his garden that had rotten tomatoes. The merger of the firm with Discovery has brought a lot of debt transfer with it, but the company already has plans in place to increase cash flows in the long-term that will help with these payments. The firm is also growing in the streaming space.
On July 27, Evercore ISI analyst Vijay Jayant maintained an Outperform rating on Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock and lowered the price target to $25 from $40, noting that the firm had a synergized growth story in the legacy media sector.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Laurion Capital Management is a leading shareholder in Warner Bros. Discovery, Inc. (NASDAQ:WBD), with 13.5 million shares worth more than $338 million.
In its Q2 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Warner Bros. Discovery, Inc. (NASDAQ:WBD) was one of them. Here is what the fund said:
“Leading the downside were stocks we own tied to any economic optimism. Warner Bros. Discovery, Inc. (NASDAQ:WBD) suffered selling from AT&T (T) shareholders disposing of it upon distribution of the shares in the merger. We have been too optimistic about how long it would take for these uninterested parties to sell. Macerich (MAC) suffered from fears of what a recession and higher interest rates would do to their business, disregarding the recovery in the Class “A” mall space since 2020.”
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
