5 Jim Cramer Stocks to Buy in Q1 2022

2. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 95

Adobe Inc. (NASDAQ:ADBE) is one of the biggest software firms in the world. It has generated a lot of hedge fund interest in the past few months despite a broad correction in growth equities owing to inflation concerns. Ken Fisher’s Fisher Asset Management is a leading shareholder in Adobe Inc. (NASDAQ:ADBE) with 6.4 million shares worth more than $3.7 billion. 

Jim Cramer is long Adobe Inc. (NASDAQ:ADBE). During his show on January 10, he spoke about the decline in growth stocks as interest rates rose and noted that some growth stocks had become “too cheap to ignore”. He identified Adobe Inc. (NASDAQ:ADBE) as an example, noting “price matters” and Adobe Inc. (NASDAQ:ADBE) “at $700 a share is very different than Adobe at just $500 a share”. 

Here is what Polen Capital has to say about Adobe Inc. (NASDAQ:ADBE) in its Q1 2021 investor letter:

“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”