In this article, we discuss the 10 stocks to buy in April according to Jim Cramer.
The stock market has reacted sharply to the latest consumer price numbers released by the United States Department of Labor. Per the latest data, the Consumer Price Index, which is widely recognized as the benchmark inflation index in the US, rose to around 8.5% in March, the highest it has been since 1981. In response, the NASDAQ Composite declined by around 0.30%, the Dow Jones Industrial Average dropped by 0.26%, and the S&P 500, the benchmark market index, also fell by almost 0.34%.
In this uncertain environment, investors have been looking towards the insight offered by market experts like Jim Cramer to balance their portfolios. Cramer is a former hedge fund manager, Goldman Sachs employee, and a full-time journalist investor who hosts the Mad Money show on news platform CNBC. Over the years, Cramer has cultivated an ardent following through a successful career in broadcast journalism during which he has become perhaps the most famous finance personality on television.
Sharing his views on the present market situation during his latest show, Cramer has advised investors not to rely on “optimism” as a market strategy but to be prepared with cash in hand for when the market recovers. According to Cramer, investors who had a balanced portfolio with a lot of cash on the side could do very well at the market, given that they were “cautious, especially in certain key sectors”. Cramer noted that the markets would recover but also cautioned against spreading “false positivity”.
Cramer identified three key areas that investors should monitor to look for signs of an economic recovery. These included the Russian invasion of Ukraine, COVID-19 shutdowns in China, and the semiconductor chip shortage. He added that all investors had now was some “hope” and that was enough of a game plan. Some of the top stocks to buy in April according to Jim Cramer include The Walt Disney Company (NYSE:DIS), NIKE, Inc. (NYSE:NKE), and Expedia Group, Inc. (NASDAQ:EXPE).
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC.
Stocks to Buy in April According to Jim Cramer
10. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 25
Sysco Corporation (NYSE:SYY) distributes food and related products. During the Discussed Stock segment of his show on April 11, Cramer was bullish on the stock, identifying it as one of the firms that would give investors growth at a reasonable price, or GARP, from among the travel and leisure sector. He also underlined that Sysco Corporation (NYSE:SYY) was trading at 28 times earnings.
On April 8, Piper Sandler analyst Nicole Miller Regan maintained an Overweight rating on Sysco Corporation (NYSE:SYY) stock and raised the price target to $90 from $83, identifying “the potential for continued share gains and customer wallet penetration within the higher margin independent restaurant segment” as catalysts for Sysco Corporation (NYSE:SYY).
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Trian Partners is a leading shareholder in Sysco Corporation (NYSE:SYY) with 12.8 million shares worth more than $1 billion.
Just like The Walt Disney Company (NYSE:DIS), NIKE, Inc. (NYSE:NKE), and Expedia Group, Inc. (NASDAQ:EXPE), Sysco Corporation (NYSE:SYY) is one of the stocks that elite investors are monitoring.
9. Darden Restaurants, Inc. (NYSE:DRI)
Number of Hedge Fund Holders: 30
Darden Restaurants, Inc. (NYSE:DRI) owns and runs full-service restaurants. The journalist investor brought up the stock during the Discussed Stock segment of his show on April 11, placing it among a basket of travel and leisure stocks expected to benefit from the post-pandemic reopening. He also noted that Darden Restaurants, Inc. (NYSE:DRI) had a 3.5% dividend yield.
On April 12, Citi analyst Jon Tower initiated coverage of Darden Restaurants, Inc. (NYSE:DRI) stock with a Buy rating and a price target of $162, noting that the firm had “some of the best” buffers to protect profits and stoke traffic.
At the end of the fourth quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $401 million in Darden Restaurants, Inc. (NYSE:DRI), up from 25 in the previous quarter worth $337 million.
8. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 34
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming firm. The former hedge fund manager gave the stock a positive mention during the Lightning Round segment of his show on April 11. When asked about his views on the stock, Cramer noted that the firm was in a “pure battle to try to get market share and right now” and although the battle was not over yet, he expected the company to win.
On February 22, investment advisory Roth Capital upgraded DraftKings Inc. (NASDAQ:DKNG) stock to Neutral from Sell but lowered the price target to $19 from $23. Analyst Edward Engel issued the ratings update.
At the end of the fourth quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $1.30 billion in DraftKings Inc. (NASDAQ:DKNG), up from 28 the preceding quarter worth $1.32 billion.
In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and DraftKings Inc. (NASDAQ:DKNG) was one of them. Here is what the fund said:
“Shares of DraftKings Inc. (NASDAQ:DKNG) fell in the quarter, as stocks of online gaming companies were under pressure. Sports betting and i-gaming are rolling out with great fanfare and success across the country; however, investors seem concerned about competition and margins. Most participants are spending heavily on marketing and promotions, which is cutting into margins. We see this as worthy investment in customer acquisition at a moment in time when revenues are just building. We continue to believe that online sports betting and gaming will be enormous industries, that DraftKings Inc. (NASDAQ:DKNG) will be a leading player. We think the business will have high margins as it matures. We believe we are underwriting the business conservatively and see much upside in the long term.”
7. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 37
The Hershey Company (NYSE:HSY) makes and sells confectionery products. The finance broadcaster talked about the stock during the Featured Stock segment of his show on April 11, advising investors to pick up the shares in the present economic environment. Cramer stressed that The Hershey Company (NYSE:HSY) was the “the most consistent growth stock in a group where safety’s first” and he would buy the shares if the stock gets hit and the next time there is an inflation scare.
On March 30, UBS analyst Cody Ross initiated coverage of The Hershey Company (NYSE:HSY) stock with a Neutral rating and a price target of $226, backing the firms with “pricing power” to do well as inflation moves higher. Other advisors like Argus and RBC Capital are bullish on The Hershey Company (NYSE:HSY) as well.
At the end of the fourth quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in The Hershey Company (NYSE:HSY), up from 33 in the previous quarter worth $1.2 billion.
6. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 39
Altria Group, Inc. (NYSE:MO) makes and sells tobacco products. Jim Cramer gave the stock a positive mention during the Lightning Round segment of his show on April 11. Cramer has previously hailed the non-tobacco moves of the firm and brought them up again during the show, stressing that tobacco was not something he was “fond of”. However, he clarified that if you did not care about this, that it was “fine” to own the shares.
On April 7, Cowen analyst Vivien Azer maintained a Market Perform rating on Altria Group, Inc. (NYSE:MO) stock and raised the price target to $53 from $51, noting that the Philip Morris merger was once again on the table amid European tensions and earnings risk for the latter.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Altria Group, Inc. (NYSE:MO) with 9 million shares worth more than $434 million.
Along with The Walt Disney Company (NYSE:DIS), NIKE, Inc. (NYSE:NKE), and Expedia Group, Inc. (NASDAQ:EXPE), Altria Group, Inc. (NYSE:MO) is one of the stocks that institutional investors have on their radar.
In its Q2 2021 investor letter, Broyhill Asset Management, an asset management firm, highlighted a few stocks and Altria Group, Inc. (NYSE:MO) was one of them. Here is what the fund said:
“Altria Group, Inc. (NYSE:MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
5. Marriott International, Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders: 43
Marriott International, Inc. (NASDAQ:MAR) owns and runs hotels and resorts. Jim Cramer brought up the stock during the Discussed Stock segment of his show on April 11, noting that the stock was trading at 30 times earnings but predicted that it would grow at a high rate as travel activity resumed around the world. He also placed it among a group of stocks likely to offer investors growth at a reasonable price.
On February 16, Wells Fargo analyst Dori Kesten maintained an Overweight rating on Marriott International, Inc. (NASDAQ:MAR) stock and raised the price target to $199 from $185, noting that “exposure to business transient/group and higher-end properties” had positioned the firm for outsized growth in the coming months.
At the end of the fourth quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $2.872 billion in Marriott International, Inc. (NASDAQ:MAR), up from 39 in the previous quarter worth $2.878 billion.
In its Q4 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Marriott International, Inc. (NASDAQ:MAR) was one of them. Here is what the fund said:
“Marriott International, Inc. (NASDAQ:MAR) is the world’s largest hotel company followed closely by Hilton (HLT) and Intercontinental Hotels Group plc (IHG). The company owns a portfolio of brands from the low end (Courtyard, SpringHill Suites, Aloft), through the mid-tier (Marriott, Sheraton, Westin, Renaissance Hotels), to the luxury high end (JW Marriot, Ritz-Carlton, St. Regis). In total the company had 7,642 properties with over 1.4 million rooms as of the end of Q1 2021.
The majority (85%) of Marriott’s revenue comes from hotels in the United States, with the rest almost evenly split between Asia Pacific and Europe. Like it’s smaller peer, Hilton, the company today is almost exclusively a manager and franchisor of hotels, not a hotel owner. The company owns 66 hotels, manages 2,083 and franchises 5,493. Like all franchise-based businesses Marriott requires very little capital to grow as it utilizes the investment capital of its hotel-owners/partners to expand. Marriott International, Inc. (NASDAQ:MAR) currently faces a difficult operating environment due to the Covid-19 pandemic and uncertainty about the future of business travel. However, the company is an excellent operator with a somewhat leveraged capital structure (the company acquired Starwood Properties in late 2016) – if pent-up demand for travel materializes post-Covid, as we expect it will, the company will quickly go from losing money to raking in profits.”
4. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 44
Dollar General Corporation (NYSE: DG) operates as a discount retailer. The veteran investor talked about the stock during the Discussed Stock segment of his show on April 11, giving it a positive mention. He had previously underlined his bull thesis for the stock in a show in late March. He also agreed with the point of view that consumer spending patterns were strong and Dollar General was one of the firms thriving at the low-end of this retail boom as brands with pricing power did well in the high-end segment.
On March 16, BMO Capital analyst Kelly Bania maintained an Outperform rating on Dollar General Corporation (NYSE:DG) stock and raised the price target to $265 from $250, noting that the fourth quarter earnings of the firm were solid despite gross margin pressures.
At the end of the fourth quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Dollar General Corporation (NYSE:DG), compared to 46 in the preceding quarter worth $1.9 billion.
In its Q3 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Dollar General Corporation (NYSE:DG) was one of them. Here is what the fund said:
“Executive Summary
At LRT Capital Management we are continuously searching the market for great investment opportunities. Our favorite finds are companies with moats and growth opportunities that justify a higher price than what the stock is trading for. One of our holdings (approximately 1.5% of our long exposure) is Dollar General Corporation (NYSE:DG), so today, we wanted to tell you a bit about this great company.
Company Overview
Dollar General Corporation (NYSE:DG) is a discount retailer with the largest brick-and-mortar presence in the United States by store count. The company’s largest concentration of stores can be found in the southern, southwestern, midwestern, and eastern parts of the United States.10 Dollar General Corporation (NYSE:DG) was founded in 1939 by J.L. Turner, who originally named the company “J.L. Turner and Son, Wholesale”. As the name suggests, the company began its life as a wholesaler, but quickly turned to a retailer of general store goods. By the early 1950s, the company had annual sales of $2 million per year,12 which is the equivalent of $22.95 million in 2021 dollars when adjusted for inflation.” (Click here to see full text)
3. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 68
NIKE, Inc. (NYSE:NKE) markets athletic footwear and apparel. The former hedge fund manager gave the stock a positive mention during the Discussed Stock segment of his show on April 11, taking the views of a senior executive of JPMorgan on the stock who believed the stock was thriving as it had pricing power in a period of high consumer spending. In late March, Cramer had discussed what set the stock apart from competitors.
On March 22, Truist analyst Beth Reed maintained a Buy rating on NIKE, Inc. (NYSE:NKE) stock and raised the price target to $176 from $164, noting that the fundamentals of the firm remained unchanged and the alleviation of concerns around the supply chain and China would serve to boost the shares in the coming months.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in NIKE, Inc. (NYSE:NKE) with 8.7 million shares worth more than $1.4 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NIKE, Inc. (NYSE:NKE) was one of them. Here is what the fund said:
“NIKE, Inc. (NYSE:NKE) is another play on e-commerce as well as the anticipated growth in consumer spending as we learn to live with COVID-19. After selling out of the stock in 2016 due to competitive concerns, we were motivated to repurchase shares because of optimism around a new management team’s focus on accelerating Nike’s shift toward e-commerce and direct-to-consumer (DTC) distribution. Near-term supply chain issues in Vietnam and retail weakness in China that we see as ephemeral provided a good buying opportunity. We do not believe the market is giving proper credit to Nike’s potential to deliver attractive, high-single-digit revenue growth while delivering operating margin expansion as more merchandise is sold direct. NIKE, Inc. (NYSE:NKE) is also still underindexed to the women’s category, which we see as a significant ongoing catalyst.”
2. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 82
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel firm. During the Discussed Stock segment of his show on April 11, Cramer identified six travel and leisure stocks expected to benefit from the “great reopening, even if the Fed really hits the brakes on the economy.” Expedia was among these stocks that Cramer noted would give investors growth at a reasonable price.
On April 7, Argus analyst John Staszak maintained a Buy rating on Expedia Group, Inc. (NASDAQ: EXPE) stock with a price target of $220, backing the firm to post above-peer-earnings growth this year as bookings increased.
At the end of the fourth quarter of 2021, 82 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Expedia Group, Inc. (NASDAQ:EXPE), up from 71 in the previous quarter worth $6.4 billion.
In its Q4 2021 investor letter, Heartland Advisors, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:
“The run-up in equity prices over the past year and a half has narrowed the pool of attractively valued businesses. Economically sensitive areas of the market, in particular, have seen valuations stretched—but the impact of investor exuberance is evident in share prices of companies throughout the broader market. In our view, the elevated valuations commanded by many stocks have heightened risks and dampened upside potential.
In response to this backdrop, we continue to focus on finding and owning companies that are poised to succeed against a variety of backdrops or those that are priced at significant discounts to peers regardless of the sector or industry. Recent addition Expedia Group, Inc. (NASDAQ:EXPE) is an example of the type of business we’ve found attractive.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 111
The Walt Disney Company (NYSE:DIS) is a media and entertainment firm. The journalist investor placed the stock among a basket of travel and leisure firms that were expected to give investors growth at a reasonable price in the coming months as the economy reopened. Cramer underlined that these stocks would benefit regardless of the interest rate hike by the Feds.
On April 4, Loop Capital analyst Alan Gould kept a Buy rating on The Walt Disney Company (NYSE:DIS) stock with a price target of $165, appreciating the performance of the parks business of the firm that had led to an increase in the estimates for operating income.
At the end of the fourth quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in The Walt Disney Company (NYSE:DIS), up from 101 the preceding quarter worth $9.4 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe The Walt Disney Company (NYSE:DIS) is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”
You can also take a peek at 10 Micro-Cap Stocks to Buy According to Cathie Wood and Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners.
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Disclosure. None. 10 Stocks to Buy in April According to Jim Cramer is originally published on Insider Monkey.
