Did Jim Cramer Get These 10 Predictions Right or Wrong?

4. AutoNation, Inc. (NYSE:AN)

Number of Hedge Fund Holders: 43

Cramer brought up AutoNation, Inc. (NYSE:AN) to highlight how aggressive buybacks, rather than explosive earnings growth, had been driving the stock’s incredible performance at the time. He pointed out:

“AutoNation… reported a pretty good quarter, leading to yet another leg higher for the stock. […] I think it’s AutoNation’s buyback that’s been driving this one higher. […] The company’s share count has fallen from just under 90 million shares in 2020 to around 40 million now — they repurchased more than half the stock. […]

AutoNation just announced a new $1 billion buyback. […] You won’t hear me criticize any company with that big a buyback, one that’s made so much money for shareholders. I think there should have been more recognition that AutoNation’s incredible success fuels the buyback, which in turn fuels itself.”

The buyback thesis held up, with the stock advancing 13.01% since then.

AutoNation, Inc. (NYSE:AN) is one of the largest automotive retailers in the United States, selling new and used vehicles and offering repair and maintenance services. In February this year, Cramer highlighted the robust used car market as he shared:

“AutoNation, positive note today. Used cars are selling really well.”