In this article, we discuss the 10 stocks that Jim Cramer is bearish on in September.
Jim Cramer, the former hedge fund manager and present host of Mad Money on CNBC, has been making headlines in the finance world after he predicted back in early August that “inflation has peaked” and investors were in a state of “nirvana” over the fact. In the weeks since, new inflation data has been released by the United States government, which shows that the Consumer Price Index, the benchmark inflation measure, had actually risen in August after being flat for the month of July, sending the stock market into a meltdown.
Cramer, who has backed prominent growth names like Amazon.com, Inc. (NASDAQ:AMZN), Sea Limited (NYSE:SE), and Tesla, Inc. (NASDAQ:TSLA) to battle it out during this crisis, recently doubled down on his stance of not selling during this panic, telling news platform CNBC that it was important for long-term investors to keep their focus on the “big picture” but also clarifying that he did not blame the investors for panicking since he thought that “non-commodity inflation has yet to peak”.
He also added that his decision not to sell did not necessarily mean that a bounce may directly be in the offing, but that the markets were fast-moving into a “no-win” position. Cramer warned that if the inflation data had, hypothetically, come in slightly better than expected, bearish investors would have found a way to spin the narrative towards a focus on whether the Fed was being too aggressive with price pressures already easing. The former hedge fund manager noted that he was choosing to look past this “false dichotomy”.
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. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Jim Cramer Is Bearish on These Stocks
10. Nikola Corporation (NASDAQ:NKLA)
Number of Hedge Fund Holders: 13
Nikola Corporation (NASDAQ:NKLA) operates as a technology innovator and integrator that works to develop energy and transportation solutions. During the Lightning Round of his show on September 16, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought that the stock was “lethal” and he did not want to own it in the present macro environment.
On September 14, BTIG analyst Gregory Lewis upgraded Nikola Corporation stock to Buy from Neutral with a price target of $12, noting that there was potential for higher demand for green hydrogen, driven by increasing wind and solar power generation.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Antara Capital is a leading shareholder in Nikola Corporation, with 25.5 million shares worth more than $121 million.
Just like Amazon.com, Inc., Sea Limited, and Tesla, Inc., Nikola Corporation is one of the stocks that hedge funds are monitoring.
9. Luminar Technologies, Inc. (NASDAQ:LAZR)
Number of Hedge Fund Holders: 17
Luminar Technologies, Inc. (NASDAQ:LAZR), an automotive technology company, provides sensor technologies and software. During the Lightning Round of his show on September 14, Cramer outlined his bearish stance on the company while answering a viewer question, saying that the company “was not making money” and he was not in favor of firms that do not make money for their investors.
On August 10, Baird analyst Tristan Gerra maintained an Outperform rating on Luminar Technologies, Inc. stock and lowered the price target to $15 from $30, noting the firm was on track to meet or beat milestones for the year.
At the end of the second quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $52.9 million in Luminar Technologies, Inc., compared to 16 in the preceding quarter worth $133.8 million.
8. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 22
SoFi Technologies, Inc. (NASDAQ:SOFI) provides digital financial services. During the Lightning Round of his show on September 13, Cramer outlined his bearish stance on the company while answering a viewer question, saying that the company “was just a world of hurt”. However, he also said investors could also “roll with it” since the stock was cheap at nearly $5 per share.
On September 14, Bank of America analyst Mihir Bhatia upgraded SoFi Technologies, Inc. stock to Buy from Neutral and raised the price target to $9 from $8, noting that the risk/reward offered by the stock seemed attractive.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Silver Lake Partners is a leading shareholder in SoFi Technologies, Inc., with 31 million shares worth more than $164 million.
In its Q4 2021 investor letter, Altron Capital Management, an asset management firm, highlighted a few stocks and SoFi Technologies, Inc. was one of them. Here is what the fund said:
“We have been building our position in SoFi Technologies, Inc. over the last two quarters but have not yet written about our thesis until now. SoFi is an online financial technology company that started off refinancing student loans. This segment remains a big part of the company’s business, but they have more recently expanded their products to offer an entire suite of financial services including personal banking, investing, and credit. While their collection of products is still evolving and not yet complete, we believe the company is in the early stages of its inflection. The company nearly doubled its member count over the past year and is growing 50%+ despite its loan refinancing business taking a hit due to the COVID-related loan moratorium. Furthermore, the company is close to obtaining a bank charter through its acquisition of Golden Pacific Bancorp, a community bank based in Sacramento. A bank charter would allow SoFi to take in its own customer deposits, lowering its cost of capital and expanding the company’s breadth of financial offerings.
While SoFi is not the only online banking platform out there, we believe it could take a decent share of the financial services market. Banking is a notoriously sticky business, as the inconvenience and hassle of switching banks prevent consumers from jumping to competitors regardless of cost. This is one of the reasons that traditional banks are one of the few businesses to have truly been disrupted by technology. We think SoFi is well on its way to changing that and creating a new paradigm for the future of consumer banking and financial services.
The factors that will ultimately drive consumer adoption of online banking are cost and convenience. In our opinion, SoFi is best positioned to drive consumers away from the legacy banking model. Their one-stop-shop approach for financial services and their lack of a brick-and-mortar branch network to maintain may eventually propel them into becoming one of the larger players in the banking industry in the United States…read more)
7. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 25
Stellantis N.V. (NYSE:STLA) engages in the design, engineering, manufacturing, distribution, and sale of automobiles and parts. During the Lightning Round of his show on September 13, Cramer outlined his bearish stance on the company while answering a viewer question, saying that although the firm was a good automaker, he would advise investors to stick with companies like Ford that were “terrific” and attractively priced.
On September 6, Jefferies analyst Philippe Houchois maintained a Buy rating on Stellantis N.V. stock with a price target of $18, noting that there was confidence around the operating performance of the firm.
At the end of the second quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $714.6 million in Stellantis N.V., compared to 29 in the preceding quarter worth $1.2 billion.
6. Sunnova Energy International Inc. (NYSE:NOVA)
Number of Hedge Fund Holders: 25
Sunnova Energy International Inc. (NYSE:NOVA) provides residential energy services in the United States. During the Lightning Round of his show on September 14, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he would not recommend investors to buy this stock at the current prices because the energy firm was recently “losing money”.
On August 8, JPMorgan analyst Mark Strouse maintained an Overweight rating on Sunnova Energy International Inc. stock and raised the price target to $54 from $43, noting the firm would benefit from the Inflation Reduction Act.
Among the hedge funds being tracked by Insider Monkey, Minneapolis-based investment firm Whitebox Advisors is a leading shareholder in Sunnova Energy International Inc., with 110 million shares worth more than $85.9 million.
Along with Amazon.com, Inc., Sea Limited, and Tesla, Inc., Sunnova Energy International Inc. is one of the stocks on the radar of elite investors.
5. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 25
Matson, Inc. (NYSE:MATX) provides ocean transportation and logistics services. During the Lightning Round of his show on September 13, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought the company was going to come under some “pressure” in the coming months as there was a sense that “these shipping companies make a little too much money”.
On August 16, Wolfe Research analyst Jacob Lacks initiated coverage of Matson, Inc. stock with an Underperform rating and a price target of $80, noting the firm had been one of the biggest beneficiaries of the increase in ocean rates over the past few years.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is a leading shareholder in Matson, Inc., with 380,352 shares worth more than $27 million.
In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Matson, Inc. was one of them. Here is what the fund said:
“Matson, Inc. is a US-based ocean and logistics company with a leading position in Pacific shipping that provides a vital lifeline to Hawaii, Alaska, and Guam as well as premium and expedited service from China to the US. Given its unique position and terminal assets, Matson has an unparalleled speed advantage over other ocean transportation companies. This speed advantage has been highly valuable to customers given supply chain disruptions which has helped improve inventory velocity. Although the company recently reported strong quarterly earnings growth, its stock declined on signs of slower shipping demand due to rising inventories within the consumer channel and improving port congestion. Given these dynamics, overall container rates have begun to recede from the robust levels experienced in 2021 but still remain at levels that are nearly 4x that of pre-pandemic levels. Although we expect container rates to continue to normalize, we believe the company’s unique speed advantage and increased service capacity between Asia and the U.S. could help offset some of these headwinds. Matson continues to generate strong free cash flow and has proven to be a strong allocator of capital, including increasing dividend payouts for shareholders and buying back stock. During the period, we trimmed our position in the company.”
4. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 26
Plug Power Inc. delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions to various sectors. During the Lightning Round of his show on September 15, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought that the better way to play the market on hydrogen and cleaner energy was Linde, instead of Plug Power.
On August 26, Craig-Hallum analyst Eric Stine maintained a Buy rating on Plug Power Inc. stock and raised the price target to $38 from $31, appreciating the hydrogen supply agreement of the firm with tech giant Amazon.
At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $259 million in Plug Power Inc., compared to 33 in the preceding quarter worth $509.8 million.
3. OneMain Holdings, Inc. (NYSE:OMF)
Number of Hedge Fund Holders: 28
OneMain Holdings, Inc. (NYSE:OMF), a financial service holding company, engages in the consumer finance and insurance businesses. During the Lightning Round of his show on September 12, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought the company had “more exposure to a downturn than almost any other stock” and that it was “the Dallas Cowboys of financials”.
On August 15, RBC Capital analyst Kenneth Lee maintained an Outperform rating on OneMain Holdings, Inc. stock and lowered the firm’s price target to $51 from $62, noting that the downside for the firm was manageable as it had capital generation potential.
At the end of the second quarter of 2022, 28 hedge funds in the database of Insider Monkey held stakes worth $621.5 million in OneMain Holdings, Inc., compared to 37 in the previous quarter worth $866 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and OneMain Holdings, Inc. was one of them. Here is what the fund said:
“Similar to the energy sector, the financials sector is also trading at very depressed multiples relative to the market. While the sector’s strong fundamentals received some recognition in 2021, it was rewarded with substantially lower valuations than it should have had. Despite earnings growing over 30% and exceeding the overall market’s, financial stock multiples stayed flat and are currently selling at a discount of roughly 9x forward earnings. (…read more)
2. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 38
Roblox Corporation (NYSE:RBLX) develops and operates an online entertainment platform. During the Lightning Round of his show on September 14, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought the company was losing money and he was not in the habit of recommending stocks that were money losers for investors.
On September 16, Needham analyst Bernie McTernan maintained a Buy rating on Roblox Corporation stock and lowered the price target to $53 from $55, noting the firm has a path for user and engagement growth globally.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Renaissance Technologies is a leading shareholder in Roblox Corporation, with 11.6 million shares worth more than $380 million.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Roblox Corporation was one of them. Here is what the fund said:
“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY), together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties. During the Lightning Round of his show on September 15, Cramer outlined his bearish stance on the company while answering a viewer question, saying that although he had a lot of respect for Warren Buffett, who is a “terrific” investor, he just “can not recommend this stock”.
On July 26, investment advisory Barclays maintained an Overweight rating on Occidental Petroleum Corporation 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 $13.8 billion in Occidental Petroleum Corporation, compared to 67 in the previous 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 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. 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 (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!””
You can also take a peek at Forget Tesla (TSLA): 10 Cheap EV Stocks to Buy Now and 15 Best Consumer Discretionary Stocks to Buy Now.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Utilities Stocks with Over 3% Dividend Yield
- 10 Communication Services Stocks that Pay Dividends
- 10 Best Stocks to Invest In According to Philip Timon’s Owls Nest Partners
This article is originally published at Insider Monkey.
