In this article, we will take a detailed look at the Jim Cramer is Bullish on These 10 Stocks. For a quick overview of such stocks, read our article Jim Cramer is Bullish on These 5 Stocks.
These days, Jim Cramer is continuously talking about the broader market rotation out of AI and mega-cap tech towards stocks with lower valuation multiples. In his latest program, Cramer said that stocks from bank, steel and auto sectors are getting a lot of attention from the Wall Street. Cramer said in this environment he would buy stocks like General Motors that is trading four times earnings. Cramer said “to raise the money” to invest in undervalued stocks like GM, “I will sell shares that trade 40 times earnings.”
“Charnel House” of Tech Stocks?
Cramer said that the money going into undervalued stocks cannot be “enticed” into “what looks like a charnel house” of tech stocks. Cramer also mentioned Wells Fargo and said investors in this environment would prefer to buy Wells Fargo which trades at lower multiples and also offers dividends instead of buying software stocks with higher earnings multiples or no earnings at all.
Jim Cramer also said that looking at some technical charts shows him that tech stocks are headed for major “reversals.”
Jim Cramer advised investors to practice patience in this environment and said it would be wise to process all the information as it comes before making any decisions.
Despite constantly talking about this market rotation, Cramer also talks about how he’s not worried about the lack of market breadth and concentration of market returns in tech stocks like Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA). He recently said that his Charitable Trust owns the “super six” stocks (all Mag. 7 stocks minus Tesla) and there’s a reason why all market gains were coming from tech stocks. Cramer said major tech companies make products and services for the Enterprise which has “a lot of money” to spend.
Methodology
For this article, we watched several latest programs of Jim Cramer on CNBC and picked 10 stocks Cramer is bullish on and recommended investors to buy. These stocks are ranked in ascending order of the number of hedge fund investors. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
10. Getty Images Holdings Inc (NYSE:GETY)
Number of Hedge Fund Investors: 12
In a latest program Jim Cramer was asked about Getty Images Holdings Inc (NYSE:GETY) as the questioner said Getty Images Holdings Inc (NYSE:GETY) is everywhere because of its digital images. Cramer initially appeared reluctant as he said Getty Images Holdings Inc (NYSE:GETY) went public via SPAC and if it hadn’t been a SPAC he’d be more excited about the stock. But Cramer at the end said Getty Images Holdings Inc (NYSE:GETY) is a Buy.
“At five bucks I would actually own that stock. It is all over the place.”
Getty Images talked about how it’s using generative AI in its business during its Q3 earnings call:
“In partnership with NVIDIA, we launched our generative AI service at the end of the quarter. The service is truly unique and addresses fundamental customer needs. Our model is trained solely with Getty Images’ best-in-class content, addressing the legal risk that is pervasive in many other models that are trained with third-party intellectual property scraped from the web. We also believe this equates to higher quality outputs as a cake is only as good as its ingredients. With generative AI by Getty Images, users can be confident that the content they generate is safe to use in commercial settings and will not include any trademark brands, products, characters, or identifiable people.
It also does not produce deep takes or emulate the style of specific orders, which we believe is valued by our editorial and creative customers respectively. We are rewarding our contributors with an ongoing share of each and every dollar we earn from the service.”
Read the full earnings call transcript here.
9. John Bean Technologies Corp (NYSE:JBT)
Number of Hedge Fund Investors: 15
Food tech company John Bean Technologies Corp (NYSE:JBT) is one of the stocks Jim Cramer likes. Recently, Cramer said that he is “actually quite fond of this company.”
“It’s a little quirky but it’s good,” Cramer said.
Cramer said that global industrial food is one of his favorite sectors to invest in.
As of the end of the third quarter of 2023, 15 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in John Bean Technologies Corp (NYSE:JBT).
Like John Bean Technologies, Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA) are also among the favorite stock picks of Jim Cramer.
8. Timken Co (NYSE:TKR)
Number of Hedge Fund Investors: 25
Bearings and power transmission company Timken Co (NYSE:TKR) ranks eighth in our list of the stocks Jim Cramer is bullish on these days. Earlier this month, Jim Cramer said that Timken Co (NYSE:TKR) shares are “so cheap down here.” Cramer also said he thinks the stock is “real good.”
Earlier this month D.A. Davidson gave a Buy rating to Timken Co (NYSE:TKR). DA Davidson’s analyst Michael Shlisky said in his note that Timken Co (NYSE:TKR) is one of the “best of breed” stocks. The analyst set a $92 price target on the stock.
As of the end of the third quarter of 2023, 25 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Timken Co (NYSE:TKR). The most significant stakeholder of Timken Co (NYSE:TKR) during this period was Cliff Asness’s AQR Capital Management which owns a $56 million stake in Timken Co (NYSE:TKR).
7. PACCAR Inc (NASDAQ:PCAR)
Number of Hedge Fund Investors: 35
Large commercial trucks company PACCAR Inc (NASDAQ:PCAR) is one of the stocks Jim Cramer is bullish on these days. PACCAR Inc (NASDAQ:PCAR) stock recently touched new highs after posting strong fourth-quarter results.
Jim Cramer after the results said PACCAR Inc (NASDAQ:PCAR) is a ‘true innovator’.
The company in its latest earnings call talked about its guidance:
“In 2024, the European economy is forecast to grow modestly. We expect the above 16-tonne truck registrations to be in the range of 260,000 to 300,000. Last year, the South American above 16-tonne truck market was 110,000 vehicles and is expected to be similar this year. In Brazil, DAF achieved a record 10.2% share, up from 6.9% last year. DAF Brazil makes a growing contribution to PACCAR’s global success. PACCAR full year truck parts and other gross margins were 19.3% and were 19.4% in the fourth quarter, reflecting strong truck deliveries and excellent parts business. We estimate PACCAR’s worldwide first quarter truck and parts gross margins to remain strong and be in the range of 18.5% to 19%. 2023 was another great year for PACCAR with many highlights, including revenue and net income records.
PACCAR announced a joint venture to manufacture commercial vehicle batteries. DAF opened a new electric truck assembly plant and earned the Green Truck award as the most fuel-efficient truck in Europe.”
Read the full earnings call transcript here.
6. Constellation Energy Corp (NASDAQ:CEG)
Number of Hedge Fund Investors: 45
Jim Cramer was recently asked about his thoughts on Constellation Energy Corp (NASDAQ:CEG). An energetic Cramer said “we like those guys so much.” Cramer added that Constellation Energy Corporation (NASDAQ:CEG) offers “all the kind of energy I like” under one roof.
Constellation Energy Corp (NASDAQ:CEG) shares have gained about 46% over the past one year.
As of the end of the third quarter of 2023, 45 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Constellation Energy Corp (NASDAQ:CEG).
In addition to Constellation Energy, Jim Cramer also likes Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).
Sound Shore Management made the following comment about Constellation Energy Corporation (NASDAQ:CEG) in its Q3 2023 investor letter:
“On the plus side of the ledger, we had strong contributions from independent power producers Vistra and Constellation Energy Corporation (NASDAQ:CEG). Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Meanwhile, Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”
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Disclosure. None. Jim Cramer is Bullish on These 10 Stocks was initially published on Insider Monkey.