In this article, we will take a detailed look at the Jim Cramer is Recommending These 10 Stocks. For a quick overview of such stocks, read our article Jim Cramer is Recommending These 5 Stocks.
Jim Cramer said in a latest program on CNBC that “all is not well in corporate America.” Cramer was referring to weak earnings which according to him show that the state of the economy is “sluggish.” Cramer said that we are “hearing” that the Fed might not be done tightening or at least be “reluctant to cut in the spring” because inflation remains sticky. Jim Cramer said that when the Fed began hiking interest rates stocks were punished and when the Fed pivoted near the end of 2023 stocks exploded which included many companies which, according to Cramer, didn’t “deserve” to see their stock prices soar.
Jim Cramer said that latest earnings show the effects of the Fed’s tightening. He said many companies that raised prices are now seeing sales declines, which means they will have to roll back price hikes which would affect their stock prices. Cramer said it’s “disturbing” but it’s part of the business cycle.
“Throw Out the Old Playbook”
In a separate program, Jim Cramer said the Fed’s tightening cycle is peculiar in nature in its effects on stocks. Cramer said homebuilder stocks like Pulte Group, Lennar and Toll Brothers are going higher despite rate hikes while in the past homebuilder stocks always got punished during rate hikes. Cramer said in any “normal” tightening cycle stocks from homebuilding, steel and industrials sectors would get slaughtered but in this cycle many of the stocks from these sectors touched new highs.
Cramer also said the “AI craze should have ended ages ago” but stocks like Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA) are still going higher. Cramer said that means AI was not a hype, after all.
Jim Cramer also said people kept complaining about lack of market breadth and the concentration of market gains in a few companies often called the Magnificent Seven group. Cramer said this lack of breadth has not mattered “one bit.”
Cramer said when the market is not sticking to the old playbook anymore, you’ve “got to throw out” the playbook and write a new one.
Methodology
For this article we saw several latest programs of Jim Cramer and picked 10 stocks he’s recommending investors to buy with the highest number of hedge fund investors. Why hedge funds? 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. BioNTech SE – ADR (NASDAQ:BNTX)
Number of Hedge Fund Investors: 19
Jim Cramer recently recommended investors to “hold” BioNTech SE – ADR (NASDAQ:BNTX) stock. Cramer said he does not understand why this stock is so “inexpensive.” Over the past one year BioNTech SE – ADR (NASDAQ:BNTX) stock has lost about 31%.
As of the end of the third quarter of 2023, 19 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in BioNTech SE – ADR (NASDAQ:BNTX). The most significant stakeholder of BioNTech SE – ADR (NASDAQ:BNTX) during this period was Israel Englander’s Millennium Management which owns a $54 million stake in BioNTech SE – ADR (NASDAQ:BNTX).
Artisan Mid Cap Fund made the following comment about BioNTech SE (NASDAQ:BNTX) in its Q3 2023 investor letter:
“Notable trims in the quarter included Zscaler, BioNTech SE (NASDAQ:BNTX) and Ingersoll Rand. BioNTech is a biotech company focused on developing immunotherapies to treat cancer and other serious diseases. Management has been using its COVID-19 vaccine cash flows to reinvest in building a substantial early stage pipeline. The company’s intellectual property in mRNA and COVID-funded manufacturing capacity leave it well positioned to develop new mRNA vaccines and cancer therapies. In addition, the company has non-mRNA technology (e.g., cell therapy assets) and blue-chip partnerships offering additional optionality. While we are optimistic that this pipeline will eventually yield promising medications within oncology and infectious diseases, patience will be required. In the meantime, demand for COVID-19 vaccine boosters continues to wane. Therefore, we decided to trim the position in favor of more compelling near-term opportunities.”
9. Stanley Black & Decker Inc (NYSE:SWK)
Number of Hedge Fund Investors: 19
A caller recently asked Jim Cramer during his program about his thoughts on buying some more Stanley Black & Decker Inc (NYSE:SWK) stock. Cramer said you “should” buy more shares of the industrial tools company. Cramer highlighted the stock’s over 3% dividend yield. Cramer said that if people are buying Home Depot on lows, they should be buying Stanley Black & Decker Inc (NYSE:SWK).
As of the end of the third quarter of 2023, 19 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Stanley Black & Decker Inc (NYSE:SWK).
8. Pan American Silver Corp (NYSE:PAAS)
Number of Hedge Fund Investors: 22
When asked about his thoughts on Pan American Silver Corp (NYSE:PAAS), Jim Cramer said it is the “best one of the silver companies.”
“Holy cow, they crushed it,” said Jim Cramer about the Canada-headquartered mining company.
For 2024, Pan American Silver Corp (NYSE:PAAS) expects its total silver production to be between 21 million to 23 million ounces, while total gold production is expected to be between 880K – 1,000K ounces.
A total of 22 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Pan American Silver Corp (NYSE:PAAS). The most notable stakeholder of Pan American Silver Corp (NYSE:PAAS) during this period was David Greenspan’s Slate Path Capital which owns a $76 million stake in Pan American Silver Corp (NYSE:PAAS).
7. Barrick Gold Corp (NYSE:GOLD)
Number of Hedge Fund Investors: 36
Jim Cramer recently recommended investors to buy gold stocks. Here’s what Jim Cramer said when he was asked whether Barrick Gold Corp (NYSE:GOLD) stock should be bought:
“When rates go up, people sell gold, and that means you should buy gold. Because we buy gold for insurance.”
In December, Barron’s published a list of its favorite stock picks for 2024. Barrick Gold Corp (NYSE:GOLD) made it to the list. Barron’s likes Barrick Gold Corp’s (NYSE:GOLD) plans to increase mine output by 30% by the end of the decade. Barron’s thinks Barrick Gold Corp’s (NYSE:GOLD) CEO Mark Bristow is the industry’s “most effective leader.”
Like GOLD, Jim Cramer also likes Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).
The company in its Q3 earnings call talked about guidance and future plans:
“We are expecting a further improvement in production in the fourth quarter. But as I pointed to the annual production is now expected to be marginally below the low end of the 4.2 million to 4.6 million ounce range. Copper remains on track to achieve its guidance of 420 million to 470 million pounds. As you can see here, the financial results were strong with operating cash flows growing by 35% to more than $1 billion quarter-on-quarter, free cash flow up significantly to $359 million and a 26% increase in adjusted net earnings to $0.24 per share. Barrick’s robust balance sheet secures our capacity to continue investing in our growth projects independent of the market, both new and existing, while we continue to reward our shareholders through dividends.
While growing our business, we have also been driving a new safety culture, including a new set of standards and initiatives to keep improving this important part of our business. We call this the Journey to Zero. Sadly, this key priority was impacted by two fatalities during the quarter, which are deeply disappointing for me and the company. We remain highly motivated to achieve these Zero goals.”
Read the entire earnings call transcript here.
6. Moderna Inc (NASDAQ:MRNA)
Number of Hedge Fund Investors: 37
In a latest program on CNBC, while answering a question about Moderna Inc (NASDAQ:MRNA), Jim Cramer said that Moderna Inc’s (NASDAQ:MRNA) CEO Stéphane Bancel is the “real deal.” Cramer said that he would “back” Moderna Inc (NASDAQ:MRNA) at the current levels.
As of the end of the third quarter of 2023, 37 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Moderna Inc (NASDAQ:MRNA).
Earlier this month, Goldman Sachs published a list of stocks with weak pricing power it believes can outperform. Moderna Inc (NASDAQ:MRNA) made it to the list. In addition to Moderna, Jim Cramer is also bullish on Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).
Moderna during its Q3 earnings call talked about its guidance and future expectations:
For the U.S., we expect 2024 to be at least $2 billion and believe it will grow over time. Lastly, we expect approximately $1 billion from RSV and other international COVID sales. And finally, in 2025, we expect a return to growth. Let me finish by giving you a more fulsome view on 2024 and our thinking on 2025. Starting with 2024, as I just explained, we expect sales to be approximately $4 billion. Cost of sales are expected to be approximately 35% of sales. R&D expenses of approximately $4.5 billion in 2024, would be down 6%. In 2024, the majority of our R&D expenses are for registration trials, which are now mostly committed. I will speak to our view on 2025 R&D expenses in a moment. SG&A expenses of approximately $1.3 billion in 2024 would be down 13%.
We expect taxes to be negligible in 2024 and capital expenditures to be similar to 2023 at $0.9 billion. In summary for 2024, Spikevax will generate nearly $1 billion of income. When we combine that with our estimated investments in R&D and capital expenditures, our cash balance is projected to be approximately $9 billion at the end of 2024. Now for our preliminary thoughts on 2025. As mentioned earlier, sales will return to growth.
Read the entire earnings call transcript here.
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Disclosure. None. Jim Cramer is Recommending These 10 Stocks was initially published on Insider Monkey.
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