This article presents an overview of the Jim Cramer is Recommending These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer is Recommending These 11 Stocks.
5. American Electric Power Company Inc (NASDAQ:AEP)
Number of Hedge Fund Investors: 39
Jim Cramer earlier this month said American Electric Power Company Inc (NASDAQ:AEP) stock is a Buy as he praised American Electric Power’s Company Inc (NASDAQ:AEP) 4% dividend yield.
BMO Capital earlier this month issued a list of stocks that underperformed in January but the firm thinks these companies can outperform for the rest of the year. American Electric Power Company Inc (NASDAQ:AEP) was one of these stocks.
“January underperformers go on to produce relatively high January 31 through December 31 returns, on average, handily exceeding the overall index returns,” BMO analysts said.
4. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Investors: 50
Caterpillar Inc. (NYSE:CAT) is one of the notable stocks Jim Cramer is recommending investors for 2024. Earlier this month Jim Cramer said that 2024 is going to be a “terrific” year for Caterpillar Inc. (NYSE:CAT). Cramer told his viewers not to be “dissuaded” about China, oil prices, whatever” as he believes Caterpillar Inc.’s (NYSE:CAT) main growth catalyst will be infrastructure spending this year.
As of the end of the third quarter of 2023, 50 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Caterpillar Inc. (NYSE:CAT). The biggest hedge fund stakeholder of Caterpillar Inc. (NYSE:CAT) during this period was Ken Fisher’s Fisher Asset Management which owns a $2.2 billion stake in Caterpillar Inc. (NYSE:CAT).
Diamond Hill Large Cap Strategy made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q3 2023 investor letter:
“Caterpillar Inc. (NYSE:CAT), the world’s leading manufacturer of construction and mining equipment, also performed well this quarter. Caterpillar has managed to leverage increased capital investment from various end markets, contributing to better than expected fiscal results for Q2. The company is poised to be one of the largest beneficiaries of several government funding initiatives, including the IRA (Inflation Reduction Act) bill, CHIPS Act and infrastructure bill. These measures are expected to support construction spending for several years, providing a robust backdrop for Caterpillar’s continued growth.”
3. General Electric Co (NYSE:GE)
Number of Hedge Fund Investors: 76
General Electric Co (NYSE:GE) ranks third in our list of the top stocks Jim Cramer is recommending. In a latest program, Jim Cramer said the following about General Electric Co (NYSE:GE) CEO Lawrence Culp:
“Larry Culp is just making money left and right…He is a lock.”
On January 5, Jim Cramer said that General Electric Co (NYSE:GE) was an “inexpensive stock” even at current highs.
General Electric Co (NYSE:GE) shares have gained about 62% over the past one year.
Longleaf Partners Fund made the following comment about General Electric Company (NYSE:GE) in its Q3 2023 investor letter:
“After a busy first half of the year, we initiated one new position in the quarter in a business we have successfully owned previously and were able to buy again at a discount within a new corporate structure. We opportunistically trimmed and added to several positions throughout the quarter, and we exited General Electric Company (NYSE:GE) and our small position in Hasbro after the share price ran away from us. GE was a multi-year portfolio holding for us that started out rocky but ultimately was a good illustration of owning a “quality” business that was temporarily viewed as “value” (aka, perceived as low quality) before ultimately being weighed properly by the market. CEO Larry Culp was a great partner, creating significant value for shareholders and closing the price-to-value gap. Under his leadership, GE materially improved its operations and is well under way on plans to simplify the business by separating it into three world-class companies. The market has finally caught up with reality versus perception and is pricing GE accordingly. Unfortunately, this means we no longer see a margin of safety for the business but will continue to watch GE and Culp closely and hope to have the opportunity to partner with him again.”
2. Booking Holdings Inc (NASDAQ:BKNG)
Number of Hedge Fund Investors: 81
Jim Cramer was recently asked about low-cost US carrier Allegiant in a program on CNBC. Cramer instead recommended the questioner to buy Booking Holdings Inc (NASDAQ:BKNG).
“Why don’t you just go buy Booking Holdings…Just go buy that one.”
A total of 81 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Booking Holdings Inc (NASDAQ:BKNG). The biggest hedge fund stakeholder of Booking Holdings Inc (NASDAQ:BKNG) during this period was Ken Fisher’s Fisher Asset Management which owns a $1.1 billion stake in Booking Holdings Inc (NASDAQ:BKNG).
Ensemble Capital Management stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its fourth quarter 2023 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) (7.60% weight in the Fund): Earlier this year, Booking Holdings rolled out an AI trip planner. Traditionally Booking helps users find the right hotel by offering a search engine to define which city you want to stay in and apply various filters to narrow down the hotel options. With Booking’s AI Trip Planner, a user can use natural language such as “plan a road trip on Route 66, starting in Chicago and ending to Los Angeles.” The Trip Planner then engages with the user like a travel agent, suggesting which cities to stay in each night and various sights to see along the way. Once the trip is planned out, the user can use natural language to generate hotel options, such as by writing “My budget is $200 to $300 a night. It will be my husband and I traveling together.”
Booking’s experiments in AI demonstrate the value of proprietary data sets. While general AI systems such as ChatGPT are designed to answer questions about anything, focused AI systems that leverage a company’s unique data can be far more powerful when applied to specific use cases. With Booking’s AI Trip Planner, the system is unable to answer questions unrelated to making travel reservations. But on the other hand, it is far more likely to understand what the user wants since it already knows that the entire conversation will be about travel. Importantly, Booking’s AI Trip planner has access to the company’s enormous dataset that includes hotel ratings, popular hotels, and all sorts of detailed information about each hotel.”
1. Micron Technology Inc (NASDAQ:MU)
Number of Hedge Fund Investors: 90
“Buy, buy, buy!”
This was Jim Cramer’s call on Micron Technology Inc (NASDAQ:MU) when he was asked about the stock earlier this month.
Jim Cramer on December 21 called the bottom on Micron Technology Inc (NASDAQ:MU) shares. Over the past six months the stock has gained about 33%.
As of the end of the third quarter of 2023, 90 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Micron Technology Inc (NASDAQ:MU). The most notable stakeholder of Micron Technology Inc (NASDAQ:MU) during this period was Ken Griffin’s Citadel Investment Group which owns a $552 million stake in Micron Technology Inc (NASDAQ:MU).
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