In this article, we discuss the 10 stocks that Jim Cramer is talking about. If you want to read about some more stocks that Jim Cramer is talking about, go directly to Jim Cramer Is Talking About These 5 Stocks.
Recession fears in the United States have reached fever pitch as even veteran stock market experts like Jim Cramer of Mad Money on CNBC, tell investors not to “hold their breath” that a recession can be avoided altogether. During a recent episode of his show, Cramer broke down three possible recession scenarios that the market should prepare for, labeling them as mild, moderate, and severe. He also claimed that each kind of scenario, should it play out, would require a unique set of investments to weather the storm.
Per the journalist investor, a mild recession is “possible” since banks had reported a strong quarter, pointing to the likelihood that people still had money saved over from the pandemic and the job market remained strong. Cramer said even though firms might have a downturn in earnings, the recession fears had already led to a steep drop in the prices of stocks, which now seemed to be holding up well. In case of a moderate recession, Cramer advised investors to “pull in their horns” and be selective about their investment choices.
Some of the stocks that Cramer is monitoring as the market bottoms include Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C). The former hedge fund manager believes that as interest rates will start to trend down, reducing the bond market competition, investors should only buy high yielding stocks that can still make their numbers. However, in case of a severe recession, Cramer advised viewers to “buy the ultimate defensive plays since anything related to advertising, tech and the industrials” will be crushing.
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. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the popularity of each stock among hedge funds.
Jim Cramer Is Talking About These Stocks
10. Lemonade, Inc. (NYSE:LMND)
Number of Hedge Fund Holders: 17
Lemonade, Inc. (NYSE:LMND) provides insurance products. During the Lightning Round of his show on July 14, Jim Cramer discussed his bearish stance on the stock in response to a viewer’s question, ringing the bearish call to signal his overall outlook and sarcastically remarking that it was “a lemon” to analyze the shares. Lemonade is one of the most shorted stocks on the market, with a short interest of over 30%, as net losses for the firm persist. In the past year, the share price has fallen nearly 77%.
On May 11, Oppenheimer analyst Jason Helfstein maintained an Outperform rating on Lemonade, Inc. (NYSE:LMND) stock and lowered the price target to $30 from $45, identifying decline in comp valuations and weaker outlook for near-term loss ratio as some of the reasons behind the target decrease.
At the end of the first quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $41 million in Lemonade, Inc. (NYSE:LMND), compared to 19 in the preceding quarter worth $62 million.
Just like Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C), Lemonade, Inc. (NYSE:LMND) is one of the stocks that elite investors are monitoring.
9. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 22
Nucor Corporation (NYSE:NUE) makes and sells steel products. Cramer discussed the stock during the Lightning Round of his show on July 6. He highlighted that the company was one of the few steel stocks that could be bought, that there was too much “negativity around steel” and he would wait for prices to drop lower before buying. The company recently posted earnings for the second quarter of 2022, beating analyst estimates on earnings per share and revenue by $1.07 and $200 million respectively.
On July 6, Morgan Stanley analyst Carlos De Alba maintained an Equal Weight rating on Nucor Corporation (NYSE:NUE) stock and lowered the price target to $121 from $144, noting that steel prices had fallen from their highs faster than expected.
At the end of the first quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $260 million in Nucor Corporation (NYSE:NUE), compared to 26 in the preceding quarter worth $186 million.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Nucor Corporation (NYSE:NUE) was one of them. Here is what the fund said:
“Our active approach also applies to being disciplined in managing positions in companies in more cyclical industries and taking profits during stronger periods of each cycle. We closed a position in steelmaker Nucor Corporation (NYSE:NUE) during the quarter after the shares had more than doubled over the last year as a direct participant in the recovery of the U.S. economy and rebound in industrial activity. At this point in the cycle, we no longer view the risk/reward as compelling and feel more confident in deploying the proceeds in more attractive areas discussed in this and previous letters.”
8. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 45
Barrick Gold Corporation (NYSE:GOLD) is a mining firm with prime interests in gold and copper. Cramer has been bullish on the company in the past few weeks, identifying it as a “best-of-breed” stock in the gold sector as the precious metal staged a comeback in light of soaring inflation. Cramer noted that the firm had a clear strategy, a geographically diverse portfolio of gold mines, and was also a “terrific” dividend option at a cheap price considering the overall macro environment.
On July 19, Barclays analyst Matthew Murphy maintained an Overweight rating on Barrick Gold Corporation (NYSE:GOLD) stock and lowered the price target to $25 from $28, noting that copper stocks faced headwinds on macro and fundamental levels.
At the end of the first quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Barrick Gold Corporation (NYSE:GOLD), compared to 46 the preceding quarter worth $958 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:
“Also within the structural bucket, we have selectively added to our commodity exposure with the purchase of Barrick Gold Corporation (NYSE:GOLD). Canadian mining company Barrick Gold is a play on operating improvements. The company has aggressively delevered its balance sheet and reduced capex spending to a lower level more permanently, directing its healthy free cash flow to dividends and buybacks.”
7. Flex Ltd. (NASDAQ:FLEX)
Number of Hedge Fund Holders: 48
Flex Ltd. (NASDAQ:FLEX) provides supply chain services and solutions. The former hedge fund manager discussed the stock during the Lightning Round of his show on July 13. In response to a viewer question about the firm, Cramer noted that the shares were very inexpensive and he wanted to buy the stock. He added that he did not get why the stock was so inexpensive despite having a good quarter. The firm beat market expectations on earnings per share and revenue for the fourth fiscal quarter by $0.07 and $450 million in early May.
On May 18, Argus analyst James Kelleher upgraded Flex Ltd. (NASDAQ:FLEX) stock to Buy from Hold with a price target of $22, backing the top-line growth of the firm to drive margin improvement in the coming months as bookings remained strong.
At the end of the first quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in Flex Ltd. (NASDAQ:FLEX), compared to 43 the preceding quarter worth $1.3 billion.
6. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 54
Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas firm. Cramer recently made an appearance on CNBC to outline his bullish stance on oil, saying that his thesis was that oil was the “best hedge” against inflation. He noted that there was still opportunity to buy stakes in oil firms. He said that high-yielding oil firms were the best bet in this scenario, noting that the yield of Pioneer was at 14% and that maybe it was prudent to wait until it was at 16% before buying the stock.
On July 20, MKM Partners analyst Leo Mariani assumed coverage of Pioneer Natural Resources Company (NYSE:PXD) stock with a Buy rating and a price target of $264, backing oil prices to stay above $100 per barrel as long as the Ukraine war was ongoing.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in Pioneer Natural Resources Company (NYSE:PXD), with 559,680 shares worth more than $139 million.
Along with Uber Technologies, Inc. (NYSE:UBER), Adobe Inc. (NASDAQ:ADBE), and Citigroup Inc. (NYSE:C), Pioneer Natural Resources Company (NYSE:PXD) is one of the stocks that hedge funds have their eye on.
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Disclosure: None. Jim Cramer Is Talking About These 10 Stocks is originally published on Insider Monkey.
