In this article, we will discuss some stocks which received bullish comments from Jim Cramer recently.
CNBC’s Jim Cramer believes the Russian invasion of Ukraine presents a buying opportunity for investors as he talked about several stocks in the latest episodes of his show Mad Money. Jim Cramer said that the Russian invasion is not a surprise as the US government had been warning about it for weeks.
Cramer’s Thoughts on the Current Geopolitical Situation
The 67-year-old investor who now runs the CNBC Investing Club thinks that currently, the market does not believe President Biden’s threat to implement wider sanctions against Russia would become a reality. He also noted the dramatic rally in the US stock market after the Russian invasion. Major tech stocks like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms Inc. (NASDAQ:FB) are finally trading in the green after weeks of underperformance.
However, US stock market was headed for a fall on Monday as investors digest the wider consequences of the current turmoil in Europe.
“Of course, the buyers could be wrong. If our government decides to do a rapid supply of munitions that can fight mechanized troops, that’s not factored in. Massive partisan resistance, not factored in … but at the moment buyers are betting that all of those are long shots,” Cramer said.
In a February 27 tweet, Cramer said:
“Putin either has no plan of occupation or he has made a blunder of Afghanistan-like proportions or has yet to unleash his forces.”
In this article, we will take a look at some of the stocks Cramer talked about in his latest CNBC programs. We selected the stocks Cramer is bullish on. We used CNBC’s Mad Money web page as our source.
Jim Cramer Likes These 10 Stocks
10. Salesforce.com, inc. (NYSE:CRM)
Salesforce (NYSE:CRM) is in the spotlight as the CRM company prepares to announce fourth-quarter results. Jim Cramer last week said in a program that he believes the “relentless, ruthless selling pressure” on Salesforce (NYSE:CRM) may finally have ended. Cramer also thinks that the “dumping” around Salesforce is “overdone.”
Salesforce (NYSE:CRM) stock has lost over 20% in the last six months. Hedge funds are also selling the stock, as Insider Monkey’s latest data shows that 110 funds had stakes in Salesforce (NYSE:CRM) at the end of 2021, as compared to 119 funds at the close of the third quarter of the same year.
Like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation, and Meta Platforms Inc. (NASDAQ:FB), Salesforce is also gaining ground amid the broader rally of tech stocks after the Russian invasion.
Polen Capital, an investment management firm, published its “Polen Focus Growth” fourth quarter 2021 investor letter and mentioned Salesforce.com, inc. (NYSE:CRM). Here‘s what the fund said:
“Salesforce reported solid revenue growth, including accelerated growth in the company’s largest and most mature product, Sales Cloud. However, shares underperformed due to unexpected weakness in the company’s MuleSoft application integration business that we believe is attributable to temporary missteps in the company’s selling efforts. The company also provided slightly weak guidance for billed but not earned business growth. In our experience, this metric can be influenced by timing issues and is often not fully representative of underlying demand for the company’s offerings.”
9. Etsy, Inc. (NASDAQ:ETSY)
Jim Cramer in his show last week said that Etsy (NASDAQ:ETSY) is a winner of the COVID-era. He said that while the stock can see big swings, it won’t pare its gains easily. These comments came after the e-commerce company posted strong fourth-quarter results. For the first quarter of 2022, Etsy (NASDAQ:ETSY) expects revenue of $565 million – $590 million, as compared to the consensus of $630 million.
Cramer lauded Etsy (NASDAQ:ETSY)’s international growth and noted the increases in transaction fees to 6.5% from 5%.
At the end of the fourth quarter of 2021, 47 hedge funds tracked by Insider Monkey had stakes in Etsy (NASDAQ:ETSY). The total worth of these stakes is $1.3 billion. Two Sigma Advisors of John Overdeck and David Siegel has a $318 million stake in Etsy (NASDAQ:ETSY).
8. Block, Inc. (NYSE:SQ)
Jim Cramer on February 25 called Block (NYSE:SQ) a COVID-era success story. The analyst believes the company is “firing on all cylinders” and thinks the company’s Cash App is “brilliant.”
Other analysts are also joining the bullish chorus after the company posted strong earnings. BTIG analyst Mark Palmer said in a note that Block (NYSE:SQ) was well-positioned to deliver a “positive surprise.”
Truist analyst Andrew Jeffrey called Cash App “the future of consumer banking.” The analyst also commended Block (NYSE:SQ)’s Buy Now, Pay Later addition via its acquisition of Afterpay. Jeffrey thinks the feature will boost average revenue per user.
Block (NYSE:SQ)’s gross profit in the fourth quarter totaled $518 million, surpassing the consensus of $502 million.
At the end of the fourth quarter of 2021, 96 hedge funds tracked by Insider Monkey had stakes in Block (NYSE:SQ), compared to 98 funds a quarter earlier. Cathie Wood‘s ARK has a leading stake in the company, worth $998 million. Block is one of the tech stocks that remains a favorite of hedge funds, in addition to other major names like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation and Meta Platforms Inc. (NASDAQ:FB).
RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third quarter 2021 investor letter and mentioned Block (NYSE:SQ). Here‘s what the fund said:
“Block (formerly Square): Block declined on mixed quarterly results, management commentary on slowing Cash App growth, and a delay in the closing of the AfterPay acquisition (Block announced the takeover of the global “buy now, pay later” platform in August). Still, SQ reported a strong quarter overall with gross profit growth at 43% year over year (due to passthrough costs, gross profit is more reflective of top-line growth), with gross profit from its Sellerecosystem growing 48% to $606 million and from its Cash App growing 33% to $512 million. Still, some investors focused on the weaker-than-expected gross profit growth in the company’s Cash App division, creating pressure on the company’s shares. Importantly, Adjusted EBITDA beat expectations, growing 28% to $233 million.
Through one integrated system, Block (NYSE:SQ) is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers, representing half of first quarter’s gross profit). The combined business has grown gross profit at a 37% CAGR over the past five years to $2.7 billion for 2020, and we believe that the company has an enormous long-term runway, as it has less than a 2% share of a more than $160 billion market. It is our view that the company’s Cash App (which has grown from nothing in 2015 to $512 million gross profit last quarter) has a particularly large opportunity with its powerful ecosystem of digital financial services, including digital wallets, direct deposits, stock trading, bitcoin trading, and business and tax services, which are all relatively new. The vast majority of Cash App’s more than 36 million users are younger and, importantly, are willing to replace their bank and other financial services accounts with the app. We estimate that the company can grow its gross profit more than 30% and EBITDA more than 50% annually for the foreseeable future, and while half of the company’s current profit is from its Seller Business, we believe most of Block’s future value will come from its Cash App business.”
7. Hertz Global Holdings, Inc. (NYSE:HTZ)
Jim Cramer said in his program last week that smart money “should be buying this thing,” referring to the Hertz (NYSE:HTZ) stock. He praised the company’s CEO Stephen M. Scherr and said that he is a “dynamite.” The rental car company emerged from bankruptcy in 2021 and sold 44.52 million shares at $29 per share in its second IPO. At the end of the fourth quarter, 55 hedge funds had reported owning stakes in Hertz (NYSE:HTZ).
Hertz (NYSE:HTZ) recently beat fourth-quarter earnings estimates. However, Morgan Stanley said in a note after earnings disclosure that Hertz (NYSE:HTZ) did not provide any outlook and “qualitative updates” on its strategic relationships without which the firm said it cannot re-rate Hertz (NYSE:HTZ).
6. Cedar Fair, L.P. (NYSE:FUN)
Jim Cramer recommended his fans to hold Cedar Fair (NYSE:FUN) stock as he believes it will go “much higher.” The Ohio-based amusement park company recently said it rejected a $63 per share offer from SeaWorld (NYSE:SEAS). Cedar Fair (NYSE:FUN) said it was “not in the best interest of the company and its unitholders” to sell itself.
A total of 12 hedge funds out of the 924 tracked by Insider Monkey held positions in Cedar Fair (NYSE:FUN) at the end of December 2021. Out of these funds, Centerbridge Partners of Mark T. Gallogly has the biggest stake in the company with 2.22 million shares.
5. Switch, Inc. (NYSE:SWCH)
Las Vegas-based Switch Inc (NYSE:SWCH) is operating in the data center market, providing SUPERNAP data centers, telecommunications, cloud services, and content ecosystems. Jim Cramer in a latest program said that Switch is operating in a market that is “red hot.” He told his fans to “take matters into our own hands and buy the stock.”
Cramer thinks that Switch is a very “inexpensive” stock and it’s a “kind of stock that can work.”
19 hedge funds in the database of Insider Monkey had owned stakes in Switch at the end of the fourth quarter of 2021, compared to 17 funds in the previous quarter. Billionaire Paul Singer opened a new position in the company by buying 5.8 million shares of Switch worth $18.7 million.
4. Linde plc (NYSE:LIN)
Jim Cramer categorically called Linde Plc (NYSE:LIN) a Buy in a recent program on CNBC. He said that he was upset on the stock’s underperformance. He said the company had a strong quarter and industrial gases are a “great business.”
“Why the hell the stock is now down so much, I agree with you, I think it’s a buy,” said Cramer.
Linde is also gaining the attention of investors after analysts said that the halting of the Nord Stream 2 pipeline project could benefit the company. Baader Helvea analysts Markus Mayer and Konstantin Wiechert said in a note that the project’s halt would result in higher natural gas prices which would be compensated by higher liquefied natural gas deliveries. The analyst thinks that because the number of LNG terminals is limited, private equity and the government would fund and subsidize the sector, benefitting companies like Linde.
Impax Asset Management Ian Simm owns over 1 million shares of Linde as of the end of the fourth quarter of 2021. Overall, 45 funds in Insider Monkey’s database held long positions in the company at the end of 2021.
3. BHP Group Limited (NYSE:BHP)
Jim Cramer said in a recent program that he likes BHP (NYSE:BHP) “very much” and believes it’s a “good idea” for investment. Cramer especially likes the company’s rather “large” dividend. Earlier this month, the company posted strong numbers according to which its first half of the year profit jumped to $9.44 billion, compared with $3.88 billion in the year-earlier period.
BHP also announced a record interim dividend of $1.50 per share, up from $1.01 a year earlier.
A total of 21 funds out of 924 reported owning stakes in BHP at the end of the fourth quarter, according to Insider Monkey’s database.
2. AbbVie Inc. (NYSE:ABBV)
Earlier this month, Jim Cramer said that AbbVie (NYSE:ABBV) is “still cheap” and he recommended his viewers to stay long Abbvie. Cramer said that his investing club has a “large” position in the company. Cramer also likes that company’s dividend.
AbbVie is a dividend aristocrat with over 25 years of dividend growth. In the fourth quarter, AbbVie’s revenue jumped 7% on a year-over-year basis to reach $14.9 billion. In 2022, the company expects adjusted EPS to come in at $14.00 to $14.20.
AbbVie is also a very popular stock among elite hedge funds. 82 hedge funds in our database entered 2022 with AbbVie in their portfolios. The total worth of stakes owned by these funds in the biotech company is $3.7 billion.
1. Southern Copper Corporation (NYSE:SCCO)
With a dividend yield of over 5.8%, Southern Copper (NYSE:SCCO) is one of the notable copper stocks to own. Jim Cramer said in a program recently that he thinks Southern Copper stock “should be higher, not lower”. He also likes the company’s dividend yield. Cramer said that copper is a “great barometer of what’s happening” in the US as the country is using more copper “than ever.”
At the end of the fourth quarter, 19 funds tracked by Insider Monkey had owned positions in Southern Copper.
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This article is originally published at Insider Monkey.
