In this article, we will take a look at some of the stocks Jim Cramer was right about. For a quick overview of such stocks, read our article Jim Cramer Made Accurate Predictions About These 4 Stocks.
Jim Cramer in his program on March 12 recalled his obsession with the stock market as a kid and how he became interested in companies and investing when he was just a fourth grader. Cramer advised his viewers to introduce their kids to investing as early as possible. Cramer said you should pick some companies that your kids are familiar with and ask them to guess which one of them would perform the best over time.
“Get them started early…. The stock is a long-term contest. The earlier you get in, the more you can potentially win, over the long haul.”
“Stocks Still Represent the Greatest Opportunity”
Answering a question in the same program, Jim Cramer advised investors not to put “too much money” in bonds because Cramer believes “stocks still represent the greatest opportunity.”
In a separate program on March 15, in which Cramer talked about his career in the Wall Street and how he witnessed some of the biggest market crashes in history, the CNBC host said when you are in your 20s you should invest in growth. Cramer said younger people should take more risk early in life because they have many years ahead of them. Cramer said he “really wants risk taking” when you are younger.
Cramer also advised investors not to put all their money in a stock at once. Instead, Cramer recommended that you should invest some in the start and then buy more when the stock is going down.
Talking about some of the worst market crashes in US history, Cramer said:
“Tough days don’t last forever people but when they come along you need to know how to respond.”
Methodology
We cover Jim Cramer’s stock picks and recommendations every week. But how have Cramer’s stock picks been performing? Everyone knows Cramer is bullish on mega-cap companies like NVIDIA Corp (NASDAQ:NVDA), Meta Platforms Inc (NASDAQ:META) and Alphabet Inc Class C (NASDAQ:GOOG) and they are going strong. But what about several others stocks Cramer recommended buying and selling over the past few months? In this article we decided to take a look at the stocks Cramer recommended investors to buy and sell in 2023 or early 2024 and saw how these companies have performed so far in 2024 based on their year-to-date stock performance.
9. Rocket Lab USA Inc (NASDAQ:RKLB)
Number of Hedge Fund Investors: 13
In August last year, Jim Cramer said investing in Rocket Lab USA Inc (NASDAQ:RKLB) was like “sending your money up in smoke.”
In July, Cramer said the following about Rocket Lab USA Inc (NASDAQ:RKLB):
“No, let’s move on from Rocket Lab USA Inc (NASDAQ:RKLB), let’s move on from them. They’re losing money… it’s not my cup of tea.”
Rocket Lab USA Inc (NASDAQ:RKLB) shares are down by about 22% this year through March 18.
Last month the company talked about guidance and key business updates during its Q4 earnings call:
“Overall, we expect gross margin trends will continue to improve over time, thanks to the same factors that help drive improvement this year. In terms of when we can get to adjusted EBITDA breakeven Neutron investment, especially R&D spend, continues to be the pacing item to achieve its critical milestone. Turning to our recent fundraising of $355 million in convertible senior notes. With this financing, we believe we secured a large quantum of cost-effective and shareholder-friendly capital. The roughly $300 million of proceeds, net of our capped call and deal fees, positions the company to exercise inorganic adoptions to further vertically integrate our supply chain with the critical capabilities that are consistent with what we have done successfully in the past, which has enabled larger and more strategic program wins like the recent $0.5 billion SDA program.
With that, let’s turn to our guidance for the first quarter of 2024, we expect revenue in the first quarter to range between $92 million and $98 million, representing sequential revenue growth of between 53% and 63%. This range reflects $60 million to $65 million of contribution from space systems and $32 million to $33 million from launch services, which assumes four launches. Although modestly lower than what we previously expected for Q4 just a few months ago. We don’t want to understate how encouraged we are with the magnitude of this forecasted quarter-on-quarter growth and how positively it reflects on the capabilities of the team to deliver this level of growth in such a complex and competitive set of businesses. We expect first quarter GAAP gross margin to range between 24% to 26% and non-GAAP gross margins to range between 29% to 31%.”
Read the full earnings call transcript here.
8. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Investors: 15
Arlington, Virginia-based defense contractor AeroVironment, Inc. (NASDAQ:AVAV) ranks 8th in our list of the stocks Jim Cramer was right about. In December 2023, Jim Cramer had praised AeroVironment, Inc.’s (NASDAQ:AVAV) quarterly results and said that AeroVironment, Inc.’s (NASDAQ:AVAV) CEO Wahid Nawabi was doing a “terrific job.”
“So I would be a buyer of the stock,” Cramer said at the time.
Nawabi earlier this month talked about key company updates and guidance during latest earnings call:
“With a strong third-quarter performance behind us, we’re increasing and narrowing our guidance range for fiscal year 2024 as follows. We now anticipate revenue of $700 million to $710 million. Full-year net income of $51 million to $55 million or $1.86 to $2 per diluted share. Non-GAAP adjusted EBITDA of $122 million to $127 million. Non-GAAP earnings of $2.69 to $2.83 per diluted share. And R&D spend totaling 13% to 14% of revenue. We remain confident in our growth trajectory for the fourth quarter and fiscal year 2025. Our backlog remains strong, our visibility is nearly 100%, and our pipeline continues to expand. While we await approvals on the continuing resolution in supplemental assistance package in Congress, we remain hopeful that a bipartisan agreement will be reached soon.
We stand ready with our cutting-edge battle-tested solutions and unmatched manufacturing capacity to meet our customers needs. Given our strong performance, we remain on a trajectory of our best year ever again. As stated in the past, our expectations for this year and beyond are not driven by a single product or customer, but by the overall expanding global demand and our autonomous AI-enabled unmanned solutions. We are ideally suited to continue this growth trajectory given our global installed base, battle-tested solution offering, successful track record, proven best-in-class technology, agile product development cycle, and unmatched manufacturing capacity. As our addressable markets expand, we remain well-positioned to benefit from budget priorities in the U.S. and abroad as an industry leader and the original defense technology innovator.”
Read the entire earnings call transcript here.
AeroVironment, Inc. (NASDAQ:AVAV) stock has gained about 20% in 2024 through March 18. As of the end of the fourth quarter of 2023, 15 hedge funds tracked by Insider Monkey had stakes in AeroVironment, Inc. (NASDAQ:AVAV).
Earlier this month AeroVironment, Inc. (NASDAQ:AVAV) posted Q3 results, reporting an EPS of $0.63 for the quarter, beating estimates by $0.29.
7. Plug Power Inc (NASDAQ:PLUG)
Number of Hedge Fund Investors: 19
Jim Cramer has been recommending investors to dump Plug Power Inc (NASDAQ:PLUG) for quite some time now. In December Cramer said he had decided to “pull the plug” on the stock. In August last year Cramer advised investors to sell the stock because he believed Plug Power Inc (NASDAQ:PLUG) was disappointing. Cramer was right, based on the stock’s performance so far this year. Plug Power Inc (NASDAQ:PLUG) shares have lost about 27% in 2024 through March 18.
As of the end of the fourth quarter of 2023, 19 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Plug Power Inc (NASDAQ:PLUG). Jim Cramer recommends selling PLUG but he is bullish on companies like NVIDIA Corp (NASDAQ:NVDA), Meta Platforms Inc (NASDAQ:META) and Alphabet Inc Class C (NASDAQ:GOOG).
6. Telus Corp (NYSE:TU)
Number of Hedge Fund Investors: 20
In August 2023, Jim Cramer said the following about Canadian-based telecom company Telus Corp (NYSE:TU):
“I think they’re a loser, honestly. I mean, honestly. They’re just doing a terrible job. We do not need that, there’s like 40 other guys in that same space that are better.”
Telus Corp (NYSE:TU) shares have dipped by about 7% this year and about 17% over the past one year.
5. Quantumscape Corp (NYSE:QS)
Number of Hedge Fund Investors: 20
Lithium metal batteries company Quantumscape Corp (NYSE:QS) is one of the stocks Jim Cramer was right about. Back in July 2023, Jim Cramer had told his viewers that there was “nothing there” for this stock and took a “hard pass” on it when asked about his take on Quantumscape Corp (NYSE:QS). Over the past one year Quantumscape Corp (NYSE:QS) shares have lost about 25% in value.
As of the end of the fourth quarter of 2023, 20 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Quantumscape Corp (NYSE:QS). The biggest hedge fund stakeholder of Quantumscape Corp (NYSE:QS) during this period was Philippe Laffont’s Coatue Management which owns a $23.2 million stake in Quantumscape Corp (NYSE:QS). While Cramer is bearish on QS, he recommends buying NVIDIA Corp (NASDAQ:NVDA), Meta Platforms Inc (NASDAQ:META) and Alphabet Inc Class C (NASDAQ:GOOG).
Click to continue reading and see Jim Cramer Made Accurate Predictions About These 4 Stocks.
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Disclosure. None. Jim Cramer Made Accurate Predictions About These 9 Stocks was initially published on Insider Monkey.
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