In this article, we discuss Jim Cramer recommended these 10 stocks. If you want to see more stocks in this selection, check out Jim Cramer Recommended These 5 Stocks.
It’s been almost a year since Jim Cramer made solid bets on stocks investors should consider buying on the weakness. When the Mad Money Host made the recommendations, oil prices had declined from $124 a barrel to about $82. The slide resulted in many commodity stocks coming under pressure and pulling back from the highs of the time.
Following the Russia-Ukraine war in 2022, oil prices skyrocketed above the $100 a barrel level amid supply constraints and rising demand. Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) were some of the beneficiaries of the high commodity prices that made it possible for them to resume dividends and buybacks as free cash flows increased significantly.
“Oil’s down big, gasoline down big, and you can now buy all sorts of stocks that benefit from cheaper fuel, especially the travel and leisure plays,” Cramer said at the time.
Stocks were under immense pressure in August last year as the US Federal Reserve embarked on an aggressive monetary policy tightening spree. At the time, the focus was to push inflation levels lower through the hiking of interest rates. Cramer criticized the Fed for the aggressive stance that he believed would drag down the markets.
On the other hand, the concern was that higher interest rates would tip the economy into recession as it was trying to bounce back from the COVID-19-triggered slowdown. While it’s always recommended to sell industrial stocks during an economic slowdown, declining commodity prices such as oil, according to Cramer, provided an opportunity to purchase at highly discounted levels.
Cramer has always insisted on capitalizing and building positions whenever the market gets challenging. Some of his long-term themes have always been in the tech industry and energy sector, which he believes will always outperform regardless of what policymakers do.
While the focus has always been tech plays, the Mad Money host has also made a name for himself by calling for greater diversification into other sectors.
While it is essential to stick with the magnificent seven of – Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META), and Tesla, Inc. (NASDAQ:TSLA), it’s become increasingly clear that other stocks have value. Getty Images Holdings, Inc. (NYSE:GETY) is one of the stocks that the CNBC commentator touted as having a solid business with solid long term outlook after it went public again via a SPAC merger.
While most people have always shunned SPAC stocks Cramer touted Getty Images for its core business that revolves around providing high quality visual images backed with a massive library of content
“This is one of the rare SPACs story where the merger target is a quality business, its actually profitable,” Cramer said. The remarks came after the stock had registered a 149% gain in a single day. However, as days went on the stock struggled to maintain the upward momentum.
Additionally, Cramer has always seen winners in the consumer discretionary sector as well as the healthcare sector going by his recommendations. He also maintains a close eye on the financial sector with eyes on JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Company (NYSE:WFC).
While there has always been skepticism about Cramer’s recommendations, Long Cramer ETF, which goes long Cramer’s recommendations, is up by about 16% year to date. The outperformance attests to CNBC’s commentator’s ability to get it right on winners in the market.
Our Methodology
In August 2022 Jim Cramer during his Mad Money show on CNBC made some stock recommendations. In this article we decided to take a look at how those stock recommendations played out. We calculated returns of each stock Cramer recommended back then and compared those returns with S&P 500’s returns during the same period.
Jim Cramer Recommended These Stocks
10. Ford Motor Company (NYSE:F)
Stock Gain since August: -21%
S&P 500 Gain since August: 9.4%
Ford Motor Company (NYSE:F) is one of the oldest automakers in the US that designs, develops, and delivers a range of Ford trucks, commercial cars, and vans. The company remains under pressure as it continues to face headwinds in its bid to launch electric vehicles.
While Ford Motor Company (NYSE:F) has underperformed when compared to Tesla, the CNBC commentator believes there is significant value to unlock in the company.
“I think the market ingenuity an innovation here at Ford are undervalued. Undervalued vs Tesla and possibly against everything else in the market,” Cramer said.
The automaker has already moved the launch of its all-electric Ford Motor Company (NYSE:F) Explorer for the European market to the summer of 2024 from early in the year. The company has already reiterated that its EV ramp-up may take longer than anticipated.
As other companies focus on electric vehicles, Ford may bring to market more hybrid options driven by the success of its current gasoline-electric options.
The focus on pure electric cars might explain why the stock is down by about 21% over the past 12 months compared to a 9.4% gain for the S&P 500.
9. The Walt Disney Company (NYSE:DIS)
Stock Gain since August: -20%
S&P 500 Gain since August: 9.4%
The Walt Disney Company (NYSE:DIS) is an entertainment company that engages in film and episodic television content production and distribution. In addition to content production, it also runs some of the biggest theme parks in the world. It has turned out to be one of Cramer’s big mistakes as the stock has struggled over the past one year.
The Walt Disney Company (NYSE:DIS) has had to contend with revenue struggles everywhere apart from international parks over the past 12 months. In the most recent quarter, the company lost about 12 million streaming subscribers as it also took a hit on restructuring costs and missed revenue projections.
Since Cramer recommended the stock, The Walt Disney Company (NYSE:DIS) is down by about 20% underperforming the S&P 500 by wide margins.
8. Waste Management, Inc. (NYSE:WM)
Stock Gain since August: -4.8%
S&P 500 Gain since August: 9.4%
Waste Management, Inc. (NYSE:WM) is a company that engages in the provision of environmental solutions to residential, commercial, and industrial customers. Its core business revolves around collecting and transporting waste and recyclable materials.
The recommendation came at a time when Waste Management, Inc. (NYSE:WM) had signed big contracts and rewarded investors with a big dividend boost. While the stock has been in consolidation in recent months, it is down by 4.8% from August of last year, underperforming the S&P 500, which is up by about 9.4%.
7. Honeywell International Inc. (NASDAQ:HON)
Stock Gain since August: -1%
S&P 500 Gain since August: 9.4%
Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing company. It operates in the Aerospace segment, offering auxiliary power units and propulsion engines, among other things. The Honeywell Building technologies provide software applications for radar and surveillance systems.
Cramer recommended Honeywell International Inc. (NASDAQ:HON) as one of the stocks well poised to benefit from declining commodities prices, such as oil, that was expected to fuel activity in the aviation industry. Additionally, he remained confident about the stock following great earning results.
Nevertheless, Honeywell International Inc. (NASDAQ:HON) has been extremely volatile, rallying by more than 28% from October lows only to give back a good chunk of the gains. It is currently down by about 1% from when Cramer recommended it.
6. Cheniere Energy, Inc. (NYSE:LNG)
Stock Gain since August: 10.8%
S&P 500 Gain since August: 9.4%
Cheniere Energy, Inc. (NYSE:LNG) is an infrastructure company that specializes in liquefied natural gas-related business. The company owns and operates one of the largest pipelines out of Texas. When Cramer recommended the stock in August of last year, it was up by more than 59% on benefiting from rising commodity prices.
Cramer insisting that the stock was pretty darn cheap was spot on as the stock did rally 15% afterward. Nevertheless, as the year came to a close, Cheniere Energy, Inc. (NYSE:LNG) did come under pressure giving back a significant chunk of the gains.
Cheniere Energy, Inc. (NYSE:LNG) has outperformed the S&P 500, which is up 9.4% over the past 12 months. Cheniere is up by about 10.8% over the past 12 months.
Click to continue reading and see Jim Cramer Recommended These 5 Stocks.
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Disclosure: None. Jim Cramer Recommended These 10 Stocks is originally published on Insider Monkey.
