In this article, we discuss the 5 stocks that Jim Cramer recommends buying as commodity prices decline. If you want to read about some more stocks that Jim Cramer recommends buying, go directly to Jim Cramer Recommends Buying These 10 Stocks as Commodity Prices Decline.
5. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders: 50
Lennar Corporation (NYSE:LEN) is a Florida-based firm in the homebuilding business. Jim Cramer recently placed the firm among a basket of equities that he would recommend buying as the prices of commodities started to come down. Cramer gave the example of the housing market to drive his point home, noting that higher mortgage rates had led to the annihilation of housing stocks but now, as the market was sobering up, investors could get away with buying homebuilding stocks as long as housing prices did not start skyrocketing again.
On June 22, UBS analyst John Lovallo maintained a Buy rating on Lennar Corporation (NYSE:LEN) stock and lowered the price target to $106 from $108, backing the firm to continue with solid execution in the coming months.
At the end of the first quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Lennar Corporation (NYSE:LEN), compared to 52 the preceding quarter worth $2.1 billion.
4. Honeywell International Inc (NASDAQ:HON)
Number of Hedge Fund Holders: 50
Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing company. The journalist investor placed the company among a group of commodity stocks that he would recommend buying amid falling prices. Cramer underlined that the earnings beat of companies like Honeywell, which seemed to be doing very well despite recession fears and rate hikes, to argue his position, saying that the terrific quarters these firms were posting was evidence of their health in an uncertain marketplace.
On July 29, JPMorgan analyst Stephen Tusa maintained an Overweight rating on Honeywell International Inc. (NASDAQ:HON) stock and raised the price target to $190 from $180, noting that a good 2023 setup was coming into view for the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Honeywell International Inc. (NASDAQ:HON), with 2.1 million shares worth more than $415 million.
3. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Fund Holders: 52
DoorDash, Inc. (NYSE:DASH) is a logistics platform that connects merchants with consumers. The former Goldman Sachs employee recently placed the company among a group of stocks that he would recommend buying. Cramer highlighted that oil and gasoline prices had come down to little or no fanfare, opening up a buying opportunity in sectors like travel and leisure and other firms that benefited from cheaper oil prices. Cramer noted that these stocks were “scorned” just three weeks ago amid higher prices.
On August 5, Needham analyst Bernie McTernan maintained a Buy rating on DoorDash, Inc. (NYSE:DASH) stock and raised the price target to $115 from $100, noting the stock presented a value proposition to the consumer amid macro uncertainty.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in DoorDash, Inc. (NYSE:DASH), with 5.2 million shares worth more than $618 million.
2. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 88
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel firm. The former hedge manager has urged his viewers to buy up shares in companies that benefit from falling commodity prices. He has identified Expedia, a travel play, as one of these firms, which can benefit from falling oil prices and rising travel demand. Cramer has noted that firms like Expedia have recently reported great quarters. However, Cramer has also urged investors to be disciplined in their buying.
On August 6, Mizuho analyst James Lee maintained a Neutral rating on Expedia Group, Inc. (NASDAQ: EXPE) stock and lowered the price target to $132 from $172, noting that the earnings beat of the firm proved the operating leverage of the online travel agency model.
At the end of the first quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Expedia Group, Inc. (NASDAQ:EXPE), up from 82 in the previous quarter worth $7.4 billion.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:
“Expedia Group, Inc. (NASDAQ:EXPE) outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which has improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
The Walt Disney Company (NYSE:DIS) operates as an entertainment company. Cramer recently placed the firm among a group of stocks that he would recommend buying. He underscored that several companies seemed to be doing well as commodity prices fell, even amid market uncertainty. He outlined that the Federal Reserve and Congress were largely responsible for the bearish sentiments at the market, noting that neither the investors nor the companies themselves had much to do with it.
On July 27, Evercore ISI analyst Vijay Jayant maintained an Outperform rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $130 from $150, backing the firm to do well in the streaming business in the coming months.
At the end of the first quarter of 2022, 113 hedge funds in the database of Insider Monkey held stakes worth $5.1 billion in The Walt Disney Company (NYSE:DIS), up from 111 the preceding quarter worth $6.9 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe Disney is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”
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