Jim Cramer Says You Should ‘Buy, Buy, Buy’ These 5 Stocks

4. Core & Main Inc (NYSE:CNM)

Number of Hedge Fund Investors: 43

When asked about Missouri-based distributor of water, wastewater, storm drainage and fire protection products, Core & Main Inc (NYSE:CNM), Jim Cramer said that Core & Main Inc (NYSE:CNM) is at the “heart of this infrastructure boom market I keep talking about.” Cramer said the stock is “perfectly positioned” and “believe it or not” it can go higher from here even though it has already been a “horse.” Core & Main Inc (NYSE:CNM) shares have gained about 154% over the past one year.

Out of the 933 hedge funds tracked by Insider Monkey, 43 hedge funds reported owning stakes in Core & Main Inc (NYSE:CNM). The biggest stake in Core & Main Inc (NYSE:CNM) is owned by Robert Joseph Caruso’s Select Equity Group which owns a $370 million stake in Core & Main Inc (NYSE:CNM).

Polen U.S. Small Company Growth Strategy stated the following regarding Core & Main, Inc. (NYSE:CNM) in its fourth quarter 2023 investor letter:

“Core & Main, Inc. (NYSE:CNM) is an industrial distributor specializing in waterworks and fire protection markets, distributing an extensive range of over 200,000 products, including pipes, valves, fittings, water meters, storm drainage, and fire protection equipment. As one of the two largest players in a fragmented industry, the company has a solid track record of capital allocation skill that will serve them well as they continue to consolidate the industry through disciplined acquisitions. We view CNM as a high-quality business that is currently undervalued by the market given the structural tailwinds around an urgent need to repair and replace aging municipal water infrastructure. In our view, this positions the company for potential earnings surprises and multiple expansion, making it a compelling investment opportunity with an estimated IRR of approximately 20%.”