In this article, we will take a detailed look at Jim Cramer Stock Portfolio for Q4: Top 11 Stocks to Buy and Sell.

Jim Cramer in a latest program on CNBC talked about the importance of using short-term rallies to your advantage. He said that investors should know when to take the chips off the table.

“The idea that you should buy and hold through both the best of times and worst of times is probably incredibly foolish, with only very few exceptions,” Cramer said.

Cramer said that if the stock you bought is going higher and higher and you keep resisting the urge to take some profits, you won’t make any actual money from these gains if the stock comes down later paring all these profits. This seems straightforward but the idea of buying low and selling high is easier said than done, Cramer said.

“Don’t get carried away by the optimism. Instead, keep your head on straight, check your emotions, focus on long term and think about ringing the register, especially on stocks that might be getting too high,” Cramer added.

For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. We also picked an interesting prediction Cramer made back in 2021 about a stock and saw how it turned out. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

11. SoFi Technologies Inc (NASDAQ:SOFI)

Number of Hedge Fund Investors: 29

When asked about SoFi Technologies Inc (NASDAQ:SOFI) during a program on CNBC, Cramer said the following:

“Now the rates are coming down you are gonna see actually it’s more of a technology stock but it’s gonna go higher.”

SoFi Technologies Inc (NASDAQ:SOFI) stock is indeed poised to grow amid rate cuts. The company’s CEO Anthony Noto’s prediction in early September that the Federal Reserve would cut rates by 75 basis points by the end of 2024 seems to be playing out. The Fed has already cut rates by 50 basis points, and it’s likely that Noto’s forecast will prove accurate by year’s end. Lower rates should give SoFi more flexibility and improve profitability.

 For the second quarter, SoFi Technologies Inc (NASDAQ:SOFI) reported total GAAP net revenue of $598.6 million, up 20% year-over-year, and adjusted net revenue of $597 million, a 22% increase. This performance is impressive, especially given the high interest rate environment.

SoFi’s shift towards diversifying revenue sources is evident, particularly after its $1 billion acquisition of Galileo and the merger with Golden Pacific last year. This move away from traditional lending addresses critics who still see SoFi Technologies Inc (NASDAQ:SOFI) as a typical bank.

The company is expected to see earnings per share (EPS) grow at a compound annual growth rate (CAGR) of 47.3% over the next six years. By fiscal year 2029, this could lead to a price-to-earnings (P/E) ratio of around 7.9x. Based on the growth SoFi Technologies Inc (NASDAQ:SOFI) is seeing, the stock looks undervalued.

10. Consolidated Edison, Inc. (NYSE:ED)

Number of Hedge Fund Investors: 32

Jim Cramer recently said in a program on CNBC that Consolidated Edison, Inc. (NYSE:ED) has a “great yield” and the stock can “project itself higher.”

While Consolidated Edison, Inc. (NYSE:ED) dividend yield is low when compared to other utilities, its regulated natural gas and electric utilities are expected to keep generating stable, recurring income despite the challenging regulatory environment. The 2023 settlement for ConEd’s New York City operations raised its return on equity (ROE) to 9.25%, an improvement from the previous 8.8%, which was the lowest among its utility peers. Consolidated Edison, Inc. (NYSE:ED), with a BBB+/A- credit rating and a market cap of over $31 billion, reported steady first-quarter earnings driven by its strong rate base, and the company continues to push toward its goal of providing 100% clean energy.

The company is decreasing risk by selling off non-core assets, such as clean energy and gas pipelines. For example, the company sold its clean energy assets to RWE.

Consolidated Edison, Inc. (NYSE:ED) is projecting a 6.4% annual growth in its rate base through 2028, driven by continued investments in cleaner energy.

9. Ralph Lauren Corp (NYSE:RL)

Number of Hedge Fund Investors: 36

Ralph Lauren Corp (NYSE:RL) reported its latest quarterly results in August. Commenting on the numbers, Jim Cramer said this was a “stronger European and Asian” quarter than the US.

Cramer was surprised that the company did well in China, while its competitors are getting clobbered in the country.

“The brand is very very strong.”

Cramer said Ralph Lauren Corp (NYSE:RL) CEO Patrice Louvet will be able to tell a “fabulous, fabulous story.”

“Because they’ve gotten rid of anything that is low end, they are all high end and they are quality. I salute them.”

Cramer said that Ralph Lauren is “consistent” in a business that is “episodic.”

8. LyondellBasell Industries NV (NYSE:LYB)

Number of Hedge Fund Investors: 41

When asked about  LyondellBasell, Cramer said that while it’s a very “well-run company” it’s not a stock he’s recommending.

LyondellBasell Industries NV (NYSE:LYB)  has a dividend yield of over 5.6%. The company’s profitability is driven mainly by its Olefins & Polyolefins (Americas) and Intermediates & Derivatives segments. However, the company’s margins are being dragged down by its Olefins & Polyolefins (Europe, Asia & International) and Refining segments, which generate substantial revenue but contribute little to EBITDA.

LyondellBasell Industries NV (NYSE:LYB) management is on track to exit the refining business by next year. However, they are committed to improving the performance of the Olefins & Polyolefins segment in Europe, Asia, and international markets. This is evident from the company’s capital expenditures in these regions and its recent acquisition of a 35% stake in the NATPET polypropylene joint venture in Saudi Arabia. EBITDA margins in these segments have been in the red or at low single digits for several quarters, so exiting refining and improving the international O&P segment could significantly boost overall profitability.

Over the past 12 months, capital expenditures were 138% of the company’s annual depreciation, signaling that management is reinvesting in the business beyond just maintaining existing operations.

7. Target Corp (NYSE:TGT)

Number of Hedge Fund Investors: 52

When asked about Target Corp (NYSE:TGT), Jim Cramer said the retailer’s 3% dividend yield is “quite good” and it had a “very very good quarter.”

Target Corp (NYSE:TGT) recently reported strong Q2 results and analysts are hopeful about the stock amid the upcoming holiday season.

What was so special about the quarter? Target reported a 2.7% year-over-year revenue growth to $25 billion, surpassing estimates. Notably, comparable sales turned positive after four straight quarters of decline, driven by increased customer traffic, which compensated for a drop in the average selling price (ASP) compared to a year ago.

Target Corp (NYSE:TGT) loyalty program, Target Circle, also gained traction, adding 2 million new members in the quarter, bringing the total to 100 million. The company added hundreds of thousands of new cardholders and Target Circle 360 members during its July promotion.

Target Corp (NYSE:TGT) raised its adjusted EPS guidance to between $9.00 and $9.70, signaling a focus on returning to pre-pandemic profitability levels. Analysts expect adjusted EPS to grow faster than revenue, suggesting margin expansion as the company leverages its merchandising strategies, brand portfolio, and loyalty program to boost engagement and sales. By FY26, adjusted EPS is projected to reach $11.37, with a present value of $9.75 when discounted at 8%.

Given the S&P 500’s average earnings growth of 8% over 10 years and a typical P/E range of 15-18, Target Corp (NYSE:TGT), with its improving fundamentals, could justify a P/E of 18-19. This points to a price target of $175-$185, offering roughly 15% upside from current levels.

Diamond Hill Large Cap Strategy stated the following regarding Target Corporation (NYSE:TGT) in its Q2 2024 investor letter:

“Other bottom contributors in Q2 included CarMax, Target Corporation (NYSE:TGT) and ConocoPhillips. US-based mass retailer Target faces concerns about a slowing consumer discretionary spending environment, which weighed on shares in the quarter.”

6. IBM Common Stock (NYSE:IBM)

Number of Hedge Fund Investors: 54

When asked about IBM Common Stock (NYSE:IBM), Jim Cramer said the company is “doing quite well.”  Cramer said that he gets “more and more impressed” with IBM.

“Arvind Krishna (IBM CEO) has really re-invented the company, he’s doing a terrific job,” Cramer added.

Can IBM Common Stock (NYSE:IBM) become a top AI stock and compete with peers like Oracle, Salesforce and Microsoft?

The company recently released its Telum II Processor and Spyre Accelerator at Hot Chips 2024, designed to boost the next-gen IBM Z mainframe system. Telum II offers 8 cores at 5.5GHz with 36MB L2 cache per core and a 40% increase in total on-chip cache. Spyre adds AI capabilities with 32 compute cores and 1TB memory. Both chips, built by Samsung on a 5nm process, will launch in 2025, supporting IBM’s AI initiatives. IBM Common Stock (NYSE:IBM) also acquired Accelalpha to strengthen its Oracle consulting expertise, further enhancing its cloud and AI capabilities for enterprise clients.

IBM’s latest quarterly results were driven by software, consulting, and infrastructure, boosted by accelerated enterprise AI adoption. Revenue grew 4% year-over-year, and free cash flow rose 24%, reflecting the company’s strong financial health. IBM Common Stock (NYSE:IBM) is well-positioned to capitalize on AI trends with its watsonx AI platform and Granite models, offering secure and transparent solutions that address data privacy concerns, critical for enterprise AI implementation. Their unique blend of consulting, software, and AI solutions supports large-scale AI projects.

Diamond Hill Capital Long-Short Fund stated the following regarding International Business Machines Corporation (NYSE:IBM) in its first quarter 2024 investor letter:

“Among our bottom Q1 contributors short positions in Dick’s Sporting Goods, International Business Machines Corporation (NYSE:IBM) and Palomar Holdings. Though we believe the quality and durability of IBM’s free cash flow-generating capabilities remain questionable, investor sentiment has improved amid optimism for the company’s still-nascent AI product suite.”

5. FedEx Corp (NYSE:FDX)

Number of Hedge Fund Investors: 59

Talking about FedEx Corp (NYSE:FDX) latest results, Jim Cramer said it was not a “blowout” quarter despite CEO Raj Subramaniam doing a great job. Cramer said FedEx is facing headwinds amid macroeconomic problems and he’d be watching how the company performs after the recent rate cut.

Cramer said while FedEx Corp (NYSE:FDX) revenue did not “explode” the bottom line was “amazing.”

FedEx’s fiscal Q1 results were not impressive, partly due to tough comparisons year over year when the company had a 7.2% operating margin, the highest prior to Q4 2024’s 8.3% margin.

The first fiscal quarter, ending in August, is typically FedEx’s weakest of the year.

However, revenue expectations for fiscal 2025 have been reduced. The market initially expected 3% growth, but that’s now been cut to 1%. FedEx Corp (NYSE:FDX) hasn’t posted significant revenue growth for eight straight quarters. It would be interesting to see the company’s performance in the coming quarters to see if a decline in rate cuts helps the company’s fundamentals.

Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its first quarter 2024 investor letter:

“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx performed well for the period. The company beat consensus estimates in the quarter and showed material progress in its DRIVE cost reduction program that we have written about previously. FedEx also repurchased substantial stock in the quarter. Its 6% annualized repurchase pace is very strong compared to its history, and the company authorized another $5 billion share repurchase program. FedEx also lowered capital expenditures guidance for the fiscal year, further helping FCF generation. We believe the company is approximately halfway through its cost cutting program with more room to go that is still not appreciated by the market.”