In this article, we will take a detailed look at Jim Cramer Was Right About These 10 Stocks.
Jim Cramer recently said in his program “Mad Money” on CNBC that people are asking him which stock would be the next NVIDIA Corp (NASDAQ:NVDA). Cramer said people believe Nvidia has “made it” since the stock has gained 236% over the past one year. Cramer acknowledged that it’s really “hard” to find another such company that can post such an “unbelievable” revenue growth. Cramer reiterated that AI could be the “gamer changer” for “everything” that is digital. Cramer said NVIDIA Corp is the “freak of nature” and the stock’s dramatic rise in value has been difficult to digest for many because in the past companies like Apple and Microsoft rose to dominance relatively slowly, but Nvidia’s market cap ascendance was unheard of.
Cramer then went to discuss which companies could join the $1 trillion market cap club soon. Cramer yet again sounded bullish about Eli Lilly because of the company’s weight loss drug and Alzheimer’s treatment. Cramer said these weight loss drugs make junk food less appealing. Cramer also said Eli Lilly’s Alzheimer’s treatment approval could come “any day” now. While Cramer believes Eli Lilly stock should see a sell-off in the near term, he thinks the company is headed to become the first $1 trillion market cap pharma company in the future.
Methodology
In this article we decided to take a look at the performance of Jim Cramer’s stock picks. For that we first referred to our previous articles in which we covered Cramer’s stock recommendations and calls made near the end of 2023 and early 2024. We then calculated the performance of these stocks in 2024 so far to see whether Cramer was right or wrong about these stocks. With each stock we have mentioned its performance in 2024. Some top Jim Cramer’s recommendations for 2024 were NVIDIA Corp, Meta Platforms Inc (NASDAQ:META) and Procter & Gamble Co. Let’s see how they performed.
Jim Cramer’s Stock Predictions and Their Performance in 2024
10. Rocket Lab USA Inc (NASDAQ:RKLB)
Number of Hedge Fund Investors: 13
Cramer’s Recommendation: Sell
YTD Performance in 2024: -17%
Back in August 2023, when Cramer was asked about his thoughts on Rocket Lab USA Inc (NASDAQ:RKLB) during a program on CNBC, he said that investing in Rocket Lab USA Inc was like “sending your money up in smoke.”
Rocket Lab USA Inc stock is down by about 17% year to date through February 26.
As of the end of the fourth quarter of 2023, 13 hedge funds tracked by Insider Monkey had stakes in Rocket Lab USA Inc. The most significant stake in Rocket Lab USA Inc is owned by Jose Fernandez’s Stepstone Group which owns a $45 million stake in Rocket Lab USA Inc.
9. Quantumscape Corp (NYSE:QS)
Number of Hedge Fund Investors: 20
Cramer’s Recommendation: Sell
YTD Performance in 2024: -17%
In July 2023, Jim Cramer was asked about Quantumscape Corp (NYSE:QS), the California-based solid state lithium metal batteries company. Jim Cramer he would take a “hard pass” on the stock and there was “nothing there” about the stock.
Over the past six months the stock is down by about 11%.
As of the end of the fourth quarter of 2023, 20 hedge funds tracked by Insider Monkey had stakes in Quantumscape Corp.
Earlier this month the company posted Q4 results. GAAP EPS in the period came in at -$0.23, surpassing estimates by $0.01.
8. Arm Holdings PLC – ADR (NASDAQ:ARM)
Number of Hedge Fund Investors: 22
Cramer’s Recommendation: Buy
YTD Performance in 2024: +93%
In early January, Jim Cramer had said that Arm Holdings PLC – ADR (NASDAQ:ARM) was doing “so much so right, they are going to dominate cell phone, PC, hyperscale.”
Cramer said he’d want to buy Arm Holdings PLC – ADR for his charitable trust.
Arm Holdings PLC – ADR shares have gained about 93% year to date through February 26. However, apparently this performance has run too hot for Cramer. He earlier this month said Arm Holdings PLC – ADR was an example of market “froth.”
Like Arm Jim Cramer is also bullish on NVIDIA Corp, Meta Platforms Inc and Procter & Gamble Co.
7. Howmet Aerospace Inc (NYSE:HWM)
Number of Hedge Fund Investors: 43
Cramer’s Recommendation: Buy
YTD Performance in 2024: +22%
Jim Cramer was bullish on Howmet Aerospace Inc (NYSE:HWM) when 2024 started. Here’s what he had said about the aerospace engineering company when a caller asked him about this thoughts during a program on CNBC:
“What a stock Howmet is,” Cramer said.
Cramer had said that investing in Howmet Aerospace Inc was the “right call.”
Howmet Aerospace Inc shares have gained about 22% since 2024 started.
As of the end of the last quarter of 2023, 43 hedge funds tracked by Insider Monkey had stakes in Howmet Aerospace Inc.
The company talked about its guidance in Q4’2023 earnings call:
“Regarding the full year 2024, we see revenue at $7.1 billion plus or minus $100 million; EBITDA of $1.635 billion plus or minus $35 million; and earnings per share of $2.15 plus or minus $0.05. Free cash flow, we see a $735 million plus or minus $35 million and CapEx of $290 million plus or minus $15 million. I’d like to comment further on the capital expenditures, seen as these are expected to be above depreciation for the first time in many years. Essentially, this is due to investment opportunities materializing the Engine Products business. We see this as a very good sign to be able to deploy capital with high returns and rapid future growth. In fact, let me expand. In fact, 2023, which was another year of above market growth in each of our segments, in fact, above 5% above market served.
This engine investment is viewed as excellent and speaks to the continued market growth in the business with 27%-plus EBITDA margins and a 33%-plus return of capital. And this continued growth is seen as the investments come on stream in approximately 18 months’ time. Underpinning all of this is an agreement with one of our engine manufacturer customers for increased business and increased market shares. This does not change our long-term commitment to deliver average free cash flow conversion of 90% of net income. And as you can see from our guide, free cash flow after all cost is approximately 45% of EBITDA which is best-in-class. We based our guidance on Boeing 737 MAX production of 34 aircraft per month and six 787 aircraft per month. Our Airbus assumptions are in line with their plans.”
Read the entire earnings call transcript here.
6. GE HealthCare Technologies Inc (NASDAQ:GEHC)
Number of Hedge Fund Investors: 44
Cramer’s Recommendation: Buy
YTD Performance in 2024: +16%
In early January 2024, Jim Cramer had called GE HealthCare Technologies Inc (NASDAQ:GEHC) a “ridiculously cheap” stock. Cramer said that GE HealthCare Technologies Inc was doing “so many great things.” Cramer said at the time that when an analyst was downgrading the stock he was saying “Buy, Buy, Buy” on the stock.
Cramer also said that his Charitable Trust has a “big position” in the stock and he’s sticking with the GE HealthCare Technologies Inc stock for the “long haul.”
GE HealthCare Technologies Inc is up 16% year to date through February 26.
In addition to GE Healthcare, Jim Cramer also loves NVIDIA Corp, Meta Platforms Inc and Procter & Gamble Co.
Cooper Investors Global Equities Fund stated the following regarding GE HealthCare Technologies Inc. in its fourth quarter 2023 investor letter:
“During the quarter the portfolio initiated a position in GE HealthCare Technologies Inc. (NASDAQ:GEHC). GEHC is the former Healthcare division of GE, spun out in early 2023. It’s a global leader in imaging equipment such as MRI machines, CT scanners and ultrasound systems along with associated consumables. The business has a long and storied history but was trapped inside a larger, underperforming conglomerate, starved of the love and attention it needed to thrive.
From a subset of value perspective, we view GEHC as a Low risk turnaround. The underlying business is fundamentally sound but has ceded market share over time, with sales growth lagging the industry. There is significant margin opportunity with core imaging margins (~50% of sales) much lower than its main peer. We see two drivers in restoring performance. Firstly an increase in research and development spending (since 2017 R&D spend is up 70%, far outpacing revenue growth). Secondly an opportunity to improve SG&A cost efficiency.
What makes the turnaround low risk? Management and Board quality are critical. GEHC features a few of what we call ‘CI Alumni’; executives we have invested behind at other companies. Top of this list is Chairman Larry Culp, the former CEO of Danaher, an executive we have the highest respect for.
GEHC has strong financial characteristics. It is a market leader in an oligopolistic industry where market share changes slowly and gross profit comes largely from aftermarket. The balance sheet is appropriately geared with well structured debt. Our analysis of GEHC’s accounts suggests there may be some conservatism baked into the P&L numbers. At today’s share price you don’t need to assume much going right to do well, which partially reflects the backdrop of healthcare stocks having been under pressure this year. If GEHC can deliver on its potential, the upside is significant.”
5. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Investors: 57
Cramer’s Recommendation: Buy
YTD Performance in 2024: +14%
On Costco, Jim Cramer in December 2023 had told investors to “hold on to the stock for dear life.” So far in 2024, Cramer has been proven right, since Costco Wholesale Corporation (NASDAQ:COST) shares are up 13% year to date through February 26.
As of the end of the fourth quarter of 2023, 57 hedge funds tracked by Insider Monkey had stakes in Costco Wholesale Corporation. The biggest hedge fund stakeholder of Costco Wholesale Corporation during this period was Ken Fisher who had a $1.8 billion stake in Costco Wholesale Corporation via his hedge fund Fisher Asset Management.
Madison Sustainable Equity Fund stated the following regarding Costco Wholesale Corporation in its fourth quarter 2023 investor letter:
“Costco Wholesale Corporation (NASDAQ:COST) reported solid holiday results and announced a special dividend of $15 per share. Earnings were better than expected driven by better gross margin. Same store sales were 3.9% with solid traffic. Costco also noted better discretionary trends and solid seasonal sales.”
4. Procter & Gamble Co (NYSE:PG)
Number of Hedge Fund Investors: 71
Cramer’s Recommendation: Buy
YTD Performance in 2024: +8%
Jim Cramer has been a big believer in Procter & Gamble Co. In December 2023, Cramer praised Procter & Gamble Co and said Procter & Gamble Co had a “good” dividend yield and the stock was for “sale.” Cramer also said at the time that Procter & Gamble Co was the “biggest beneficiary of the big-cap stocks.”
Procter & Gamble Co shares have gained about 8% in 2024 through February 26. Clearly, Jim Cramer was right about this stock when he recommended investors to buy and hold.
Madison Sustainable Equity Fund stated the following regarding The Procter & Gamble Company in its fourth quarter 2023 investor letter:
“We sold The Procter & Gamble Company (NYSE:PG). After two years of strong pricing growth, the company is facing slower market growth in both the US and Europe. China, the company’s second largest individual market, is facing a protracted downturn with poor visibility on when fundamentals will improve.”
3. Merck & Co Inc (NYSE:MRK)
Number of Hedge Fund Investors: 98
Cramer’s Recommendation: Buy
YTD Performance in 2024: +13%
Jim Cramer praised Merck & Co Inc shares in October 2023 when he was asked about his thoughts on the healthcare company. Back in the summer of 2023 Cramer had said that Merck & Co Inc was doing a “terrific job” at reinventing itself. Merck & Co Inc shares have gained about 14% in 2024 through February 26.
As of the end of the fourth quarter of 2023, 98 hedge funds tracked by Insider Monkey had stakes in Merck & Co Inc.
Carillon Eagle Mid Cap Growth Fund made the following comment about Merck & Co., Inc. in its Q3 2023 investor letter:
“Merck & Co., Inc. (NYSE:MRK) underperformed in the third quarter, based on what we view as largely macroeconomic-related factors. The company continues to execute well, both clinically and fundamentally, but much of the biopharmaceutical industry has been weak as investors are gravitating to other, more cyclical sectors.”
2. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 173
Cramer’s Recommendation: Buy
YTD Performance in 2024: +64%
NVIDIA Corp is the star performer in Jim Cramer stock recommendations and after yet another stunning quarter from the chips company Cramer is proudly reminding everyone how he kept recommending the stock in the past. And Cramer is right. In early January 2024, Cramer said:
“Stop selling Nvidia, please.”
In December 2023 Cramer said that despite tripling in value in 2023 NVIDIA Corp was still cheap.
In November 2023 Cramer tweeted:
“Nvidia can and will prosper without China. it’s just easier with than without.”
Baron Fifth Avenue Growth Fund stated the following regarding NVIDIA Corporation in its fourth quarter 2023 investor letter:
“Most of our portfolio companies have seen stabilization and modest improvements in short-term business fundamentals as the year progressed. More importantly in our view, many have been able to drive significant improvement in long-term Key Performance Indicators (KPIs) such as share gains, meaningful expansion of their total addressable market, and improvement in unit economics. These KPIs are significantly more important in driving the intrinsic values of our businesses, which we believe have increased noticeably during 2023. In the meantime, disruptive changes that we expect will benefit many of our businesses have also continued to pick up steam. Some examples include: • The inflection in GenAI: While a company like NVIDIA Corporation (NASDAQ:NVDA) is a clear beneficiary of GenAI, as its hardware and software solutions are used to train and run GenAI models, we believe that GenAI has the potential to benefit many of our other businesses as well.”
1. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Investors: 242
Cramer’s Recommendation: Buy
YTD Performance in 2024: +40%
During the start of 2024, when skepticism around the Magnificent Seven stocks was gripping the markets, Cramer had categorically told investors that they should not “forget” Meta Platforms Inc and they would ignore stocks like Meta Platforms Inc at their own risk.
Since the start of 2024, Meta Platforms Inc shares have gained about 40% through February 26.
Insider Monkey’s analysis of 933 hedge fund portfolios as of the end of 2023 shows that Meta Platforms Inc was among the most popular stocks owned by smart money managers. A total of 242 hedge funds in Insider Monkey’s database had stakes in Meta Platforms Inc.
Baron Fifth Avenue Growth Fund stated the following regarding Meta Platforms, Inc. in its fourth quarter 2023 investor letter:
“Improving unit economics: Many of our companies were able to significantly expand margins during 2023 even though revenue growth decelerated for some of them, showcasing the power of their capital-light, recurring revenue business models, and their increased focus on efficiency. One public example that was at least partially responsible for driving other companies (especially in IT) to become more efficient is X (formerly Twitter), which reduced headcount by a whopping 80% after Elon Musk’s acquisition, despite growing user engagement. Another well-known example is Meta Platforms, Inc. (NASDAQ:META), for which cost controls and margin expansion this year have been a key reason behind the stock’s outperformance (Mark Zuckerberg called 2023 the year of efficiency). Other less well-known examples include the commerce platform, Shopify, which is expected to expand its operating margins from breakeven to 10.9% in 2023 thanks to the sale of its money-losing logistics business, and a 23% reduction in its workforce. What is even more impressive is that the company was able to accelerate innovation velocity (with a lower headcount) as well as improve sales and marketing productivity.”
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Disclosure. None. Jim Cramer Was Right About These 10 Stocks was initially published on Insider Monkey.
