Jim Cramer’s 5 S&P 500 Stock Picks for 2023

In this article, we discuss Jim Cramer’s 5 S&P 500 stock picks for 2023. If you want to see more stocks in this selection, check out Jim Cramer’s 10 S&P 500 Stock Picks for 2023.

5. Constellation Energy Corporation (NASDAQ:CEG)

Upside Potential: 3.76%
Gain since Cramer Prediction: 18%
Price to earnings multiple: 24

Constellation Energy Corp (NASDAQ:CEG) has gained nearly 18% year to date living up to Cramer’s initial prediction that it will benefit from the Inflation Reduction Act. While the company generates and sells electricity in the US, it should benefit from increased incentives and investments toward a clean energy economy as one of the best operators of nuclear plants.

The company also stands out for having too much capital, which has seen it resort to returning value to shareholders through stock buybacks and dividends. Early in the year, the company announced it had about $2 billion of unallocated capital that it planned to use to buy back stock.

Its stock trades with a price-to-earnings multiple of 24 while offering an enticing 1.16% dividend yield. Analysts on Wall Street have an average price target of $101, implying a 3.76% upside potential.