In this article, we will look at Jim Cramer’s 5 Stock Calls, Including Alphabet and Eli Lilly, and Possible Opportunities. Please visit Jim Cramer’s 15 Stock Calls, Including Salesforce and Cisco, and Possible Opportunities, if you’d like to see the extended list and methodology behind it.
5. Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer highlighted the company’s billion-dollar drugs and growing businesses, as he stated:
So I’m going to do something completely out of favor and recommend one that we’re buying for the Charitable Trust gingerly as club members know, which is Johnson & Johnson. J&J has 10 commercialized drugs that bring in more than a billion dollars, several more coming, growing medtech business helped by some terrific acquisitions like Shockwave, Abiomed for cardio repair. Meanwhile, J&J’s divesting its prosaic commodity, artificial hips and knees business, something that could further raise its price to earnings multiple, which currently stands at a very low 19 times earnings.
Plus, unlike almost every other drug company besides Lilly, J&J has no big patent expirations. Instead there’s more potentially big drugs on the come. Buy this one slowly because, like the banks, there is very little support for the stock right here. Well, then why start now? Again, because we don’t know when this vicious rotation will end. They take you by surprise.
Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases.
4. Eli Lilly and Company (NYSE:LLY)
Eli Lilly and Company (NYSE:LLY) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer mentioned the stock while discussing the woes of the healthcare industry, as he said:
Next worst is healthcare. Oh, this group has just been annihilated. I’ve never seen it trading this bad ever. There are myriad problems. Federal government’s been putting pressure on drug pricing. The FDA is not exactly friendly. Investors are worried about competition, especially for the GLP-1 formulations. Now, it’s easy for me to suggest you Eli Lilly as it has multiple versions of GLP-1 drugs including a new one that may be the first that sheds fat without muscle…
Notice this version has not been approved for any of these things. But I think that if approved, it’ll ultimately give Lilly the unassailable knockout punch against Novo Nordisk because it’s got fat busting without muscle crunching. The worry I have with this one, though, it’s the same unreliable fellow shareholders who own… tech also own Lilly.
Eli Lilly and Company (NYSE:LLY) develops and markets medicines for diabetes, obesity, oncology, immunology, neuroscience, and other chronic conditions.
3. JPMorgan Chase & Co. (NYSE:JPM)
JPMorgan Chase & Co. (NYSE:JPM) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer called it the “best bank in the world,” as he commented:
But honestly, if you’re looking for a fortress, I like the stock of JPMorgan here. It’s got balanced growth, sells for only 13 times earnings. It’s the best bank in the world…. I’m not going to give you the performance of Micron by telling you to buy JPMorgan. You’re not going to get it. But anyway, you’re not that early in Micron. You could be early in JPMorgan.
JPMorgan’s the antithesis of Micron. You normally don’t get to buy the stock so cheap, and no one would regard it as a lousy franchise even if the stock’s down 7% year to date. You can buy JPMorgan and put it away. Mighty hard to buy and put any tech stocks away right now.
JPMorgan Chase & Co. (NYSE:JPM) provides financial services, including banking, lending, payments, and investment management. In addition, the company offers investment banking, asset management, and advisory solutions.
2. The Goldman Sachs Group, Inc. (NYSE:GS)
The Goldman Sachs Group, Inc. (NYSE:GS) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer mentioned the company while discussing why people have “lost faith” in bank stocks, as he stated:
I want to find an antidote to some other, maybe some other sectors, where growth stocks in non-growth sectors are now being thrown away. I want to be systematic about it, so here’s what I thought. I drew up a list of the worst-performing sectors in the S&P 500 this year, looking for stocks that seem way too out of favor within those sectors. The most miserable part of this market right now are the banks.
People have lost faith in the bank stocks because of credit worries. Nothing drives buyers away like credit issues. And with the economy weakening thanks to the price of gasoline, we have to ask ourselves which financials can withstand the pressure. Now, the investment banks like Goldman Sachs and Morgan Stanley, they’ve got relatively little exposure to consumers. They’ve been monstrously good stocks to own. We love Goldman. We have a big position in it for the Trust.
The Goldman Sachs Group, Inc. (NYSE:GS) provides financial services, including investment banking, asset and wealth management, and banking solutions.
1. Alphabet Inc. (NASDAQ:GOOGL)
Alphabet Inc. (NASDAQ:GOOGL) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer noted the company’s decision to raise money for its data center business, as he said:
Last night, something else happened that really jarred me to the core, Alphabet, a total surprise, you know it as Google, one of the best, most respected companies on Earth, decided it had to raise $80 billion to continue its build-out of its data center business. Ouch. I thought they had raised enough money in the bond market. That was wrong. At the same time, I watched David Faber’s excellent interview with OpenAI’s Sam Altman in front of a construction site for a data center, 250 acres… in Michigan. The site was gigantic and, to the naked eye, largely empty.
While Sam has plenty of partners, the whole facility is going to cost more than $15 billion. And then Oracle CEO Clay Magouyrk told David that the tech that goes into it will cost another 30 to $40 billion more. Oh man, where is that money going to come from other than from you if you’re a shareholder? These revelations, plus a bit of a pause in a host of growthy stocks… connected to software that ran out of juice after a three-day… strength, it’s got me thinking a little more, I’m a little more circumspect.
In other words, tech seems to have found some newfound vulnerabilities. The build-out of AI is looking like it is going to be a lot more expensive than we thought. That’s what Alphabet’s saying. That’s what OpenAI is saying. That’s what they’re all saying or will be saying in the next few weeks, and I don’t really like that.
Alphabet Inc. (NASDAQ:GOOGL) provides technology-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms such as YouTube and Google Play.
While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about the cheapest AI stock.
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