In this article, we will look at the stocks Jim Cramer commented on as he advised investors on how to take advantage of Wednesday’s market rotation. The host of CNBC’s Mad Money said Wednesday that investors should use the market rotation to their advantage rather than getting caught up in the day’s moves.
At the beginning of a new quarter, hope always springs eternal. We almost always get a tremendous rotation out of the winners into the underperformers as people bet that the market has excessively punished the laggards and over-rewarded the prized possessions. Now, you can’t really see it from the averages… See, we need to ask ourselves if this rotation has staying power or if it’s going to burn out after a day or two. Historically, the latter is the more likely outcome.
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Cramer noted that many of these sharp reversals do not last. Pointing to gains in several food stocks, he questioned whether the packaged food sector was finally turning around. His answer was clear: “I think not.” He said the industry continues to face “structural headwinds here from GLP-1 to rising costs, shallow growth,” and added that those issues “are not going to change.” He went on to say, “These up moves, I believe, are ephemeral.”
But the bottom line here: While rotations don’t end in one session, they rarely last longer than two or three. You’re now getting a chance to sell the losers at a premium and switch to the winners at a discount. So often in this market, you look back, and you kick yourself that you didn’t take advantage of the breaks in the strongest stocks out there. I bet this is one of those breaks. Don’t blow it.
Our Methodology
For this article, we compiled a list of 25 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on July 1. We listed the stocks in the order that Cramer mentioned them.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Jim Cramer’s Comments on 25 Stocks Like Micron, Dell, and Playing the Recent Market Rotation
25. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies Inc. (NYSE:DELL) was among the stocks Jim Cramer commented on as he advised investors on how to take advantage of Wednesday’s market rotation. Cramer highlighted the missed opportunities in the stock. He stated:
Oh, then there’s two that I’m really embarrassed and even mortified to talk about: AMD and Dell. With AMD, the Trust had made a lot of money in this one, and we took the big profit, but I said, don’t worry about it, I’ll get right back in after another run. But the pullback never came, so I missed it.
Dell? I put Dell in the Trust bullpen, saying it should be bought on any dip, but it never dipped. This stock just exploded higher without me. I missed one of the greatest stories ever told, and I’m a four-decade supporter of Michael Dell. What do all these missed winners have in common? I was too skeptical. I was… too wary. I failed to consider where they could go and instead focused on where they had come from.
Dell Technologies Inc. (NYSE:DELL) provides storage systems, servers, networking gear, and consulting services, as well as laptops, desktops, workstations, and accessories.
24. Lam Research Corporation (NASDAQ:LRCX)
Lam Research Corporation (NASDAQ:LRCX) was among the stocks Jim Cramer commented on as he advised investors on how to take advantage of Wednesday’s market rotation. Cramer mentioned the stock during the episode and said:
Oh, how about the semiconductor capital equipment makers? Oh, did I ever know them well. I’ve been adamant that these companies own a huge amount of intellectual property. They’re the answers to the production needs of the Microns, the Seagates of the world, but did the Trust buy Applied Materials? Did it pick up some Lam Research? Did it even scrutinize KLA, all of which were on the show? No. I kept waiting and waiting for a break in their stocks, a break that never came. I whiffed.
Lam Research Corporation (NASDAQ:LRCX) develops equipment for depositing, etching, and cleaning semiconductor materials. It includes systems for tungsten and copper metallization, plasma and atomic-layer deposition, dielectric and conductor etch, and wafer cleaning. When a caller inquired about the stock during the March 20 episode, Cramer replied:
Oh yeah, yeah, yeah, yeah. I agree. Lam is the winner of what happened in Micron. People didn’t seem to notice. You buy, if you had to buy 100 shares, you buy 50 on Monday, okay? And then you wait, down 10%, and you buy another 50. You’ve got a winner in Lam Research.
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