In this article, we will take a detailed look at Jim Cramer’s Latest Lightning Round: 11 Stock Recommendations. For a quick overview of such stocks, read our article Jim Cramer’s Latest Lightning Round: 5 Stock Recommendations.
Jim Cramer yet again grilled market naysayers in his latest program on CNBC, calling them “non-believers” who he believes only got encouraged by the recent market declines. Cramer said first the bears warned everyone about the inflationary cycle after the pandemic, then they “hated” the market amid the regional banking crisis, upping their calls for a hard landing following the Fed’s rate hikes.
Jim Cramer’s Message to the “Nonbelievers”
Jim Cramer said all along these bears “failed to celebrate the market’s incredible victories” and they “ignored” the “end of high inflation.”
Jim Cramer also said that initially the market bears complained about the concentration of market gains in the Magnificent Seven group of stocks, which include companies like Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT), but later ignored when the gains started to “bifurcate” to the broader market including small-cap and mid-cap stocks which Cramer believes are still “cheap.”
“What the heck is wrong with these people,” Cramer said about market skeptics.
Is AI a Bubble? Cramer’s Take
Jim Cramer also said that while market doubters called AI a bubble, they ignored crypto which Cramer believes was an “obvious bubble.” Cramer said many believe crypto is a hedge against inflation but when inflation was very high crypto performed “horribly.”
Nonetheless Cramer admitted that crypto’s “relative worth” against the US dollar is “palpable” and it “makes sense” that people are investing in crypto ETFs to hedge against inflation.
Jim Cramer also talked about AI and how some people are calling it a bubble. Cramer said while there are some companies in the industry that are “over inflated” not all AI companies are bubbles. Cramer reiterated his bullish take on NVIDIA Corp (NASDAQ:NVDA) and said the stock is undervalued. Cramer said you have to have a historical context to understand and analyze Nvidia. He said that last year NVIDIA Corp (NASDAQ:NVDA) stock was apparently overvalued based on the Wall Street’s earnings estimates. Cramer said the company’s 2024 earnings estimates set by Wall Street analysts are still low and that’s why he believes the stock has more room to run.
“It is undisputed that NVIDIA Corp (NASDAQ:NVDA) is the king of AI,” Cramer said.
In the end, Cramer recommended investors to build up their cash piles and be ready to buy when there’s a pullback.
Methodology
For this article we watched the latest ‘Lightning Round’ segments of Jim Cramer’s recent programs and picked 11 stocks he recommended investors. For each stock we have also mentioned the number of hedge fund investors, courtesy of Insider Monkey’s database of 933 funds and their holdings. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
11. Arm Holdings PLC – ADR (NASDAQ:ARM)
Number of Hedge Fund Investors: 21
Jim Cramer has been bullish on Arm Holdings PLC – ADR (NASDAQ:ARM) in the past but recently he called the huge runup in the stock price of Arm Holdings PLC – ADR (NASDAQ:ARM) a sign of market “froth.” However, during his latest Lightning Round program on CNBC Cramer recommended investors to buy “some” Arm Holdings PLC – ADR (NASDAQ:ARM) stock right now and wait for the lockup expiration period to buy some more. Cramer thinks Softbank would sell Arm Holdings PLC – ADR (NASDAQ:ARM) shares on lockup expiration and said that would the “best” time to buy the stock.
10. Infosys Limited (NYSE:INFY)
Number of Hedge Fund Investors: 22
IT consulting company Infosys Limited (NYSE:INFY) ranks 10th in our list of Jim Cramer’s latest stock recommendations. Cramer called Infosys Limited (NYSE:INFY) a “smart consulting company.” Cramer said he “discovered” Infosys Limited (NYSE:INFY) and found that they are based in India and realized that Infosys Limited (NYSE:INFY) is a “great way to do business.” Cramer said he “likes” the stock.
A total of 22 hedge funds in Insider Monkey’s database of 933 hedge funds had stakes in Infosys Limited (NYSE:INFY) as of the end of 2023.
Like Infosys, Cramer also loves Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT).
9. Signet Jewelers Ltd (NYSE:SIG)
Number of Hedge Fund Investors: 25
Jim Cramer recently said during his program that Signet Jewelers Ltd’s (NYSE:SIG) CEO Virginia C. Drosos has been doing a “remarkable job.” Cramer said she is just changing the stores “radically.” Cramer said the stock’s multiple is way too low as people are “well behind.”
“You’ve got a winner here,” Cramer said of Signet Jewelers Ltd (NYSE:SIG).
As of the end of the fourth quarter of 2023, 25 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Signet Jewelers Ltd (NYSE:SIG). The most significant stake in Signet Jewelers Ltd (NYSE:SIG) is owned by Robert Joseph Caruso’s Select Equity Group which owns a $798 million stake in Signet Jewelers Ltd (NYSE:SIG).
8. TransMedics Group, Inc (NASDAQ:TMDX)
Number of Hedge Fund Investors: 25
Organ transplant solutions company TransMedics Group, Inc (NASDAQ:TMDX) received positive comments from Jim Cramer in a latest program on CNBC. Cramer said this organic transplant company is “very important” and TransMedics Group, Inc (NASDAQ:TMDX) “did have good numbers.” Cramer also said that “these guys are doing well.”
Last month TransMedics Group, Inc (NASDAQ:TMDX) posted fourth quarter results. GAAP EPS in the fourth quarter came in at $0.12, beating estimates by $0.16. Revenue in the quarter jumped 158.6% year over year to $81.2 million, surpassing estimates by $12.7 million.
7. Amkor Technology (NYSE:AMKR)
Number of Hedge Fund Investors: 26
Semiconductor company Amkor Technology (NYSE:AMKR) is one of the stocks Jim Cramer is bullish on in 2024. Cramer said “you’ve got a winner” about Amkor Technology (NYSE:AMKR) and said that Amkor Technology (NYSE:AMKR) is “into growth.”
In its latest earnings call Amkor management talked about how AI is affecting demand:
“To support the strong demand for AI devices we doubled capacity exiting 2023 and with our planned investments coming online in the second quarter of 2024, we will have more than tripled our capacity compared to the second quarter of 2023. We expect the 2.5D demand will continue to increase in 2024, and we plan to support our customers in line with market growth. The consumer end-market declined 38% for the full year. Multiple headwinds including reduced consumer spending, excess inventory, and product changeovers in the IoT wearable market and drove the decline. Within consumer, we support a broad portfolio of solutions for IoT wearables, as well as the traditional consumer products. We are engaged in the next-generation products with our lead customers that will ramp production in the course of 2024.
During the fourth quarter, our manufacturing organization focused on optimizing capacity for 2.5D technology in Korea, and on qualifying advanced SiP and memory technology in Vietnam.”
Read the full earnings call transcript here.
6. Commercial Metals Company (NYSE:CMC)
Number of Hedge Fund Investors: 28
Jim Cramer called Commercial Metals Company (NYSE:CMC) a “winner” in one of his latest programs like it was a no-brainer. Cramer said the reason why Commercial Metals Company (NYSE:CMC) does not receive a lot of attention is because it’s a “very boring company.” Cramer said this is an inexpensive stock and reiterated that he thinks the stock is a “winner.”
Commercial Metals Company (NYSE:CMC) shares have gained about 5% in 2024 so far through March 5.
During its latest earnings call the company talked about guidance:
“We expect shipment volumes within our North America Steel Group to decline sequentially due to normal seasonality during the winter months. Margins on steel products are likely to experience some further compression during the second quarter. However, recent price announcements on rebar, merchant bar, and wire rod should support an inflection point in the coming months. Downstream product margins should exhibit good stability sequentially. Conditions in Europe are expected to remain challenging, but adjusted EBITDA excluding energy rebates should improve from the levels of the past two quarters. Financial results for our Emerging Businesses Group are anticipated to follow a typical seasonal pattern with some slowing of activity in Q2.
Looking beyond the second quarter, which is CMC’s seasonally slowest period, we expect robust spring and summer construction activity driven by the increased impact of rising infrastructure investment, which should support an already healthy demand backdrop. Both the North America Steel Group and the Emerging Businesses Group should benefit from anticipated strong activity levels. Regarding the Europe Steel Group, supply-side adjustments and the impact of increasing levels of residential and infrastructure construction should drive sequential improvement in financial results beginning with the spring construction season.”
Read the full earnings call transcript here.
In addition to Commercial Metals, Jim Cramer is also bullish on Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT).
Click to continue reading and see Jim Cramer’s Latest Lightning Round: 5 Stock Recommendations.
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Disclosure. None. Jim Cramer’s Latest Lightning Round: 11 Stock Recommendations was initially published on Insider Monkey.
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