This article presents an overview of Jim Cramer’s New Picks: 5 Stocks to Buy. For a detailed overview of such stocks, read our article, Jim Cramer’s New Picks: 10 Stocks to Buy.
5. Align Technology, Inc (NASDAQ:ALGN)
Number of Hedge Fund Investors: 50
Align Technology, Inc (NASDAQ:ALGN) makes 3D digital scanners and Invisalign clear aligners used in orthodontics. Jim Cramer, when asked about Align Technology, Inc (NASDAQ:ALGN) in one of his recent programs, said that he likes Align Technology, Inc (NASDAQ:ALGN).
“I think Align is pretty good. It has come down a 100 points, it’s not bad.”
Of the 933 funds in Insider Monkey’s database, 50 hedge funds reported owning stakes in Align Technology, Inc (NASDAQ:ALGN), up from 43 funds in the previous quarter. The biggest stake in Align Technology, Inc (NASDAQ:ALGN) is owned by Israel Englander’s Millennium Management which owns a $212 million stake in Align Technology, Inc (NASDAQ:ALGN).
Polen Global Growth Strategy stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its fourth quarter 2023 investor letter:
“Align Technology, Inc. (NASDAQ:ALGN) was the largest relative detractor during the past quarter, primarily because of disappointing third-quarter earnings results where the company’s revenue growth fell short of expectations despite easy comparisons from a year ago. Ultimately, we decided to exit our position in Align during the quarter, as detailed in the Portfolio Activity section.
Align Technology represented another sale in the quarter. Align is the global leader in clear aligner teeth straighteners, having pioneered the category a couple of decades ago. Our decision to move on from the position is not a reflection of the quality of the business or the runway for growth ahead. Rather, given a still uncertain macro environment and the nature of their product as a big-ticket consumer discretionary purchase, we felt it more prudent to use the position as a source of funds to allocate to the aforementioned existing positions, which should prove more resilient with a narrower range of outcomes.”
4. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Investors: 53
Jim Cramer recently praised the quarterly results posted by Constellation Brands, Inc. (NYSE:STZ) and said that stock almost always goes down when it reports quarterly numbers. Cramer liked Constellation Brands, Inc.’s (NYSE:STZ) depletion growth in the quarter. He also likes Constellation Brands, Inc.’s (NYSE:STZ) cash flows. Cramer said part of the reason behind Constellation Brands, Inc.’s (NYSE:STZ) growth was the backlash against Bud Light, which stared following Anheuser-Busch’s partnership with a transgender influencer. Cramer said Constellation Brands, Inc.’s (NYSE:STZ) Modelo beer is still “number one.”
3. Royal Caribbean Cruises Ltd (NYSE:RCL)
Number of Hedge Fund Investors: 54
During his program on April 10, Jim Cramer talked about how some of the top performers with strong fundamentals recently saw a decline in their share price. Royal Caribbean Cruises Ltd (NYSE:RCL) was one of these stocks. Cramer said Royal Caribbean Cruises Ltd (NYSE:RCL) has “outshined” its competitors over the past several months, but the stock recently fell after two incidents — one involving a young man who jumped from a Royal Caribbean Cruises Ltd (NYSE:RCL) cruise, and another in which a 66-year-old passenger with dementia went missing. Cramer said these incidents are sad but do not warrant a decline in Royal Caribbean Cruises Ltd (NYSE:RCL) share price. He thinks some people were just looking for an excuse to “ring the register” on the stock which, according to Cramer, is “very strong.”
Ariel Fund stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its fourth quarter 2023 investor letter:
“Some holdings in the portfolio advanced considerably this quarter. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), advanced on another quarterly earnings beat and subsequent raise in full-year guidance driven by stronger than anticipated consumer demand and solid cost containment. The company continues to experience solid momentum in onboard spend, while 2024 booking trends are significantly ahead of historical ranges at higher pricing. We believe the resiliency of the core cruise consumer in combination with management’s superior operational expertise and revised earnings outlook lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program.”
2. Lowe’s Companies Inc (NYSE:LOW)
Number of Hedge Fund Investors: 68
When a caller asked Jim Cramer whether he should sell Lowe’s Companies Inc (NYSE:LOW) stock because of its declines, Cramer’s reply was a resounding “No.” Cramer said Lowe’s Companies Inc (NYSE:LOW) CEO Marvin Ellison has been doing a “good job.”
“I do not want you to sell Lowe’s right here.”
Last month, Wells Fargo analyst John Sheehan published his list of high-quality, dividend-paying blue chip stocks that have stood the test of time. Lowe’s Companies Inc (NYSE:LOW) was part of this list.
Aristotle Capital’s Value Equity Strategy stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its first quarter 2024 investor letter:
“During the quarter, we sold our positions in Phillips 66 and Sysco and invested in two new positions: Lowe’s Companies, Inc. (NYSE:LOW) and TotalEnergies.
Based in North Carolina, and with a history dating back to 1921, Lowe’s Companies is the world’s second-largest home improvement retailer (after Home Depot). The company operates more than 1,700 stores in the United States that offer a wide variety of products to enhance a home, from plants for the garden and house décor to hardware and appliances. Often located in suburban areas, Lowe’s stores primarily serve retail “do-it-yourself” customers (~75% of revenue) and sell products that are used for home maintenance and repair (over 60% of revenue). This contrasts with Home Depot, whose stores have a higher presence in metropolitan areas and cater more to professional customers.
We had previously been investors in Home Depot. Over much of the past decade Home Depot had, in our opinion, executed better than Lowe’s—expanding its presence with large professional customers and increasing its store productivity. However, with Lowe’s hiring of former Home Depot executive Marvin Ellison in 2018, we believe Lowe’s has started the process of closing the gap to better compete with its nearest rival…” (Click here to read the full text)
1. Alphabet Inc Class C (NASDAQ:GOOG)
Number of Hedge Fund Investors: 166
Jim Cramer recently announced that he’s done selling Alphabet Inc Class C (NASDAQ:GOOG) shares and talked in detail how Alphabet Inc Class C (NASDAQ:GOOG) remains undervalued. Cramer said that his “conventional wisdom” saying Alphabet Inc Class C (NASDAQ:GOOG) might not be as strong as it appears was recently “blown out of the water” by a series of “very positive” analyst notes. One of these bullish notes highlighted that Alphabet Inc Class C (NASDAQ:GOOG) has not lost any search market share despite the rise of AI-powered search engines and Bing. Another note said YouTube’s growth is increasing as US teens continue to spend a significant amount of time on the platform. Cramer also said Alphabet Inc Class C (NASDAQ:GOOG) remains undervalued and its Waymo business also needs credit.
Palm Valley Capital Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:
“Governments have various irons in the fire for curbing (commandeering?) the power of tech titans, with the European Union rolling out the Digital Markets Act, the Federal Trade Commission suing Amazon for illegally using monopoly power, and the DOJ lawsuit against Alphabet Inc. (NASDAQ:GOOG)’s advertising business going to trial in September.
Furthermore, the dominant technology enterprises are not immune from shooting themselves in the foot. Google’s botched launch of its AI model, Gemini, shows the risk of having too much money. You lose discipline. A Pirate Wires exposé into the firm’s culture revealed that employees went to extreme lengths to intentionally degrade the quality of the AI engine’s output for ideological reasons. Try that as a small business! See how far you make it…” (Click here to read the full text)
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Jim Cramer Says You Should Avoid These 11 Stocks and the Jim Cramer is Talking About Trump Media and 10 Other Stocks.
