Jim Cramer’s Recession Portfolio: Top 5 Stock Picks

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In this article, we will look at Jim Cramer’s top 5 stock picks for a recession. If you want to explore similar stocks that Jim Cramer is recommending for a recession, you can read Jim Cramer’s Recession Portfolio: Top 10 Stock Picks.

5. Coterra Energy Inc. (NYSE:CTRA)

Number of Hedge Fund Holders: 39

Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas company that engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. On July 19, Mizuho analyst Vincent Lovaglio reiterated his Buy rating on Coterra Energy Inc. (NYSE:CTRA) and revised his price target to $40 from $44.

According to Jim Cramer, Coterra Energy Inc. (NYSE:CTRA) is a high-yielding dividend stock that should be on investors’ radars if the U.S. enters a moderate recession. As of July 29, Coterra Energy Inc. (NYSE:CTRA) has a trailing twelve-month PE ratio of 11.22 and is offering a forward dividend yield of 2.00%, which the company backs with free cash flows of $1.82 billion.

At the end of Q1 2022, 39 hedge funds were long Coterra Energy Inc. (NYSE:CTRA) and held stakes worth $551.53 million in the company. This is compared to 37 positions in the preceding quarter with stakes of $499.96 million. The hedge fund sentiment for the stock is positive.

In the second quarter of 2022, ZWEIG DIMENNA PARTNERS raised its stakes in Coterra Energy Inc. (NYSE:CTRA) by 34%, bringing them to $10.1 million. As of June 30, ZWEIG DIMENNA PARTNERS owns over 0.39 million shares of Coterra Energy Inc. (NYSE:CTRA) and is the largest shareholder in the company.

Here is what Diamond Hill Capital had to say about Coterra Energy Inc. (NYSE:CTRA) in its “Diamond Hill Long-Short Fund” first-quarter 2022 investor letter:

“Other top contributors in Q1 included energy exploration and production company Coterra Energy (NYSE:CTRA). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

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