Jim Cramer’s Top 10 Stock Picks for 2022

Published January 27, 2022 at 11:32 am EST Updated September 7, 2026 at 1:57 pm EDT

In this article, we discuss Jim Cramer’s top 10 stock picks for 2022.

The beginning of 2022 has not been kind to the stock market. Major indices are down, inflation is up, and an interest rate hike is on the way. In this bleak environment, investors are increasingly turning to market experts, like journalist investor Jim Cramer, for advice on how to minimize the risk in their portfolios that have become growth-heavy in the past few years. Cramer is a former hedge fund manager and Goldman Sachs executive with an incredible career in investing. His hedge fund averaged returns of over 24% for more than a decade.

Cramer is not widely known as an advocate of restraint, but his 2022 outlook suggests that he wants investors to stay away from growth equities, at least for some months. During an appearance on CNBC in late December, Cramer said that it was prudent to focus on companies that “make stuff, that do tangible things, that innovate”. He also recommended that investors stay away from companies that “only grow sales but lose boatloads of money”.

Some of the top stock picks of Jim Cramer for 2022 include The Walt Disney Company (NYSE:DIS), Bank of America Corporation (NYSE:BAC), and The Procter & Gamble Company (NYSE:PG), among others discussed in detail below.

Our Methodology

These stocks were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired on CNBC as well as other appearances on the platform.

Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.

Jim Cramer's Top 10 Stock Picks for 2022

Jim Cramer’s Top Stock Picks for 2022

10. Bausch Health Companies Inc. (NYSE:BHC)

Number of Hedge Fund Holders: 39

Bausch Health Companies Inc. (NYSE:BHC) is a diversified healthcare firm that markets pharmaceuticals and medical devices. Top hedge funds have turned exceedingly bullish on the stock in recent months. At the end of the third quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $3.8 billion in Bausch Health Companies Inc..

While discussing his stock picks for 2022 on CNBC, Cramer said that he had raised his price target on Bausch Health Companies Inc. for the Investing Club because he was confident that Joe Papa, the CEO of the firm, was heading in the right direction with a decision to split the company into three, reduce debt by $10 billion, and helping the firm stay the “Mercedes of eyecare” during his tenure so far.

Just like The Walt Disney Company, Bank of America Corporation, and The Procter & Gamble Company, Bausch Health Companies Inc. is one of the stocks in the limelight as investors look for stable businesses in a volatile marketplace.

In its Q1 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Bausch Health Companies Inc. was one of them. Here is what the fund said:

“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosing a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”

BHC shares lost 6% over the last 12 months.

9. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 45

Honeywell International Inc. (NASDAQ:HON) is an industrial conglomerate with interests in the technology and manufacturing business. Cramer has turned bullish on the stock in recent weeks despite a broader lull around growth offerings, outlining on CNBC in early January that the shares “just ran”, an indication that the market was at the end of rotation into stocks with regards to earnings. Cramer believes that Honeywell International Inc. is the last stock that attracts bids as investors rotate out of high growth names without earnings in a bear market.

Elite hedge funds recognize the long-term potential of Honeywell International Inc. and have been piling into the stock. At the end of the third quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $927 million in Honeywell International Inc..

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Honeywell International Inc. was one of them. Here is what the fund said:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, Honeywell also lagged in the quarter after previously generating strong returns over extended periods.”

Honeywell shares are up 4% over the last 12 months.

8. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 50

Devon Energy Corporation (NYSE:DVN) is an independent oil and gas firm. It has generated lots of buzz in the hedge fund industry as a top oil play in recent weeks. Among the hedge funds being tracked by Insider Monkey, Adage Capital Management is a leading shareholder in Devon Energy Corporation with 7.5 million shares worth more than $219 million.

While discussing Devon Energy Corporation during his show in mid-January, Cramer underlined that he had turned bullish on the oil sector in general after years because oil firms had learned some “discipline” with regards to drilling and were now focusing on creating “value for shareholders” instead of “chasing profits”. He added that this newfound strategy had eliminated a cycle of “boom and busts” for the industry.

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation was one of them. Here is what the fund said:

“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”

DVN returned more than 200% over the last 12 months.

7. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 51

Chevron Corporation (NYSE:CVX) operates as an energy and chemicals firm. Cramer identified the company as one of his top picks for 2022 and said he felt that oil was still “undervalued” despite the fact that oil firms had newfound discipline, a reference to an earlier comment about the drilling practices of oil giants.

Chevron Corporation has been a favorite stock of hedge funds for the past several years due to the stability it offers to large portfolios. At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Chevron Corporation, up from 50 in the preceding quarter worth $4.2 billion.

In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation was one of them. Here is what the fund said:

“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”

CVX shares returned around 50% over the last 12 months.

6. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 62

Eli Lilly and Company (NYSE:LLY) develops and sells pharmaceutical products. Major hedge funds have been paying increased attention to the company as the market becomes more volatile and it becomes expensive to pick up shares in stable businesses. Among the funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company with 1.6 million shares worth more than $376 million.

Cramer explained his bull base for Eli Lilly and Company during an appearance on CNBC in early January in which he lauded the progress that the company was making on drugs for the treatment of Alzheimer’s and diabetes, two products that could significantly boost the earnings of Eli Lilly and Company in the coming months.

In addition to The Walt Disney Company, Bank of America Corporation, and The Procter & Gamble Company, Eli Lilly and Company is one of the stocks expected to shield large portfolios from risk in 2022.

In its Q1 2020 investor letter, Amana Mutual Funds Trust highlighted a few stocks and Eli Lilly and Company was one of them. Here is what the fund said:

“Even so, Lilly stood out as one, among a handful, of companies that registered a positive return for the first quarter. In January, Lilly reported excellent fourth quarter results, with revenue growing at a faster clip than over the first three quarters of the year. Lilly is also financially strong with debt equivalent to only two times EBITDA3 and 12% of market capitalization. Johnson & Johnson, while trailing Lilly, shares many of the same characteristics and also outperformed.”

5. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 69

The Procter & Gamble Company markets branded consumer packaged goods. Cramer discussed the company during his show last week, soothing investors who were panicked by the volatile start to 2022 and saying that it was still possible for investors to get ahead of the market by putting their money in “real companies” doing “real things” and having brand loyalty, identifying The Procter & Gamble Company as one example. Cramer noted that one of the reasons The Procter & Gamble Company is so resilient under pressure is that it can pass on added costs to consumers “without batting an eyelash”.

The Procter & Gamble Company has featured in the portfolios of top hedge funds for quite a few years now. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Cedar Rock Capital is a leading shareholder in The Procter & Gamble Company with 7.4 million shares worth more than $1 billion.

4. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 72

Bank of America Corporation provides banking and financial products. As interest rates rise, hedge funds are turning to banking firms to ride the boom in their earnings. At the end of the third quarter of 2021, 72 hedge funds in the database of Insider Monkey held stakes worth $46.4 billion in Bank of America Corporation.

Cramer recently urged investors to buy Bank of America Corporation in the present environment, saying that the company was one that “thrives off rate hikes” and the rally in the stock just before a Fed meeting on rates did not justify the potential of the bank. He added that 2022 could be the year of Bank of America Corporation.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation was one of them. Here is what the fund said:

“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”

3. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 79

Citigroup Inc. (NYSE:C) is a diversified financial services firm. Cramer noted last week that the stock was trading “cheap” at only 80% of its “tangible book value” and looked set to take off again in the coming months as the bank resumed share buybacks.

Citigroup Inc. stock has offered institutional investors some much-needed stability amid a volatile market in the past few months. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in Citigroup Inc. with 28 million shares worth more than $1.9 billion.

In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. was one of them. Here is what the fund said:

“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”

2. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 81

AbbVie Inc. (NYSE:ABBV) makes and sells pharmaceuticals. Elite hedge funds hold large stakes in the company. At the end of the third quarter of 2021, 81 hedge funds in the database of Insider Monkey held stakes worth $4.1 billion in AbbVie Inc..

In late December, Cramer picked AbbVie Inc. as one of the stocks that would go higher in the coming months primarily because of the potential its drugs offered. Cramer singled out the bright prospects of Rinvoq, an arthritis treatment, in particular, underlining that the drug would help AbbVie Inc. exceed earnings expectations.

1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 101

The Walt Disney Company is a diversified media and entertainment company. Cramer outlined his bullish thesis for the company during his show on January 22, noting that weaknesses in companies that traded on “hype and hope” would allow firms with “real earnings” to surge ahead in 2022. He identified Netflix as the former and Disney as the latter.

For the hedge fund industry, The Walt Disney Company is one of the most reliable businesses on the market. At the end of the third quarter of 2021, 101 hedge funds in the database of Insider Monkey held stakes worth $9.4 billion in The Walt Disney Company.

In its Q4 2020 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and The Walt Disney Company was one of them. Here is what the fund said:

“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, wasready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.

A century after its founding in 1923, Disney is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed Disney to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”

You can also take a peek at 10 Reddit Stocks Hedge Funds Like and 10 Stocks That Delivered Upbeat Financial Results.

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