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15 Best Jim Cramer Stocks to Buy Now

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·21 min read
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In this article, we discuss the 15 best Jim Cramer stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Jim Cramer Stocks to Buy Now.

Jim Cramer, a former hedge fund manager and present host of Mad Money on news platform CNBC, is one of the most well-known finance personalities on television. His stock picks have consistently outperformed the wider market over the past few years, mostly because he is a big believer in technology stocks that have witnessed explosive growth over this time period. Cramer has worked at investment bank Goldman Sachs, founded a hedge fund named Cramer Levy Partners, and is the founding member of one of the premier finance websites in the world.

Some of the stocks that Cramer has backed over the past few months include Coinbase Global, Inc. (NASDAQ: COIN), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Cisco Systems, Inc. (NASDAQ: CSCO), among others. These are discussed in detail below. Cramer has a net worth of over $150 million and regularly contributes to TheStreet, the finance publication he co-founded in 1996. He is the author of three books on investment strategies, including Get Rich Carefully that was published in 2013.

The success of Cramer is an exception in the world of big finance that has not posted incredible numbers in recent years. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With this context in mind, here is our list of the 15 best Jim Cramer stocks to buy now. These were ranked keeping in mind the timing of the mention by Cramer, hedge fund sentiment, and basic business fundamentals of each. The list was also compiled using the videos that Mad Money posts to the CNBC website and streaming platform YouTube.

Best Jim Cramer Stocks To Buy Now

15. Cintas Corporation (NASDAQ: CTAS)

Number of Hedge Fund Holders: 32

Cintas Corporation (NASDAQ: CTAS) is an Ohio-based business services company. It is ranked fifteenth on our list of 15 best Jim Cramer stocks to buy now. The company’s shares have offered investors returns exceeding 31% over the course of the past twelve months. On June 22, investment advisory Goldman Sachs raised the price target on the stock to $411 from $387 and reiterated a Buy rating. During his show in early April, Cramer called the stock terrific in the medium and small businesses market.

On July 15, Cintas Corporation (NASDAQ: CTAS) posted earnings results for the fourth quarter, reporting earnings per share of $2.47, beating market predictions by $0.17. The revenue over the period was more than $1.8 billion, up 13% year-on-year.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Alkeon Capital Management is a leading shareholder in Cintas Corporation (NASDAQ: CTAS) with 384,602 shares worth more than $131 million.

Just like Coinbase Global, Inc. (NASDAQ: COIN), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Cisco Systems, Inc. (NASDAQ: CSCO), Cintas Corporation (NASDAQ: CTAS) is one of the best Jim Cramer stocks to buy now.

In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Cintas Corporation (NASDAQ: CTAS) was one of them. Here is what the fund said:

“We concluded our campaigns in Cintas during Q4. We have held Cintas since the portfolio’s inception on the thesis that the acquisition of G&K created significant opportunities for revenue and cost synergies. We had high confidence in Cintas’ management team to achieve those synergies, and we have been rewarded accordingly for that conviction. We think the stock’s valuation now more appropriately reflects the strength of the franchise and profit cycle, and therefore we ended our successful campaign.”

14. Fastly, Inc. (NYSE: FSLY)

Number of Hedge Fund Holders: 26

Fastly, Inc. (NYSE: FSLY) is placed fourteenth on our list of 15 best Jim Cramer stocks to buy now. Fastly, Inc. (NYSE: FSLY) markets cloud computing services and is headquartered in California. On April 6, during a lightning round question, Cramer said the stock had room to run to the upside. The company has a market capitalization of over $5 billion and posted more than $290 million in revenue last year as the pandemic boosted sales. In 2019, the annual revenue for the company had been close to $200 million.

On June 10, investment advisory RBC Capital initiated coverage on Fastly, Inc. (NYSE: FSLY) stock with a Sector Perform rating and a price target of $50. Rishi Jaluria, an analyst at the firm, highlighted the developer-focused model and positioning of the firm in the ratings reveal.

At the end of the first quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Fastly, Inc. (NYSE: FSLY), down from 32 in the preceding quarter worth $1.5 billion.

13. GameStop Corp. (NYSE: GME)

Number of Hedge Fund Holders: 13

GameStop Corp. (NYSE: GME) is a video game retailer. It is ranked thirteenth on our list of 15 best Jim Cramer stocks to buy now. The company’s shares have returned 4,112% to investors in the past year. On May 27, during his show, Cramer blasted those trying to short-sell the stock, predicting that those trying to do so would end up like those that had tried to short-sell GameStop Corp. (NYSE: GME) in January, resulting in record losses as the share price registered a record rally, even going as far as to call those short-selling GameStop 'idiots.'

On July 12, investment advisory Ascendiant raised the price target on GameStop Corp. (NYSE: GME) stock to $25 from $10, but kept a Sell rating on the stock. Edward Woo, an analyst at the firm, said the target reflected the digital and execution risks offset by the transformation plan.

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE: GME) with 3.2 million shares worth more than $620 million.

GameStop Corp. (NYSE: GME) is one of the best Jim Cramer stocks to buy now, alongside Coinbase Global, Inc. (NASDAQ: COIN), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Cisco Systems, Inc. (NASDAQ: CSCO).

In its Q1 2021 investor letter, Rhizome Partners, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE: GME) was one of them. Here is what the fund said:

“The first quarter saw some bizarre market reactions. Game Stop is a heavily shorted legacy video game retailer that saw its stock price rise from $17 to a peak of $483 within a month. It appears that retail investors on a Reddit.com forum called WallStreetBets used memes to create a viral feedback loop of forced buying. Game Stop reached $20 billion in market cap and had more daily trading volume than Apple at one point. The Game Stop short squeeze became a black swan event for the short sellers. Large hedge funds such as Melvin Capital suffered 50% losses during a short period and required emergency capital injections that resulted in costly dilution. Shorting is difficult and introduces a risk of ruin. This is especially true in situations where a large percentage of the float is shorted. We want to remind you that we hedge our portfolio via index puts, sector puts, and sometimes buying puts directly in our own portfolio companies. However, we rarely short because 1) we are not good at it 2) the potential for brain damage is too high and 3) we want to avoid the risk of ruin.”

12. AMC Entertainment Holdings, Inc. (NYSE: AMC)

Number of hedge fund holders: 19

AMC Entertainment Holdings, Inc. (NYSE: AMC) stock has returned 743% to investors in the past twelve months. It is placed twelfth on our list of 15 best Jim Cramer stocks to buy now. AMC Entertainment Holdings, Inc. (NYSE: AMC) runs a chain of movie theatres and operates from Kansas. In early July, the company cancelled a previously proposed approval for share increase. Commenting on the decision, Cramer lauded the leadership of Adam Aron, the CEO of the firm, and backed the stock to climb higher under his guidance.

On July 15, AMC Entertainment Holdings, Inc. (NYSE: AMC) stock rallied by close to 10% as it broke a five session losing streak. AMC Entertainment Holdings, Inc. (NYSE: AMC) remains one of the most active on the market, with 90 million shares changing hands on July 15.

At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $34 million in AMC Entertainment Holdings, Inc. (NYSE: AMC), up from 16 in the preceding quarter worth $24 million.

In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE: AMC) was one of them. Here is what the fund said:

“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”

11. Shopify Inc. (NYSE: SHOP)

Number of Hedge Fund Holders: 91

Shopify Inc. (NYSE: SHOP) is an ecommerce firm based in Canada. It is ranked eleventh on our list of 15 best Jim Cramer stocks to buy now. The company’s shares have returned 55% to investors in the past year. On July 1, Cramer called the firm the ultimate enabler of small businesses and highlighted the steps the firm was taking to expand business through increased spending on developers. Cramer also underlined how the stock had climbed more than 4,500% in the past five years.

On June 30, investment advisory RBC Capital raised the price target on Shopify Inc. (NYSE: SHOP) stock to $1,700 from $1,500. Paul Treiber, an analyst at the firm, maintained an Outperform rating on Shopify Inc. (NYSE: SHOP).

Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Lone Pine Capital is a leading shareholder in Shopify Inc. (NYSE: SHOP) with 1.7 million shares worth more than $1.8 billion.

In addition to Coinbase Global, Inc. (NASDAQ: COIN), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Cisco Systems, Inc. (NASDAQ: CSCO), Shopify Inc. (NYSE: SHOP) is one of the best Jim Cramer stocks to buy now.

In its Q4 2020 investor letter, RGA Investment Advisors, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE: SHOP) was one of them. Here is what the fund said:

“While we are pleased with the results of these specific purchases, we made a huge mistake of omission at that time. This mistake will likely be one of the biggest we ever make in our careers. Specifically, we did deep work on Shopify and loved everything about the business qualitatively. Unfortunately, we ultimately found ourselves unable to get comfortable with the numbers.

We built our model up from the key performance indicators (KPIs) that drive revenues. Our last save of the model dated 8/3/2016 looked as follows: (Page 2). These numbers seemed right from everything we understood about the company. While we tend not to rely on sell-side consensus estimates before finishing our own workup of the business, we do give them a look once we feel comfortable with how we have approached our analysis as it is often helpful to get a sense of what the average participant in the market expects the business to do. With Shopify, the sell-side consensus was so far from where our numbers were shaking out, it seemed almost impossible that we were basing our analysis on the same underlying information. Our natural next step was thus to take the sell-side consensus data and work backwards to figure out the implied expectations on each of the key revenue drivers. Here is what the sell-side consensus looked like as at the time: (Page 2)..." (Click here to see the full text).

10. Honeywell International Inc. (NASDAQ: HON)

Number of Hedge Fund Holders: 56

Honeywell International Inc. (NASDAQ: HON) is placed tenth on our list of 15 best Jim Cramer stocks to buy now. The stock has offered investors returns exceeding 50% over the course of the past twelve months. Honeywell International Inc. (NASDAQ: HON) operates as a conglomerate with interests in aerospace, building technologies, performance materials, and productivity solutions. In November last year, Cramer backed the stock to climb higher on the back of automated warehousing solutions it offered, an area of the industry that has grown by leaps and bounds because of the virus crisis.

On July 14, investment advisory Deutsche Bank maintained a Buy rating on Honeywell International Inc. (NASDAQ: HON) but lowered the price target to $245 from $246. Nicole DeBlase, an analyst at the firm, expects the stock to beat earnings estimates this quarter.

At the end of the first quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Honeywell International Inc. (NASDAQ: HON), up from 45 the preceding quarter worth $983 million.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Honeywell International Inc. (NASDAQ: HON) 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.”

9. The Boeing Company (NYSE: BA)

Number of Hedge Fund Holders: 59

The Boeing Company (NYSE: BA) is an aerospace firm that operates from Chicago. It is ranked ninth on our list of 15 best Jim Cramer stocks to buy now. The company’s shares have offered investors returns exceeding 26% over the course of the past year. Cramer has slammed investors who have been selling The Boeing Company (NYSE: BA) because of speculation around the 737 MAX, urging them to reconsider as Boeing gets new orders for the product, reinvents itself, and the economy reopens, all potential growth catalysts for the stock.

On July 14, investment advisory Morgan Stanley maintained an Overweight rating on The Boeing Company (NYSE: BA) stock with a price target of $274, dismissing recent concerns around Boeing 737 MAX as a minor headache for the aircraft firm.

At the end of the first quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in The Boeing Company (NYSE: BA), up from 55 the preceding quarter worth $1 billion.

Coinbase Global, Inc. (NASDAQ: COIN), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Cisco Systems, Inc. (NASDAQ: CSCO) are some of the best Jim Cramer stocks to buy now, alongside The Boeing Company (NYSE: BA).

In its Q1 2020 investor letter, Miller Value Partners, an investment management firm, highlighted a few stocks and The Boeing Company (NYSE: BA) was one of them. Here is what the fund said:

“We’ve known Boeing for a long time. It’s always been a high quality company that’s traded for a premium valuation owing to its position as a global duopoly. We’d looked at it recently after weakness due to its highly publicized Max 737 issues, but it never got cheap enough for us to pull the trigger. After the pandemic, the stock went into freefall as its customer bases’ business dried up and people worried about its liquidity. The stock fell from $338 on February 19th when the S&P hit its high to a low of $89. We bought the stock after the new CEO Dave Calhoun said publicly that it would not take government capital if it required equity dilution because it had many other options. Our average price is just above $120 where it was trading for less than 7x what it earned in 2018. It will likely take a while to normalize to those earnings levels, but this business will survive and ultimately we will own a leader in a global duopoly. Even on depressed forecasts, the company currently has about a 10-15% free cash flow yield. If and when the economy normalizes, we think Boeing could be worth more than double its current price.”

8. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 251

Microsoft Corporation (NASDAQ: MSFT) stock has returned 38% to investors in the past year. It is placed eighth on our list of 15 best Jim Cramer stocks to buy now. The firm makes and sells computer hardware and software. While discussing how tech firms have managed to register record growth over the past few years, Cramer noted the innovative power in tech and mentioned Microsoft Corporation (NASDAQ: MSFT) , backing the stock to climb higher as the company invested in artificial intelligence and AI-powered healthcare technology.

On July 15, investment advisory Jefferies maintained a Buy rating on Microsoft Corporation (NASDAQ: MSFT) stock with a price target of $310, highlighting the growth potential that the Windows 365 platform offered for the software firm.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT) with 23.9 million shares worth more than $5.6 billion.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

7. NVIDIA Corporation (NASDAQ: NVDA)

Number of Hedge Fund Holders: 80

NVIDIA Corporation (NASDAQ: NVDA) is ranked seventh on our list of 15 best Jim Cramer stocks to buy now. The company’s shares have returned 85% to investors in the past twelve months. NVIDIA Corporation (NASDAQ: NVDA) makes and sells different types of chips used in electronic devices. On April 12, Cramer praised the new Grace chips announced by NVIDIA Corporation (NASDAQ: NVDA), telling viewers he expected the chipmaker to not only challenge industry peers like Intel with the new product, but also establish itself as a leader in the chip industry.

On July 15, investment advisory Mizuho maintained a Buy rating on NVIDIA Corporation (NASDAQ: NVDA) stock and raised the price target to $900 from $710, underlining the market leading performance of the firm in the artificial intelligence business.

At the end of the first quarter of 2021, 80 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 the preceding quarter worth $8.6 billion.

Coinbase Global, Inc. (NASDAQ: COIN), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Cisco Systems, Inc. (NASDAQ: CSCO) are on the list of the best Jim Cramer stocks to buy now, much like NVIDIA Corporation (NASDAQ: NVDA).

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ: NVDA) was one of them. Here is what the fund said:

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”

6. Johnson & Johnson (NYSE: JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE: JNJ) stock has returned 12% to investors in the past year. It is placed sixth on our list of 15 best Jim Cramer stocks to buy now. The company makes and sells medical devices, pharmaceutical, and consumer packaged goods. In April, after news regarding a coronavirus vaccine pause by the company hit the airwaves, Cramer told viewers of his show that he did not expect the pause to last long, backing the firm to jump back from the pause and resume vaccinations, with share price having room to climb higher.

On July 2, investment advisory Cantor Fitzgerald maintained an Overweight rating on Johnson & Johnson (NYSE: JNJ) stock with a price target of $200, noting the promise that the vaccine of Johnson & Johnson (NYSE: JNJ) showed against the Delta variant of the coronavirus.

At the end of the first quarter of 2021, 81 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in Johnson & Johnson (NYSE: JNJ), the same as in the previous quarter worth $5.8 billion.

In its Q1 2020 investor letter, Amana Mutual Funds, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE: JNJ) 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.”

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Disclose. None. 15 Best Jim Cramer Stocks to Buy Now is originally published on Insider Monkey.