Jim Cramer Says You Should Stay Away from These 10 Stocks
In this article, we will take a detailed look at the Jim Cramer Says You Should Stay Away from These 10 Stocks. For a quick overview of such stocks, read our article Jim Cramer Says You Should Stay Away from These 5 Stocks.
Jim Cramer said in a latest program that after listening to the Fed chair Jerome Powell he believes we are at "crossroads" since there is still "some inflation" and the "dichotomy" of hard landing versus soft landing is being "replaced by no landing." Cramer said that we are "back to reality" and the reality, according to Cramer, is that interest rates are still "not that high." Cramer believes the rates are at a level where the economy can keep working. Cramer wondered how and why the Fed would cut interest rates when strong employment numbers keep coming and inflation is also not going down significantly.
Don't Wait for Rates Cuts to Invest in the Stock Market, Cramer Says
Jim Cramer tried to convince his viewers to invest in the stock market and said that while it would seem "reckless" to invest in the stock market because of the risks involved, it would be "too late" to invest in stocks once the Fed begins to cut interest rates. Jim Cramer said that stocks are in a win-win situation. If the economy keeps growing and the market remains strong, stocks will go up. If the economy begins to slow down, the Fed would cut rates sometime in the future, causing a rally in the stock market. Jim Cramer, however, acknowledged that stocks are risky when compared to the steady 5% income on CDs.
Cramer said "great" stocks like Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN) can give you that "5% from CDs" in "a week or even a day."
Cramer as "No Illusions"
Cramer said that he has "no illusions" and he is convinced that now is the right time to buy stocks. Cramer said he thinks many investors would be inclined towards investing in low-risk index funds or parking their cash in CDs or treasuries but he thinks big money will be made by investing in individual stocks.
But Jim Cramer is not bullish on all stocks. In fact over the past couple of years or so he's become quite selective in his choices and keeps recommending investors to sell or stay away from low-quality, money-losing or risky stocks and instead buy best of breed and high quality stocks.
In this article we will talk about some stocks Cramer is bearish on.
Methodology
For this article we watched several latest programs of Jim Cramer and picked 10 stocks he's recommending investors to either stay away from or sell. For each stock we have also mentioned hedge fund sentiment where available. 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).
10. Amer Sports, Inc (NYSE:AS)
Number of Hedge Fund Investors: N/A
Sports and outdoor equipment company Amer Sports, Inc (NYSE:AS) recently went public in an IPO that fell short of expectations. Cramer had advised investors to stay away from the stock. He said:
“So far, this is looking like another out of favor IPO, even if its lowball price allowed the stock to get a like, I guess you could call it a decent pop. And, I’ve got to tell you, Amer Sports is a great example of the kind of deals I wish we weren’t seeing.”
One of the reasons why Cramer is bearish on Amer Sports, Inc (NYSE:AS) is the company's high exposure to China.
While Cramer is bearish on the stock, Canadian billionaire Chip Wilson, who also founded Lululemon Athletica, bought $324 million worth of shares at the company’s IPO.
While Cramer is bearish on companies like Amer Sports, he's recommending buying high-quality mega-cap stocks like Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN).
9. Lithium Americas Corp (NYSE:LAC)
Number of Hedge Fund Investors: 9
Last month, Jim Cramer was asked about Lithium Americas Corp (NYSE:LAC). Cramer recommended the questioner to "take a pass" on the stock. Cramer said the "greatest inventor of our time" Elon Musk does not like lithium companies and he is trying to figure out a way to cut our dependence on them. Cramer said he would not go against Musk.
8. Surgery Partners Inc (NASDAQ:SGRY)
Number of Hedge Fund Investors: 15
Surgical facilities company Surgery Partners Inc (NASDAQ:SGRY) is one of the stocks Jim Cramer is bearish on these days. When asked about Surgery Partners Inc (NASDAQ:SGRY) in a recent program on CNBC, Cramer said "that industry is in up and down right now."
"I'm taking a hard pass," Cramer said of Surgery Partners.
As of the end of the third quarter of 2023, 15 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Surgery Partners Inc (NASDAQ:SGRY). The biggest stake in Surgery Partners Inc (NASDAQ:SGRY) is owned by Henry Ellenbogen's Durable Capital Partners which owns a $157 million stake in Surgery Partners Inc (NASDAQ:SGRY).
Baron Health Care Fund stated the following regarding Surgery Partners, Inc. (NASDAQ:SGRY) in its fourth quarter 2023 investor letter:
“We established a small position in Surgery Partners, Inc. (NASDAQ:SGRY), a leading operator of ambulatory surgery centers in the U.S. Like Stryker, the stock sold off during the quarter due to concerns about the impact of GLP-1s on its business, and we felt the sell-off offered a buying opportunity. The company, which operates primarily majority owned centers in partnership with physicians or hospital systems, is benefiting from a multi-year trend of surgical procedures migrating from inpatient to outpatient settings, facilitated by advances in medicine, payors’ push towards lower cost outpatient facilities and patient/physician preference and convenience. The company’s solid organic revenue growth profile has multiple drivers, including the mix shift to higher acuity, higher cost orthopedic and cardiac procedures, volume growth from additional physician recruitment and expanded medical specialties and better payor contracting. On top of this organic growth, management intends to deploy $200 million annually for acquisitions, leading to mid-teens EBITDA growth. We believe the stock can compound for many years as the company executes on its plan.”
7. Vodafone Group Plc (NASDAQ:VOD)
Number of Hedge Fund Investors: 22
Jim Cramer in a recent program said he hasn’t "liked Vodafone Group Plc (NASDAQ:VOD) in 20 years, and it’s really rewarded my dislike."
Cramer said instead of Vodafone Group Plc (NASDAQ:VOD) he's "willing" to recommend Verizon.
Insider Monkey's database of 910 funds shows that 22 hedge funds had stakes in Vodafone Group Plc (NASDAQ:VOD). The biggest stake in Vodafone Group Plc (NASDAQ:VOD) is owned by Paul Marshall and Ian Wace's Marshall Wace LLP which owns a $37 million stake in Vodafone Group Plc (NASDAQ:VOD).
6. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Investors: 24
Gene editing platform company CRISPR Therapeutics AG (NASDAQ:CRSP) ranks sixth in our list of stocks Jim Cramer is recommending investors to stay away from.
While Cramer said that he "likes" CRISPR Therapeutics AG (NASDAQ:CRSP), the reason why he cannot recommend the stock is that CRISPR Therapeutics AG (NASDAQ:CRSP) has been losing a lot of money. Cramer said he cannot recommend CRISPR Therapeutics AG (NASDAQ:CRSP) stock on a "fundamental basis."
The stock has gained about 17% over the past one year. Last month, Vertex Pharmaceuticals (NASDAQ:VRTX) said the US FDA approved its groundbreaking gene editing therapy, Casgevy, developed with CRISPR Therapeutics AG (NASDAQ:CRSP) for those aged 12 years and older with transfusion-dependent beta-thalassemia (TDT).
Unlike Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN), which Cramer likes a lot, the CNBC host is bearish on CRSP.
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Disclosure. None. Jim Cramer Says You Should Stay Away from These 10 Stocks was initially published on Insider Monkey.
