Jim Cramer’s Top 10 Stock Picks for 2023
In this article, we will take a look at Jim Cramer's top 10 stock picks for 2023 To see more such companies, go directly to Jim Cramer's Top 5 Stock Picks for 2023.
When 2023 started, many analysts and financial intuitions were announcing that the year would see recession and economic contraction. But those recession fears proved to be unfounded this year. Barclays in its 2024 outlook report said that this whole recession debate is misplaced. Barclays said that if anyone anticipates a recession akin to the 2008 financial crisis, potentially leading to the collapse of major economies, it can be confidently stated, based on Barclays' analysis, that such a recession is not projected to occur in 2024.
However, Barclays expects 2024 to be marred with uncertainties and volatility. Barclays said that central banks could go easy with their rate-hike policies in the year. The institution also expects inflation to cool this year. But the report warned that investors should be careful what they wish for since major rate cuts would only happen if there are signs of strong economic contraction.
Analysts and institutions always make headlines when they make predictions but it’s more interesting to see their evaluations in hindsight. When 2023 started, Jim Cramer also made some predictions about the stock market and named some stocks he thought would gain this year. We covered most of those stocks in our article titled Jim Cramer's Top Stock Picks for 2023.
In this article we take a look at how Jim Cramer’s stock picks performed in 2023. Some top names include Advanced Micro Devices, Inc. (NASDAQ:AMD), Netflix, Inc. (NASDAQ:NFLX) and Meta Platforms, Inc. (NASDAQ:META).
Evaluating Performance of Jim Cramer's Top 10 Stock Picks for 2023
10. NVIDIA Corporation (NASDAQ:NVDA)
YTD Stock Performance Through November 22: +230%
In February 2023, Jim Cramer said that the semiconductor industry got slaughtered but he still stuck with NVIDIA Corporation (NASDAQ:NVDA) because the company makes chips that power AI. One of the reasons why Cramer stuck with NVIDIA Corporation (NASDAQ:NVDA), according to him, is that when stocks like Nvidia bottom they come back up so quickly one does not get a chance to “get back in.” Cramer said that he stuck with NVIDIA Corporation (NASDAQ:NVDA) and then ChatGPT came in, which was a “game changer” according to the analyst. There’s no end in sight for revenue growth for NVIDIA Corporation (NASDAQ:NVDA) thanks to the AI boom that started with ChatGPT because the company’s GPUs are widely used to power generative AI software.
NVIDIA Corporation (NASDAQ:NVDA) shares have gained about 237% year to date through November 2023.
O’keefe Stevens Advisory made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“This quarter, we actively reduced our position in our favorite company, NVIDIA Corporation (NASDAQ:NVDA). Over the past several years, I have consistently noted the concentration of the top 5 holdings in our portfolio, with NVDA comprising 26% of the last quarter’s 40%. The business, management, and outlook are nothing short of excellent. The business has a dominant market share in a rapidly growing market with competition seemingly years behind, though, fighting hard to gain share. Gross margin is expected to exceed 70% in 2024 and expand in 2025, reflecting the premium customers pay for their advanced technology. Revenue growth of 30%+ on a $50B base and a return on equity over 50%. If this isn’t the best business in the world currently, certainly it is in the top 5.
Jensen is the reason we held onto the stock despite our unease about the valuation. Jensen came to the U.S. from Thailand and was sent to a boarding school in rural Kentucky for troubled youth by his aunt and uncle, who mistook it for a prep school. When buying an ownership stake in the business, we must ask ourselves who we partner with. Are they honest? Capable? Aligned?
Honest: Listening to Jensen (while promotional) is like a breadth of fresh air. He tells you how it is. When the business looked like it was headed for failure in 2009, Jensen reduced his salary to $1….” (Click here to read the full text)
Like Nvidia, Jim Cramer also likes Advanced Micro Devices, Inc. (NASDAQ:AMD), Netflix, Inc. (NASDAQ:NFLX) and Meta Platforms, Inc. (NASDAQ:META).
9. Enphase Energy, Inc. (NASDAQ:ENPH)
YTD Stock Performance Through November 22: -61%
Jim Cramer had called Enphase Energy, Inc. (NASDAQ:ENPH) the “golden boy” of renewable energy when the year 2023 started. In February 2023, Cramer wrote in a tweet:
“Enphase is such a horse. Still the best clean energy play. Just love it.”
Enphase Energy, Inc. (NASDAQ:ENPH) shares have lost about 61% year to date through November 22. Jim Cramer’s “golden boy” of the renewable energy space saw its shares plummet in October after Enphase Energy, Inc. (NASDAQ:ENPH) posted mixed Q3 results and gave a disappointing Q4 guidance. For the fourth quarter Enphase Energy, Inc. (NASDAQ:ENPH) expects revenue in the range of $300 million to $350 million, much lower than the analyst consensus estimate of $597 million.
Insider Monkey’s database of 910 hedge funds shows that 40 hedge funds reported having stakes in Enphase Energy, Inc. (NASDAQ:ENPH) as of the end of the September quarter.
ClearBridge SMID Cap Growth Strategy made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q2 2023 investor letter:
“We exited our position in Enphase Energy, Inc. (NASDAQ:ENPH), in the IT sector, which designs, manufactures and sells semiconductor equipment for the residential solar photovoltaic industry. New regulations within California, as well as improving supply chain dynamics in Europe, have placed additional pressure on the company. Facing concerns surrounding weaker U.S. residential demand, decelerating revenue growth trends and falling prices compressing margins, we elected to sell the position and redeploy our assets to other, higher-conviction holdings.”
8. American Electric Power Company Inc. (NASDAQ:AEP)
YTD Stock Performance Through November 22: -17%
American Electric Power Company, Inc. (NASDAQ:AEP) was one of Jim Cramer’s stock picks when the year 2023 started. He kept giving bullish calls for American Electric Power Company, Inc. (NASDAQ:AEP) throughout the year. In September Cramer said:
“You buy it...This won’t just be a smooth ride, 4.2% yield is good. A lot of people sold this stock because the short term rates have gone so high because the Fed has raised rates so rapidly. That’s why it’s going down, nothing to do with the company which is incredibly well run. I would be a buyer of American Electric Power.”
American Electric Power Company, Inc. (NASDAQ:AEP) shares have lost about 17% year to date through November 22.
Earlier this month American Electric Power Company, Inc. (NASDAQ:AEP) posted Q3 results. Adjusted EPS in the period came in at $1.77, beating estimates by $0.07. Revenue in the quarter fell about 3.6% year over year to $5.3 billion, missing estimates by $80 million.
American Electric Power Company, Inc. (NASDAQ:AEP) also narrowed its earnings guidance.
7. Northrop Grumman Corporation (NYSE:NOC)
YTD Stock Performance Through November 22: -12%
Jim Cramer had predicted in January 2023 that Northrop Grumman Corporation (NYSE:NOC) could be one of the best-performing stocks in the S&P 500 index this year given the geopolitical environment and the expected increase in demand for weapons. Northrop Grumman Corporation (NYSE:NOC) has lost about 12% year to date through November 22.
Harding Loevner Global Equity Strategy made the following comment about Northrop Grumman Corporation (NYSE:NOC) in its Q1 2023 investor letter:
“Our other purchase was Northrop Grumman Corporation (NYSE:NOC), a US defense contractor whose stock price experienced a pullback. We like that Northrop has a larger presence than its rivals in the most favorable subcategories of the defense industry-namely, nuclear weapons, space systems, and what’s known as C4ISR (which stands for Command, Control, Communications, Computers. Intelligence, Surveillance, and Reconnaissance). C4ISR refers to digital systems that translate data picked up from different sensors-such as an incoming hypersonic missile or advancing troops-into a common format, and then escalate key information to the right people These differentiated technologies are especially relevant in a time of increased geopolitical tensions. Northrop also benefits from large barriers to entry in this stable industry, which should enable continued strong earnings and cash flow.”
6. Halliburton Company (NYSE:HAL)
YTD Stock Performance Through November 22: -0.8%
Jim Cramer had picked Halliburton Company (NYSE:HAL) for 2023 as he expected the company to have its multi-year rally ahead of it. In April 2022, Jim Cramer said that “this is Halliburton’s time.” Halliburton Company (NYSE:HAL) has remained almost flat in 2023 but over the past six months it has gained about 24%. In October Cramer reiterated his bullish stance on Halliburton Company (NYSE:HAL) after weak quarterly results.
“Let Halliburton [stock] come down, but this company’s going to do just fine if oil stays at these prices,” Cramer said.
Carillon Eagle Mid Cap Growth Fund made the following comment about Halliburton Company (NYSE:HAL) in its Q3 2023 investor letter:
“Halliburton Company (NYSE:HAL) provides equipment and services to the global energy industry. The stock was an impressive outperformer in the quarter, as the recent sharp increase in oil prices should translate to healthy levels of North American shale activity in the remainder of the year and into 2024. Halliburton also is poised to benefit from the ongoing multi-year international and offshore upstream investment cycle.”
Like Advanced Micro Devices, Inc. (NASDAQ:AMD), Netflix, Inc. (NASDAQ:NFLX) and Meta Platforms, Inc. (NASDAQ:META), Halliburton is a notable stock Jim Cramer picked for 2023.
Click to continue reading and see Jim Cramer's Top 5 Stock Picks for 2023.
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Disclosure: None. Jim Cramer's Top 10 Stock Picks for 2023 is originally published on Insider Monkey.
