In this article, we discuss the 10 stocks that Jim Cramer was right about. If you want to read about some more stocks that Jim Cramer was right about, go directly to Jim Cramer Was Right About These 5 Stocks.
The stock market has been very volatile in the past few weeks as recession fears take hold in the wake of the geopolitical situation in Europe, the inflation statistics coming out of the United States, and the specter of rising interest rates that would hamper growth. Jim Cramer, the journalist investor and former hedge fund manager, had urged investors to keep their focus on fundamentals and avoid the larger panicked selling at the market. In light of the rally at the market in the past week, it appears that his position has been vindicated.
During an appearance on news platform CNBC on May 31, Cramer reflected on the trading at the market in the past few days, stressing that there was a “bull market within a bear market” as those who were not focusing on earnings were “missing the point”, pointing to the surge in the share prices of companies that had smashed market estimates in their quarterly results as an example. Cramer also pointed to the easing of lockdowns, especially in China, as one of the reasons for the recent rally at the market.
Some of the stocks that Cramer has been bullish on in the past few weeks include Citigroup Inc. (NYSE:C), The Goldman Sachs Group, Inc. (NYSE:GS), and Northrop Grumman Corporation (NYSE:NOC). The share prices of these firms have gone up in this period as well. Cramer has also recently taken aim at those dumping stocks, urging his viewers to “change the stock mix in their portfolio” instead of flocking towards cash as a safe haven during the economic crisis, advising them to go for “tried and tested” names like banks and staples.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC. Only stocks that have registered a more than 5% increase in share price over the past month, and on which Cramer had a Buy rating between May 1 and May 30, were selected. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the popularity of each stock among hedge funds.
Jim Cramer Was Right About These Stocks
10. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 10
Percentage Increase in Share Price Over Past Month: 11.97%
AeroVironment, Inc. (NASDAQ:AVAV) provides robotics systems and related services. Cramer gave the stock a Buy recommendation during the Guest Interview segment of his show on May 2, noting the critical role of the firm in providing military drones to the Ukrainians. He also spoke to Wahid Nawab, the CEO of the robotics firm, during his show.
On May 18, RBC Capital analyst Ken Herbert upgraded AeroVironment, Inc. (NASDAQ:AVAV) stock to Outperform from Sector Perform and raised the price target to $100 from $95, noting the acceleration in demand for the drones of the firm in the context of the Ukraine war.
At the end of the first quarter of 2022, 10 hedge funds in the database of Insider Monkey held stakes worth $182 million in AeroVironment, Inc. (NASDAQ:AVAV), compared to 14 the preceding quarter worth $112 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in AeroVironment, Inc. (NASDAQ:AVAV) with 1.1 million shares worth more than $104 million.
Just like Citigroup Inc. (NYSE:C), The Goldman Sachs Group, Inc. (NYSE:GS), and Northrop Grumman Corporation (NYSE:NOC), AeroVironment, Inc. (NASDAQ:AVAV) is one of the stocks that elite investors are buying.
9. Vertex Energy, Inc. (NASDAQ:VTNR)
Number of Hedge Fund Holders: 21
Percentage Increase in Share Price Over Past Month: 44.44%
Vertex Energy, Inc. (NASDAQ:VTNR) is an environmental services firm. Cramer gave the stock a Buy recommendation during the Lightning Round segment of his show on May 18. In response to a question about his views on the company, Cramer said that he believed that the stock was poised to “go higher” in the coming months.
Vertex Energy, Inc. (NASDAQ:VTNR) posted earnings for the first quarter of 2022 on May 10, reporting a revenue of around $40 million, up more than 60% compared to the revenue over the same period last year.
At the end of the first quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $84 million in Vertex Energy, Inc. (NASDAQ:VTNR), up from 18 in the preceding quarter worth $39 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Vertex Energy, Inc. (NASDAQ:VTNR) with 1.8 million shares worth more than $18 million.
8. Magna International Inc. (NYSE:MGA)
Number of Hedge Fund Holders: 26
Percentage Increase in Share Price Over Past Month: 5.25%
Magna International Inc. (NYSE:MGA) markets auto parts and related equipment. The former hedge fund manager was bullish on the company during the Lightning Round segment of his show on May 2, per the Mad Money Stock Screener. Cramer has also highlighted his admiration for the stock previously, hailing it as a “mobility technology play”.
On May 10, Benchmark analyst Michael Ward maintained a Buy rating on Magna International Inc. (NYSE:MGA) stock and lowered the price target to $77 from $92, identifying valuation, above market growth, and historical cash returns as growth catalysts for the firm.
At the end of the first quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $171 million in Magna International Inc. (NYSE:MGA), compared to 28 in the previous quarter worth $477 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Magna International Inc. (NYSE:MGA) with 660,479 shares worth more than $42 million.
7. BioNTech SE (NASDAQ:BNTX)
Number of Hedge Fund Holders: 29
Percentage Increase in Share Price Over Past Month: 14.32%
BioNTech SE (NASDAQ:BNTX) is a biotech firm based in Germany. On May 18, the journalist investor gave the stock a Buy rating during the Lightning Round segment of his show. Cramer underlined a scenario under which the Chinese government could procure coronavirus vaccines from the firm since it was based in Germany, keeping in play a larger plan to avoid American drug manufacturers with regards to vaccines.
In early April, Canaccord analyst Arlinda Lee kept a Buy rating on BioNTech SE (NASDAQ:BNTX) stock and lowered the price target to $300 from $450, noting that the firm was advancing, expanding, and diversifying the immunotherapy pipeline with vaccine revenue.
At the end of the first quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $409 million in BioNTech SE (NASDAQ:BNTX), up from 27 the preceding quarter worth $644 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in BioNTech SE (NASDAQ:BNTX) with 603,678 shares worth more than $102 million.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and BioNTech SE (NASDAQ:BNTX) was one of them. Here is what the fund said:
“BioNTech SE (NASDAQ:BNTX) is a leader in the emerging field of mRNA drugs, with additional programs in engineered cell therapies, antibodies, and immunomodulators. Shares performed well for the quarter. The COVID-19 vaccine rollout continues with the addition of a booster shot, and we believe the pandemic has been a strong proof point of the speed and efficacy of the mRNA platform. Beyond vaccines, we think BioNTech SE (NASDAQ:BNTX) has potential to disrupt the biopharmaceutical space with a pipeline spanning oncology, infectious diseases, and rare diseases.”
6. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 33
Percentage Increase in Share Price Over Past Month: 5.54%
American Electric Power Company, Inc. (NASDAQ:AEP) operates as an electric public utility holding company. Cramer gave the stock a Buy recommendation during the Guest Interview segment of his show in early May. Cramer spoke to Nick Akins, the CEO of American Electric, to discuss the broader utilities sector as well.
On April 25, Credit Suisse analyst Nicholas Campanella initiated coverage of American Electric Power Company, Inc. (NASDAQ:AEP) stock with an Outperform rating and a price target of $113, urging investors to focus on “the strategic pivot of divesting underearning, low-multiple assets”.
At the end of the first quarter of 2022, 33 hedge funds in the database of Insider Monkey held stakes worth $429 million in American Electric Power Company, Inc. (NASDAQ:AEP), compared to 34 in the previous quarter worth $827 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in American Electric Power Company, Inc. (NASDAQ:AEP) with 1.2 million shares worth more than $119 million.
Along with Citigroup Inc. (NYSE:C), The Goldman Sachs Group, Inc. (NYSE:GS), and Northrop Grumman Corporation (NYSE:NOC), American Electric Power Company, Inc. (NASDAQ:AEP) is one of the stocks on the radar of elite hedge funds.
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Disclosure. None. Jim Cramer Was Right About These 10 Stocks is originally published on Insider Monkey.