Jim Cramer’s Top 10 Stock Picks in 2024

All stock market enthusiasts know Jim Cramer, the renowned host of CNBC’s “Mad Money”. He is known for his insightful stock market predictions and investment advice. As we step into 2024, investors are keen to know his top stock picks for the year.

We can provide a list of recently endorsed stocks and track his changing picks based on market conditions and his own analysis.

Jim Cramer’s recent CNBC programs in early January featured his picks of 10 stocks he is bullish on. This article presents an overview of the Jim Cramer’s Top 10 Stock Picks in 2024.

CNBC Jim Cramer Stock Picks: 2024

This in-depth analysis includes a detailed list of the top 10 stock picks for 2024:

1. Microsoft Corp (NASDAQ: MSFT)

Jim Cramer recently discussed a market rotation where investors are shifting profits from tech stocks to other companies.

He described Microsoft as the “undisputed leader in AI” and mentioned that 306 hedge funds that Insider Monkey was tracking had investments in the company as of Q3 2023.

2. Meta Platforms Inc (NASDAQ: META)

Jim Cramer remains bullish on Meta Platforms Inc (NASDAQ: META) throughout 2023, despite recommending investors take profits on tech stocks and highlighting market rotation.

In a recent program, Cramer advised investors to remember Meta Platforms Inc. and ignore them at their own risk.

3. NVIDIA Corp (NASDAQ: NVDA)

Jim Cramer praised the return of tech stocks on his January 9 program, urging viewers to stop selling Nvidia.

He referred to the market’s rotation, where investors are shifting profits from technology stocks to other sectors like healthcare and banking. Since 2023, Cramer has been a fan of NVIDIA due to its high demand for AI chips.

4. JPMorgan Chase & Co (NYSE: JPM)

Jim Cramer praised JPMorgan Chase & Co as a potential high-grossing stock but warned of thin chances of soaring to highs. As of Q3 2023, 109 hedge funds held JPMorgan shares.

5. Nu Holdings Ltd (NYSE: NU)

Jim Cramer expressed his love for Brazil-based banking and financial services company Nu Holdings Ltd during a CNBC program.

He called this company a “winner” and mentioned that 50 of the 910 funds Insider Monkey was tracking had investments in Nu Holdings Ltd. as of Q3 2023.

Berkshire Hathaway, owned by Warren Buffett, held the most significant stake at $776 million.

6. Howmet Aerospace Inc (NYSE: HWM)

Renowned investor Jim Cramer recently voiced his enthusiasm for Howmet aircraft Inc. (NYSE: HWM), a company that provides technical services linked to aircraft.

Cramer praised the company’s performance and praised its potential, comparing it to Apple, Amazon, and NVIDIA. He believes this move is the “right call” and praised the stock.

7. GE HealthCare Technologies Inc (NASDAQ: GEHC)

Jim Cramer has praised GE HealthCare Technologies Inc (NASDAQ: GEHC) as a “ridiculously cheap” stock, stating that the company is doing “so many great things.”

Cramer also stated that his Charitable Trust is a long-term holder of a sizable position in the company. A total of 41 hedge funds out of 910 funds tracked by Insider Monkey had stakes in GE HealthCare Technologies Inc.

Sound Shore Management highlighted the criticism of GE HealthCare Technologies Inc. attributed to macro reasons like slower economic growth, increasing rates, and increased inflation in its Q3 2023 investor letter.

8. Arm Holdings PLC – ADR (NASDAQ: ARM)

Jim Cramer praised Arm Holdings CEO Rene Haas for his “fantastic job” in the cell phone and PC business, despite skepticism due to weakness.

He believes the company will dominate these industries and would like to buy Arm for his charitable trust. 35 hedge funds out of the 910 that Insider Monkey was tracking revealed holdings in Arm as of the third quarter of 2023.

9. Topgolf Callaway Brands Corp (NYSE: MODG)

Jim Cramer likes Topgolf Callaway Brands Corp (NYSE: MODG) and recommends buying it at $14. As of January 11, the stock was trading at $14.16.

As of Q3 2023, Marshall Wace LLP held a $42 million stake in the company, along with 27 other hedge funds.

CAO Jennifer Thomas bought 4,000 shares worth $40,080 in November, while Laura Jean Flanaga bought 2,000 shares at $12.62. Revenues were below expectations due to wildfires in Canada.

10. Realty Income Corp (NYSE:O)

Jim Cramer recommended an investor stay invested in Realty Income Corp (NYSE:O) due to its 5% yield and “steady story.”

As of the third quarter of 2023, 23 out of 910 hedge funds tracked by Insider Monkey had stakes in the stock.

Balyasny Asset Management, owned by Dmitry Balyasny, was the most notable hedge fund stakeholder, owning a $41 million stake.

How does Jim Cramer pick stocks?

Jim Cramer’s stock picks are influenced by a blend of factors, which he often discusses on his CNBC show “Mad Money” and other platforms.

Here’s a breakdown of his approach:

1. Technical Analysis: Cramer uses charts and technical indicators to gauge momentum, identify support and resistance levels, and assess potential breakouts or breakdowns.

2. Fundamentals: To assess the health and growth potential of businesses, he checks company financials, which include cash flow, income, and balance sheets.

3. Industry Trends: Cramer keeps a close eye on industry trends and news to identify sectors with strong tailwinds or those facing headwinds, impacting individual stocks.

4. Management Quality: He prioritizes companies with a clear vision and the capacity to carry it out, and he favors strong leadership teams with a track record of accomplishment.

5. Storytelling: Cramer loves a good story. He seeks companies with compelling narratives and unique business models that can capture investor imagination.

6. Sentiment and Buzz: He considers market sentiment and buzz surrounding certain stocks, but often goes against the grain if he sees underlying value.

7. The “Mad Money” Framework: Cramer constantly compares and sorts businesses by sector using his own frameworks, such as the “Magnificent Seven” or the “FAANG stocks.”

8. Adaptability: Cramer acknowledges the dynamic nature of the market and readily adjusts his picks based on evolving conditions and new information.

9. On-air Discussion: He uses his show and guest interviews to gather real-time insights and perspectives, sometimes leading to impromptu “lightning round” buy or sell recommendations.

10. Risk Management: Cramer promotes risk management, including stop-loss orders and diversification, to safeguard against potential losses while seeking growth.

It’s important to remember that Cramer’s picks are his own opinions and shouldn’t be solely relied upon for investment decisions.

Jim Cramer's Top 10 Stock Picks

How do Jim Cramer stock pick do?

Jim Cramer’s stock picks have had varied performances over the years. Here is a summary of their typical performance:

  • Cramer picks stocks based on a mix of technical analysis, company financials, industry trends, and his own gut feeling. He emphasizes strong leadership and compelling narratives. This creates excitement and buzz around the stocks he recommends.

  • Some of his picks do well, especially those benefiting from strong trends or momentum. The initial hype may lead to a price surge.

  • Others underperform, are affected by market fluctuations, or unexpected events, or simply not living up to expectations. These picks might stagnate or even decline in price.

  • Tracking Cramer’s long-term performance is tricky due to the constant changes in his recommendations. While some studies indicate he significantly beats the market, others show opposite results.

Remember, Jim Cramer is just one opinion in the market. Always diversify your portfolio and prioritize thorough research before making any investment decisions.

Jim Cramer Stock Picks Performance

Jim Cramer is a well-known finance personality and host of Mad Money on CNBC. His stock-picking approach is controversial, and his recommendations are driven by recent performance rather than a thorough analysis of the stock’s potential.

In a study analyzing all 700+ buy and sell recommendations made by Cramer in 2021, the weekly performance returns were 42%, but the one-month returns were -223%, and Cramer was wrong more often than he was right on his calls.

Over various periods, Cramer’s sell recommendations performed better than his buy recommendations. In 2023, Cramer named seven stocks as the “Magnificent Seven,” which included Apple, Amazon, Nvidia, and others.

The S&P 500 Index has failed to meet the top 10 consensus stock recommendations of hedge funds by over 140 percentage points over the last ten years.

Jim Cramer Fund Performance

Jim Cramer, a former hedge fund manager and host of Mad Money on CNBC, achieved an average annual return of 24% over 14 years, with his fund returning 47% in 1999 and 28% in 2000, outperforming the S&P 500. 

However, his Action Alerts PLUS portfolio, which includes many of his stock recommendations, has underperformed the S&P 500 total return index since 2005

Some studies attribute Cramer’s portfolio returns to factors like exposure to the market, small-cap stocks, growth stocks, and stocks with poor earnings quality

While Cramer’s historical fund performance has shown both success and underperformance, his stock picks continue to attract attention from investors.

Inverse Jim Cramer ETF Performance

An inverse Jim Cramer ETF is an investment vehicle that seeks to provide returns that are the opposite of the investments recommended by Jim Cramer, the host of Mad Money on CNBC.

Consider an ETF that bets against Jim Cramer’s stock recommendations. In early 2023, it did just that, outperforming the market. This suggests Cramer’s picks aren’t always winners.

Betting against Cramer’s stock-picking abilities would have yielded a 6.59% return year-to-date in Q1 2023, beating the S&P 5001

The Inverse Cramer Tracker ETF (SJIM) seeks to provide investment results that are approximately the opposite of, before fees and expenses, the results of the investments recommended by Cramer. 

While Cramer’s celebrity status is bigger than ever, his stock picks have been inconsistent, and the performance of individual picks varies widely

Jim Cramer Stock Pick Trackrecord

Sources such as Quiver Quant Cramer Tracker, Inverse Cramer Tracker ETF, Long Cramer Tracker 2023, and Inverse Jim Cramer Strategy can be used to evaluate Jim Cramer’s stock picks history.

Recent stock picks can be found on financial news websites like Yahoo Finance and his TV show, Mad Money on CNBC. Cramer’s opinions on the stock market and individual stocks can also be found on his show.

Jim Cramer’s stock picks have been criticized for their mixed performance. Cramer’s hedge fund, Cramer & Co., had just one year of negative returns in its early years (1980s–2000s).

However, his stock picks have not consistently outperformed the market, with varying degrees of success across different periods.

His tendency to ignore long-term investing ideas due to his short-term focus has resulted in extremely wrong decisions, like Bear Stearns and Washington Mutual.

Recent movements, including an increase in 2023, draw attention to the ongoing discussion over Cramer’s stock-picking abilities.

Remember: This is only an overview of the thoughts and recent recommendations of Jim Cramer’s experts. Before making any investing decisions, do a little research and speak with a financial advisor.

Conclusion:

Jim Cramer’s top 10 stock picks in 2024, ranging from tech giants to financial giants, offer diverse investment opportunities. However, these choices, which are impacted by market trends, technical analysis, and fundamentals, have different performance results. Investors should approach Cramer’s recommendations from one perspective, emphasizing the importance of diversified portfolios and thorough research for informed investment decisions.

FAQs:

Q: Where should you invest $1000 right now?

To invest $1000, consider investing in S&P 500 index funds, savings accounts, 401(k), ETFs, debt payments, emergency funds, or established stocks like Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta Platform.

Q: How to sign up for Jim Cramer investment club?

To sign up for Jim Cramer’s Investing Club, visit the CNBC Investing Club website and follow the instructions to join the club, which provides behind-the-scenes market analysis and access to Jim Cramer’s Charitable Trust holdings.

Q: How often is Jim Cramer right?

Cramer’s stock picks have been inconsistent, with the performance of individual picks varying widely. His internal performance review found that the stocks he picked for the show beat the S&P 500 63% of the time.

Q: How often is Jim Cramer wrong?

Only 33% of Cramer’s stock picks have beaten the S&P 500 in the last year. Betting against his stock-picking abilities would have produced a 6.59% return year-to-date in Q1 2023, outperforming the S&P 500.

Q: How much does Jim Cramer’s investing club cost?

To gain access to Jim Cramer’s Investing Club, the cost is $399.99 per year or $49.99 per month, which provides behind-the-scenes market analysis, access to Jim Cramer’s Charitable Trust holdings, newsletters, monthly online conferences, daily live video streams, and daily analysis and news.

Q: How to contact Jim Cramer?

To contact Jim Cramer, you can call his show “Mad Money” on CNBC at 1-800-743-CNBC, email him at [email protected], or follow him on Twitter, Facebook, LinkedIn, and Google+. Joining his CNBC Investing Club will get you access to Jim Cramer’s Charitable Trust holdings as well as behind-the-scenes market analysis.

Q: How did Jim Cramer make his money?

Jim Cramer made his money as a former hedge fund manager who returned more than 20% to investors annually for over a decade. He gained significant profits as a co-founder of Cramer Levy Partners. Cramer’s estimated net worth of hundreds of millions of dollars comes from his high-profile position as host of CNBC’s Mad Money, as well as from unrelated ventures like books and speaking engagements.

Q: How has Jim Cramer’s charitable trust performed?

Jim Cramer’s Charitable Trust has shown mixed performance over the years, underperforming the S&P 500 due to underexposure to the market. However, as of March 31, 2016, it had a cumulative return of 64.5%, outperforming the S&P 500 by 7.35% annually.

Q: How does Jim Cramer make money?

Jim Cramer earns money by administering his charitable trust, recommending stocks, and offering content for investors via his online platforms and television shows. He is a former hedge fund manager who returned more than 20% to investors annually for over a decade.

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