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Cramer says he likes these technology and real-estate stocks for 2023

December 22, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Wednesday highlighted technology and real estate stocks he believes can perform well in 2023, following a dismal year for both sectors.

Rising interest rates presented challenges for tech and real estate industries in 2022. Information technology is down 27% year to date, as of Wednesday’s close, while real estate has fallen 28.4% over the same stretch. The only S&P 500 sectors to perform worse are consumer discretionary, down 36.2%, and communication services, down 40.3%.

Cramer said he believes tech and real estate will continue to struggle next year; however, tech may start to see its fortunes improve after the first half of 2023.

Tech picks for 2023

Oracle’s fiscal 2023 second-quarter earnings last week were “magnificent,” Cramer said. The stock sells for less than 17 times forward earnings. While enterprise software is hardly Cramer’s favorite industry right now, he said Oracle’s business appears “very durable.”

Cramer said he likes Broadcom’s diversification strategy, including its pending deal to acquire VMware. Broadcom shares also carry a dividend yield around 3.3%, allowing investors to be patient while that acquisition goes through regulatory review, he said. The company also recently announced a $10 billion stock buyback program.

Palo Alto Networks is not in the S&P 500. Nonetheless, Cramer said he believes it’s the best-run cybersecurity company operating in an industry that has long-term staying power in the digital age. While Palo Alto Networks reported better-than-expected results last month, Cramer noted the stock isn’t too far away from its 52-week closing low of $142.21 on Nov. 4. “I recommend picking some up now right here and maybe some more into weakness,” he said.

Real estate picks for 2023

Cramer said he likes Realty Income because its top retail tenants — such as Dollar General, Walgreens and 7-Eleven — have businesses that can hold up during a potential recession. “Best of all, this company’s a dividend machine; they pay a monthly dividend,” he said, “and tend to raise it multiple times a year. Currently, the stock yields 4.6%.”

While shares of Federal Realty have fallen around 25% in 2022, Cramer said the stock has been a solid long-term performer. Its current dividend yield is 4.25%. Cramer said Federal Realty’s specializes in mixed-use properties, many of which are in wealthy suburbs. That is notable given concerns around a potential recession.

Cramer said the logistics focused real estate investment trust, or REIT, has continued to turn in strong results even as its stock has fallen around 31% year to date. Cramer said he thinks Prologis shares have tumbled far enough to start looking enticing.

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Jim Cramer says he likes these 3 industrial stocks heading into 2023

December 17, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Friday identified three industrial stocks that he believes are worth owning next year, saying he expects them to outperform the sector’s top performers in 2022.

The best-performing industrial stocks in the S&P 500 so far this year have been Northrop Grumman, Lockheed Martin and Deere — up 36.9%, 35.6% and 25.7%, respectively. Looking ahead, though, Cramer said he’d prefer to own the likes of Caterpillar, Illinois Tool Works and railroad operator CSX.

Shares of Caterpillar, which reported strong earnings two months ago, have climbed 12.6% year to date. Cramer said he favors Caterpillar over fellow machinery maker Deere.

“CAT has much more exposure to infrastructure, and I think they’ve got a boost from the oil and gas industry coming,” Cramer said. “Definitely worth owning here at 17 times earnings,” he added.

Illinois Tool Works shares are down more than 12% in 2022 because fears of an economic slowdown have trumped the company’s actual results, Cramer contended. “I like it here, of course more [so] on a pullback,” he said. “But I give you my blessing to buy ITW.”

Transports such as CSX — down nearly 16% year to date — are “totally hated” on Wall Street, Cramer acknowledged. However, he said he believes CSX is attractive for investors with extended time horizons.

“For me, it’s a long-term story. I see our East Coast ports getting more business as shipping companies adjust to the fact that our West Coast ports are dysfunctional. In the meantime, CSX is just minting money with coal,” he said. “I think it’s worth buying going into 2023.”

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Jim Cramer recommends these 5 health care stocks in 2023

December 16, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Thursday presented investors with a roster of health care stocks that should be on their shopping lists for next year.

“Wall Street likes profitable companies with consistent results, nice dividends and reasonably valued stocks,” he said, adding, “The biggest [health care] winners were boring, consistent operators with cheap stocks.”

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Cramer said that health care stocks have stayed relatively steady this year because they tend to be recession-resistant stocks — in other words, they perform well regardless of the state of the economy.

Here are his picks:

Danaher

Cramer predicted that the company will have a banner year in 2023 and called it “one of the best-run companies in any industry.”

Pfizer

Praising the vaccine maker’s acquisition of Arena Pharmaceuticals, Biohaven and Global Blood Therapeutics, he said that Pfizer stock is a steal.

UnitedHealth Group

Cramer said that he likes the “best-of-breed” managed health care stock.

Humana

He called the stock a “great turnaround story.”

Edwards Lifesciences

Cramer says he likes the stock because the company’s underlying business has been strong, despite the stock being down over 43% for the year.

Disclaimer; Cramer’s Charitable Trust owns shares of Danaher and Humana.

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Cramer on hot industrial stocks, and how we’re playing the tech pivot

December 5, 2022 Admin Leave a comment

The market is so possessed by tech that it can’t see the forest through the industrials. If the discourse isn’t about the slowdown in the cloud, it’s about who is pulling out of the now-private Twitter, or how disappointing it is that co-CEO Bret Taylor left Salesforce (CRM). Meta Platforms ‘ (META) Mark Zuckerberg could sneeze and Amazon (AMZN) CEO) Andy Jassy cough and it’s a bigger deal than United Airlines ‘ (UAL) order for 100 Dreamliners from Boeing (BA). We don’t pay much attention to the industrials anymore. There aren’t that many of them. We are used to them being hostage to so many forces of negativity that they just aren’t worth our focus. That’s wrong. The Dow Jones Industrial Average has done so much better than the average semiconductor company, or even the above-average enterprise software company that it’s insane that we even focus on some of the latter. The 600 companies formed in the last two years rent too much of your brain space even in passing. Advertising, which turned out to be the Achilles heel of everything internet and media, just seems to have vanished. There’s not enough of it to feed the mouths of all of the players and nobody seems to be able to reach the 18- to 24-year-olds with whatever they spend. So they are shelling out a fraction of what they used to spend. It’s so bad that we cheer when a semiconductor company like Marvell Technology (MRVL), guides down and it only edges the stock down slightly. That gives the market hope that some of the inventory glut for chips is near its end. In the meantime, the unheralded industrials gap up on any S & P 500 run, where there never seems enough stock ahead to where you find sellers. I will go into the ones that intrigue — but first, let me just say that the biggest problem with so many of these techs is that there is so much supply at every level. Someone is always a seller. There’s always merchandise up a penny. And it is sizable. The orders, if you could hear them would be something like, “sell 50,000 shares every five cents thereabout for the next dollar and then I will reload when I get my report if there is enough time left at the end of the day. I don’t want to hurt the stock too much because I have so much behind it.” There is endless selling in anything related to the cloud and it isn’t just from the price target reductions. It is from insiders who sense that the era is over and they all compete with each other now, even Amazon, Alphabet (GOOGL) and Meta get that. When the biggest issue with Meta is how much time is Zuckerberg really working on his alleged metaverse pipedream, instead of the highly profitable but slow-growing Instagram, you know you are way too deep in the weeds. Now I want you to hit up the stock of Caterpillar (CAT). When you are in the deep stages of a Federal Reserve interest rate tightening I would normally say that this may be the single best short in the book. Shorting a stock means betting it will go down. But not this time. There is no way CAT can meet its orders. Every industry needs more of what they make, whether it be coal because Europe has taken so many nuclear plants offline and natural gas has risen so much in price, or earthmovers needed for all the roads that are about to be built in this country because of the Democrat’s infrastructure bill, which favors domestic product. Meanwhile, its raw costs are going LOWER. Caterpillar de-emphasized China and emphasized oil and gas. While the public companies have cut back the pace of drilling, the private equity companies are drilling like mad to cover cash flow. Take a look at how CAT acts on up days. There is none for sale. None. A decent day and it always seems like Caterpillar’s stock has rallied three points. Why not; there are 527 million shares outstanding, down 20 million shares. What enterprise software company can say that? There are no stock base compensation issues. Stock is precious. CAT sells at 17 times REAL earnings, not FAKE or MADE UP earnings. That’s what we really should call the shameless non-GAAP adjusted earnings-per-share nonsense we get from these West coasters, which seems a lot like what General Electric (GE) was doing before its collapse. I bet an order to buy 100,000 shares of Caterpillar moves it 2 points. In a year when the S & P 500 dropped 14%, CAT has gained 14% year to date. Not to mention it has an annual dividend yield of 2%. Last week, I met with Emerson Electric (EMR) CEO Lal Karsanbhai. He’s turning this old-line but excellent valve and home appliance maker into a company that digitizes your hardware, that automates your plants while cutting out waste. In less than two years, Karsanbhai has sold slow-growing divisions, bought faster-growing businesses, and joint-ventured others in ways that the arrogant software types can only dream of doing. Like Caterpillar’s stock, EMR is straight up: 4% higher year-to-date. But in the past three months, shares are up 18.5%. I think the idea of bringing in an Emerson to innovate, automate and become cleaner — it also has a huge business in environmental improvement — is one of the first calls I would make if I ran an industrial. It’s an 18 times earnings stock. Anything that happens to Boeing, I am always bittersweet about. We sold some high, we sold some low, but most importantly we were just annoyed by its constant errors. We wanted to play aerospace, though, with so much travel, so we did it with Honeywell (HON). Here’s another story that just never stops ceases to amaze. Another reconfigured company with chemicals that clean the refining process, machines that automate factories, climate controls, and some of the most important parts of an airplane including the cockpit, for not just Boeing but Airbus. Honeywell stock sells at 25 times earnings but its growth is accelerating and it has cash and a balance sheet that is ready to be put to work for anything needed. HON is another one that’s up 5% year to date and more than 17% in the past three months. We know that we have gone through arsenals of low-tech military equipment as has NATO. But this big appropriation boost last week is going to give Raytheon Technologies (RTX) orders it needs to raise numbers for 2023. The anti-missile products that Raytheon specializes in are what I think are now headed to NATO members to do what they want with them, which means take them to Ukraine to defend against the now-nine-month invasion by Russia. Meanwhile, Raytheon’s aerospace, both military and commercial, have too many orders to handle. After some re-configuring as part of the merger between United Technologies and Raytheon, the buyback is in place. The only thing holding this company back is a lack of engineers. Can the people out West learn military engineering? They better learn to do so. RTX is up 17% year to date. I could include so many companies like these, Eaton Corporation (ETN) for pumps, valves and what you need for electrical vehicle charging; Illinois Tool Works (ITW) for equipment like welding, the growth portion of autos, and polymers, and all sorts of in high demand products; or Agilent Technologies (A), a test and measurement company for all sorts of industries that require precision and pinpoint accuracy. You can’t just own these. You won’t know when they stop going straight up. And you can’t just buy them. Jeff Marks, portfolio director for the Investing Club, and I went at it last week when I said that we have to, just have to own Emerson as fast as we can. But one look at the stock tells us that it’s just gone too far too fast. The thing is, they all have. I say let’s take a serious break from the software companies that were claimed to have eaten everything else for breakfast and start discussing the real winners since the November pivot — the companies that were supposed to collapse that, instead, have reinvented themselves and are part of the new industrial economy that’s been automated and digitized and doesn’t need customer relations management because it has too many customers. (Jim Cramer’s Charitable Trust is long CRM, META, AMZN, GOOGL and HON. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Jim Cramer at the NYSE, June 30, 2022.

Virginia Sherwood | CNBC

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Charts suggest the S&P 500 is at a ‘make-or-break’ moment, Jim Cramer says

November 29, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Tuesday said that the S&P 500 is at a critical moment that could send it higher or cut its upward trajectory short.

“The charts, as interpreted by Carolyn Boroden, suggest that the S&P 500 could be due for some near-term turbulence if it can’t break out above last week’s highs,” he said.

The S&P 500 and Nasdaq Composite closed down on Tuesday while the Dow Jones Industrial Average inched up slightly, with stocks struggling to rebound from the previous day’s losses driven by protests against Covid restrictions in China.

To explain Boroden’s analysis, Cramer examined the daily chart of the S&P 500.

The technical analyst sees the index approaching an important hurdle that could pose a real problem for its ability to continue gaining, according to Cramer.

More specifically, the S&P 500’s recent run from the mid-October lows is similar in scale to its rally from late 2021 through early January 2022, he explained. When the rally that started late last year peaked on Jan. 4, the index saw a “nightmare” 1327-point decline into last month’s lows.

“She’s not saying that the rally’s toast. But Boroden says the S&P needs to clear this hurdle — it needs to break out above last week’s high,” he said, adding, “In short, she sees this as a make-or-break moment for the S&P 500, at least in the near-term.”

For more analysis, watch Cramer’s full explanation below.

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Charts suggest the S&P 500 will rally in December, Jim Cramer says

November 21, 2022 Admin Leave a comment

CNBC’s Jim Cramer said Monday that stocks in the benchmark S&P 500 will likely rally next month.

“The charts, as interpreted by the legendary Larry Williams, suggest that the Santa Claus rally is coming to town next month and you’ve got to get ready for it, or else you may be left behind,” he said, referring to the market phenomenon in which stocks gain near the end of the year.

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Stocks could rally as much as 20% in 2023, predicts Wharton’s Jeremy Siegel

Cramer pointed out that Williams said at the end of October — which marked a major month for stocks this year — that stocks could rally through the end of 2022. “Since then we’ve had a very nice run, so as we get closer to the holidays, we’ve got to ask, can it continue?” Cramer said.

He first examined the daily chart of the S&P 500 to explain Williams’ analysis.

The blue line represents Williams’ model of the index’s seasonal pattern, or in other words, the way it historically has traded at any given point in the year. The pattern tends to be bullish for stocks through the end of the year, meaning that the market’s recent strength could be far from over, according to Cramer.

“Williams points out there tends to be two sweet spots for the S&P at this time of year: The first runs through late November, the second runs through mid-to-late December,” he said.

Cramer also analyzed a chart of the S&P 500 that shows Williams’ short-term cycle forecast in red.

If this cycle plays out again, as it has in recent years, then stocks might fall through the end of November. However, there’s a chance that the S&P 500 could soar in early December, according to Cramer.

“Between the seasonal pattern and the short-term cycle, and also the extremely positive long-term cycle that we covered a few weeks ago, he’s seeing a lot of green lights to start buying,” Cramer said.

For more analysis, watch Cramer’s full explanation below.

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Cramer warns growth stocks could see ‘more horror’ after CPI release

November 9, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Wednesday warned that growth stocks could take another beating if the October consumer price index reading shows that inflation is still running rampant.

“If we get a steaming hot CPI reading, you’re going to see more horror on your screen, so that’s why people sold ahead of it,” he said.

The CPI measures the prices for a basket of goods and services. Investors will parse through the October report, set for release Thursday morning, for any signs that inflation has cooled with the view that the Federal Reserve could then ease its brisk pace of interest rate hikes.

Stocks fell on Wednesday, weighed down by a crypto sell-off and uncertainty about which political party will gain control of Congress following the midterm elections. The market’s decline comes after three consecutive days of gains.

Cramer echoed his advice to investors in recent weeks to stay away from semiconductor and tech stocks, including names like Meta, Amazon, Apple, Netflix and Alphabet.

“When rates go up, you immediately get this kneejerk sell-off in virtually everything, but especially in tech,” he said, adding: “Some of these companies are doing much better than others, yet they all trade the same.”

Disclaimer: Cramer’s Charitable Trust owns shares of Meta, Amazon, Apple and Alphabet.

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Charts suggest the market has more upside through the end of the year, Jim Cramer says

October 31, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Monday said that the market could see a rally later this year that lasts through the end of 2022.

“The charts, as interpreted by Larry Williams, were able to call this incredible October rally. … And now he says that this market’s likely got even more upside even through the end of the year,” Cramer said.

Stocks fell on Monday but saw a major comeback in October. The Dow Jones Industrial Average gained 13.95% in its best month since 1976. The S&P 500 and Nasdaq Composite increased about 8% and 3.9%, respectively, in October.

To explain Williams’ analysis, Cramer first examined the chart of the Dow Jones Industrial Average futures in black, and Williams’ true seasonal pattern in blue.

This chart is an updated version of what Williams used earlier this month when accurately predicting October’s rally, and suggests there could be a tremendous rally, according to Cramer.

“That true seasonal pattern is based on the historical pattern at any given point in the year, and it predicted a monster run through mid-November. And it suggests we’ve got another leg higher through the end of the year,” he said, adding that there will be a pause between the rallies.

He then examined a chart that shows the action in the Dow through last week, along with Williams’ long-term cycle forecast in red.

The cycle forecast confirms the bullish previous seasonal forecast in the previous chart, according to Cramer.

“Bulls be prepared, bears beware,” he said.

For more analysis, watch Cramer’s full explanation below.

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Jim Cramer says Big Tech firms need to ‘change the way they operate’ to stay market leaders

October 26, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Wednesday said that some of the biggest tech companies in the world need to adjust to the changing market.

“It’s time to recognize that FAANG names got too big. Can they turn things around? Sure, but they’ve really got to change the way they operate,” he said, referring to his acronym for Facebook-parent Meta, Amazon, Apple, Netflix and Google-parent Alphabet.

Cramer previously said that financial stocks could overtake tech stocks as the new market leaders in the current high-interest-rate environment. Banks benefit from higher interest rates because they can earn more on loans.

High-growth tech companies such as FAANG names, meanwhile, are hurt by higher interest rates because their stocks trade on the promise of higher returns down the line — a risk that investors typically aren’t willing to take in a turbulent economic environment.

Cramer’s comment comes on the heels of several disappointing earnings results from Big Tech firms. Alphabet missed third-quarter revenue and profit expectations on Tuesday, while Microsoft issued weak quarterly guidance that weighed down its stock.

Meta Platforms reported a wide miss on third-quarter earnings after the close on Wednesday, which sent its stock tumbling over 18% in after-hours trading.

Netflix has fared better than its tech peers, reporting a third-quarter top-and-bottom beat on Oct. 18 along with substantial subscriber growth. The company also provided updates on its plans to crack down on password sharing and introduce a new ad-supported tier.

Cramer said that the streaming giant’s plans for the latter initiative exemplify the type of innovation FAANG companies need to stop their downward trajectory.

“Forget being leaders — Big [Tech] stocks are now followers in a post-Covid era where we’re learning that their earnings were far more inflated by the pandemic than we knew,” he said.

Amazon is slated to report its third-quarter earnings on Thursday.

Disclaimer: Cramer’s Charitable Trust owns shares of Alphabet, Apple, Amazon, Meta and Netflix.

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Charts suggest the U.S. dollar could be peaking, Jim Cramer says

October 24, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Monday said that the spiking U.S. dollar could peak soon.

“The strong dollar has become an albatross around the neck of an already beaten-down market, but now the charts, at last, as interpreted by Carley Garner, suggest the dollar could be peaking,” he said.

The value of the U.S. dollar has surged in recent months, driven by the Federal Reserve’s aggressive interest rate raises and the hot U.S. economy. That’s been a headwind to companies that conduct business largely overseas and are therefore subject to an unfavorable exchange rate.

“Everything else — stocks, commodities, bonds — have all swung back this year. As Garner sees it, the greenback is the last holdout, and she doesn’t think it will last,” he said.

To explain Garner’s analysis, Cramer examined the weekly chart of the dollar index going back to 2017.

The dollar’s been known to make “dramatic tops,” according to Garner, and the last three peaks follow a trend line that dates back to 2016, Cramer said. The dollar’s just under that trend line, which is a ceiling of resistance and a potential point of reversal, he said.

Garner expects that the dollar will fall if it can’t break through that ceiling.

“Currently, the dollar index is at 112, and she wouldn’t be surprised if it hits 105 on the downside,” he said, adding that Garner believes the dollar index could tumble all the way to 97, where it was trading before Russia invaded Ukraine earlier this year.

For more analysis, watch Cramer’s full explanation below.

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Tag Archives: Cramer

Cramer says he likes these technology and real-estate stocks for 2023

Tech picks for 2023

Real estate picks for 2023

Jim Cramer’s Guide to Investing

Jim Cramer says he likes these 3 industrial stocks heading into 2023

Jim Cramer’s Guide to Investing

Jim Cramer recommends these 5 health care stocks in 2023

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Jim Cramer’s Guide to Investing

Cramer on hot industrial stocks, and how we’re playing the tech pivot

Charts suggest the S&P 500 is at a ‘make-or-break’ moment, Jim Cramer says

Jim Cramer’s Guide to Investing

Charts suggest the S&P 500 will rally in December, Jim Cramer says

related investing news

Jim Cramer’s Guide to Investing

Cramer warns growth stocks could see ‘more horror’ after CPI release

Jim Cramer’s Guide to Investing

Charts suggest the market has more upside through the end of the year, Jim Cramer says

Jim Cramer’s Guide to Investing

Jim Cramer says Big Tech firms need to ‘change the way they operate’ to stay market leaders

Jim Cramer’s Guide to Investing

Charts suggest the U.S. dollar could be peaking, Jim Cramer says

Jim Cramer’s Guide to Investing

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