Jim Cramer is the host of CNBC's Mad Money and chairman of TheStreet.com. In 1987, Cramer started his own hedge fund and returned an average of 24% per year between 1987 and 2001. Cramer also authored six money management books.
During the last week, his favorite buy recommendations (10 stocks that are recommended in at least two separate shows) on Mad Money were as follows:
1. Verizon (NYSE:VZ): Cramer recommended Verizon twice in the past week. In light of recent labor problems, Cramer said that Verizon needs to remove the costs of operating landlines, as they are not making the money Verizon needs them to in order to justify operations. This telecommunications stock received a buy recommendation from Cramer because of its 5.8% yield as well as his belief that Verizon will come out on top with their labor issues.
2. EOG Resources (NYSE:EOG): Cramer rated this stock as a buy twice last week. This domestic oil and gas producer reported a terrific quarter and beat estimates by $0.32. Cramer feels this is a growth stock that is poised to do well when oil prices bottom. T. Boone Pickens of BP Capital has increased buying of EOG (see more of BP Capital’s holdings here). Cramer stated that EOG Resources is the most underrated stock in the oil market. This market is giving EOG too little recognition for the company’s assets (considering BHP Billiton’s (NYSE:BHP) willingness to purchase Petrohawk (NYSE:HK) for $12.1B) and is providing a chance to own one of Cramer’s absolute favorite stocks. EOG earned $1.11 per share, beating estimates by $0.32 cents per share. The company doesn’t need high crude prices to maintain earnings, as they have ample new production.
3. Wynn Resorts (NASDAQ:WYNN): Cramer expressed his love of this gaming stock twice in the past week. “In Steve Wynn I trust,” exclaimed Cramer, who thinks Wynn Resorts is poised to go higher. Cramer said casinos are similar to restaurants in that when the price of gas goes down, the more discretionary income a consumer has to spend elsewhere. While Cramer doesn‘t think Penn Natl. Gaming (NASDAQ:PENN) is bad, he prefers Wynn played with deep in the money calls. Morgan Stanley saw the firm as one of the “best-positioned” in gaming due to its product pipeline strength.
4. Perrigo (NYSE:PRGO): Cramer recommended this stock twice over the past five days. Referred to by Cramer as the “best knock-off company known to man,” he believed it would report a good quarter. This “knock-off” producer opened down 8 points Tuesday when traders thought they were pouring cold water on future expectations, but rallied 9 points instantly. It was just a conservative move from one of Cramer’s favorite stocks.
5. Saks (NYSE:SKS): Cramer recommended Saks twice last week. This high-end fashion retailer reported a better than expected quarter, although the stock has dropped 31% since March. Chairman and CEO Steve Sadove said the company is experiencing 15% top-line growth and the online business growth is up 50% since its inception. In 2010, Saks Direct (the online arm of Saks) saw revenue increase 28% year-over-year. The retailer is also seeing solid sales figures. In 2010, about 70% of sales were at full-price. Cramer doesn’t understand how the stock price is so low, and suggests that means it should be bought.
6. Cisco Systems (NASDAQ:CSCO): Cramer gave this stock a buy recommendation while remaining quite bearish on the tech industry as a whole. “Cisco is okay to own,” he said. “If it drops below $15, buy it. It’s no longer in the dog house.” Zeke Ashton of Centaur Capital Partners has CSCO shares representing more than 7.5% of their portfolio (see Ashton’s other picks here).
7. Home Depot (NYSE:HD): Cramer recommended this stock twice in the past week, once on its own and once in comparison to Lowe‘s (NYSE:LOW). The world‘s largest home improvement retailer reported a great earnings quarter in which net income rose 14% (primarily due to storm damage). Cramer recommends owning stock from this company that continues to deliver. Jason Capello of Merchants’ Gate Capital may feel differently, as he reduced his firm’s portfolio exposure to Home Depot by 29% (see more of Capello’s holdings here).
8. Starbucks (NASDAQ:SBUX): Cramer raved about this stock twice during the past week. This renowned coffee producer/retailer has not seen a decrease in sales lately and Cramer recommends buying this stock as the company’s gross margins could surge. Cramer recommends owning Starbucks because Howard Shultz pledged to keep out of politics and to continue to hire. Glenn Russell Dubin of Highbridge Capital Management purchased a considerable position in the coffee retailer.
9. SPDR Gold Trust (NYSEARCA:GLD): Cramer recommended playing the precious metal through this ETF twice last week. With the price of gold up 25% YTD, Cramer bolstered his stance on owning gold to insure the portfolio against drops in markets. Cramer stated the SPDR Gold Trust ETF is the safest, most convenient way to play the precious metal. John Paulson of Paulson & Co. has 13% of its 13F portfolio in GLD. Gold is not done going up and the only time Cramer would recommend selling gold is when it represents more than 20% of your portfolio.
10. Whole Foods (NASDAQ:WFM): This past week, Cramer recommended owning this natural, organic food supermarket two times. Cramer said he does not like the supermarkets and gave Winn-Dixie (NASDAQ:WINN) a sell recommendation. However, Cramer reinforced that he did like Whole Foods. The stock has a market cap of $10.2 billion and P/E ratio of 31.68.
Additional disclosure: I am long physical gold.