Jim Cramer is one of the most watched TV personalities on CNBC. He is the host of Mad Money and is also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV, and most of these are ordinary investors trying to understand what’s going on in the market. Jim Cramer’s bullish and bearish stock picks is the starting point for many investments made by these folks.
Cramer provided a shopping list of stocks poised to do well in a volatile market, and they should be purchased during the next downturn in order to get a better price.
Cramer’s shopping list of resilient stocks that would provide cushion when everyone else is “running for the exits” performed well compared to the market. Only Honeywell (HON) dropped low enough to reach Cramer’s recommended "buy" levels.
ConEd (ED): ConEd is a utility company that yields 4.5% and has paid dividends for over 36 consecutive years. It’s based in New York, one of the few areas of the country with a stable housing market. The stock currently trades at 15 times earnings.
Verizon (VZ): Cramer praised Verizon’s efforts to remove the costs of operating landlines, because they aren’t making the money they need to justify operations. In light of recent labor problems and strikes, Cramer recommended this telecommunications stock because of its 5.8% yield as well as his belief that Verizon will eventually come out on top of labor struggles. George Soros of Soros Fund Management increased his position by 62% (see more of Soros’ picks).
Enterprise Product Partners (EPD): Cramer loves this pipeline operator’s safe, high yield of 6%. Not to mention the steady demand for its pipelines since 2008. John Osterweis’ Osterweis Capital Management has a large position in EPD shares. (Find more of Osterweis’ holdings here).
Bristol-Myers Squibb (BMY): This is a potential takeover target whose fundamentals are solid. Cramer recommended this stock because they also have some new drug discoveries, and their skin cancer medicine is selling well. The stock yields 4.5%.
Darden (DRI): Cramer likes this restaurant, primarily due to the decline in WTI crude prices. Darden’s CEO, Clarence Otis, Jr., said earnings are set to go higher because of decreasing gas prices. Otis said high gas prices act like an additional tax on the consumer. The stock features a 3% yield. DRI represents almost 4% of Patrick McCormack’s portfolio. (See McCormack’s other holdings).
Kimberly-Clark (KMB): Cramer thinks now could be a good time to get into this paper company because of decreasing oil-related raw material costs. The stock yields 4.25%, and has a beta of 0.39.
International Paper (IP): This global paper and packaging company is levered to fast-growing emerging markets. After it became an accidental high-yielder (close to 4.5%), Cramer recommended owing International Paper.
Equity One (EQY): A shopping-center ETF just experienced a $5.5 million dollar share purchase from the firm’s chairman. Cramer doesn’t feel it’s close to Federal Realty Investment Trust (FRT), though it is a good risk-reward stock. Ken Griffin’s Citadel Investment Group increased its position in EQY by 29% during first quarter (see more of Griffin’s picks here).
Dominion Resources (D): Having considerable exposure to well-performing shales, including Marcellus, this electricity generation and transportation company is yielding 4%.
NuStar Energy (NS): This energy company recently entered into a joint venture with Cramer-favorite EOG Resources (EOG) and their management just purchased $700,000 dollars worth of shares. NuStar yields over 7.5%.
Windstream (WIN): The chairman of this communications company bought $111,000 dollars worth of stock, and Cramer is confident that he wouldn’t have done so if Windstream was going the way of its competitors. The stock is yielding 8.5%. Robert Raiff of Raiff Partners increased his position to 2.64% in the company during first quarter.
Honeywell (HON): The stock fell 3 points because of a downgrade to market perform from Sanford-Bernstein. Although Cramer thought it resulted more from macroeconomic concerns than the company itself. The stock finally hit Cramer’s recommended levels to buy. Phill Gross and Robert Atchinson of Adage Capital Management has a large position in the company (see more of Atchison and Gross’ picks).