Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message| ()  

Jim Cramer is the host of CNBC's Mad Money and the chairman of TheStreet.com. Nearly 250,000 people watch his show daily on TV and most of these are ordinary investors trying to understand what’s going on in the market. Cramer’s bullish and bearish stock picks on his show is the starting point for many investments made by these folks.

During the last 30 days his favorites buy recommendations (based on number of days the stocks were mentioned) on Mad Money were as follows:

Company

No. Of Times Picked

First Date*

Return (%)**

Excess Return (%) (wrt S&P500)

Apple (AAPL)

6

8/26/10

48.2%

35.7%

Consolidated Edison (ED)

6

9/24/10

16.7%

17.2%

Chesapeake Energy (CHK)

4

1/6/11

10.5%

23.8%

Chipotle Mexican Grill (CMG)

4

4/29/11

4.7%

26.2%

Starbucks (SBUX)

4

11/15/10

15.8%

21.6%

Verizon (VZ)

4

9/27/10

11.4%

11.4%

Whole Foods (WFM)

4

5/26/11

-6.1%

10.4%

Alcoa (AA)

3

10/11/10

-12.6%

-10.8%

Amazon.com (AMZN)

3

9/22/10

17.8%

16.9%

Baidu.com (BIDU)

3

9/10/10

50.6%

46.1%

Caterpillar (CAT)

3

9/7/10

16.9%

11.5%

Cummins (CMI)

3

10/21/10

-13.7%

-10.8%

Eaton (ETN)

3

10/21/10

-11.6%

-8.7%

Kimberly-Clark (KMB)

3

6/20/11

-2.1%

10.9%

PPG Industries (PPG)

3

9/17/10

-1.8%

-3.3%

Average

9.6%

13.2%

* Represents latest recommendation change from sell to buy. The study interval includes only past one year.

** Includes the duration from first date till August 21.

Cramer's favorite stock recommendations returned 9.6% on average since they have been recommended. The average relative performance of these stocks against the S&P500 (SPY) is 13.2%. 11 of his favorite 15 stocks have managed to beat the market.

Cramer's most favorite stocks during the last 30 days were Apple and Consolidated Edison. He repeated his buy recommendation of these stocks six times during the last 30 days. AAPL has a market cap of $330 billion and P/E ratio of 14.1. AAPL recently traded at $356.03 and has gained 48.2% since August 26, 2010, beating the SPY by 35.7 percentage points. During the show August 18, Cramer asked his viewers to stay away from the financials and technology sectors. Cramer said Apple, Amazon and Salesforce (CRM) are three exceptions to the rule and can break the gravitational pull by growing their earnings strongly during this period. Rob Citrone’s Discovery Capital Management had $633 million invested in AAPL at the end of March. Apple is one of 10 most popular stocks among hedge funds (see the 10 most popular stocks).

Consolidated Edison, New York based utility company, operates in one of the few areas of the country with a stable housing market. Consolidated Edison has gained 16.7% since September 24, 2010, beating the SPY by 17.2 percentage points. The stock has a market cap of $15.9 billion, dividend yield of 4.4% and P/E ratio of 14.9. ED is also one of the 35 Growing Dividend Stocks with Low PE Ratios (see full list of these stocks here).

Cramer's other most favorite stock during last 30 days was Chesapeake Energy Corporation. He repeated his buy recommendation of CHK four times during the last 30 days. CHK has gained 10.5% since January 6, 2011, beating the SPY by 23.8 percentage points. The stock has a market cap of $18.6 billion, P/E ratio of 19.5 and dividend yield of 1.2%. Twelve hedge funds had CHK among their top 10 holdings. Hedge funds collectively own 5% of CHK’s outstanding shares. Mason Hawkins’ Southeastern Asset Management and Robert Pohly’s Samlyn Capital had large CHK holdings at the end of March.

Cramer also repeated his buy recommendation of CMG four times during the last 30 days. CMG has a market cap of $8.76 billion and P/E ratio of 46.2. CMG recently traded at $279.37 and has gained 4.7% since Apr 29, 2011, beating the SPY by 26.2 percentage points.

Starbucks recently traded at $35.1 and has gained 15.8% since November 15, 2010, beating the SPY by 21.6 percentage points. 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.

Source: Jim Cramer's 15 Favorite Stocks