Jim Cramer’s stock picks usually beat the market on the average. 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.
Ken Fisher of Fisher Asset Management is a household name in investing. During the last 14 years, Fisher’s picks have outperformed the S&P for 11 of them. Fisher has authored three New York Times bestsellers on money management. Of his firm’s top 30 holdings, these are the stocks Fisher and Cramer both love:
Exxon Mobil (XOM): Cramer exclaimed that Exxon Mobil was fine after a viewer called in asking if his whole position should be dumped. Chevron (CVX) is still Cramer’s preferred oil stock. Bill Miller at Legg Mason Management has upped his position in Chevron (see Miller’s current stock picks here).
Caterpillar (CAT): Cramer gave a buy recommendation to Caterpillar, especially if the stock were to tick lower. United Rentals (URI) is a CAT distributor that has reported selling out of the equipment last month. Cramer said CAT was one of the most “bedraggled” stocks to own in this market and thinks it’s incredibly cheap. Caterpillar is trading at 14 times earnings and generating $6.05 earnings per share.
Amazon (AMZN): A viewer asked Cramer during Mad Mail if Amazon was considered a true tech company. Cramer replied that it is more than just a tech company. It is a retail stock; the world’s largest, in fact. Cramer highly recommends the growth stock. This mega retailer has successfully forged forward in the mobile internet space with its Kindle e-Reader. The company has a $98 billion market cap and trades at 93 times earnings. Louis Navellier of Navellier and Associates reduced his position in AMZN by 5% (see more of Navellier’s stock picks).
Oracle (ORCL): This tech stock dominates the enterprise market and has just received mixed reviews from a number of financial firms. While RBC Capital downgraded it, Credit Agricole and FBR both upgraded it. RBC was worried about the company’s combined hardware and software strategy as well as competitors taking away market share. Cramer thought they overlooked the biggest concern, which is the chance of slashed corporate IT budgets if the global economy continues to slow down. For a tech company to be a good buy in this market, Cramer said it needs to have exposure to strong end markets, high returns and a strong balance sheet. Oracle has all three. In addition, ORCL has new products that will help the firm take market share and gain double digit growth. Even in this market, it still managed to deliver 17% earnings growth. The stock is relatively cheap trading at 11 times forward earnings.
Dover Corp. (DOV): This great industrial company owns a lot of different businesses to spare and Cramer recommends buying it. Dover Corp. has a $10.7 billion market cap, trades at 12.5 times earnings and yields 2.2%.
Sanofi-Aventis (SNY): Cramer again recommended buying this high-yielding pharmaceutical with a low valuation. The company has a $98.77 billion market cap and the stock currently yields 3.8%. Fisher increased his position by 11%. Sanofi-Aventis now represents 1.5% of his portfolio.
Schlumberger (SLB): This company provides information solutions, technology and project management to oil and gas exploration/production industry around the world. Evidently, both Cramer and Fisher feel this is a great area to be in as the price of oil has remained high over the past couple of years and is showing no signs of a significant reduction. Schlumberger has a $105.4 billion market cap. The stock trades at 20 times earnings and yields 1.3%.
EMC Corporation (EMC) operates in the information technology sector, primarily by providing information infrastructure and data center operations. As more companies move into the cloud, Cramer said companies focused on providing data centers are the way to play it. EMC Corp. has a $46.65 billion market cap and trades at 23 times earnings.
Baidu (BIDU): Baidu is the only Chinese stock Cramer will recommend, no matter how many similar companies emerge. Baidu is best known as the “Google” of China. The company has a $50.8 billion market cap and trades at 47 times earnings. Fisher recently increased his position by 18%.
Unilever (UN): This consumer goods giant has been a consistent performer during the recent market turmoil. Unilever has a $102.85 billion market cap and yields 3.8%. The stock closed right below its 52-week high of $34.27. Fisher owns over 15M shares (check out Fisher’s entire 13F portfolio).