Jim Cramer's Sept. 20 Stock Picks

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Includes: AA, ADBE, AVT, CMG, CTL, FCX, GTATQ, HCBK, IAC, NRG, ORCL, RHT, XCO
by: Insider Monkey

Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of Mad Money and 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 on his show are the starting point for many investments made by these folks.

During the September 20th show, Cramer discussed the following stocks.

Chipotle Mexican Grill (NYSE:CMG): Cramer loves this high-end natural food restaurant for its terrific management, quality product and efficiency in store operations. He recommends taking some profits because the stock has gone up too much on the news of a new ShopHouse Asian restaurant concept. Chipotle has a $10.44 billion market cap and trades at 55.7 times earnings. Louis Navellier of Navellier & Associates reduced his position by 4% (see more of Navellier’s picks).

Freeport-McMoran (NYSE:FCX): This accidental high-yielder is still a favorite of Cramer’s. While the chart is bad and analysts are down on copper all of a sudden, Cramer thinks the stock should be bought with discipline on the way down. Cramer’s charitable trust owns FCX. Freeport-McMoran has a $36.54 billion market cap and yields 3.9%. Ken Fisher of Fisher Asset Management reduced his position by 41% (see more of Fisher’s stocks here).

NRG Energy (NYSE:NRG): Cramer likes this utility company because it has “real vision.” NRG Energy helped the NFL’s Washington Redskins create a solar-powered stadium and has a diversified portfolio of energy (including nuclear power, natural gas, coal, wind and solar). Cramer gave the stock a buy recommendation, partly because the recent buybacks were due to the stock’s low price and not because of a disbelief in dividends.

Oracle (NASDAQ:ORCL) and Adobe Systems (NASDAQ:ADBE) reported positive earnings; reflecting his stance on September being a positive rebounding season for tech stocks. Jim Cramer’s charitable trust owns ORCL.

Avnet (NYSE:AVT): This distributor of IT hardware is “too cheap” for Cramer and he thinks it’s a buy at 6.4 times earnings with a 12% growth rate. Avnet spreads across many platforms, making it a great way to gauge the industry overall. Avnet has a $4.14 billion market cap.

Red Hat (NYSE:RHT): Although surprisingly cheap at $40, Cramer wants to wait until the company reports quarterly earnings later in the week before recommending an action on the cloud network services company. Red Hat has a $7.75 billion market cap and trades at 70 times earnings.

IAC/InterActive Corp (IACI): Cramer thinks the stock looks good and the executives’ aggressive buybacks could be a strong sign. This diversified services company has a $3.58 billion market cap and trades at 65 times earnings.

GT Advanced Technologies (GTAT): Cramer is not a fan of solar-equipment makers and quickly gave GT Advanced Technologies a sell recommendation. GTAT has a $1 billion market cap and trades at 5.9 times earnings.

Hudson City Bancorp (NASDAQ:HCBK): Cramer didn’t single out Hudson City Bancorp, and advised against owning any banks because they simply can’t make enough money in these economic conditions. Hudson City Bancorp has a $3.13 billion market cap and yields 5.4%.

Alcoa (NYSE:AA): The price of this aluminum producer’s stock has fallen 6 points since Cramer has been heavily recommending it, and the decline hasn’t changed his mind. Cramer thinks Alcoa is a buy, referring to the low price as representing good value. Cramer’s charitable trust owns Alcoa. The stock trades at 13.5 times earnings and the company has a $12 billion market cap. John Paulson of Paulson & Co. owns 170 million shares (see more of Paulson’s holdings).

EXCO Resources (NYSE:XCO): Cramer thinks the price of this energy stock is too low to ignore and suggests using it as an opportunity to get a position in natural gas. EXCO Resources trades at 28 times earnings, yields 1.3% and has a $2.58 billion market cap.

CenturyLink (NYSE:CTL): Cramer gave CenturyLink a buy recommendation because it has a higher yield than AT&T (NYSE:T) or Verizon (NYSE:VZ), although it doesn’t have their growth potential. The communications company has a $21.35 billion market cap and yields 8.3%. Last month Cramer was bearish about the stock.

Disclosure: I am long T, CTL.