Jim Cramer is the host of CNBC's "Mad Money" and the 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 (ten stocks that are recommended in at least two separate shows) on "Mad Money" were as follows:
Baidu (BIDU): Cramer advised viewers to stick with Baidu twice this week. While a viewer expressed concern over China announcing crackdowns over foreign ownership, Cramer said it is still fine to own the Chinese search engine company. Baidu has a $44.57 billion market cap and trades at 38.7 times earnings.
Freeport-McMoRan (FCX): Freeport-McMoRan received a buy recommendation twice. Cramer’s charitable trust owns this mining company and Cramer still thinks it is a buy, stating the stock is “ridiculously cheap”. Cramer thinks the stock is going to be up dramatically by this time next year. Freeport has a $33 billion market cap, yields 4.4% and trades at 9 times earnings. Ken Heebner of Capital Growth Management owns over 1.9 million shares (see Ken Heebner’s stock picks).
Paychex (PAYX): Cramer advised owning this payroll management and human resources company twice last week. Paychex is levered to hiring and job creation, which would lead investors to believe that the stock would get pummeled. Cramer said instead of making excuses, Paychex implements strategic changes in order to deliver 13% growth and a 4.6% yield.
Yum! Brands (YUM): With increasing news on China’s economic slowdown, Cramer is looking forward to YUM! Brands’ (owner/operator of KFC, Taco Bell and Pizza Hut) earnings report on Tuesday, Oct. 4th. YUM! Brands yields 2.3%, trades at 19 times earnings and has a $22.94 billion market cap. Bill Miller of Legg Mason Capital Management reduced his position by 19% (see Bill Miller’s stock picks).
American Electric Power (AEP): One of the largest electric utilities in the U.S., American Electric offers a 4.9% yield. Despite regulatory headwinds from the Environmental Protection Agency, Cramer thinks the dividend will be safe as long as they can pass on the increased costs to the consumer. American Electric trades at 12.7 times earnings and has a market cap of $18.18 billion.
Alcoa (AA): Cramer said Alcoa is struggling to hold its own levels, which Cramer directly correlates to China’s lack of demand for the metal. Cramer’s charitable trust owns Alcoa. Alcoa has a $11.15 billion market cap, yields 1.1% and trades at 12 times earnings.
Amazon (AMZN): Cramer recommended Amazon twice last week. With the unveiling of their new tablet, the Fire, Amazon made some serious market news. While many analysts expect it to interfere with the Android market, few suspect it of having a serious impact on Apple’s (AAPL) industry leading iPad. Cramer recommending owning both companies with deep-in-the-money calls that are purchased on a market downturn.
Wynn Resorts (WYNN): Cramer loves this stock and said it could ramp up on the interest rate news from China because their most important market is Macau. However, the stock has been down heavily on the prospect for slow growth in China. This gaming company has a $19 billion market cap and yields 1.3%.
Caterpillar (CAT): This Cramer-favorite has experienced trouble in China since the country’s inflation fears became widespread. The heavy-equipment maker has a $52 billion market cap and the stock yields 2%. Louis Navellier of Navellier & Associates owns over 400,000 shares (see more of Navellier’s stocks here).
Coach (COH): Cramer likes this leather goods maker and thinks it needs to be bought on the way down. Coach is also a major China-play. The stock has been down on growth concerns and rising inflation in China. Coach has a $15.5 billion market cap, trades at 18 times earnings and yields 1.6%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.