Jim Cramer's Favorite 15 Stocks Of The Last Month

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Includes: AA, AAPL, AEP, ARMH, CMI, DMND, DVMT, ESV, FDX, FE, GOLD, IP, JNPR, NLY, PEP
by: Insider Monkey

Jim Cramer is the host of CNBC's Mad Money and co-founder 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 are the starting point for many investments made by these folks.

During the last 30 days, his favorite 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 (%) (vs. S&P500)

Apple (NASDAQ:AAPL)

7

10/14/10

22.3%

21.8%

Alcoa (NYSE:AA)

4

10/11/10

-24.3%

-25.2%

Randgold Resources (NASDAQ:GOLD)

4

9/12/11

-10.0%

-9.7%

Juniper Networks (NYSE:JNPR)

4

10/20/10

-40.7%

-40.8%

PepsiCo (NYSE:PEP)

4

8/5/11

-4.9%

-1.8%

American Electric Power (NYSE:AEP)

3

7/18/11

3.0%

15.7%

ARM Holdings (NASDAQ:ARMH)

3

5/18/11

-9.6%

3.9%

Cummins (NYSE:CMI)

3

10/21/10

-2.7%

-2.6%

Diamond Foods (NASDAQ:DMND)

3

10/15/10

70.3%

69.9%

EMC (EMC)

3

11/5/10

3.8%

7.9%

Ensco International (NYSE:ESV)

3

6/3/11

-25.8%

-17.2%

FedEx (NYSE:FDX)

3

12/16/10

-24.2%

-19.9%

FirstEnergy (NYSE:FE)

3

10/3/11

1.6%

-3.5%

International Paper (NYSE:IP)

3

11/23/10

0.2%

0.6%

Annaly Capital (NYSE:NLY)

3

11/12/10

0.1%

2.0%

Average

-2.7%

0.1%

Click to enlarge

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

**Includes the duration from first date till October 8.

Cramer's favorite stock recommendations lost 2.7% on average since they have been recommended. The average relative performance of these stocks against the S&P500 (SPY) is 0.1%. 7 of his favorite 15 stocks have managed to beat the market.

Cramer's most favorite stock during the last 30 days was Apple. He repeated his buy recommendation of Apple seven times during the last 30 days. His mentions were negative about Apple on September 30 and October 3, but he started his buy recommendations of Apple on October 6 after the loss of Steve Jobs. AAPL recently traded at $369.8 and has gained 22.3% since October 14, 2010, outperforming the SPY by 21.8 percentage points. The stock has a market cap of $343 billion and P/E ratio of 14.6. Cramer had 200 shares of AAPL as of September 15, and Ray Dalio increased his position in AAPL by 367% to $10.5 million during the second quarter. Rob Citrone is another main holder of AAPL.

Cramer's other favorite stock during last 30 days was Alcoa. He repeated his buy recommendation of AA four times during the last 30 days. Cramer recently 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 also owns Alcoa. AA has lost 24.3% since October 11, 2010, underperforming the SPY by 25.2 percentage points. AA has a market cap of $10.3 billion, P/E ratio of 11.1 and dividend yield of 1.2%. John Paulson had $430 million invested in AA at the end of second quarter.

Cramer repeated his buy recommendation of GOLD four times during the last 30 days. GOLD recently traded at $97.71 and has lost 10% since September 12, 2011, underperforming the SPY by 9.7 percentage points. GOLD has a market cap of $8.9 billion, dividend yield of 0.2%, Total Debt / Equity ratio of 0 and P/E ratio of 44. The stock also had a 47.76% EPS growth in the last five years. Billionaire John Paulson had $59 million in GOLD at the end of June (see John Paulson’s top stock picks).

One of Cramer's most favorite stocks during the last 30 days was Juniper Networks. He repeated his buy recommendation of JNPR four times during the last 30 days. Juniper Networks provides network infrastructure that creates responsive and trusted environments. JNPR recently traded at $19.05 and has lost 40.7% since October 20, 2010, underperforming the SPY by 40.8 percentage points. The stock has a market cap of $10.1 billion, Total Debt/Equity ratio of 0.14 and P/E ratio of 18.2. The stock also had a 21.88% EPS growth in the last five years. Jim Simons initiated a brand new position in JNPR during the second quarter (see Jim Simons’ top stock picks).

Cramer repeated his buy recommendation of PEP four times during the last 30 days. PEP recently traded at $61.02 and has lost 4.9% since Aug 5, 2011, beating the SPY by 4.2 percentage points. The stock has a market cap of $96.6 billion, dividend yield of 3.4% and P/E ratio of 15.5. Boykin Curry had more than $350 million in PEP at the end of June 2011.

Disclosure: I am long FE.