Jim Cramer is known for his top performing returns when running a hedge fund and for his stock picks on the Mad Money television show. Many investors follow Cramer regularly and often buy stocks based on his recommendations. CNBC recently released a list of Cramer's favorite tech stocks. Tech stocks are a great place to find value and growth. Consumers and businesses are only growing more reliant on technology, and this trend will continue even in a weak economy. With very few people excited about investing in this market, you are almost sure to get a deal on most stocks. Now is a great time to consider some of these tech stocks that Cramer has given a buy rating, and buy them on market dips:
Jabil Circuit, Inc. (JBL) provides manufacturing and design services for a variety of electronics products like circuit boards. This stock has been climbing steadily in recent days after hitting lows around $15 per share in October. Because it's now back at the upper end of the trading range, it makes sense to wait for better buying opportunities. The stock looks like a good value based on the price to earnings ratio, but with the market dropping so often, it makes sense to buy on dips only.
Here are some key points for JBL: Current share price: $20.71 The 52 week range is $13.67 to $23.09 Earnings estimates for 2011: $2.58 Earnings estimates for 2012: $2.93 Annual dividend: 32 cents per share which yields 1.6%
NVIDIA Corporation (NVDA) is a leading maker of 3D graphics chips for the computer industry. This stock traded around $19 a couple of months ago, then fell to about $12.50 during the market correction and is now starting to rebound. The demand for NVIDIA products is only likely to rise as consumers seek higher-end graphics on all technology products.
Here are some key points for NVDA: Current share price: $14.20. The 52 week range is $11.47 to $26.17 Earnings estimates for 2011: $1 Earnings estimates for 2012: $1.15 Annual dividend: none
Juniper Networks, Inc. (JNPR) is a leading maker of networking equipment. This stock recently fell to about $18, but it has rebounded sharply to nearly $25 per share. Because of that, it makes sense to wait for pullbacks. Another option is to buy Cisco (CSCO) which appears to be a better value based on earnings power. However, Cramer likes this stock now.
Here are some key points for JNPR: Current share price: $23.71 The 52 week range is $16.67 to $45.01 Earnings estimates for 2011: $1.28 Earnings estimates for 2012: $1.52 Annual dividend: none
Seagate Technology (STX) is a leading maker of computer disk drives and also provides data storage services for a wide range of businesses. This stock was trading around $16 in July and then hit 52 week lows recently. It has rebounded sharply from the recent low of about $9.50 per share, and has just about doubled in a very short time. I think it makes sense to take profits and buy at lower prices since the stock is overbought now.
Here are some key points for STX: Current share price: $18.35 The 52 week range is $9.05 to $18.60 Earnings estimates for 2011: $1.51 per share Earnings estimates for 2012: $2.02 per share Annual dividend: 72 cents per share which yields about 3.9%
EMC Corporation (EMC) provides enterprise storage systems and software. Cramer has given this stock a buy rating. EMC shares were trading around $28 in July and have been pummeled, losing nearly 20% of their value in just a few weeks. Because worldwide data storage needs should continue to grow, this looks like a solid value on any dips.
Here are some key points for EMC: Current share price: $24.60 The 52 week range is $19.39 to $28.73 Earnings estimates for 2011: $1.48 Earnings estimates for 2012: $1.73 Annual dividend: none
Avnet, Inc. (AVT) is a leading distributor of electronic components. This stock was trading around $36 per share and has steadily declined to current levels. It looks oversold and fundamentally cheap when you consider the earnings are expected to be over $4 per share. The book value is about $26.55, so the stock looks like a bargain based on that as well. It's not hard to see why Cramer gives this stock a buy rating. Here are some key points for AVT: Current share price: $30.70 The 52 week range is $23.69 to $38. Earnings estimates for 2011: $4.01 per share. Earnings estimates for 2012: $4.27 per share. Annual dividend: none
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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