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Jim Cramer has been the host of Mad Money on CNBC since 2005. Nearly 250,000 people watch his show daily on TV. Among 110 stocks that were recommended on Jim Cramer's Mad Money during the last 30 days, we have compiled his favorite buy recommendations based on number of days the stocks were recommended. By comparing the short-term performances of his picks during the few days after his recommendations, we found that he has no direct impact on the stocks he is recommending. However, in the long run, his picks are extremely successful as can be seen in the below graphs. Our study interval is one year. We obtained average sector ratios from Yahoo Finance and all other market data from Finviz.

Company

No. Of Times Recommended During The Last 30 Days

First Picked During The Last Year

Return (%) Since First Picked

Excess Return (%) (against S&P500)

Chipotle Mexican Grill (NYSE:CMG)

5

5/26/11

38.5%

36.1%

Starbucks (NASDAQ:SBUX)

5

6/14/11

53.9%

47.1%

AT&T (NYSE:T)

5

9/22/11

26.8%

6.8%

Apple (NASDAQ:AAPL)

4

5/25/11

67.1%

63.4%

Costco (NASDAQ:COST)

4

5/23/11

2.0%

-0.5%

Verizon (NYSE:VZ)

4

6/10/11

24.7%

17.6%

Average

35.5%

28.4%

Jim Cramer's favorite stock recommendations returned 35.5% on average since they have been recommended. The average relative performance of these stocks against the S&P 500 is 28.4%. Five out of six of his favorite stocks have managed to beat the market.

Chipotle Mexican Grill operates fast-casual, fresh Mexican food restaurants primarily in the United States. Jim Cramer has been recommended CMG five times during the last 30 days. CMG recently traded at $402.75. CMG gained 40.5% during the past 12 months. The stock has a market cap of $12.5 billion, P/E ratio of 54.1 and Total Debt/Equity ratio of 0. CMG also had an EPS growth rate of 39.6% during the last five years.

(Click to enlarge all images)

Starbucks operates coffee shops worldwide. SBUX recently traded at $53.53 and has a 1.3% dividend yield. SBUX gained 48.8% during the past 12 months. The stock has a market cap of $40.7 billion, P/E ratio of 31 and Total Debt/Equity ratio of 0.11. SBUX also had an EPS growth rate of 17.1% during the last five years.

AT&T is one of the leading telecommunication companies operating worldwide. T recently traded at $33.67 and has a 5.2% dividend yield. T gained 13.7% during the past 12 months. The stock has a market cap of $197.2 billion, P/E ratio of 48.7 and Total Debt/Equity ratio of 0.63. T also had an EPS growth rate of -18.8% during the last five years.

Apple designs and creates mobile communication and media devices, personal computers and other various electronic products worldwide. AAPL recently traded at $562.66 and has a 0% dividend yield. AAPL gained 67.4% during the past 12 months. The stock has a market cap of $524.8 billion, P/E ratio of 13.7 and Total Debt/Equity ratio of 0. AAPL also had an EPS growth rate of 65% during the last five years.

Costco operates an international chain of membership warehouses. COST recently traded at $83.57 and has a 1.3% dividend yield. COST gained 1.3% during the past 12 months. The stock has a market cap of $36.3 billion, P/E ratio of 24.4 and Total Debt/Equity ratio of 0.19. COST also had an EPS growth rate of 7.5% during the last five years.

Verizon provides communications, information, and entertainment products worldwide. VZ recently traded at $41.63 and has a 4.8% dividend yield. VZ gained 17.3% during the past 12 months. The stock has a market cap of $117.4 billion, P/E ratio of 44.5 and Total Debt/Equity ratio of 1.41. VZ also had an EPS growth rate of -14.7% during the last five years.

Source: Jim Cramer's 6 Favorite Stock Recommendations