Jim Cramer says “run with the bulls” and buy those winning stocks

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CNBC’s Jim Cramer on Wednesday offered investors a basket of stocks that he says can continue to thrive regardless of the Federal Reserve’s policies.

“Forget the big picture. There are two things you need to keep track of when choosing stocks right now: the industry and the company, which includes the people who run it,” said the host of “Mad Money”.

The bottom line, Cramer said, is that investors have two choices. The first is to listen to “Fed-obsessed experts,” he said. The second is to “forget about the money supply or the central bank and run with the bulls. It’s not like they’re hard to find in this fabulous market.”

Semiconductors

A sign is displayed outside NVIDIA’s corporate headquarters on May 10, 2018 in Santa Clara, California.

Justin Sullivan / Getty Images

Cramer said he believed the entire chip industry was “in bull market mode” with a number of companies doing well, such as NXP Semiconductors, Marvell Technology and Qualcomm.

“But I prefer AMD and Nvidia because they make amazing products and have fabulous leadership,” Cramer said, noting that AMD, under CEO Lisa Su, is looking to complete an acquisition for Xilinx. .

Nvidia, similarly, is trying to strike a deal for Arm Holdings, Cramer noted. If it overcomes the necessary regulatory hurdles, Cramer said Nvidia “will become the most important semiconductor company of our time.”

Finance

Many of the country’s largest banks offer investors “the best deals” compared to the rest of the stock market, Cramer said. This is especially true when you consider that they “could be months away from another round of rate hikes,” Cramer said. Banks benefit from higher rates.

Cramer said his favorites right now are Morgan Stanley and Wells Fargo.

“Morgan Stanley is no longer a bank: it’s a wealth advisory service that does parallel investment banking. It means it’s a lean bank. I like it,” Cramer said.

Wells Fargo, on the other hand, offers a “story of recovery” after years of scandals, Cramer said, adding that he believed CEO Charlie Scharf to continue to make improvements.

“One day I expect Wells Fargo to return to the top of $ 50 [per share], where it was when all hell broke loose. Until then, stay the course, ”Cramer said.

Retail

A medical worker wears a face mask outside Best Buy in Union Square in New York City.

Noam Galai | Getty Images

Cramer said he believes it is not too late to buy shares in Best Buy and Bed Bath & Beyond. The former’s digital transformation and technological membership program is expected to lead to further success, Cramer said, while the latter is another example of a turnaround story.

“They have all the tech you need to shop and buy,” Cramer said of Bed Bath & Beyond. “But what they really have is something I like to call ‘fancy’, something you could only really find at Costco until recently. I think CEO Mark Tritton will take Bed Bath for it. a race of several years. “

Agriculture

Cramer said the “most unknown bull market” is agriculture.

“I’ve been an AGCO fan for a long time, but this Deere conference call last week [was] gorgeous, ”Cramer said. “I made fun of Cathie Wood, the best fund manager of 2020, when she said she was buying Deere for its technology – I owe her an apology. I apologize. She nailed it. The technology Deere talked about is truly revolutionary; it will save farmers billions of dollars in wages because everything is pretty self-sufficient. Deere is still a buy. “


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