We recently compiled a list of the Jim Cramer Recommends These 10 Stocks. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against the other stocks recommended by Jim Cramer.
In a recent episode of Squawk on the Street, Jim Cramer discussed how global markets have become more interconnected than ever. He compared this to 1987, when Japan’s influence on U.S. stocks was clear, with Japanese investors driving up prices in sectors like waste management and railroads. This connection between markets was strong then, and it’s even stronger now.
“Obviously, we went down on Japan, and we went up on Japan. This is somewhat reminiscent of 1987, when, if Japan was up, they’d come over and flood our markets. Sometimes they didn’t care; they’d just start buying stocks, often starting with waste management and Browning-Ferris. “
Cramer explained that the weakening dollar further enhances this global link, benefiting companies that sell internationally, such as Coca-Cola. He also observed a significant shift in investor behavior—where people once looked for reasons to stay out of the market, they now seem more inclined to stay in, finding optimism even in bad news. This change in attitude mirrors today’s market environment, where good news lifts stocks, and even bad news is met with hope for a recovery.
“Back in the day, you’d wonder why Browning-Ferris was up, and the answer would be, ‘Large buyer, large buyer, large buyer.’ Eventually, you’d go out for a beer, and it turns out it’s Tokyo. They loved the rails. There was such craziness back then, but now, we’re even more linked. And with the dollar continuing to weaken, it’s good that we’re linked for companies like that.”
Jim Cramer noted the irony of discussing September as a traditionally bad month for the market. He pointed out that when people focus too much on a specific month being negative, it often doesn’t turn out that way. Cramer also mentioned that despite this expectation, the market had been up significantly, making last week’s market behavior seem unusual.
“Well, it’s funny. You talked about September being a bad month last week, so maybe we get there in a roundabout way. I know that when you single out a month, that’s often when it doesn’t happen. But I also know that we’re up big, and last week seemed odd.”
Our Methodology
For this article, we reviewed a recent episode of Jim Cramer’s Squawk on the Street and his post on the key things to watch in the stock market for Monday. We selected ten stocks that he mentioned and included information on hedge fund sentiment for each. The stocks are ranked by the number of hedge funds that own them, from lowest to highest.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Investors: 184
Jim Cramer reports that MoffettNathanson has begun coverage of Apple Inc. (NASDAQ:AAPL) with a hold-equivalent rating and a price target of $211 per share. Cramer believes that Apple Inc. (NASDAQ:AAPL)’s AI initiatives will lead to a significant iPhone upgrade cycle. In his view, Apple Inc. (NASDAQ:AAPL) has always been a stock to own for the long term rather than trade frequently.
“MoffettNathanson started coverage of Apple with a hold-equivalent rating and price target of $211 a share. Analysts deep-dived the iPhone maker’s AI strategy and said they are largely positive on it, but believe the stock’s current valuation is factoring that in already. I’m a believer that Apple’s AI initiatives will spark a significant iPhone upgrade cycle. Apple has long been an “own it, don’t trade it” stock in my eyes.”
Apple Inc. (NASDAQ:AAPL) is on track for ongoing growth due to its globally recognized brand and valuable ecosystem, which includes iOS, macOS, watchOS, and a range of services. This ecosystem creates a smooth user experience that strengthens customer loyalty. The services segment, featuring the App Store, iCloud, Apple Music, and Apple TV+, has become a major revenue driver for Apple Inc. (NASDAQ:AAPL).
Apple Inc. (NASDAQ:AAPL) leads in product innovation with updates to the iPhone, iPad, Mac, and wearables. Its strong global presence and ability to adapt to different markets ensure continued growth, with expanding opportunities in regions like China and India adding to its positive outlook. Additionally, the wearables segment, particularly the Apple Watch, has seen significant growth thanks to its popularity in health and fitness, boosting sales and revenue.
Overall AAPL ranks 1st on our list of the best stocks to buy according to Jim Cramer. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.