We recently published an article titled, Jim Cramer is Talking About These 12 Stocks. In this article, we are going to take a look at where SharkNinja, Inc. (NYSE:SN) stands against the other stocks that Jim Cramer has talked about.
During September 30’s episode of Mad Money, CNBC’s Jim Cramer delved into the previous three months and the market’s events. He identified some positive developments amidst the turbulence in the market.
Cramer highlighted that Dow inched up 17%, the S&P 500 went up 42% while Nasdaq gained 38% during the months. He remarked, “For once, good news was actually good news and interesting.” He went on to say that miracles still happened in the stock market’s third quarter. He pointed out that July, August, and September yielded remarkable returns, even highlighting the typically troublesome month of September, which saw the broader market rising significantly.
Cramer elaborated on the lead-up to the Federal Reserve’s decision to cut rates by 50 basis points. He characterized the economic landscape as having “no landing at all,” explaining that the economy continued to grow, inflation decreased, and unemployment ticked up. He suggested that the central bank laid the groundwork for a significant rate cut, which was the reason that there was no panic on Wall Street after the cut. The former hedge fund manager also praised Federal Reserve Chair Jerome Powell for achieving the challenging feat of a double rate cut without shocking the markets.
Moving on, Cramer talked about how the market’s breadth expanded as well, with many sectors gaining traction beyond the dominant Magnificent Seven tech stocks. He noted that a variety of industries, including banks, utilities, retail, healthcare, housing, and transportation, enjoyed their moment in the spotlight.
As for the upcoming election, he referenced Michael Cembalest of J.P. Morgan Asset Management, who described it as “the most polarized election in 100 years.” Cramer observed that, despite the political drama surrounding the elections, Wall Street remained largely unfazed, even in response to significant events like Vice President Kamala Harris potentially replacing President Biden on the Democratic ticket and the attempted assassination of former President Donald Trump.
Cramer also highlighted a shift in the housing market, pointing out the first signs of relief from formerly soaring inflation figures. He suggested that an increase in available homes could be the breakthrough needed to address this intractable asset class that has resisted price declines.
In terms of international markets, he noted that the Chinese market staged a rally, even in light of dismal economic news, owing some of this movement to government-ordered buybacks and influxes of capital.
Cramer commented on the ongoing speculation about stagflation, particularly concerning oil prices, reminiscent of the oil crisis in 1973. He addressed the ongoing conflict in the Middle East, mentioning that Saudi Arabia had abandoned its unofficial price target of $100 per barrel in favor of increasing production.
While many believe that oil prices could soar at any moment, Cramer expressed skepticism, suggesting that although a spike could still occur due to geopolitical factors, he thinks those fears may be overstated.
Reflecting on the past nine months, he concluded that despite the potential for stagflation, 2024 has surprisingly turned out to be a great year for the stock market, defying expectations.
Our Methodology
For this article, we compiled a list of 12 stocks that Jim Cramer mentioned during his episode of Mad Money on September 30. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in 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).
Jim Cramer Said SharkNinja, Inc. (NYSE:SN) Executes ‘Like You Wouldn’t Believe’
SharkNinja, Inc. (NYSE:SN)
Number of Hedge Fund Holders: 52
Talking about SharkNinja, Inc. (NYSE:SN), Cramer exclaimed, “What a stock.” It spun off from its parent company, JS Global Lifestyle Company Limited at the end of July 2023. Since its separation, the stock has gained approximately a whopping 300%.
The company is a product design and technology company known for delivering consumer solutions globally. The company provides a wide range of appliances, including cleaning, cooking, food preparation, and beauty products, as well as items designed for home environments.
The company markets its offerings through a combination of traditional retail outlets, e-commerce platforms, distributors, and direct-to-consumer channels, operating primarily under the Shark and Ninja brands.
Cramer stated that SharkNinja (NYSE:SN) executes “like you wouldn’t believe” and wished that he had bought the stock. In the first half of 2024, the company reported a remarkable 28.2% increase in net sales, reaching $2.31 billion, up from $1.8 billion during the same period the previous year.
When adjusted for certain factors, net sales saw an even more impressive rise of 32.9%, driven by significant growth across all four major product categories: Food Preparation Appliances, Cooking and Beverage Appliances, Cleaning Appliances, and Other products, which include beauty and home environment items. The company has a strong market performance as each of these categories experienced at least double-digit growth during the second quarter.
It has also made strides in expanding its market share and diversifying its product offerings. In 2024 alone, the company has ventured into three new subcategories, bringing its total to 34, an increase from 27 at the end of 2022.
A key element of the growth strategy is the company’s focus on international markets. In the second quarter, the company’s international sales surged by 46%, building on a remarkable 66% growth in the same quarter last year.
The UK remains SharkNinja’s (NYSE:SN) largest international market, reporting nearly 7% growth in the second quarter and a 10% increase in the first half of the year. Its UK operations are now characterized by greater diversification and profitability.
In Continental Europe, the company experienced impressive triple-digit growth in Germany and France, despite overall market stagnation in those regions. The company is actively expanding its presence and brand recognition in these countries and management sees substantial opportunities in markets such as the Nordics, Benelux, Poland, Italy, Spain, and the Middle East.
Ave Maria World Equity Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q2 2024 investor letter:
“Top contributors to performance included SharkNinja, Inc. (NYSE:SN) and Taiwan Semiconductor Manufacturing Company Limited. SharkNinja, Inc. is a global product design and technology company focused on creating solutions that increase efficiency, convenience and enjoyment of consumers’ daily tasks and improve everyday lives. The company has built two billion-dollar brands, Shark and Ninja, and has a proven track record of establishing leadership positions by disrupting numerous household product categories, including cleaning, cooking, food preparation, home entertainment and beauty.”
Overall, SN ranks 5th on our list of stocks Jim Cramer is talking about. While we acknowledge the potential of SN as an investment, our conviction lies in the belief that 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 SN 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.