We recently published a list of Jim Cramer October Calls: Top 10 Stocks. Since SharkNinja, Inc. (NYSE:SN) ranks 4th on the list, it deserves a deeper look.
Jim Cramer in a latest program on CNBC talked about the ills of “complacency” in investing and how sticking to a specific narrative costs investors money. He was criticizing negative analyst reports that keep downgrading stocks.
“We always hear how the bulls are being complacent and ignore downside risk. We almost never hear that the bears are being complacent and missing out on terrific opportunities, which I find to be absurd. Nobody does complacency like the bears. Remember, last night I spent a lot of time talking about how we had a slew of downgrades yesterday that I did not like, and stocks reacting to negative news already. Today, they seem like fortuitous notes that would end up costing you money if you listen to them.”
Cramer said that some analysts like to “take aim” at long-term winners and scare people out of some “amazing gains.” This, Cramer believes, is “downright wrong.” He said that even if investors want to sell a stock based on a downgrade, they should wait for it to “bounce” before pulling the trigger.
For this article we talked about 10 stocks Jim Cramer is talking about during his programs on CNBC. With each company we have mentioned the number of hedge fund investors. 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).
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Sharkninja Inc (NYSE:SN)
Number of Hedge Fund Investors: 52
When asked about Sharkninja in a program on CNBC, Cramer said:
“These guys execute like you wouldn’t believe. I wish I had bought that for the trust instead of Next Tracker. But I didn’t. Would have, should have, could have. What a stock.”
Sharkninja Inc (NYSE:SN) makes vacuum cleaners, air fryers, multi-cookers, coffee makers, cookware, food preparation appliances, blenders, juicers, etc. The company’s margins have improved significantly over the past few years as it focuses on recurring revenue streams and high-margin items. Sharkninja Inc (NYSE:SN) growth strategy is built on three pillars. First, the company is expanding into new product categories, adding 18 subcategories since 2021, including the Ninja FrostVault coolers and Shark FlexBreeze fans, which offer innovative features at competitive prices. Second, SharkNinja is boosting its presence in existing categories by launching 25 new products annually, 20 of which enhance existing lines like the industry-leading Double Stack XL air fryer. Third, Sharkninja Inc (NYSE:SN) is aggressively expanding internationally, entering six new countries in 2023 and expecting international growth to outpace domestic growth, with strong prospects in regions like Latin America and Europe. With a $120 billion total addressable market, SharkNinja is well-positioned to grow its less than 4% market share through this strategy.
The stock has a PEG ratio of 1.1, significantly lower than the 3.1 average for the Furnishings, Fixtures, & Appliances industry, indicating potential upside as the company grows.
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, SharkNinja, Inc. (NYSE:SN) ranks 4th on Insider Monkey’s list titled Jim Cramer October Calls: Top 10 Stocks. While we acknowledge the potential of SharkNinja, Inc. (NYSE:SN), 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.