On Wednesday, CNBC’s Jim Cramer offered investors a pick of stocks he thinks will do well this year.
To make his picks, he looked at last year’s best and worst S&P 500 performers and picked five potential 2023 winners from each list.
“One of the easiest traps to fall is just to stick with the winners. And that works for a long time – until it doesn’t,” he said.
Here are the top performers of 2022 who Cramer says could continue to make gains this year:
- Cramer predicted the stock has a multi-year rally ahead of it.
- The company is likely to be a big beneficiary of funding from the Cut Inflation Act, he said, adding that he believes Constellation Energy is the best operator of nuclear power plants.
- Calling it the “golden boy of renewables,” Cramer said the solar technology company is a profitable and solid business.
- Stocks at drug distributors such as McKesson tend to do well during an economic downturn, he said.
- Shares of the company could be the best defense contractor to own as the war between Russia and Ukraine continues, according to Cramer.
Here are the worst artists of 2022 who he thinks could return this year:
- “I believe Netflix turned around because they were so confident on that last conference call. You know, for almost two years their conference calls were funky, even when Squid Game took the world by storm “, he said, adding, “And many growth-oriented fund managers want to find franchises that improve, and that suits Netflix perfectly.”
Stanley Black & Decker
- Investors interested in the stock should start a small position here and gradually buy more on the way down, he recommended.
- Cramer said while VF Corp shares had a “terrible performance” last year, he is betting new interim CEO Benno Dorer will help the company return value to shareholders in 2023.
- Cramer said that while the stock has been a “disaster,” he believes the metaverse will lift or crash this year. The first scenario would be good news for the company, while the second would mean the company could divert its metaverse budget to other segments such as Reels and WhatsApp, he said.
- He said that while AMD shares have been battered by falling demand for personal computers this year, he still believes in CEO Lisa Su and the company’s underlying business.
Disclaimer: Cramer’s Charitable Trust owns shares of Halliburton, Meta Platforms and Advanced Micro Devices.