CNBC’s Jim Cramer on Wednesday offered investors a selection of stocks he believes will do well this year.
To come up with their picks, they examined the best and worst performers in the S&P 500 from the past year and picked five potential 2023 winners from each list.
“One of the easiest traps is to just stick with the winners. And it works in the long run — well until it doesn’t,” he said.
Here are the best performers from 2022 that Cramer believes could continue to see gains this year:
- Cramer predicted that the stock has a multiyear rally ahead of it.
- The company will likely be a big beneficiary of funds from the Inflation Reduction Act, he said, adding that he believes Constellation Energy is the best operator of nuclear plants.
- Calling it “renewables’ golden boy,” Cramer said the solar power technology company is a profitable, solid business.
- He noted that stocks of drug distributors like McKesson tend to do well during economic downturns.
- According to Cramer, the company’s stock may be the best defense contractor stock as the war between Russia and Ukraine continues.
Here are the worst-performing players from 2022 whom he believes could make a comeback this year:
- “I believe Netflix has changed itself because they were so confident on that last conference call. You know, for almost two years, their conference call was a funeral, even when the Squid game took the world by storm.” took Netflix by storm,” he added, “and a lot of growth-oriented money managers are looking to improve the franchise, and this fits Netflix to a T.”
- Investors interested in the stock should initiate a short position here and gradually buy more when it bottoms out, he recommended.
- Cramer said that while VF Corp’s stock had a “terrible performance” last year, he is betting that new interim CEO Benno Dorr will help the company return value to shareholders in 2023.
- Cramer said that while the stock has been a “disaster,” he believes Metaverse will either close or fizzle out this year. The former scenario would be good news for the company, while the latter would mean the company could divert its Metaverse budget to other segments like Reels and WhatsApp, he said.
- He said that while AMD stock has been hurt by weak demand in personal computers this year, he still remains confident 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.
