On Wednesday, CNBC’s Jim Cramer gave investors a look at some of the stocks he thinks will do well this year.
He looked at the best and worst performers in the S&P 500 last year and picked five potential 2023 winners from each list.
“One of the most common traps to fall into is simply sticking with the winner, and it works for the long haul, until it stops working,” he said.
Here are the best performers in 2022, which Cramer believes will continue to rise this year.
- Cramer predicted that stock prices would rise over the next few years.
- The company is likely to be a big beneficiary of funding from the Inflation Control Act, he said, adding that he believes Constellation Energy is the best operator of nuclear power plants.
- Calling it a “renewable golden boy,” Cramer said solar energy technology companies are solid, profitable businesses.
- He said stocks of drug distributors like McKesson tend to perform well in a slowdown.
- A stake in the company could be the best defense contractor to own as the war between Russia and Ukraine continues, Cramer said.
Here are the worst performers of 2022 who he believes could make a comeback this year.
- “Netflix had confidence in their last conference call, so I think they turned around. You know, for almost two years, even when Squid Game took the world by storm, their conference call was a funeral.” he added. And many growth-minded money managers want to find a better franchise, and that’s a good fit for Netflix. ”
Stanley Black & Decker
- Investors interested in stocks are advised to start with a small position here and gradually buy more as it goes down.
- Cramer said that although VF Corp’s stock performed “terribly” last year, he’s betting that new interim CEO Benno Doler will help the company return profits to shareholders in 2023.
- Cramer said the stock is a “catastrophe” but believes the metaverse will either take off or disappear this year. He said 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 such as Reel and WhatsApp.
Advanced Micro Devices
- He said AMD’s stock price has been hit by declining demand for personal computers this year, but 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.