Jim Cramer Says These Are The Stocks To Buy In The Current Environment

Cramer says investors should look for high growth stocks now, and says these 9 stocks fit the bill.

Retire in 18 months with $2.4 million?

37 year old trader uses this “unconventional” strategy to turn $10K into $2.4 million in only 18 months. Another trader turned $5K into $15 million and still another turned $30K into $80 million. Click here to discover their millionaire maker strategy. [ad]

Read More


The Fed sent a shock wave through the market last week.

Last Wednesday, Fed chairman Jerome Powell said that the economy “is in a good place” but he and his colleagues also said that growth in the U.S. looks to be slowing from last year, and downgraded their outlook for GDP to 2.1% in 2019 from 2.3%. Their outlook for 2020 is even more bleak, with the Fed projecting growth to drop to just 1.9%.

They also signaled no rate hikes for 2019 after having projected at least two rate hikes for the year just this past December. 

The news spooked the market and spurred ongoing fears of an imminent recession. What followed was an inversion of the 3-month Treasury bill and the 10-year note curve, which sent many investors into panic mode.

According to CNBC host and Real Money founder Jim Cramer, investors now need to prepare for a “sea change because it is dramatic and requires, if your are a trader, to change direction and own a whole different group of stocks because the low-to-no growth force is now with you.”

Cramer says that in an environment where there is no growth tailwind coming from the economy, investors should look for those companies that “have the greatest growth because there is almost no inflation so companies that have the ability to have tremendous profits in the out years—think the cloud kings or companies like the very-soon-to-come-public Lyft or Uber or Airbnb—are especially good.”

As for specific stocks, Cramer likes Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), cloud stocks Salesforce.com (NYSE: CRM), ServiceNow (NYSE: NOW), and Twilio (NYSE: TWLO), and semiconductor stocks Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), Micron (NASDAQ: MU), and Lam Research (NASDAQ: LRCX).

While expensive, Cramer says that cloud stocks are the highest growth stocks right now and “aren’t particularly economically sensitive.” Of the three cloud stocks Cramer mentioned, analysts say Salesforce.com could see the most upside this year. Analysts have a consensus Buy rating on the stock and a twelve-month price target of $178.41, suggesting possible upside of 15%. Earlier this month, Raymond James rated CRM a Strong Buy and boosted their price target to $200 – 29% higher than Thursday’s closing price.

Cramer expects 2020 to be a good year for chip stocks as customers should start putting in orders later on this year. AMD got a boost last week after Google (NASDAQ: GOOGL, GOOG) confirmed that it had chosen the chip maker to power its new gaming platform’s, Stadia, cloud-based graphics rendering. The news sent AMD shares soaring 12% in a day, and the stock is currently up nearly 36% so far this year.

As for safer growth stocks, Cramer likes PepsiCo (NASDAQ: PEP) for its 3% dividend yield and product pipeline, as well as General Mills (NYSE: GIS) with its 3.8% yield, though says investors should wait for a pull-back before buying.

Cramer warned investors to stay away from bank stocks saying, “The economy isn’t strong enough to entertain big construction. The net interest margin isn’t going anywhere. Bad loans should start showing up. It’s just a bad situation until they become higher yielding.” 

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.