We recently compiled a list of the 10 Best Jim Cramer Stocks to Buy According to Analysts. In this article, we are going to take a look at where Abercrombie & Fitch Co. (NYSE:ANF) stands against the other Jim Cramer stocks.
Jim Cramer, the host of Mad Money, recently discussed the rise of Bitcoin and expressed his admiration for the digital currency’s growth. However, he was careful to emphasize that Bitcoin should not replace traditional investments, particularly stocks, but rather should complement them in a diversified portfolio.
“I want to discuss Bitcoin, really I do, not to the detriment of stocks but in addition to stocks. I come to praise Bitcoin, not bury it.”
Cramer recalled the moment when President-elect Donald Trump began giving importance to cryptocurrency during his administration. On July 27, Trump declared that the U.S. government would fully embrace Bitcoin if he won the election. At the time, Bitcoin was valued just under $70,000. Cramer also noted Trump’s promise to create a strategic Bitcoin reserve and make America the global leader in cryptocurrency.
Cramer highlighted Trump’s statement, “If crypto is going to define the future, I want it to be mined, minted, and made in the USA.” Regardless of whether one agrees with the policy, Cramer remarked, Trump’s words were a clear signal of how beneficial the growing popularity of cryptocurrency could be for its owners.
READ ALSO Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight and Jim Cramer’s Game Plan This Week: 10 Stocks to Watch
Cramer then shared insights from Federal Reserve Chairman Jerome Powell, who suggested that many investors see Bitcoin as a store of value, similar to gold. He went on to say:
“I’ve always endorsed keeping up to 10% of your portfolio in gold as a kind of insurance against the world’s lunacy. But for years now, I’ve also been saying Bitcoin’s a fine alternative to gold for that 10% position. Why not? I think the federal budget deficit is at impossible levels. I don’t want to be wedded to a currency backed by the full faith and credit of a country that owes $36 trillion.”
Cramer also acknowledged that some people might have gone all-in on Bitcoin and praised their decision. However, he recommended balancing Bitcoin investments with stocks. For instance, if Trump were to make a move to encourage buying Tesla, Cramer commented, having both stocks and crypto would give investors an edge.
“While we could become the bitcoin network, especially since President-elect Trump christened us as the bitcoin nation, I actually think there’s more to investing than just owning cryptocurrencies… Bitcoin’s part of the most obviously diversified portfolio in recent history. Buying and holding stocks can be just as lucrative as buying Bitcoin six days after Biden dropped out of the race. Or maybe, just maybe, it can make you even more money.”
Our Methodology
For this article, we compiled a list of 29 stocks that Cramer was bullish on during episodes of Mad Money aired over the last 2 weeks. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of December 9. The average price target upside was calculated while the market was open. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q3 database of 900 hedge funds.
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).
A close-up of a customer trying on a piece of apparel in the retailer’s spacious dressing room, emphasizing the company’s focus on personal care and experience.
Average Price Target Upside: 29.60%
Number of Hedge Fund Holders: 51
Before Abercrombie & Fitch Co. (NYSE:ANF) released its third-quarter earnings report, Cramer commented:
“Now we’ve seen a bunch of retailers’ reports not sweating numbers yet in many cases, their stocks still roared. Meanwhile, others like Target get clubbed like baby seals. It’s treacherous to start buying these now because many of these stocks have run mightily in the last few days… Abercrombie bombed last quarter. After listening to the success that is Gap last night, I don’t think ANF gets it wrong twice. They’re too good for that.”
Abercrombie & Fitch (NYSE:ANF) s a well-established name in the retail sector, recognized for its range of offerings, including apparel, personal care items, and accessories. On November 26, it reported its third-quarter earnings, marking its sixth consecutive quarter of double-digit sales growth and surpassing expectations once again.
For the quarter, the company reported a net income of $131.98 million, or $2.50 per share, compared to $96.2 million, or $1.83 per share, in the same period last year. Sales for the quarter reached $1.2 billion, a 14% increase from $1.06 billion in the prior year. Fran Horowitz, the company’s CEO, highlighted that every region saw double-digit growth during the quarter.
The Americas grew by 14%, EMEA increased by 15%, and APAC saw a notable 32% rise in sales. Additionally, Abercrombie & Fitch (NYSE:ANF) brands performed strongly, with each showing growth. Abercrombie brands posted an 11% increase in comparable sales, building on a 26% rise from the previous year. Hollister, another key brand, saw a 21% growth in comparable sales, following a 7% increase in the prior year.
Overall ANF ranks 2nd on our list of the best Jim Cramer stocks according to analysts. While we acknowledge the potential of ANF as an investment, 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 ANF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
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