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In this article, we take a closer look at Jim Cramer’s favorite European stocks. Check out our article for an overview of these stocks. Jim Cramer Likes These Super 3s european stocks.
Jim Cramer said on one of CNBC’s latest shows that the U.S. stock market isn’t the only one with a “breadth” problem, and that most of the stock market’s gains last year were due to a small number of megacap stocks. He mentioned the phenomenon that Tech stocks and Magnificent Seven stocks include companies like NVIDIA Corp (NASDAQ:NVDA), Meta Platforms Inc (NASDAQ:META), and Alphabet Inc Class C (NASDAQ:GOOG). Kramer said the concentration of stock market returns is much higher in European stock markets. Mr. Kramer shared some data from Citi’s equity research team, led by Dr. Beata Manthey, that supports this point. He said just five European stocks accounted for about 45% of the overall MSCI Europe index gain in January and February this year.
Jim Cramer shares new ‘shopping list’ for stocks in 2024
Jim Cramer, a Citi analyst, recently identified European mega-cap stocks with similar characteristics to the U.S. Magnificent Seven stocks: high revenue growth, solid profit margins, and strong economic moats. He said he had conducted a screening. Cramer said Citi analysts believe these stocks have lower valuations than their U.S. counterparts and have more room to play going forward. As explained later in this article, Kramer also believes that some of these seven European stocks have significant growth potential.
Jim Cramer said Citi’s Super Seven list “will be a great list of companies.”
However, Jim Cramer emphasized that since most of these stocks are trading at record highs, he cannot recommend that investors start buying more immediately. Mr. Cramer said it would seem “a little crazy” to recommend a stock that has already seen a “significant price increase.” But Jim Cramer urged viewers to view these companies as a “shopping list” of blue-chip stocks that “could be very attractive” in the event of a pullback.
methodology
In this article, we watched a recent CNBC show where Jim Cramer educated viewers on Citi’s Dr. Beata Munsey’s Super Seven European Stocks and shared his bullish thoughts on these companies. Cramer thinks these stocks are worth buying on the rebound.
7. Novo Nordisk (NYSE:NVO)
Jim Cramer recently quoted Citi as saying that Novo Nordisk (NYSE:NVO) is the “leader” of the Super Seven stock group. Kramer said it was “clear” that drug companies were the leaders of the group. Kramer said Novo Nordisk (NYSE: NVO) was the first company to develop his GLP-1 drug for diabetes. He said Novo Nordisk (NYSE:NVO) is “many years ahead” of America’s favorite weight-loss stock, Eli Lilly. Jim Cramer recently learned that his GLP-1 pill being developed by Novo Nordisk (NYSE: NVO) may be much more effective than the one being developed by Eli Lilly. He said it was clear. Jim Cramer also highlighted the FDA’s recent approval of Novo Nordisk’s (NYSE:NVO) heart disease drug. Earlier this month, Novo Nordisk (NYSE:NVO) announced that the FDA had approved its weight loss drug Wegovy to reduce serious adverse cardiovascular events in overweight or obese people with cardiovascular disease. Announced.
Cramer believes Eli Lilly and Novo Nordisk (NYSE:NVO) have more room to grow, saying, “You can’t go wrong with either of these stocks.”
Polen Global Growth Strategy said this about Novo Nordisk A/S (NYSE:NVO) in its Q4 2023 investor letter:
“As discussed in last quarter’s commentary, Novo Nordisk A/S (NYSE:NVO) is a new addition to this strategy. Over the fourth quarter, we continued to build our position to average weight. As a reminder, Novo Nordisk is a global pharmaceutical company based in Denmark and has been a leader in the development of insulin for diabetics for many years. In recent years, the company’s GLP-1 drug innovations have been shown to not only help diabetics control blood sugar levels, but also have significant effects on weight loss. Obesity is a global epidemic that has significant negative ramifications for humanity, ranging from increased mortality due to increased cardiovascular disease to a decreased general quality of life. We believe that over time, payers will recognize the value of these obesity treatments for both patients and the healthcare system as a whole. ”
6. ASML Holding NV (NASDAQ:ASML)
ASML Holding NV (NASDAQ:ASML) is a Citi-recommended and Jim Cramer-favorite European stock in the Super7 Group. Jim Cramer said ASML Holding NV (NASDAQ:ASML) operates in the semiconductor equipment sector with limited competition, and ASML Holding NV (NASDAQ:ASML) remains “unbeatable.” . Kramer said ASML Holding NV (NASDAQ:ASML) has a “monopoly” in manufacturing the equipment needed to make advanced semiconductor chips.
Jim Cramer also calls ASML Holding NV (NASDAQ:ASML) a great stock, with its stock up 58% over the past year and 33% from 2024 through March 14. Emphasized performance. ASML Holding NV (NASDAQ: ASML) Stock Price ASML Holding NV (NASDAQ: ASML) released a blockbuster quarterly report in his January. Kramer seemed particularly excited about ASML Holding NV’s (NASDAQ:ASML) net bookings of a whopping €9.2 billion, compared to Street estimates of just €3.57 billion.
In addition to ASML, Jim Cramer likes NVIDIA Corp (NASDAQ:NVDA), Meta Platforms Inc (NASDAQ:META), and Alphabet Inc Class C (NASDAQ:GOOG).
Polen International Growth Strategy said this about ASML Holding NV (NASDAQ:ASML) in its Q4 2023 investor letter:
“Based in the Netherlands ASML Holding NV (NASDAQ:ASML) and Japan-based Lasertec play key roles in various sectors of the global semiconductor industry. In both cases, the share prices rose significantly in the fourth quarter of 2023, increasing the percentage of our positions in the overall portfolio. Both companies see demand for their products as extreme ultraviolet (EUV) lithography and believe that high numerical aperture lithography will soon be needed to produce the world’s smallest chips. However, our prediction is that 2024 could be a less exciting year for growth in the semiconductor industry, which led us to eliminate these positions. ”
5. LVMH Moët Hennessy Louis Vuitton SE (NYSE:LVMUY)
LVMH Moët Hennessy Louis Vuitton SE (NYSE:LVMUY) is another important member of the European stock Super Seven group. Kramer said LVMH Moët Hennessy Louis Vuitton SE (NYSE:LVMUY) is very “exciting” for “a lot of people.” Kramer said LVMH Moët Hennessy Louis Vuitton SE (NYSE:LVMUY) is the world’s largest luxury conglomerate. Kramer listed some of LVMH Moët Hennessy Louis Vuitton SE’s (NYSE:LVMUY) top brands, including Louis Vuitton, Bvlgari, Givenchy, Dior and Fendi.
Jim Cramer said one of LVMH Moët Hennessy Louis Vuitton SE’s (NYSE:LVMUY) strengths is its target market of wealthy individuals. Kramer said LVMH Moët Hennessy Louis Vuitton SE (NYSE: LVMUY) had an “explosive” quarter in his January, with the stock showing “tremendous” performance. He believes LVMH Moët Hennessy Louis Vuitton SE (NYSE:LVMUY) stock has the potential to be a “winner,” but advised investors to wait for a rebound before buying.
In its Q3 2022 investor letter, Distillate Capital said of LVMH Moët Hennessy Louis Vuitton, Société Europe (NYSE:LVMUY):
“After rebalancing, Distillate’s International FSV strategy offers a higher free cash flow yield relative to both market capitalization and enterprise value, with significantly more stable fundamentals and lower leverage than the index. The largest new position is LVMH Moët Hennessy – Louis Vuitton, Société Europe (NYSE:LVMUY), estimated free cash flow has increased since the beginning of the year, even though the stock price has declined. ”
4. SAP SE (NYSE:SAP)
Next on the list of the Super Seven stock group that Jim Cramer talks about is SAP SE (NYSE:SAP), a software company based in Germany. Kramer said SAP SE (NYSE:SAP) “took a while” to adapt to the “new world” of cloud computing, but it eventually caught up and is now making “huge profits” from artificial intelligence. He said he was raising it. Jim Cramer praised the stock’s rise over the past few months (up about 64% over the past year) and said, “It’s probably not over.” Cramer also said he “should have caught it” but was more focused on ServiceNow. Kramer is also bullish on his other AI stocks, including NVIDIA Corp (NASDAQ: NVDA), Meta Platforms Inc (NASDAQ: META), and Alphabet Inc Class C (NASDAQ: GOOG).
22 hedge funds tracked by Insider Monkey held shares of SAP SE (NYSE:SAP) at the end of Q4 2023. The largest stakeholder in SAP SE (NYSE: SAP) during this period was Ken Fisher, who held $820 million in SAP SE (NYSE: SAP) stock.
Polen Global Growth Strategy says this about SAP SE (NYSE:SAP) in its Q4 2023 investor letter:
“Like Workday and Amazon, SAP SE (NYSE:SAP) stock rose significantly in the fourth quarter after the company announced its Q3 2023 earnings. Importantly, SAP’s transition to the cloud (a core part of our business thesis) is on track, with the company delivering both solid cloud revenue growth and cloud gross margin expansion. . Management is directing cloud revenue growth to be in the mid-20s through 2025, which he believes is reasonable and attractive.
We also believe that SAP is one of the more resilient software business models because it is an integral part of customers’ daily operations and cannot be easily shut down or scaled back. ”
Click to see the rest of the stocks on this list Jim Cramer likes these ‘super’ 3‘European stocks.
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Disclosure. none. Forget the Magnificent 7: Jim Cramer likes these ‘Super 7’ European stocks Originally published on Insider Monkey.
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