Many stocks are trading well below their 52 week high after the recent omicron-triggered selloff. We apologize, but this video didn't load.
You can see other videos from our team by tapping here. If you refresh your browser, or Jim Cramer, buy the tech dip is a mistake, but doing the obvious and buying the dip on your favorite tech companies could mean you miss out on easier money, Jim Cramer says. The Mad Money host said last week that he would rather find companies that did well in earnings season and were unjustly trampled on in the last few weeks because they weren't part of the Nasdaq stampede. That is a way that you can fall back on the fundamentals and buy more if they end up going lower. Here is Cramer's four stock picks for this market rotation, any of which could be a lucrative buy if all you need to invest is a little extra cash Like its financial- sector peers, Morgan Stanley had a good bull run from November to August. More recently, the shares weren't able to maintain that upward momentum. The stock is down about 10 per cent from its August high. The stock has been crushed because of the inane rotation out of the financials, and this company has done everything right during this period, Cramer says. He pointed out that the investment banking giant was trading at just 12 times earnings, a very inexpensive valuation in today s market, especially compared to the high-flying tickers on the Nasdaq. Cramer said Centene has been one of his favourite health insurers for ages. The stock of centene is up 17.6 per cent in 2021, which is a lag behind the S&P 500's 28.5 per cent gain year-to-date. Cramer argues that because Centene is mostly responsible for government-run health plans, it would benefit enormously from any expansion in Medicare or Medicaid, which the Biden administration supports. The company's revenue grew 11 per cent year-over-year to US $32.4 billion in the third quarter. Management expects full-year revenue to come in between US $125.2 billion and US $126.4 billion. If you are unsure about Cramer's picks or picking individual stocks in general, some investing services let you take control of your portfolio while giving you the support and tools you need.
Johnson pulled back about 12 per cent from its August high, and its recently announced plan to split into two companies didn't help the stock price. Cramer is happy with the health care giant's dividend yield, which stands at 2.7 per cent at the moment. He points out the potential of JNJ's pharmaceutical business after the company spins off its consumer products division. The drug business that will be left will be the fastest-growing big pharma company in the universe. He says it should become an instant market darling. E-commerce was already one of the fastest growing segments in the market, and the pandemic-induced stay-at- home environment made online shopping more popular.
Cramer points out that UPS is what makes e-commerce possible in the first place. Last month, UPS posted solid earnings. Revenue grew 9.2 per cent year-over-year to US $23.2 billion in the third quarter. Earnings per share increased 18.9 per share to US $2.71. Management has projected a strong holiday quarter, and that has made Cramer giddy. With the rails roaring, I think UPS is going to catch fire, a fire that burns for days if not weeks into the Christmas holiday, he says. UPS currently trades for more than $200 per share. You can buy fractions of shares with as much money as you want to spend, thanks to a popular app that allows you to buy them with as much money.
Even the experts like Cramer don't get it right 100% of the time. Picking stocks is not easy to do. If you want to invest in something with a huge upside potential and also has little correlation with the ups and downs of the stock market, you might consider investing in fine art. Contemporary art has outperformed the S&P 500 by a commanding 174 per cent over the past 25 years, according to the Citi Global Art Market chart. Investing in fine art by the likes of Andy Warhol and Banksy used to be an option only for the ultra-rich. You can invest in iconic artworks with a new investing platform, just like Jeff Bezos or Peggy Guggenheim. This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise partners with brands it believes may be helpful to the reader. This article is not intended to be construed as advice. It is provided without any warranty of any kind.