CNBC Jim Cramer On Friday, he developed an investment case for five traditional technology companies that he believes may achieve strong returns in 2022.
This “I am crazy about money” The host stated that the following stocks fit his theme this year, namely investing in profitable companies that produce tangible goods: Apple, Cisco, IBM, Microsoft and Oracle.
“Although most loss-making cloud-based software stocks are now banned, there are still many technology companies that can create real things and generate real profits,” Kramer said, arguing that despite the Fed tightening monetary policy, But they still perform well.
“What you want here is a boring, mature company-the kind of company that is often ridiculed as’old technology’,” Kramer added. “I said the new, the old.”
“Even though the stock rose by 34% last year…Due to the technological collapse, it has now fallen by $10 from its high earlier this week. Whenever you get such a buying opportunity at Apple, You just have to catch it,” Kramer said.
Kramer said he believes that Apple will benefit from the pent-up demand that consumers can release Once the supply chain problems subsidedCramer said that in the context of the Fed’s tightening, the iPhone maker’s “monster” stock repurchase program is even more favorable.
Cramer said that Cisco’s stock price has been performing strongly since the end of November because investors have begun to ignore the company’s recent earnings report.
“Due to demand, the past two quarters have been pretty good. We actually saw a surge in corporate technology spending; the problem is the supply chain crisis,” said Kramer, who also touted the computer network company’s entry into the software field and the recurring incidents. The income stream from it.
“[Cisco CEO Chuck Robbins] Said that the situation should begin to change in the second half of Cisco’s fiscal year beginning in February. I tend to believe him because he is a true direct shooter,” Kramer said.
Cramer said he wouldn’t be surprised if IBM’s stock is sold when it announces earnings in a few weeks, but he is optimistic about the long-term.
“I still like IBM for two very simple reasons: it is very cheap, with a price-to-earnings ratio of 12, and even Kindryl spin-off, They retained the dividend before the breakup, which means that the stock’s yield was 4.9%,” Kramer said.
He also stated that he supports CEO Arvind Krishna’s “mission of value at all costs”.
“The stock was up about 51% last year, but due to the sell-off in recent weeks, you have a very good buying opportunity here. The stock is down 10% from the high point at the end of November. This usually doesn’t happen. ,” Kramer said. “Microsoft is the kind of tangible technology story. When the Fed starts to step on the brakes to stop the economy, it should work.”
Even after the breakthrough in 2021, Kramer said he still thinks Oracle stock is cheap. Cramer said the enterprise software giant performed well in the most recent quarter.However, the stock has given up its post-reported gains, partly due to Wall Street’s Oracle’s acquisition plan Electronic Medical Record Company Cerna.
“This is another recent pullback that allows you to enter the market at an amazing price,” Kramer said.
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Disclosure: Kramer’s charitable trust owns shares in Microsoft, Apple and Cisco.