Jim Cramer’s 2022 outlook for final 12 months’s 10 largest S&P 500 winners

CNBC’s Jim Cramer shared his ideas on Monday on how the highest 10 2021 S&P 500 winners will play out in 2022.

“The largest profit needs to be the exceptional resurgence of oils. Equally necessary, I believe lots of S & P’s largest winners can proceed to win even when not all of them can sustain with final 12 months’s unimaginable performances,” mentioned Cramer.

1. Devonian vitality

The Mad Cash host mentioned he believes Devon Power, which rose almost 179% in 2021, is properly positioned so as to add extra upside this 12 months together with the broader oil and gasoline cohort. He additionally famous that Devon’s variable dividend coverage is gaining reputation within the business.

2. Marathon oil

Cramer mentioned he believes Marathon Oil might be an “under-the-radar repeat winner” in 2022 so long as crude oil costs keep close to present ranges. Marathon Oil, whose shares are up 146% over the previous 12 months, has exercised capital self-discipline, paid off debt and reserved roughly $ 2.5 billion for share buybacks, Cramer mentioned.

3. Trendy

Moderna’s Covid-19 vaccine.

Paul Hennessy | LightRakete | Getty Photographs

The Covid vaccine maker’s shares rose 143% in 2021. Nevertheless, Cramer mentioned he believes Moderna will wrestle to repeat any such accomplishment in 2022, “except the corporate can discover a option to diversify away from the pandemic and into the specialised most cancers vaccines which might be on the market attracted me to Moderna for the primary time a couple of years in the past. “

4. Fortinet

“I anticipate most of those cybersecurity names may have an excellent 12 months in 2022 as a result of so long as persons are working remotely, corporations should bend again to cease hackers,” mentioned Cramer. “Nevertheless, I do not anticipate Fortinet to do in addition to it did final 12 months,” when it gained 142%.

Cramer added that he prefers Cloudflare, CrowdStrike, and Palo Alto Networks within the business.

5. Signature financial institution

Cramer mentioned he was shocked that New York business financial institution was up 139% in 2021, which was, by and enormous, not an ideal 12 months for monetary expertise corporations and massive banks.

Signature Financial institution shares are “costly, and general, I might moderately personal one of many majors,” mentioned Cramer. “However Signature might nonetheless make transfer with actual rate of interest sensitivity if the Fed strikes aggressively this 12 months.”

6. Ford engine

Cramer, whose charitable basis owns Ford Motor shares, mentioned he believes the automaker might repeat its monster efficiency in 2022 when it rose 138%. He cited Ford’s continued growth of electrical automobiles and its giant stake within the electrical automotive startup Rivian, which “will be monetized”.

7. Tub and physique work

An worker carrying a face masks and signal cleans the door of the Tub & Physique Works retailer in Pembroke Pines, Florida on July 21, 2020.

Johnny Louis | Getty Photographs Information | Getty Photographs

Tub & Physique Works was up 132% final 12 months and will have extra potential in 2022, Cramer mentioned. Even so, the Mad Cash host mentioned he would favor Mattress Tub & Past within the firm’s turnaround efforts.

8. Nvidia

Cramer famous that his charitable basis additionally owns shares in Nvidia, that are up over 125% over the previous 12 months. The semiconductor firm, a significant participant in synthetic intelligence and machine studying, has been decried as overvalued for years, even when its inventory was a lot decrease, Cramer mentioned. Nvidia’s efforts to accumulate Arm Holdings needs to be watched for the inventory in 2022, Cramer mentioned.

9. Diamondback vitality

Cramer mentioned he noticed oil producer Diamondback Power as having “large potential for surprises,” whereas highlighting the corporate’s latest acquisitions and its means to scale back drilling and exploration prices. He added, “I believe it is without doubt one of the almost certainly that it’s going to repeat its 123% acquire from final 12 months.”

10. Nucor

“Most individuals suppose will probably be unattainable for Nucor to repeat its 115% rally from final 12 months, however the inventory has had fabulous multi-year rallies prior to now when the enterprise cycle is in its favor,” Cramer mentioned and added added that he believes Wall Avenue earnings estimates for the steelmaker are “far, far too low”.

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Disclosure: Cramer’s nonprofit belief owns shares in Nucor, Ford Motor, and Nvidia.