CNBC’s Jim Cramer on Thursday presented a year-end list of what he calls “up stocks” that investors can buy to bet on a market rally through the end of the year.
“We call them up stocks, the ones that go up all the time and barely ever go down,” the “Mad Money” host said.
The comments come one day after the Dow Jones Industrial Average and S&P 500 slid for two straight sessions, pulling back from fresh highs they set earlier this week. Both indexes climbed 0.15% and 0.39%, respectively, higher on Thursday while the tech-heavy Nasdaq Composite advanced 0.87%.
All three averages finished well off their session lows.
“On the rare occasion when there’s a market-wide pullback, like we had this morning before the averages rebounded,” Cramer said, “you have to buy these up stocks hand over fist.”
Cramer recommended 10 stocks that he would be a buyer of on any pullback through the end of 2020. He also suggested that traders who are willing to take on higher risk can place “deep-in-the-money call options.”
“I expect these 10 up stock winners to keep winning as we approach the end of the bizarre year that was 2020,” he said.
The stock picks are likely to continue making gains at least throughout the backend of what’s been a volatile 12-month trading period, he said. Himself a former hedge fund manager, Cramer said this is the time where institutional investors — the big funds that influence stock trajectories — crowd into the shares that have made some of the best gains of the year.
“Money managers pile into these up stocks to show their investors how smart they are when they have to reveal their holdings at the end of the year,” he said. “You buy the up stocks in late November because Wall Street has a herd mentality and you want the herd working for you, not against you.”
Cramer’s year-end stock list
Square – $191.66, up 206% year to date
PayPal – $190.90, up 76%
Tesla – $499.27, up 497%
Roku – $255.67, up 91%
Amazon – $3,117.02, up 69%
ServiceNow – $514.33, up 82%
Okta – $232.45, up 101%
RingCentral – $296.90, up 76%
Twilio – $295.64, up 201%
Target – $171.37, up 34%