This article presents an overview of the Jim Cramer Says Do Not Buy These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer Says Do Not Buy These 11 Stocks.
5. Scotts Miracle-Gro Co (NYSE:SMG)
Number of Hedge Fund Investors: 30
Cramer was recently asked about lawn, garden and pest control products company Scotts Miracle-Gro Co (NYSE:SMG). Cramer said he uses Scotts Miracle-Gro Co’s (NYSE:SMG) products but he cannot recommend the stock because if the weather is not good the company does not perform well.
Earlier this month Scotts Miracle-Gro Co (NYSE:SMG) posted fiscal Q1 results. Adjusted EPS in the period came in at -$1.45, surpassing estimates by $0.02. Revenue fell 22.% year over year, missing estimates by $2.38 million.
As of the end of the fourth quarter of 2023, 30 hedge funds tracked by Insider Monkey had stakes in Scotts Miracle-Gro Co (NYSE:SMG).
4. Wolfspeed Inc (NYSE:WOLF)
Number of Hedge Fund Investors: 34
Silicon Carbide power solutions company Wolfspeed Inc (NYSE:WOLF) ranks fourth in our list of the stocks Jim Cramer is bearish on. Earlier this month, Jim Cramer was asked about Wolfspeed Inc (NYSE:WOLF) during his Lightning Round program on CNBC. Cramer said Wolfspeed Inc (NYSE:WOLF) was “losing too much money” and that it was a “second-rate player.” The stock recently fell after Wolfspeed Inc (NYSE:WOLF) posted a weak guidance.
As of the end of the fourth quarter of 2023, 34 hedge funds in Insider Monkey’s database of funds reported owning stakes in Wolfspeed Inc (NYSE:WOLF), a significant jump from 24 hedge funds in the previous quarter.
ClearBridge Multi Cap Growth Strategy made the following comment about Wolfspeed, Inc. (NYSE:WOLF) in its third 2023 investor letter:
“Stock selection has also been a performance headwind in 2023 with a handful of holdings suffering declines amid rapidly rising interest rates. Wolfspeed, Inc. (NYSE:WOLF), a semiconductor company producing silicon carbide materials and power devices, was one of the primary detractors from Strategy performance in both the third quarter and year-to-date. The company has been hampered by execution issues as it invests to meet the growing demand for substrates and chips for electric vehicles. Additionally, Wolfspeed’s construction of a new silicon carbide fabrication plant in Upstate New York has taken longer than expected to reach critical mass. As one of just a handful of companies in the portfolio that are still not profitable today, Wolfspeed has required additional financing but has been able to secure $1.25 billion in capital from an Apollo-led group as well as $2 billion in upfront cash for a 10-year deal to supply Renesas Electronics with SiC wafers. We remain confident that the company’s addressable market opportunity remains sizable and look for ramping utilization to drive gross margin improvement over time.”
3. Herbalife Ltd (NYSE:HLF)
Number of Hedge Fund Investors: 35
Jim Cramer has been bearish on Herbalife Ltd (NYSE:HLF) for quite some time now. Earlier in February he was asked about the dietary supplements company. Cramer said:
“No, no. We got to step up our game….not good enough.”
Herbalife Ltd (NYSE:HLF) recently revealed that its Chairman and CEO, Michael Johnson, bought 61,725 shares of Herbalife Ltd (NYSE:HLF) on February 16 at $8.07 per share.
As of the end of the fourth quarter of 2023, 35 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Herbalife Ltd (NYSE:HLF). The most significant stake in Herbalife Ltd (NYSE:HLF) was owned by William Duhamel’s Route One Investment Company which owns a $157 million stake in Herbalife Ltd (NYSE:HLF).
2. Unity Software Inc (NYSE:U)
Number of Hedge Fund Investors: 38
Earlier in February Jim Cramer was asked about his thoughts on Unity Software Inc (NYSE:U). Cramer said he knows that Unity Software Inc (NYSE:U) has a lot of “problems” and he cannot recommend this stock until it starts making money. However, Cramer said he likes the “product.”
As of the end of the fourth quarter of 2023, 42 hedge funds tracked by Insider Monkey had stakes in Unity Software Inc (NYSE:U). The most notable stake in Unity Software Inc (NYSE:U) is owned by Jim Davidson, Dave Roux and Glenn Hutchins’s Silver Lake Partners which owns a $1.4 billion stake in Unity Software Inc (NYSE:U).
Earlier this month Macquarie Equity downgraded the stock to Underperform.
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding Unity Software Inc. (NYSE:U):
“We also sold Unity Software Inc. (NYSE:U), a select growth name purchased in early 2022 to participate in the growth of the global video game market, as our thesis no longer remains valid. Via M&A, Unity has diversified away from its game engine subscription business into the less differentiated advertising segment and most recently saw negative customer reaction to price increases, calling into question the offering’s pricing power.”
1. EQT Corp (NYSE:EQT)
Number of Hedge Fund Investors: 40
Jim Cramer recently recommended investors not to buy energy company EQT Corp (NYSE:EQT) shares. Cramer said in an answer to a question about EQT Corp (NYSE:EQT):
“I’m not going to go there…I am a Coterra man through and through.”
A total of 40 hedge funds in Insider Monkey’s database had stakes in EQT Corp (NYSE:EQT) as of the end of 2023.
ClearBridge Mid Cap Growth Strategy made the following comment about EQT Corporation (NYSE:EQT) in its Q2 2023 investor letter:
“The energy sector was another positive contributor, primarily driven by our investment in EQT Corporation (NYSE:EQT). As North America’s leading natural gas provider, EQT had seen its share price slide as the lackluster reopening of China and a milder-than-expected winter in the northern hemisphere weighed on natural gas prices. However, as recessionary fears have given way to optimism and the prospect for greater energy demand, EQT’s share price has rebounded. While we continue to expect volatility in commodities prices, we believe that global energy demand, especially in Europe, along with the company’s leadership position in the natural gas market, make it a strong long-term compounder for the portfolio.”
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