Jim Cramer, the host of CNBC’s “Mad Money,” recently turned his attention to a group of ten stocks that have seen remarkable growth in 2024. While acknowledging their speculative nature, he suggests these companies could be smart additions to a diversified investment portfolio for long-term gains.
Cramer’s list, featuring companies with a market capitalization exceeding $1 billion, showcases stocks that have surged over 200% this year. He cautions that he’s not currently recommending these stocks due to their high valuations, but stresses the importance of including speculative companies in investment portfolios. He argues that these companies often represent “speculating wisely,” which can lead to significant long-term returns.
“Let’s remember this list of frothy stocks and think of them the next time you’re about to ignore a stock for being too speculative,” said Cramer. “Because these names are often the epitome of speculating wisely, which can be the key for terrific long-term performance — of course, only when melded with index funds.”
Here’s a breakdown of the ten stocks Cramer highlighted, along with his reasoning for their potential:
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Rocket Lab (RKLB):
Cramer sees massive growth potential in its satellite business.*
Cava Group (CAVA):
Cramer believes Cava could reach Chipotle-like heights, leveraging a familiar and accessible brand.*
Palantir Technologies (PLTR):
Cramer dubs it a “cult stock” thanks to its lucrative contracts with the Pentagon.*
Powell Industries (POWL):
Cramer emphasizes its role as a key supplier for critical data center infrastructure.*
Vistra Corp (VST):
Cramer points to its strong growth driven by data center energy demand and investments in renewable energy.*
Carvana (CVNA):
Cramer believes Carvana’s recent debt reduction has made it more attractive despite past challenges.*
AST SpaceMobile (ASTS):
Cramer recognizes the potential of its space technology, despite the company’s current losses.*
MicroStrategy (MSTR):
Cramer praises its Bitcoin holdings as a major driver for future growth.*
AppLovin (APP):
Cramer highlights the company’s success in AI-driven app marketing.*
NuScale Power (SMR):
Cramer sees strong investor interest, particularly if it secures deals with hyperscalers.While Cramer acknowledges the risk associated with these speculative stocks, he believes they have the potential to deliver substantial returns for investors willing to embrace the volatility. His insights provide valuable context for investors considering exposure to high-growth companies in their portfolios.
