For weeks, CNBC’s Jim Cramer has advised that newly public companies have fallen out of favor on the Wall Street fashion show as investors recalibrate to a more hawkish Federal Reserve. He’s urged people to stay away from the group.
But eventually, the “Mad Money” host said Thursday, the “indiscriminate selling” in the cohort will offer at least some buying opportunities. “When that happens, you should be aware the market has fallen far enough that there’s actually a few companies that might … be interesting,” Cramer said.
For that reason, Cramer on Thursday offered a list of stocks he thinks investors should have on their radar. They all meet the following criteria:
- Went public in 2021 through a traditional IPO, direct listing or reverse merger with a SPAC
- Positive earnings estimates for 2022 and projected earnings growth in 2023
- Quality balance sheet
- Price to earnings ratio of 30 or less
Using that criteria shrunk the universe of newly public companies from 649 to just 61. From there, Cramer said he wanted to highlight only the 12 stocks he believes are notable. Here’s the list:
- Perella Weinberg Partners
- Solo Brands
- F45 Training
- Xponential Fitness
- Sun Country Airlines
- Open Lending
“The recent IPOs and the SPAC stocks are still in the doghouse; I don’t see that changing any time soon,” Cramer cautioned. “But it’s never too early to start keeping a lookout for the ones that might make sense as long-term investments.”
Disclosure: Jim Cramer is represented by the talent agency Endeavor.
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