Nvidia headquarters in Santa Clara, Calif. On Tuesday, February 23, 2021.
David Paul Morris | Bloomberg | Getty Images
CNBC’s Jim Cramer looked at some of the top performing stocks of the second quarter on Tuesday as the second half of 2021 kicks off.
In his review, he found that only one of the top five components in both the S&P 500 and Nasdaq Composite indexes was a reopening game.
Below are the Mad Money host’s takeaways for the top stocks for the second quarter. Price changes represent stock movements from March 31 to Wednesday June 30:
Nvidia, increased by 49.85%
“This is a company with a hammer lock on artificial intelligence and graphics processors, and it has grown to be our largest semiconductor company. The company is valued at $ 516 billion, down from just $ 15 billion five years ago, ”said Cramer.
“Nvidia caught fire … in the past three months [given its] fantastically raised guidelines and the increasing likelihood of regulators around the world allowing the acquisition of a company called Arm Holdings, the UK chip maker that makes central processing units for cell phones and personal computers. “
Devonian energy, 33.59%
Cramer said CEO Rick Muncrief “understands that Wall Street is fed up with overspending oil companies and terrible stewards of capital.”
“The new Devon has a variable dividend that gives you a huge return on high oil prices like now,” he added. “As long as crude oil stays above sixty dollars a barrel, we’re talking about a return of 7%. No wonder people like this are in the second half of the year.”
Pool Corp., 32.85%
“You’d think Pool would be an odd fit on this list … but keep in mind that the property market is on fire. [with] rising home values. People are far more likely to invest in their property, and that includes building a pool, “Cramer said.” As long as the housing stock stays strong, I expect this stock to do well. “
“Here is a consulting firm for everything to do with business technology, but which is best known for its personal conferences. A lot of catching up to do,” said Cramer.
“Although the company did a lot of business during the pandemic, it is clear that investors believe they will get a big boost in the second half of the year when these conferences return,” added Cramer. “With the stock up 32% in the last quarter, I think the easy money has already been made. This is not for me.”
“Equifax shocked Wall Street with much better than expected results and more aggressive buyback. I think this could be a great story in the second half,” said Cramer. “This could be the only least-advertised financial technology game out there.”
“If you think Covid is behind us, Moderna is a best seller. If you think the Delta variant is just the beginning and we may need regular booster vaccinations, there might be more to it,” said Cramer.
“For me, the critical test of whether or not Moderna can offer personalized cancer vaccines … in time to offset the decline in Covid sales,” he added. “I think the stock is too high at this point because even if they are successful on cancer vaccines, the comparisons are so difficult because they were successful on Covid.”
Nvidia was the second best performing stock on the Nasdaq in the second quarter. Cramer passed the stock after discussing its position on the S&P 500’s best-performer list.
“People often associate DocuSign with Zoom, two products that took the world by storm during the pandemic, but while Zoom faces all sorts of new competitors and could take a hit if business travel comes back,” said Cramer, “DocuSign is winning Offering speed and new categories, like the agreement cloud. “
Idexx laboratories, 29.07%
“While Idexx is eternally expensive – it currently trades at 80x earnings – it usually justifies this valuation with fantastic results,” said Cramer. “Another 29% rally may be hard to repeat, but I think the company will actually surprise in the second half of the year.”
“With a price increase of 28% in the last quarter, I think that Intuit has a very good chance of continuing its triumphant advance, if only because the products are getting better and better,” said Cramer. “If you don’t own a small business, you can’t understand how great these guys really are.”
Intuitive surgery, 24.45%
“Intuitive Surgical gained 24% last quarter because it has a gigantic replacement cycle and still has plenty of room to gain market share when you consider all the users for its incredible machine,” said Cramer.
Disclosure: Cramer’s charitable trust owns shares in Nvidia.
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