Jim Cramer's Top Picks to Stand Up to Inflation

The S&P 500 and Nasdaq hit record intraday highs on Tuesday, but the markets quickly pulled back. Some of the biggest detractors from the major indexes were airlines and financials. Overall, broad market concerns about inflation persisted as well when the Consumer Price Index came out with more than a 5% increase year over year. Keep in mind even more major earnings are coming out as the week rolls on. All this makes for a stock picker’s market, and who better to pick these stocks than CNBC’s Jim Cramer.

Cramer has been a force in the market for years, dishing out advice and analysis to savvy investors. He makes no bones about how he encounters the market with well-founded technical and fundamental analysis at a level to which many a trader and investor aspire.

It is no secret that Cramer has not just been a fount of breaking news surrounding everyone’s favorite stocks and companies, but he also actively engages and encourages more people to get their money to work for them via smart investing. With the recent surge in meme stocks and interest in cryptocurrencies, Cramer has shifted and grown with the times. He even has investment strategies on the cutting edge.

Cramer has maintained a popular show on CNBC for years now. Many people watch Mad Money to make sense of the daily market moves. He also runs the popular finance website Furthermore, you can see him make cameos on other shows over the course of the trading day on CNBC. When not on the air, you can find him on Twitter, dishing out even more knowledge.

24/7 Wall St. has compiled and distilled some of Cramer’s top picks and analysis here.

Inflation numbers are in and it doesn’t look good. However, Cramer said that while inflation could be bad news for everyone’s portfolio, there is one sector that seems to be immune to inflation: technology.

Cramer first pointed to Alphabet Inc. (NASDAQ: GOOGL). This stock is up about 45% for the year, and there are a couple of reasons behind this. First Alphabet doesn’t have exposure to rising oil and gas prices. It doesn’t have to worry about the price of plastics or packaging, or even freight costs. Cramer would go on to call this stock a “banana of non-inflation,” which would make it an ideal stock in the rising interest rate environment.

Cramer applied this theory to a few other companies in the sector, namely, Microsoft Corp. (NASDAQ: MSFT) and Apple Inc. (NASDAQ: AAPL). He noted that Microsoft isn’t prone to inflation, and services for Apple, like AppleCard, help offset manufacturing costs.

Big tech isn’t the only industry that can win when inflation strikes. There are also some brands that can hold up to it as well. Cramer named PepsiCo Inc. (NASDAQ: PEP) as having a strong portfolio of brands that are capable of pushing through small price increases to offset rising costs.

For the Lightning Round, Cramer started with Blackstone Group Inc. (NYSE: BX), and it was short and sweet: “I like Blackstone very much.” Wynn Resorts Ltd. (NASDAQ: WYNN) was another short one. Cramer simply called it a “Buy.”

On Advanced Micro Devices Inc. (NASDAQ: AMD), he said, “Advanced Micro is a screaming buy.”

Cramer took a longer term perspective on Cleveland-Cliffs Inc. (NYSE: CLF): “I want to buy the stock and put it away.”

CRISPR Therapeutics (NASDAQ: CRSP): “It’s very speculative stock. It sits at 100-plus points. A lot of people can’t take that kind of downside pressure, but I think that you can buy half a position because I do think that it has always been … a takeover stock”.

Lam Research Corp. (NASDAQ: LRCX) was a more speculative pick: “I’m going to say buy it. I know it’s moved a great deal. I wish they’d split it, but they’re not going to.”

Jimmy Chill ended the round with Covanta Holding Corp. (NYSE: CVA): “I think it’s OK … I think that there are other plays that are better, I would even buy Chevron … more than I would buy Covanta.”

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