As the football season kicks off with a game between the Baltimore Ravens and the Kansas City Chiefs, CNBC’s Jim Cramer drafted his annual fantasy portfolio, equating his favorite stocks with top players in the National Football League.
“If you play fantasy football, you’ve probably already drafted, so good luck to your team,” he said. “But if you’re an investor, it’s never too late to pick up some of these high-quality fantasy stock football picks.”
Just like picks for a fantasy football team, different stocks fill different positions in an investor’s portfolio, Cramer said. For example, he explained, it’s necessary to have a quarterback, or stock that gives a solid performance on a regular basis. Cramer chose Apple as the quarterback of his team and compared the iPhone maker to Josh Allen of the Buffalo Bills. He said both Allen and Apple are versatile, with the latter able to throw and run while the tech company has recurring revenue streams as well as new releases like the next iPhone cycle. Both Allen and Apple are durable, he added, saying the quarterback has played every regular game for the past four seasons while the megacap seems to perform well over the years despite facing challenges.
He also drafted a few wide receivers, which he said are akin to “turbocharged growth stocks” that, while volatile, can yield huge gains â like artificial intelligence darling Nvidia and utility company Vistra. Cramer compared Nvidia to the Miami Dolphins’ Tyreek Hill, saying the wide receiver and the stock are both known for their “blazing speed.” But there are also naysayers for both Hill and Nvidia â the company’s shares are down as investors worry about continuing demand for AI products, and the player sparked concerns after seemingly injuring his hand. Vistra, he added, is like the Dallas Cowboys’ CeeDee Lamb. The stock’s growth rate is comparable to that of Nvidia, Cramer said, and Lamb was the only wide receiver with more fantasy points than Hill last year.
Cramer also compared defensive players to defensive stocks, saying investors and teams need a defense that has consistent quality. He pinpointed the Dallas Cowboys’ defense as the best in the league, likening the team to consumer products company Kimberly-Clark.
“With rate cuts on the horizon, it’ll be a good year for high-yielding, high-yielding consumer staples plays, and Kimberly-Clark’s among the best of the best, hence the Cowboys analogy,” Cramer said.
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Source Agencies