CNBC’s Jim Cramer on Friday offered a list of stock picks for investors bullish about cloud computing, but cautioned that he believes more pain is to come.
“I recommend actually using this incredible recovery as a rare opportunity to sell the weaker cloud stocks for strength,” he said. “Nevertheless, some of them might be worth keeping, but only the top quality names.”
Here is his list of keepers:
Honorable mentions that he likes but doesn’t necessarily recommend buying are Salesforce and Workday.
To compile his list, Cramer first looked at the WisdomTree Cloud Computing Fund, an ETF that was up more than 13% on Thursday after October’s CPI came in weaker than expected.
Cramer first narrowed the exchange-traded fund’s list of 75 stocks by eliminating companies with these characteristics:
That left him with 13 stocks and he picked his three favorites.
Cramer claimed that while investors like the stocks he’s picking, they should take the chance to exit their cloud stocks while they’re on the up. “If you’ve been trapped in these things, this gives you a chance to get out,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares in Salesforce.
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