Jim Cramer predicts these 10 S&P 500 stocks will perform well in 2023

CNBC’s Jim Cramer on Wednesday offered investors a selection of stocks he thinks will do well this year.

To come up with his picks, he examined the best and worst performers in the S&P 500 from last year and picked five potential 2023 winners from each list.

“One of the easiest traps to fall into is simply sticking with winners. And it works for a long time – until it doesn’t,” he said.

Here are the top performers from 2022 that Cramer thinks could continue to see gains this year:

Halliburton

• Cramer predicted that the stock has a multi-year rally ahead of it.

Constellation energy

• The company will likely be a big beneficiary of funding from the Inflation Reduction Act, he said, adding that he believes Constellation Energy is the best operator of nuclear power plants.

Enphase Energy

• Calling it “the golden boy of renewables,” Cramer said the solar technology company is a profitable, solid business.

McKesson

• Stocks of drug distributors such as McKesson tend to perform well during an economic downturn, he said.

Northrop Grumman

• The company’s stock could be the best defense contractor to own as the war between Russia and Ukraine continues, according to Cramer.

Here are the worst performers from 2022 who he thinks could make a comeback this year:

Netflix

• “I think Netflix turned themselves around because they were so confident on the last conference call. You know, for almost two years, their conference calls were funerals, even as Squid Game took the world by storm,” he said, adding, “And a lot of growth-oriented money managers want to find improved franchises, and that suits Netflix to a tee.”

Stanley Black & Decker

• Investors interested in the stock should start a small position here and gradually buy more on the way down, he recommended.

VF Corp

• Cramer said that while VF Corp stock had a “terrible performance” last year, he is betting that new interim CEO Benno Dorer will help the company return value to shareholders in 2023.

Meta platforms

• Cramer said that while the stock has been a “disaster,” he believes the metaverse will either take off or weaken this year. The former scenario would be good news for the company, while the latter would mean the company could divert its metaverse budget to other segments like Reels and WhatsApp, he said.

Advanced Micro Devices

• He said that while AMD shares have been hit by slowing demand for personal computers this year, he still believes in CEO Lisa Su and the company’s underlying business.

Disclaimer: Cramer’s Charitable Trust owns stock in Halliburton, Meta Platforms and Advanced Micro Devices.