Jim Cramer Stock Picks: Buy Microsoft & Chipotle In August 2023

As the financial markets enter the second half of 2023, investors are watching the market closely to find the best stocks to buy right now.

Top stock market analysts like Jim Cramer, the host of CNBC’s “Mad Money”, have released their stock picks heading into August.

Known for his insights into the stock market, Cramer’s stock picks often gain significant attention and have the potential to impact investor sentiment.

In this article, we’ll explore three companies that have caught Cramer’s attention: Microsoft, Chipotle Mexican Grill, and Google (Alphabet Inc.), along with the factors driving his bullish stance on the best stocks to buy in August 2023.

1. Microsoft (MSFT) — Azure Growth Is Actually Better Than Expected

MSFT now down targeted 15 points, time to make first buy.

— Jim Cramer (@jimcramer) July 26, 2023

Jim Cramer’s enthusiasm for Microsoft stems from the company’s strong performance and continued innovation in the technology sector.

One of the top 100 NASDAQ stocks, Microsoft’s dominance in cloud computing through its Azure platform has been a major driver of growth. As an increasing number of businesses shift their operations to the cloud, the company is positioned to benefit from this ongoing digital transformation.

While Azure revenue growth slipped to 27 percent in Q2 2023, Cramer actually believes that cloud-based services have not been slowing down at Microsoft. Instead, the CNBC analyst doubled down on Twitter, calling for subscribers to buy Microsoft after the company reached its downside target.

Despite beatings analysts’ expectations with revenue of $56.2 billion and EPS of $2.69, Microsoft shares fell by as much as four percent on Wednesday, presenting a potential entry point for investors that want to buy the dip.

2. Chipotle (CMG) — Oversold After Q2 Earnings Report

Selling in Chipotle way overdone.. Jeesh

— Jim Cramer (@jimcramer) July 27, 2023

According to Cramer, the market has overreacted by selling Chipotle stock after the company released its Q2 earnings report. On Wednesday, Chipotle Mexican Grill was one of the market’s biggest after-hours movers, losing 8.67 percent after missing growth forecasts by a wide margin.

Despite the earnings miss, Cramer believes there is still potential for growth in the company’s future. After all, Chipotle still posted a beat on the bottom line with an EPS of $12.32, ahead of the $12.25 forecast by Wall Street analysts.

In the latest earnings release, CEO Brian Niccol reflected on Chipotle’s “ability to drive strong performance by focusing on exceptional food and exceptional people.”
With Cramer announcing that Chipotle is oversold, it’s clear that the ‘Mad Money’ analyst views the recent sell-off as an opportunity for investors to enter the stock at an attractive bargain.

Prior to the release of the earnings report, Chipotle stock had outpaced the market, gaining 50 percent year-to-date compared to a 15 percent rise in the S&P 500.

3. Google (GOOG) — Top AI Stock To Buy In 2023

You could not get Google off its AI game. It is all they wanted to talk about. But it is working for them and their customers. Write-ups coming

— Jim Cramer (@jimcramer) July 25, 2023

Google’s relentless focus on artificial intelligence has caught Cramer’s attention.

During its Q1 2023 earnings call, Google increased its mentions of AI by 828 percent year-over-year, riding the wave of one of the year’s biggest buzzwords in the market. The momentum didn’t slow down in Q2, as Cramer noted on Twitter.

Ultimately, Cramer believes that Google’s AI endeavors will benefit both the company and its customers, driving future growth and solidifying its position as a leader in the tech industry.

Overall, Google shares rose by 5.59 percent on Wednesday after the company reported revenue of 74.6 billion, beating estimates of $72.75 billion. The tech giant also posted an EPS beat of $0.12, as earnings per share came in at $1.44 compared to estimates of $1.32.

As a result, Cramer confidently predicted on Twitter that analysts’ estimates and price targets for Google will likely see upward revisions in the coming days, further supporting his investment thesis