Jim Cramer lists 10 stocks that are likely to perform well in December

CNBC’s Jim Cramer on Monday listed 10 stocks that he thinks will do well in December. November winners typically continue to perform into the last month of the year.

“Before I started my charity fund over 20 years ago, I had a hedge fund,” he said. “I was always looking for an edge, and one of the most reliable patterns I’ve found is that when December rolls around, you mimic November’s biggest winners.”

Here are ten stocks Cramer has his eye on, in no particular order:

1. Palantir: Cramer praised the software company’s management, saying the company’s third quarter, in which its shares rose 20%, was one of the best of the year. He also said he liked the company’s defense business, noting Palantir’s work for the Pentagon.
2. Axon: Axon largely makes equipment for law enforcement, and Cramer suggested it is poised to do well as a GOP trifecta in Washington likely means police will receive more funding. The company also reported better-than-expected quarterly results and has new software that includes artificial intelligence, he added.
3. TeslaTesla CEO Elon Musk is a close ally of President-elect Donald Trump, and Cramer said his loyalty will likely lead to rewards for the company and its automated vehicle business.
4. Texas Pacific Country: A new addition to the S&P500this landowner has a large tract of acreage in the Permian Basin. While oil-related companies are expected to prosper under Trump, Cramer warned that oil stocks actually underperformed during his last term after excessive drilling.
5. Tapestry: Known for several luxury retail brands, including Coach, Kate Spade and Stuart Weitzman, shares of Tapestry have risen since the Federal Trade Commission blocked its takeover of fellow company Capri. Wall Street began to doubt the merger, with some saying Tapestry would pay too much for Capri. Cramer called Tapestry a “returning apparel company.”
6. EPAM systems: Cramer said this enterprise software company has come back as “part of the return of the primacy of enterprise software over hardware.”
7. Warner Bros discovery: According to Cramer, this stock is becoming increasingly valuable as the company improves its balance sheet and says its assets are worth more than its share price. He also said the new presidential administration will be a “ratings bonanza” for CNN, and that the company could benefit from some kind of merger if Trump relaxes regulations.
8. Display: Vistra will undoubtedly see success as data centers continue to gobble up power, Cramer said, especially as demand for clean energy grows.
9. McKesson: This company distributes medications and health care services and is a “traditional middleman” between pharmaceutical companies and drugstores, Cramer said. McKesson could benefit from Trump’s presidency, as the company might otherwise have been on the radar of regulators in President Joe Biden’s administration.
10. EQTThis major natural gas company is a key Trump asset, Cramer said, noting that the president-elect is expected to lift Biden’s pause on new LNG export projects.