Jim Cramer's Top 7 S&P 500 Picks for Upside Potential

Jim Cramer recommends seven S&P 500 stocks to buy now, including T-Mobile, Royal Caribbean, Expedia, and Capital One. He screens for above-average earnings growth and below-average forward P/E, avoiding cyclical sectors like energy and materials. His picks span travel, telecom, banks, industrials, and core AI infrastructure, with upside potential despite record highs.

Jim Cramer, a prominent financial analyst and host of CNBC's "Mad Money," has recently highlighted seven S&P 500 stocks that he believes investors should consider buying now. His picks span various sectors, including travel, telecom, banks, industrials, and core AI infrastructure. Cramer's selection criteria include above-average earnings growth and below-average forward P/E ratios, while avoiding cyclical sectors like energy and materials. Here is a closer look at his recommendations:

1. T-Mobile (TMUS)
- T-Mobile has been a strong performer, driven by its 5G network expansion and acquisition of Sprint. The company has shown robust earnings growth and a relatively low forward P/E ratio, making it an attractive pick.

2. Royal Caribbean Cruises (RCL)
- Royal Caribbean Cruises has been a beneficiary of the recovery in the travel industry. The company reported strong earnings, with a net margin of 20.97% and a return on equity of 47.15%. Institutional investors have been increasing their stakes in the company, indicating confidence in its prospects Fifth Third Bancorp Grows Stake in Royal Caribbean Cruises Ltd. $RCL^[2].

3. Expedia (EXPE)
- Expedia has seen a rebound in bookings as travel demand recovers. The company's focus on digital platforms and strategic partnerships has positioned it well to capitalize on the growing online travel market.

4. Capital One (COF)
- Capital One has benefited from a strong consumer credit environment and its digital banking initiatives. The company's earnings have shown consistent growth, and it has a relatively low forward P/E ratio.

5. BXP, Inc. (BXP)
- BXP, Inc. is a fully integrated real estate investment trust that develops, owns, and manages premier workplaces. While it is one of the relatively cheap S&P 500 stocks, Cramer noted that it is the only real estate stock on his list. BXP has shown resilience during the pandemic and has potential for growth as the economy recovers Jim Cramer Highlights BXP’s Recovery Despite Dividend Cut^[1].

6. Ross Stores (ROST)
- Ross Stores has been a strong performer in the retail sector. The company's earnings per share (EPS) are projected to increase, reflecting a 5.41% decrease from the same quarter last year. The discount retailer's stock has climbed by 0.28% in the past month, outperforming the S&P 500's gain of 2.72% Ross Stores (ROST) Outperforms Broader Market: What You Need to Know^[3].

7. NVIDIA (NVDA)
- NVIDIA is a leading provider of graphics processing units (GPUs) and has seen strong demand from the AI and gaming markets. The company has shown robust earnings growth and a relatively low forward P/E ratio, making it an attractive pick.

Cramer's picks offer upside potential despite record highs in the market. However, it is essential for investors to conduct their own research and consider their risk tolerance and investment objectives before making any investment decisions.