In this article, we will take a detailed look at 10 Jim Cramer Stocks to Watch This Month.
Jim Cramer recently talked about the market selloff and how years of profits are lost within days when panic hits the market:
“They wipe out these gains pretty easily, don’t they? Just like that, the sellers take away months, if not years, of profits because they want to get ahead of a potential recession. And then they swap into the safety stocks that thrive in a slowdown. Welcome to the world of recession preparation, where it doesn’t matter what prices you get on the sales or the buys as long as they get done.”
Cramer said that while he agrees with the broader tariff policies of President Trump, he does not like the “way” he’s implementing them.
“I don’t think that Trump will start going easier on our trading partners just because the Dow’s been eviscerated. He’s not sacrificing our trade policy on a cross of gold — meaning, of course, higher stock prices. Of course, not many investors saw this coming, and that’s incredible to me. And the shock from Trump’s change in attitude has terrified the moneymen — the big moneymen,” Cramer added.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Jim Cramer discussed during his programs on CNBC. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Whirlpool Corp (NYSE:WHR)
Number of Hedge Funds Investors: 22
A caller recently asked Jim Cramer about Whirlpool Corp (NYSE:WHR). Cramer recommended the investor to move on from the stock.
“I didn’t like that quarter at all, and that stock is very much in the penalty box. It has had a little bit of a bounce, and what I say is move on.”
9. Realty Income Corp (NYSE:O)
Number of Hedge Funds Investors: 23
A caller recently asked Jim Cramer about his thoughts on Sunoco as a safe dividend stock for retirement. Cramer said he likes the stock and also recommended Realty Income Corp (NYSE:O).
“Let me throw in that I like Realty Income now. They boosted the dividend today.”
Earlier in February, Realty Income Corp (NYSE:O) raised its dividend by 1.5%. It’s one of the most popular monthly dividend REIT stocks in the market.
Parnassus Core Equity Fund stated the following regarding Realty Income Corporation (NYSE:O) in its Q3 2024 investor letter:
“Realty Income Corporation (NYSE:O) is poised to benefit from lower interest rates. Because its commercial tenants are mostly on 10-year leases, the stock’s steady dividend stream is attractive in the current environment of slow deceleration in the economy with rates coming down. In this favorable backdrop, the company also continues to execute well.”
8. ADMA Biologics Inc (NASDAQ:ADMA)
Number of Hedge Funds Investors: 25
Jim Cramer was asked about ADMA Biologics Inc (NASDAQ:ADMA) during the Lightning Round segment of his program on CNBC. Here is what he said:
“It does great blood plasma work. My problem is I don’t have a catalyst. I think the stock at 40 times earnings is a little too rich. I would wait for it to come down before I would pull the trigger.”
7. Anheuser-Busch Inbev SA (NYSE:BUD)
Number of Hedge Funds Investors: 26
A caller recently asked Jim Cramer about Anheuser-Busch Inbev SA (NYSE:BUD). The CNBC host recommended the investor to stay away from beer stocks.
“I don’t like the beer business. If I had to do it, I would be in Molson.”
6. Energy Transfer LP (NYSE:ET)
Number of Hedge Funds Investors: 29
Jim Cramer in a recent program on CNBC recommended investors to buy Energy Transfer LP (NYSE:ET) stock.
“Yes, ET is smart. I mean, look, this is how you buy ET. You know, this is a pipeline company. You buy it by the percentage yield. So, it’s got a 7% yield now. You buy some at 8, you buy some at 9. That’s how you buy these stocks. And I’m going to keep stressing that—this is the way to do it.”
Patient Capital Management stated the following regarding Energy Transfer LP (NYSE:ET) in its Q3 2024 investor letter:
“Energy names disappointed in the quarter following commodity prices lower throughout the period. We took the opportunity to add to our highest conviction ideas. We look to names that have idiosyncratic opportunities and are attractive in a variety of different commodity price environments. Many see risk to energy prices over the next year as supply is expected to outstrip demand by 1.3mb/d even before assuming any incremental OPEC supply comes onto the market. With commodities, consensus is rarely right. We assess companies on through cycle returns and normalized prices. From this perspective, we see a handful of attractive opportunities, including Energy Transfer LP (NYSE:ET), Seadrill (SDRL) and Kosmos (KOS).
Our ownership of Energy Transfer began in 2019 with the belief that the limited supply of new pipelines would provide attractive pricing opportunities over the long-term. At the same time, the company was paying us an attractive dividend (10% yield over the period). So far this investment thesis has largely played out, but we continue to see an attractive long-term setup for the name given our belief that natural gas will be a key ingredient to bridge us to a net carbon neutral world.”
5. e.l.f. Beauty, Inc. (NYSE:ELF)
Number of Hedge Funds Investors: 40
Jim Cramer in a latest program on CNBC urged investors not to sell e.l.f. Beauty, Inc. (NYSE:ELF) despite declines.
“Oh my, I got to tell you, down 40%, everyone’s decided that it doesn’t work anymore, it’s got tars, blah blah blah. I am not going to sell tangam down 40%. I am going to buy, but I am not going to sell it. That’s crazy. People hate it. Let’s just wait, wait—don’t bite, not yet.”
Artisan Small Cap Fund stated the following regarding E.l.f. Beauty, Inc. (NYSE:ELF) in its Q3 2024 investor letter:
“Among our top detractors were iRhythm, E.l.f. Beauty, Inc. (NYSE:ELF) and Lattice Semiconductor. E.l.f. Beauty is a cosmetics company that employs a low-price strategy, a sizeable social media presence and rapid speed to market. Its core business aims to replicate existing prestige products at a lower price and recognize new and emerging trends. Its share of the US cosmetics market is around 10%. We expected it would gain more market share in the US and leverage social media to expand into new markets, such as Western Europe, India and Latin America. However, we decided to exit the position due to evidence of decelerating growth. The company and the broader category are experiencing macro-related headwinds and elevated inventory levels at distribution partners. We continue to believe in the long-term outlook and will keep it on our watchlist.”
4. FTAI Aviation Ltd. (NASDAQ:FTAI)
Number of Hedge Funds Investors: 41
Jim Cramer was asked about FTAI Aviation Ltd (NASDAQ:FTAI) in a latest program on CNBC. Here is what he said:
“I’m going to be in favor of it at this point, and you’ve got a good one. I think you just hold on to it, even though, I mean, it just got clocked today. I mean, that, but it was just part of the whole momentum trade. I think I like it then.”
ClearBridge Mid Cap Growth Strategy stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q3 2024 investor letter:
“We are encouraged by the high proportion of positive returns on new ideas added over the last five quarters of elevated new idea generation, with solid contributions to overall performance despite their representing a modest portion of the Strategy’s assets.
We continued to deliver strong new idea generation, adding four new investments in the quarter: OneStream (through participating in its IPO), Abercombie & Fitch, Wintrust Financial, and FTAI Aviation Ltd. (NASDAQ:FTAI).
FTAI Aviation is an aerospace company that offers both engine and aircraft leasing services, as well as an aftermarket for engine products and services. With a focus on several widely used and aging engine platforms, the company’s differentiated modular approach to aftermarket products, along with the unique assets from its leasing business, offers meaningful revenue and earnings growth potential.”
3. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Funds Investors: 58
Jim Cramer in a latest program on CNBC said while Lockheed Martin Corp (NYSE:LMT) became attractive after pullbacks, he believes the new US government is opting for a “Palantir-like” solution for procurement and that will have negative effects for stocks like Lockheed Martin Corp (NYSE:LMT).
“Lockheed Martin is a stock that frankly has come down so much that it’s getting hard for me to dislike it. However, I think the administration is far more focused on the idea of a Palantir-like solution to procurement, and that would be very bad for all the companies you just mentioned. So, I do not want to get in the way of the Palantir buzz saw because that’s very close to Elon Musk, and that’s where I am.”
Delaware Ivy Core Equity Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:
“Finally, we added Lockheed Martin Corporation (NYSE:LMT) to the portfolio. While demand for the company’s products remains strong as a function of increased defense industry expenditures and a favorable geopolitical backdrop, margins have been impaired by government contracts that were fixed in price before the onset of rapid inflation. We believe the longer-term profit outlook is inflecting as mispriced contracts are replaced by more favorable ones, beginning in 2025. As several observers have noted before, defense companies are a great insurance policy for what you don’t know, a saying that certainly rings true amid escalating conflict across the globe.”
2. Vistra Corp. (NYSE:VST)
Number of Hedge Funds Investors: 97
Recently, Jim Cramer was asked about Vistra Corp (NYSE:VST). He urged the investors to wait for a pullback.
“I do believe that there’s an energy shortage, but I must tell you that I think that the speculative stocks are trading together. I think this one should come down, and I want you to wait till the 27th. That’s when they report, and I think the stock could be weaker.”
Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”
1. Eli Lilly And Company (NYSE:LLY)
Number of Hedge Funds Investors: 106
Jim Cramer in a latest program on CNBC called Eli Lilly And Co (NYSE:LLY) sellers “uninformed” and urged investors to look forward instead of analyzing 2024 numbers.
“I care about demand more than I care about what these numbers are indicating. Let them—I look at it almost as you would on a trading desk. Let them sell it, let the uninformed people sell it, and then look at the size of this market. Realize that we’re in its infancy, and its infancy is already so much bigger than any drug I’ve ever seen. I think you have to be on the horse that is Eli Lilly.”
Lilly has been making progress in its GLP-1 opportunity and also advancing in other areas like immunology and oncology. The company has several growth products that help reduce its reliance on incretin-based drivers. Wall Street has raised expectations for the total addressable market of weight loss drugs. The company’s potential late 2025 regulatory submission for its oral GLP-1 weight loss drug, Orforglipron, could give it an edge over Novo’s next-generation product, with possible commercialization in 2026 that might further erode Wegovy’s market share.
LLY’s forward non-GAAP P/E of 35x is nearly double that of its sector peers, but it’s still more than 10% below its five-year average.
Alger Spectra Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q4 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company with core franchises in diabetes, obesity, neurology, and oncology. Its portfolio includes innovative drugs like Mounjaro, Zepbound, Trulicity, Jardiance (diabetes and obesity), Taltz (psoriasis), Emgality (migraines), and Verzenio (breast cancer). Shares detracted from performance during the quarter after the company reported fiscal third-quarter revenues below analyst estimates. The revenue shortfall was attributed to inventory destocking in the wholesaler channel for Mounjaro and Zepbound, following inventory building in the prior quarter, which led to an 11% miss in obesity drug revenues. Management slightly lowered fiscal 2024 guidance but emphasized that demand for its obesity drugs remains strong. They also moderated promotions during the quarter to manage supply and ensure patient continuity. While shares detracted from performance, we believe the revenue miss was largely due to temporary inventory dynamics and moderated promotion activity.”
While we acknowledge the potential of Eli Lilly And Co (NYSE:LLY), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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