Jim Cramer, host of Mad Money, recently discussed the current state of the market and also discussed both the leading and lagging stocks within the S&P 500. He posed an intriguing question: What if Trump’s tariffs are more negotiable than expected? Instead of a hard-line approach, Cramer suggested they could end up being more like a “steak knife” than a “meat axe,” meaning less harmful to trade and international relations.
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While a more reasonable tariff policy might not be ideal for global trade, it would be a positive development for stocks, particularly if it results in lower prices for American consumers or if multinational companies move their manufacturing to more favorable countries. Cramer emphasized that, for stockholders looking for growth, hopes should be placed on negotiable tariffs.
“If you own stocks and you want them higher, you have to hope for negotiable tariffs that could cause countries to lower prices to us or make multinational companies move their manufacturing base here to a more friendly country.”
Cramer also discussed the S&P 500’s performance this year, noting that, while it is clear which stocks have thrived in the Nasdaq, the winners and losers in the broader S&P 500 have been more difficult to pinpoint.
Additionally, Cramer mentioned that several of the stocks in his Charitable Trust, which are reliant on a rebound in China, are ones he’s not excited about at the moment, especially considering the disappointing Chinese economic data. He mentioned that his dismay for such stocks will only last until “they annualize the crummy Chinese numbers and then they’ll probably bounce back.”
10 S&P 500 Stocks on Jim Cramer’s Radar
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 S&P 500 Stocks on Jim Cramer’s Radar
10. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 38
Dissecting Enphase Energy, Inc. (NASDAQ:ENPH), Cramer remarked:
“Finally, there’s Enphase, which is a solar equipment company that has the misfortune of making some of its equipment in China. Given that Trump won over solar advocate Vice President Harris, we can expect that much higher tariffs are looming on Chinese goods. I think it’s amazing that Enphase was only down 48% for the year. But hey, there’s always 2025.”
Enphase (NASDAQ:ENPH) is a company that designs, develops, manufactures, and sells energy solutions, particularly for the solar photovoltaic sector. It has been expanding its presence globally, particularly in Latin America. Recently, the company launched the IQ8P Microinverters in Colombia, Panama, and Costa Rica, aimed at supporting high-powered solar modules for both residential and commercial applications.
At the same time, Enphase (NASDAQ:ENPH) is operating in an environment shaped by broader geopolitical events. According to The Washington Post, President Trump’s economic advisers are working on a plan that would include universal tariffs of up to 20%, focusing on industries considered essential to national security, such as defense, energy, and critical medical supplies. This approach aims to prevent countries like China from circumventing tariffs by rerouting goods through third-party nations.
However, Trump has denied this report. He continues to advocate for sweeping tariffs of 60% to 100% on imports from China and a 25% tariff on all products coming from Mexico and Canada. This stance has been a part of his campaign promises and remains a topic of discussion in his economic policies.
9. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 49
During Mad Money’s episode, Cramer discussed a few reasons behind The Estée Lauder Companies Inc.’s (NYSE:EL) stock price nosediving in 2024.
“Fourth is Estée Lauder. Lost 49% last year because it went all in China and saw every part of its business pretty much fall apart, even as management kept promising otherwise. Yep, louder, over-promised and under-delivered endlessly… It was also eviscerated by competition from e.l.f Beauty or ELF. Of course, management would never admit this. It would never admit that its products were way overpriced compared to e.l.f’s, much cheaper, but only slightly inferior merchandise. They would say it’s radically inferior.”
Estée Lauder (NYSE:EL) manufactures and sells a wide range of skincare, makeup, fragrance, and hair care products globally, offering popular brands such as Estée Lauder and Clinique. However, despite its widespread success, the company has faced significant challenges recently. Since its peak stock performance in 2022, the stock has experienced a sharp decline. In 2024, it also announced a reduction in its dividend by approximately 47%, signaling struggles in its financial performance.
A significant issue contributing to the company’s difficulties has been weak sales in China, which have been hindered by the country’s slow recovery from the pandemic-induced shutdowns. As approximately 30% of the company’s sales are tied to China, the volatility in the region’s economy has significantly impacted the company’s performance.
As per DA Davidson’s Linda Bolton Weiser, this has resulted in a suspension of the company’s annual guidance. Weiser believes that the China market’s complications will result in a drop in sales of 15% to 16% year-over-year in the second quarter of fiscal 2025.
Estée Lauder (NYSE:EL) began fiscal 2025 expecting slower performance in mainland China and Asia travel retail, with the actual impact being greater than expected due to worsened consumer sentiment. For the remainder of its business, the company expects continued normalization in the prestige beauty sector, particularly in North America, with net sales expected to decrease between 6% and 8%, and diluted net earnings per share projected between $0.02 and $0.19.
8. Celanese Corporation (NYSE:CE)
Number of Hedge Fund Holders: 15
Cramer advised to stay away from Celanese Corporation (NYSE:CE) as it needs China and aggressive rate cuts.
“Third is Celanese, CE, it’s a Federal Reserve stock, meaning it’s a company that makes plastics, one that got its clock cleaned, down 55%, revenues flattened, profits fell, typical of all the material stocks that follow though. This one, like so many other industrials needed China to recover and it didn’t. It also needs aggressive rate cuts. Until we get both, please don’t bet on this one bouncing back.”
Celanese (NYSE:CE) is a chemical and specialty materials company that produces high-performance engineered polymers and acetyl products used in various industries. On January 7, Piper Sandler reduced its price target for the stock to $77 from $98 and maintained an Underweight rating on the stock. The firm cited a lowered growth outlook for chemicals, driven by structural challenges in economies outside the U.S., particularly in Europe and Asia, with China playing a key role.
Additionally, Piper expects considerable downside risk due to potential policies from the incoming Trump administration, particularly those aimed at boosting oil and gas production and imposing tariffs that could trigger retaliatory responses.
Additionally, in response to declining profits, Celanese (NYSE:CE) announced significant financial adjustments in November 2024, including a drastic 95% cut to its dividend. The company stated that this temporary reduction, effective in the first quarter of 2025, was necessary to reduce its debt load. Alongside this decision, it outlined additional cost-cutting measures that are expected to generate savings of over $75 million by the end of 2025.
7. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 34
Cramer noted that Moderna, Inc. (NASDAQ:MRNA) stock sank in 2024 and discussed the company’s bad numbers.
“Second, Moderna, with a stock down 58%, remains a casualty of the post-Covid hangover. One of the last now that Zoom Video and Docusign have taken off. The numbers here are staggering, staggeringly bad. The market capitalization in 2021 got as high as $195 billion, now at a $16 billion. Its declining revenues from $19.3 billion in 2022 to an expected $3.3 billion last year is eye-popping and nauseating and we keep waiting for the promised personal vaccines.
I like CEO Stéphane Bancel, nice man, but I’m sad to say that the stock would roar if he were to step down as manager, even if he definitely needs to stay on to help develop vaccines. He’s a great guy, but shareholders deserve better performance.”
Moderna (NASDAQ:MRNA) is a biotech firm focused on creating messenger RNA-based therapeutics and vaccines for various diseases. In 2024, it announced plans to reduce its expenses by about $1.1 billion by 2027 due to declining demand for its COVID-19 products. To manage costs, the company will pause or discontinue certain projects in its pipeline.
The company also adjusted its R&D spending target to $3.6 billion–$3.8 billion in 2027, down from the previously projected $4.8 billion. CEO Stéphane Bancel emphasized that this shift would involve scaling back some studies and putting a hold on research related to latent viruses that can remain dormant in the body.
Bancel addressed a sharp stock decline in his annual shareholder letter, citing weak COVID-19 vaccine sales and a contraction in the respiratory syncytial virus (RSV) vaccine market. Following a limited RSV vaccination recommendation from the CDC, Moderna (NASDAQ:MRNA) will exclude products in their launch year from its financial reporting.
Bancel acknowledged a decline in the company’s market share of the COVID vaccine, despite overall market volume staying the same. The company plans to pursue a more selective approach, targeting 10 product approvals over the next three years while delaying other programs until it is better equipped to launch them globally.
6. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 33
Cramer started the list of S&P 500’s losers in 2024 with Walgreens Boots Alliance, Inc. (NASDAQ:WBA) and said:
“How about the S&P’s biggest losers? Wow, they are powerful, powerfully bad. Starting with Walgreens, down 64%. Here’s a company that needs a buyer or buyers, maybe some for the front of the store, decimated by Amazon, some for the back, which could be used as a dispensary for all sorts of drugs. CEO Tim Wentworth, he’s real good.
He’s closing money, losing stores, offering free one-hour delivery, has a series of incredible bargains on the homepage, check it out. But the balance sheet’s just not so hot and to truly turn around, well, Walgreens needs other pharmacies to go under so it can raise prices. Either that or it needs to break up different parts of the enterprise and sell them off. Down here, though I would not bet against Wentworth… you can’t if the stock’s just too low.”
Walgreens (NASDAQ:WBA), while a major player in the retail pharmacy industry, has faced considerable financial challenges in recent years, with its stock plummeting by over 80% in the past five years. This decline has largely been driven by heightened competition from tech-driven retailers like Walmart and Amazon.
The company is undergoing a turnaround plan that includes considering asset sales, implementing cost-cutting measures, and closing 1,200 underperforming stores. CEO Tim Wentworth pointed out that despite these difficulties, around 6,000 of its 8,000 stores are still profitable. Additionally, in early 2024, the company made a significant move by cutting its dividend yield by 48%, with a focus on better capital allocation.
After The Wall Street Journal reported in December that Walgreens (NASDAQ:WBA) is in discussions to be acquired by private equity firm Sycamore Partners, Morgan Stanley analyst Erin Wright stated that while the firm understands the context of a potential sale amid a challenging pharmacy environment, a buyout is difficult to envision due to Walgreens’ significant debt and low cash flow, which complicates the value creation potential. Wright has assigned an Underweight rating to the stock.
5. Targa Resources Corp. (NYSE:TRGP)
Number of Hedge Fund Holders: 45
Cramer highlighted Targa Resources Corp. (NYSE:TRGP) and suggested sticking with the stock.
“Finally, there’s Targa Resources, up 105%. Now, here’s a natural gas pipeline company, maybe the key to keeping the Permian growing because there’s too much gas in the Permian that needs to be taken away… Targa has both the pipes and the ability to fractionate natural gas liquids. While it’s not a liquified natural gas company, it was believed to be a big loser when President Biden announced that pause in LNG construction a year ago. That pause is over and it, well, I think it’ll be lifted immediately and that will lift Targa even more. By the way, I think that Cheniere Energy was the better one to buy, but I think Targa has the ability to rebuild its… dividend and that’s a good reason to stay long on the stock. Targa’s for me.”
Targa Resources (NYSE:TRGP) owns and operates a portfolio of midstream infrastructure assets, involved in the gathering, processing, transporting, and selling of natural gas, natural gas liquids, and crude oil, along with offering related logistics and transportation services. It had a successful year in 2024, achieving record earnings and volumes.
This growth was largely driven by the completion of several key organic expansion projects, which included the Daytona NGL Pipeline expansion in the third quarter and the startup of the new 120,000-barrel-per-day Train 9 fractionator in Texas during the first quarter. Furthermore, the company completed the Wildcat II natural gas processing plant in late 2023.
Targa Resources (NYSE:TRGP) is investing in expanding its midstream network to meet growing demand, with six natural gas processing plants under construction, which are set to begin operations by the third quarter of 2026. The company is also building an NGL fractionator and expanding its Galena Park terminal, both of which are expected to be completed by the second half of 2025.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Cramer praised Broadcom Inc.’s (NASDAQ:AVGO) CEO and highlighted that he has delivered on his promises.
“Number seven was generally obvious in true Nasdaq style. I’m talking about Broadcom, symbol AVGO, up 108%. Now we had CEO Hock Tan on the show when we were in San Francisco not that long ago, and he laid out a vision where his company would be making a killing from the data center. It’s very rare that you have a totally bankable exec come on your show telling you exactly what will happen and then that executive delivers 100%. He’s greeted with disbelief, a giant upside surprise, and a gigantic move higher. He said it all. Plus, I think Broadcom’s in inning one of this turn. It’s not too late to get on board. This one, we have a nice slug for the Charitable Trust.”
Broadcom (NASDAQ:AVGO) is a prominent company in semiconductor design, development, and supply, known for creating custom chips for major cloud companies like Google. It also manufactures essential networking equipment to link thousands of AI chips in server clusters. One of its noteworthy products is its accelerator chips, called XPUs, which play an important role in the AI ecosystem.
CEO Hock Tan provided a significant revenue forecast for the company over the next two years, forecasting a shift in the AI-chip industry that could benefit companies developing custom silicon chips like XPUs, rather than relying on general-purpose GPUs made by competitors such as Nvidia. Tan sees considerable growth potential in Broadcom’s AI and AI networking sectors, with revenue projections for 2027 ranging between $60 billion and $90 billion, a significant increase from last year’s estimate of $15 billion to $20 billion.
Tan attributed Broadcom’s (NASDAQ:AVGO) growth to its custom XPUs and AI networking solutions, noting the rising adoption of these chips by key clients, especially Google. The company has doubled its XPU shipments to three hyperscale customers, and by 2027, these clients are expected to deploy 1 million XPU clusters, which Tan believes will drive significant growth for the company.
3. Texas Pacific Land Corporation (NYSE:TPL)
Number of Hedge Fund Holders: 20
Discussing Texas Pacific Land Corporation (NYSE:TPL), Cramer said:
“…. a bankrupt railroad that sit atop vast quantities of oil and gas in the Permian Basin that we’ve covered, and I’m proud to say we really kind of nailed. This stock kept going higher, the stock finished up 111%, but at one point it was much, much higher.
I think the oil trade will be hurt by excess drilling. Something that will, it always seems to happen when we get a fossil fuel-friendly president. Now there are better stocks. I like Coterra for the Charitable Trust because it has both natural gas and oil. Better bet. I think it’s breaking out here.”
Texas Pacific (NYSE:TPL) is a company that specializes in land and resource management, water services, land leasing, and material sales. It has an ownership of 873,000 acres of land in the Permian Basin, a significant oil and gas region in West Texas.
However, according to management, the company is also looking beyond the traditional oil and gas sector for new growth opportunities, particularly in wind power and data centers. The company has been exploring the data center space, recognizing the increasing demand for power and space as tech companies build facilities to support AI. Management believes the company’s extensive land holdings in West Texas position it well to capitalize on this growing demand.
As noted by CEO Tyler Glover, “TPL just has a lot of positive attributes for data centers.” In addition to wind power and data centers, Texas Pacific (NYSE:TPL) is addressing the increasing demand for energy across various sectors. Over the past 24 months, the company has contracted more than 700 megawatts of solar energy projects. It is also involved in seven utility-scale battery projects, four Bitcoin mining operations, and 78 megawatts of active power generation, with another 50 megawatts in development.
2. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 54
Cramer said that United Airlines Holdings, Inc.’s (NASDAQ:UAL) transformation has been “astounding” though he advised to wait for a pullback before buying the stock.
“… Simply astounding, it’s United Airlines. For the first time in my life, I’ve seen a trade morph into an investment and that’s what United did. The stock’s up 135%… once the airline started removing capacity. United cut back 3% of its promised midyear capacity, I couldn’t believe it. Of course, I can’t explain the whole run.
Problem with Boeing, the production there kept some airlines from being, they were capacity constraints. They couldn’t get the planes they needed. Plus, the long on money short on time thesis that burst on the scene post-Covid never really quit. Oh, and get this, United still sells for less than eight times this year’s earnings. It can actually power higher. It might be a good buy. I would wait for a 5 to 8% pullback.”
United Airlines (NASDAQ:UAL) is a leading provider of air transportation services, offering both passenger and cargo options. In 2024, it performed well, benefiting from industry-wide efforts to cut unprofitable capacity, especially in the summer. CEO Scott Kirby explained that the airline’s domestic capacity was planned with the expectation of industry-wide reductions in the fourth quarter of 2024, which led the airline to expand more slowly than its competitors during the first three quarters when capacity dynamics were less favorable.
Despite Boeing aircraft delivery delays, the airline adjusted by leasing planes and reducing its domestic supply as per Business Insider. Its strong hub structure and the arrival of hundreds of narrow-body aircraft helped it effectively manage these challenges, as noted by Clark Johns of Alton Aviation Consultancy.
Additionally, United Airlines (NASDAQ:UAL) exposure to international markets provided another advantage in 2024. HSBC highlighted that the airline’s international market share significantly surpassed that of its competitors, and demand for international flights remained strong. Specifically, the airline’s transatlantic bookings for the winter of 2024, traditionally a slower period, were 30% higher than pre-COVID levels.
1. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 97
While Cramer noted Vistra Corp. (NYSE:VST) stock’s gains in 2024, he cautioned against being greedy.
“… Vistra, up 258%. Vistra’s the largest competitive generator of electricity in the country and the second largest nuclear play thanks to an acquisition, very smart acquisition it made last March. We have a shortage of clean power in America and we need more of it to support the big data center build-out. Let me say it from the outset that I’m starting to think this move is getting to be absurd. Vistra’s like a stock created for the moment, the visible way to play data center expansion.
I come back and say Vistra and its doppelganger Constellation Energy are utilities with no real ability to scale at the level that the stocks would indicate. Although Constellation got a big contract today from the Feds that could help them add more nukes if all goes well. I say don’t be too greedy with Vistra please because the aura will disappear once people realize that it doesn’t have the ability to grow fast enough to back up this move. It can go higher, but it is starting to gimme a nosebleed.”
Vistra (NYSE:VST) is an electricity retailer and power generation company that provides services to a broad spectrum of customers, from residential to commercial and industrial clients. In March 2024, it acquired Energy Harbor Corp., boosting its zero-carbon generation and retail electricity business by adding 4,000 megawatts of nuclear power and around 1 million retail customers. Later in 2024, the company also acquired a 15% minority stake in Vistra Vision.
The acquisition will boost the company’s nuclear capacity by approximately 970 megawatts and expand its solar and energy storage capacity by about 200 megawatts. Looking ahead to 2025, the company has provided guidance for ongoing operations adjusted EBITDA to be in the range of $5.5 billion to $6.1 billion.
The midpoint of this range, $5.8 billion, exceeds the upper end of its previous 2025 forecast of $5.7 billion, which shows a positive outlook for the company. Additionally, Vistra (NYSE:VST) has maintained its forecast for 2026, with ongoing operations adjusted EBITDA expected to exceed $6 billion, with potential for significant growth beyond that figure.
While we acknowledge the potential of Vistra Corp. (NYSE:VST) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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