Jim Cramer, the host of Mad Money, recently shared his outlook for Wall Street, focusing on earnings reports. On Friday, he highlighted how the S&P 500 surged toward 6,000 in almost a straight line, a remarkable rally driven by overwhelming buying and a lack of selling. Cramer noted the market’s performance, pointing out that the Dow rose by 260 points, the S&P gained 0.38%, and the Nasdaq advanced 0.09%, with all major indices closing at new record highs.
He described Friday as another impressive session, adding that it marked a historic moment. Cramer reiterated his point, stating:
“This is ladies and gentlemen, a historic move we are witnessing, fueled by an election where voters chose a candidate who is pro-growth, pro-higher stock prices, pro-lower interest rates, and pro-lower taxes… Trump is the most explicitly pro-stock market president in history.”
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Cramer went on to say that now that Trump has won, the benefits are clear across many sectors. He cited tech, oil, pharmaceuticals, consumer goods, and financials as prime examples of sectors seeing strong performance. He emphasized that these gains were driven by money managers who feared missing out on the market’s upward trajectory and were unwilling to sell, knowing they might not have enough stocks in their portfolios. Cramer also predicted that we would soon witness a surge in mergers and acquisitions.
“At the same time, we’re about to see a wave of takeovers as the antitrust regulators will stop trying to block every deal under the sun because a new broom is gonna sweep clean.”
Cramer stressed the importance of looking at the market on a sector-by-sector basis. He noted that the tech sector had taken a breather on Friday. In the coming days, he suggested that retailers might surge, followed by financials and then industrials. He described this cycle of sector rotations as part of an “incredibly bullish, virtuous circle” of market gains. While Cramer acknowledged that stocks had performed well under President Biden, he pointed out that Biden didn’t seem to place much importance on the stock market during his tenure.
“For him, it was an abstraction,” Cramer remarked, adding that this stance was changing with the current administration. In conclusion, Cramer made it clear that stocks were about to have a true champion in the White House once again.
“Stocks are about to have a champion in the White House again, even if you might think they aren’t worthy of a presidential supporter. I say get used to it, even though the buying’s started already, because we got a lot more room to run.”
10 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 November 8 and listed the stocks in the order that Cramer mentioned them.
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10 Stocks on Jim Cramer’s Radar
10. Alibaba Group Holding Limited (NYSE:BABA)
Cramer called Alibaba Group Holding Limited (NYSE:BABA) the Amazon of China but did not recommend buying the shares. Here’s what he said:
“Friday morning, Alibaba reports. I’ve been adamant that if you want to invest in China, you need to buy shares of Alibaba because it has Western financials and it’s a legit, monstrous online retailer. We know that the Chinese consumer is hobbled when it comes to luxury goods and there seems to be a sense of listlessness in that populace. That said, Alibaba does a ton of business and makes the numbers pretty routinely. It’s the Amazon of China.
You need to know that I’m not recommending anything in China, not here, not anywhere, because I think the economy is a train wreck there and the government stimulus efforts have proven ineffective, including today’s multi-year, $1.4 trillion local government bailout. Yet another plan that won’t put money in people’s hands. People that are dealing with a deflationary environment, they need to have money, which is so desperately needed if China ever wants to return to growth.”
Alibaba (NYSE:BABA) provides technology infrastructure, marketing services, and e-commerce platforms to help businesses engage with customers across various industries. Chinese authorities have increased stimulus measures since late September. We discussed the factors affecting Chinese stocks, including BABA, in our article, 10 Best Low Volatility Stocks to Invest in Now. Here is an excerpt:
“Two main themes are affecting Chinese stocks such as Alibaba (NYSE:BABA). First, investor wariness stems from the Chinese government’s unpredictable interventions, as seen when Alibaba’s (NYSE:BABA) stock dropped from around $350 to under $100 after regulatory actions three years ago. Second, U.S.-China tensions add pressure, with tariffs and tech restrictions slowing China’s economy, casting doubt on reported growth rates.”
On Friday, China unveiled a major financial initiative, a five-year plan worth 10 trillion yuan (approximately $1.4 trillion), aimed at addressing local government debt challenges. The announcement was made by Minister of Finance Lan Fo’an, who shared that the government would actively utilize available fiscal space, with plans to expand the deficit in the coming year.
The goal of these measures is to assist local governments in reducing what is known as “hidden debt”. As per Lan’s comments, this hidden debt is expected to decrease significantly, from an estimated 14.3 trillion yuan at the close of 2023 to just 2.3 trillion yuan by 2028.
9. Applied Materials, Inc. (NASDAQ:AMAT)
Cramer mentioned that the semiconductor stocks have recently suffered because of the ASML debacle and expressed hope that Applied Materials, Inc.’s (NASDAQ:AMAT) earnings will change the narrative.
“Thursday after the close, we have results from Applied Materials, AMAT… They’re considered to be the dean of the semiconductor capital equipment industry… Now, I think this group’s been falsely accused of weak demand because of… ASML, which did a real horrible job explaining its story. Hopefully, Applied Materials can clear things up when it reports. The semis have been weak of late… maybe Applied Materials can change that dynamic.”
Applied Materials (NASDAQ:AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries, offering solutions to improve performance and productivity in chip fabrication, display technologies, and related applications. In October, it experienced a dip in stock price, which was largely attributed to the disappointing quarterly report from ASML, another key player in the semiconductor equipment market.
This news prompted concerns across the market about a potential slowdown in the semiconductor equipment sector, and as a result, Applied Materials saw its stock decline on the same day. However, it is important to note that this decline was driven by broader market sentiment. On November 12, Stifel lowered the price target on Applied Materials (NASDAQ:AMAT) to $250 from $270 and maintained a Buy rating.
Ahead of the company’s fiscal Q4 report, which is set to be released on November 14, Stifel kept its near-term estimates unchanged, expecting the company’s Q4 results and Q1 guidance to meet or modestly exceed both the firm’s and consensus estimates. However, as the company approaches 2025, there is growing attention on the outlook for its revenue from China. Stifel also adjusted its forecasts for calendar year 2025, lowering estimates that were initially based on a higher expectation for wafer fab equipment (WFE) growth.
8. The Walt Disney Company (NYSE:DIS)
Cramer mentioned that he is looking forward to The Walt Disney Company’s (NYSE:DIS) expanding cruise line.
“Thursday, we hear from Disney. Now, there’ve been so many good things happening at Disney, but they keep being obscured by weaker theme park numbers, which I think will get stronger. The company’s expanding its Disney cruise line business. That’s right. Really what I’m focused on right now: [the] new ship’s about to have an inaugural voyage as well as several more behind it. Can the cruise expansion actually move the needle though? You know what? As it gets bigger, the answer will be yes and it’ll be a proper needle.”
Disney (NYSE:DIS), a global leader in the entertainment industry, continues to expand its reach across various sectors. In recent developments, Disney Cruise Line introduced its newest ship, the Treasure, which made its U.S. debut at Port Canaveral in Florida on Tuesday morning. The Treasure becomes its third vessel based at the port, joining the Disney Fantasy and Disney Wish. Starting on December 21, 2024, the ship will begin its regular seven-day sailings from Port Canaveral, offering a year-round schedule of cruises to destinations.
This new addition to the fleet is part of Disney Cruise Line’s larger expansion strategy. In August 2024, Disney (NYSE:DIS) announced plans to add four more ships to its award-winning fleet, with deliveries scheduled between 2027 and 2031. These upcoming ships will bring its total fleet size to 13, further solidifying its presence in the cruise industry.
While details regarding the ship names, designs, and specific itineraries are still under development, the addition of these new vessels marks a significant growth phase for the cruise line. In the second quarter, the cruise line’s 5 vessels achieved an impressive occupancy rate of 97%.
7. Cisco Systems, Inc. (NASDAQ:CSCO)
Cramer commented on Cisco Systems, Inc.’s (NASDAQ:CSCO) recent acquisition of Splunk. Here’s what he had to say:
“Cisco seems poised for a breakout, doesn’t it? Yeah. This is the CSCO… They’re the network of choice for all sorts of AI and non-AI users. Ever since Cisco bought Splunk earlier this year, it’s been able to offer a cornucopia of analytics. That’s a powerful combination and one that can surprise to the upside.”
Cisco (NASDAQ:CSCO) designs and sells networking products and services for the communications and IT industry. In March, the company completed its acquisition of Splunk, a cybersecurity firm. This acquisition, the largest in its history, is part of the company’s broader strategy to strengthen its software business, particularly in response to growing demand driven by advancements in artificial intelligence.
During the company’s last recent earnings call, management highlighted the positive impact of the Splunk acquisition, noting that it contributed to impressive margins. The company reported a gross margin of 67.5%, the highest the company has seen in 20 years. Splunk played a significant role in this performance, generating around $960 million in revenue during the fourth quarter, which aligned with management’s expectations.
The acquisition of Splunk has also had a noticeable impact on Cisco’s (NASDAQ:CSCO) recurring revenue. For the fourth quarter, of the company’s total annualized recurring revenue of $29.6 billion, $4.3 billion was attributable to Splunk. For the fiscal year 2024, Splunk contributed about $1.4 billion in revenue following the closure of the deal in March.
6. CyberArk Software Ltd. (NASDAQ:CYBR)
Cramer said that CyberArk Software Ltd. (NASDAQ:CYBR) has reported good numbers previously and remarked on cybercrime being rampant.
“CyberArk reports Wednesday morning and this is an exclusive cybersecurity company that guards what’s called the keys… of the digital kingdom that is. I think it’s put up some great numbers…. Cybercrime shows no signs of abating whatsoever. How terrific is this sector for stock performance? You know that we own both CrowdStrike and Palo Alto Networks for the Charitable Trust. They do compete, but there’s so much business going around. You gotta get in them.”
CyberArk (NASDAQ:CYBR) develops and sells identity security solutions, alongside services like multi-factor authentication, identity management, and secrets management for both workforce and customer identities. As the cyber threat landscape continues to expand, the company can benefit as the cybercrime sector is projected to grow by 15% annually, reaching a staggering $10.5 trillion in costs by 2025 according to Cybersecurity Ventures.
On November 13, the company reported third-quarter earnings results and surpassed guidance across all key metrics. The company achieved a strong net new ARR, set a revenue record, and saw notable improvements in profitability and cash flow. Total revenue reached $240.1 million, a 26% increase from $191.2 million in Q3 2023. The company reported non-GAAP earnings of $0.94 per diluted share, up from $0.42 per diluted share, in the same period last year. Annual Recurring Revenue (ARR) hit $926 million, a 31% rise from $705 million as of September 30, 2023.
According to TipRanks, on November 11, JPMorgan kept an Overweight rating on the shares with a $350 price target. The firm’s analyst Brian Essex placed CyberArk (NASDAQ:CYBR) on “Positive Catalyst Watch”. JPMorgan believes the company is well-positioned for continued growth. Essex pointed out that while the stock is a “consensus long”, there is still significant upside potential, particularly as its organic growth and the recent acquisition of Venafi remain underappreciated in the market.
5. Spotify Technology S.A. (NYSE:SPOT)
Cramer said that Spotify Technology S.A. (NYSE:SPOT) is akin to Netflix and emphasized that the stock is a bargain.
“Spotify reports, and that stock’s up more than 100% for the year because they keep raising numbers beyond even the wildest of analyst projections. And I bet they can do it again. You know why? Because people regard it as a bargain. It’s kind of like Netflix. This is a bargain, bargain bargain.”
Spotify (NYSE:SPOT) offers audio streaming subscription services, providing both ad-free, unlimited access to music and podcasts for paying users, and ad-supported access for free users on various devices. In its third-quarter earnings report, released on November 12, the company highlighted strong growth across multiple key metrics.
Its total revenue reached €4 billion, marking a 19% year-over-year increase. This growth was supported by a rise in operating income, which improved to €454 million. Premium revenue saw a 24% year-over-year increase on a constant-currency basis, driven by ongoing subscriber growth and an acceleration in average revenue per user (ARPU), which benefited from recent price hikes. At the same time, the company’s advertising revenue grew by 7% in currency-neutral terms
Spotify’s (NYSE:SPOT) user base also continued to expand. The company reported an 11% year-over-year increase in Monthly Active Users (MAUs), which reached 640 million by the end of the quarter. Additionally, the number of subscribers grew by 12% year-over-year, reaching 252 million.
During the earnings call, management mentioned that a key part of the company’s growth strategy is its ongoing transformation of the platform, particularly through the development of the Spotify Ad Exchange. This initiative, now being piloted in partnership with Trade Desk, aims to refine the company’s advertising model and diversify revenue streams. Management noted that 2025 would be a year of experimentation and testing for this new advertising approach, with expectations that the impact would be felt in 2026.
4. Tyson Foods, Inc. (NYSE:TSN)
Discussing Tyson Foods, Inc. (NYSE:TSN), Cramer called the company a “dominant player”.
“Lots of people wanna know why food prices got so outta hand in the last few years. You wanna learn? Why don’t you listen to the Tyson Foods conference call like I will. You’ll get a ton about pricing and they’re the dominant player, meat and chicken. Sometimes you don’t listen to a conference call to pick a stock, you listen to learn. I learn from Tyson.”
Tyson Foods (NYSE:TSN) is a food company that processes and markets a wide range of meat products, including beef, pork, and chicken, along with frozen and refrigerated ready-to-eat foods under several well-known brands. It is recognized for its leading position in the Rendering & Meat Byproduct Processing sector, where it holds an estimated 58.3% of the market share, according to IBISWorld.
In the fourth quarter of fiscal year 2024, the company reported significant improvements in its financial performance, marking a strong recovery from the previous year. The company reported adjusted EPS increasing by 149%, rising to $0.92 per share. Total revenue for the quarter grew by 1.6%, reaching $13.565 billion. A key driver of this positive performance was the strong showing in the chicken and prepared foods segments, which saw substantial gains.
Tyson Foods (NYSE:TSN) President and CEO, Donnie King, expressed confidence in the company’s outlook, stating that its multi-protein, multi-channel portfolio, supported by a skilled team, iconic brands, and a focus on operational excellence, positions the company well for continued success in fiscal 2025 and the future.
3. Shopify Inc. (NYSE:SHOP)
Cramer justified Shopify Inc.’s (NYSE:SHOP) increased spending by mentioning that it has to spend more to be able to handle its growing business.
“Now we hear from e-commerce facilitator Shopify and I gotta tell you, this last quarter had, what many people thought, was too much spending. I say when you have a flood of business, you have to spend to be able to handle it. I think we’ll see the fruits of Shopify’s spending this quarter.”
Shopify (NYSE:SHOP) provides a platform that enables merchants to manage and sell products across various channels, offering tools for inventory, payments, analytics, and financing. It released its third-quarter financial results on November 12, showing a solid performance that exceeded Wall Street’s expectations. For the period, the company reported a net income of $344 million on total sales of $2.16 billion. This represents a 26.3% increase in revenue year-over-year, with net income more than doubling.
Subscription Solutions revenue grew to $610 million, up from $486 million in Q3 of 2023, reflecting the expansion of the merchant base. Merchant Solutions’ revenue grew to $1.55 billion in Q3, compared to $1.23 billion in the previous year. The growth in Merchant Solutions was driven by the improvement of payment solutions and the continued integration of merchant services.
In the quarter, Shopify’s (NYSE:SHOP) Gross Merchandise Volume (GMV), which measures the total spending across stores using the e-commerce platform, increased by 24% year-over-year, reaching $69.72 billion.
2. The Home Depot, Inc. (NYSE:HD)
Cramer commented that The Home Depot, Inc. (NYSE:HD) stock is one to own when the Fed cuts rates.
“And this is the quintessential stock to own when Feds cut rates. Always has been, always will be. I remember since 1988, I’ve been playing rate cuts with this one. I’m looking for the despot to raise numbers, given that we’re headed for a lower and straight environment. They could forecast the first real growth in years… The stock, which looks like it’s up, could head up much higher.”
Home Depot (NYSE:HD) is one of the largest and most recognized retailers in the home improvement sector. On November 12, the company reported its financial results for the third quarter, surpassing analyst expectations on both revenue and earnings. It achieved net sales of $40.2 billion, marking a 6.6% increase year-over-year.
While adjusted EPS was $3.78, reflecting a 4.3% decline compared to the same period last year, they still outpaced analysts’ estimates. The company’s performance was shaped by a combination of factors. On the revenue side, the normalization of weather patterns contributed to stronger sales in seasonal products and outdoor projects.
The company also saw a surge in sales due to hurricane-related demand, which provided a temporary boost. At the same time, the company’s ability to navigate supply chain complexities and improve operational efficiency was a key factor in driving growth.
Home Depot (NYSE:HD) updated its fiscal 2024 outlook, which now accounts for 53 weeks of operations. The company expects total sales to rise by around 4%, while comparable sales for the 52-week period are projected to decrease by about 2.5% compared to fiscal 2023. Additionally, the company plans to open approximately 12 new stores and anticipates a gross margin of roughly 33.5%.
1. monday.com Ltd. (NASDAQ:MNDY)
Cramer said that stocks like monday.com Ltd. (NASDAQ:MNDY) are now blessed. He said:
“Now, this is an Israeli software company that streamlines workflows and provides visibility to what people are working on at your business. There’s a ton of companies just like it. It’s a quintessential enterprise software play, which is why I’m starting the game plan with it. Because this group, this enterprise software, they were being sold relentlessly. Somehow, sellers just walked away from these companies, which is how Salesforce or ServiceNow were able to soar during this period. I think these enterprise software stocks have much more to go because there’s just not a lot of sellers here. They are as blessed now as they were cursed not that long ago.”
monday.com (NASDAQ:MNDY) develops cloud-based software applications, including Work OS, a visual work operating system, and tools for project management, sales tracking, agile development, digital collaboration, and data collection through forms and surveys. On November 11, it reported its earnings for the third quarter, revealing a 33% year-over-year increase in revenue, which totaled $251.0 million.
Despite this growth, the company posted a GAAP basic and diluted net loss per share of $0.24, a shift from the $0.15 net income per share reported during the same period in 2023. During the quarter, the company made a significant achievement in its financial trajectory, surpassing $1 billion in annual recurring revenue (ARR).
This milestone is particularly noteworthy as it comes just ten years after the company’s founding and eight years after reaching $1 million in ARR. As of the end of the quarter, monday.com (NASDAQ:MNDY) reported $82.4 million in free cash flow, an increase from the $64.9 million recorded during the third quarter of 2023.
While we acknowledge the potential of monday.com Ltd. (NASDAQ:MNDY) 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 MNDY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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