Jim Cramer, the host of Mad Money, recently shared his thoughts on the role tariffs play in the market. While he acknowledged that Wall Street generally despises tariffs, he admitted to having a somewhat different perspective, expressing that he actually likes tariffs, but only when their application is certain.
According to Cramer, uncertainty surrounding tariffs contributes significantly to market instability, especially for sectors that are ill-prepared to absorb the impact of new trade policies. One sector that Cramer singled out as particularly vulnerable to the effects of higher tariffs is retail. He pointed out:
“Retail, are you kidding me? We stopped making things in this country years ago. As part of the bargain we have with Mexico and China where Americans get cheap goods, much cheaper than we could possibly make here, in return for wiping out almost a hundred percent of our manufacturing capacity.”
READ ALSO Jim Cramer Said These 13 Stocks Can Hold Their Value Amid Tariffs and Jim Cramer Thoughts on 8 Stocks As He Discussed Market Froth
The arrangement, Cramer explained, was a deal embraced by both Republicans and Democrats alike. He likened it to a “reverse poltergeist” situation where jobs were moved, but the foundational industries remained behind. The shift left many former manufacturing workers, such as seamstresses and laborers skilled in operating heavy machinery, without the means to return to their old positions.
As Cramer put it, there is no longer any real expertise in these areas in the U.S., and even if there were, it would come at a significantly higher cost to produce locally. He stressed that, given these circumstances, it is nearly impossible for U.S. retail to compete in a space that relies heavily on imports. He added:
“I don’t want to be too dire about this everyday lower price initiative by the President of the United States, but because this is a stock show, I have to tell you something, at times I’m gonna say it, I’ve been missing old President Biden.”
He remarked that, despite Biden’s apparent disdain for business interests, at least the former president remained consistent in his stance, even if he did not fully understand the stock market. In a departure from his usual commentary, Cramer even expressed a certain nostalgia for the policies of former President Biden.
“Here’s the bottom line: Wall Street hates tariffs, but what it hates even more is inconsistency and unpredictability. I’m actually pro-tariff. That’s not the point. I think the market would be in much better shape if President Trump used what I would call rapidly escalating tariffs. You start them at 15%, you go up 5% every single weekend and you stop at 50% because at least we then have some clarity and what’s coming and more important, when it will occur.”
11 Stocks on Jim Cramer’s Radar
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 27. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Stocks on Jim Cramer’s Radar
11. NuScale Power Corporation (NYSE:SMR)
Number of Hedge Fund Holders: 24
When asked about another nuclear stock, NuScale Power Corporation (NYSE:SMR), Cramer commented:
“You know, I kept waiting for more deals to occur and waiting and waiting. It’s a new year and they’re not happening. And I’m not seeing them from Vernova. I’m not seeing them from anyone. So I’ve become very, very skeptical.”
NuScale Power (NYSE:SMR) is a company that designs modular light water reactor (LWMR) nuclear power plants. In January, Cramer commented on smaller nuclear power plays as he said:
“When it comes to nuclear power over-enthusiasm, we’ve seen some of these smaller companies that offer alternatives to the current plants, they worry me. Companies like Oklo with nuclear fission capabilities, NuScale Power with small form factor technology, they’re exciting, but they’re also years from developing anything meaningful. Or as my friend Michael Cembalest. chair of the Market and Investment Strategy group at J.P. Morgan wrote in his… 2025 outlook, ‘What nuclear renaissance? Wake me when we get there.”
10. Powell Industries, Inc. (NASDAQ:POWL)
Number of Hedge Fund Holders: 27
A caller acknowledged that Powell Industries, Inc. (NASDAQ:POWL) is a great company but highlighted that the stock keeps going wrong and asked what they should do with it. Here’s what Mad Money’s host had to say:
“You know, that, that is, that is just a really good company. I totally agree with you. I don’t get it. I just, I mean we’ve done, we’ve done takeouts on it… I mean look, it, does it have the big revenue growth that I want? Yeah. I’m just confused. I have to come back again. We did a takeout on it earlier. I’m gonna go back and huddle with my chief scientist Ben Stoto. We’re gonna figure out what the heck is going on here.”
Powell Industries (NASDAQ:POWL) focuses on the design, production, and maintenance of custom electrical equipment and systems, including substations, motor control centers, switchgear, and other associated components.
9. Dutch Bros Inc. (NYSE:BROS)
Number of Hedge Fund Holders: 41
While Cramer acknowledged Dutch Bros Inc.’s (NYSE:BROS) excellent performance since Christine Barone joined the company in 2023, he noted that the stock needs to cool off.
“The stock has had a big run. We had, by the way, just so you know, we had Christine Barone on. Ever since she’s come in, this stock has been a rocket ship. You know, look, now [it] is at 126 times earnings. I am a big believer in Dutch Bros, but I will tell you this, I do think that the Brothers Dutch stock could cool off a little bit before you need to start buying. And, and I would do that.”
Dutch Bros (NYSE:BROS) runs and franchises drive-thru stores throughout the U.S. under multiple brands, such as Dutch Bros Coffee and Dutch Bros Rebel. The company stock has gained more than 159% over the past 12 months.
8. KeyCorp (NYSE:KEY)
Number of Hedge Fund Holders: 43
A caller mentioned that they plan to buy KeyCorp (NYSE:KEY) for the dividend and asked if it was time to add some shares since the stock pulled back. Here’s what Cramer said in response:
“Okay, so Jeff Marks and I were kicking things around. I said, we gotta own more banks… and I said, how about Key for the Charitable Trust because of that dividend? You’re onto something. I like your thinking. We had Chris Gorman on. Seems like a terrific guy.”
KeyCorp (NYSE:KEY) is a holding company for the KeyBank National Association, offering a broad range of retail and commercial banking products and services, including loans, investments, wealth management, capital market services, and financial advisory to both individual and institutional clients. In October 2024, Cramer explained what was going on with the company and Scotiabank as he said:
“KeyCorp made some mistakes with its bond portfolio that severely damaged its earnings power when bond yields soared and bond prices got clobbered. Now, if the Fed is our friend, that won’t be a problem anymore… Plus, a couple of months ago, we learned that the Bank of Nova Scotia, also known as Scotiabank, will be paying $2.8 billion to take a nearly 15% stake in KeyCorp. Oh, man. It’s a complex transaction, which will take place in three tranches.
… But what matters is Scotiabank’s investment gives KeyCorp a much better capital cushion that it can use to reposition its investment portfolio. I think this is a nice reset opportunity for KeyCorp. And I’d be buying it right along the side of the Canadians, especially since the stock currently yields nearly 5%. In fact, with KeyCorp trading at $16 and change, you know, you’re actually getting a slightly better price than the $17.17 per share Scotiabank’s paying for its stake. That sounds good to me.”
7. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 44
Discussing Celestica Inc. (NYSE:CLS) during the episode, Cramer said:
“It has come into its own in a way that I cannot believe it, and everyone’s piled in on it. And now, because of the fact that we got that downturn, you’re gonna get a chance to buy it. It sells at 22 times earnings. I want you to wait till it’s at 20 times earnings below the S&P and you can pull the trigger. I would probably put it at, I’d say $80.”
Celestica (NYSE:CLS) offers a wide range of supply chain solutions, including product manufacturing, design and development, engineering services, testing, and after-market support, along with hardware platform solutions and program management for various industries. Back in February 2024, Cramer commented, “You’re going to ring the register, you’re literally going to sell one third of it. Celestica is a very dicey situation.” Over the past 12 months, CLS stock rose more than 127%.
6. BWX Technologies, Inc. (NYSE:BWXT)
Number of Hedge Fund Holders: 55
Cramer mentioned BWX Technologies, Inc. (NYSE:BWXT) as he explained that there is no initiative starting in nuclear power and there won’t be one for nearly a decade.
“That’s nuclear. You know, look, the bloom is off the rose. Nuclear, it was never really there. We don’t have any sort of initiative that really makes nuclear the right thing. Small modular nuclear power’s still not happening. It’s going to be 2033 before we see anything new in nuclear and that is just too far for me. But I’m telling the truth now. I mean, I’m, I’m done with it. I, I don’t wanna hear about it anymore.”
BWX Technologies (NYSE:BWXT) manufactures and sells a wide range of nuclear components, including precision naval nuclear parts, fuel, reactors, and critical materials for both defense and commercial use, while also offering specialized engineering services and medical products such as radioisotopes and radiopharmaceuticals.
5. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders: 64
A caller mentioned that they bought Toll Brothers, Inc. (NYSE:TOL) as it is among Cramer’s favorites and asked his opinion on the company. This is what Cramer said in response:
“Okay, so we thought when rates were going up that it would hit… it never did and then suddenly just the tsunami comes along. It’s selling at eight times earnings, which means the, the estimates are way too high. We have to have estimates come down and then we’ll re-look at Toll. But you’re absolutely right. I think they’re great and I think Doug Yearley is the bomb.”
Toll Brothers (NYSE:TOL) focuses on the design and construction of luxury homes, including condominiums and single-story properties, and develops communities with various amenities. A few weeks ago, Cramer said:
“Conference call was instructive because it showed there are cracks developing with lower average housing prices around the country. Some very soft markets, something that’s not supposed to happen when the Feds cut rates. Mortgage rates are still way too high for this group. I want you to listen [to] what CEO, Doug Yearley, on the conference call said, “Those areas where the buyers are a bit more hesitant, I think it’s number one.
Those areas that have had more significant price appreciation through the Covid years than other areas so instead of a 40 or 50%… percentage price increase over the last five years, there are end markets where there [has] been a 60%, 70%, 80%… and a 100% price increases, that includes Florida, primarily Austin, Texas. Those prices have to come down. That’s, that’s raw inflation. Those have to come down before we beat inflation in this country.”
4. Nebius Group N.V. (NASDAQ:NBIS)
Number of Hedge Fund Holders: 66
Cramer’s displeasure with Nebius Group N.V. (NASDAQ:NBIS) was apparent as he explained:
“Yeah, we did a little takeout on Nebius… and we felt like it’s kind of a, look, it’s a big money loser that people are buying because it’s part of all, of everything that’s going on right now in the cloud. I don’t want to be a part of it. Period. End of story.”
Nebius Group (NASDAQ:NBIS) is a technology company focused on building infrastructure to support the global AI industry, offering services such as AI-centric cloud platforms, GPU clusters, and tools for developers, along with ventures in AI data services, tech education, and autonomous driving technology. In December 2024, Cramer said, “I can’t get behind Nebius. If I want AI, I will go for Nvidia as it comes down.” For context, NBIS stock went up more than 60% over the past year while NVDA stock gained more than 45% during the same period.
3. Interactive Brokers Group, Inc. (NASDAQ:IBKR)
Number of Hedge Fund Holders: 69
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an electronic broker that facilitates the execution, clearance, and settlement of various financial trades, while also offering custodial, prime brokerage, securities, and margin lending services. When Cramer was asked about the company, he said, “They’re good. Stock’s very high and stock’s is very expensive, but they’re good.”
Moreover, Baron Focused Growth Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q4 2024 investor letter:
“Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a leading online brokerage house that serves customers in over 200 countries. Positive returns during the quarter reflected strong fundamental performance, including year-over-year growth of 30% in accounts, 33% in client assets, and 45% in margin loans. These increases were driven largely by Interactive Brokers’ strength in international markets, as non-U.S. investors looked to access U.S. markets and equities, which largely outperformed their global peers in 2024. The company also participated in the broader rally of financial stocks following the Republican elections sweep. Expectations of heightened capital markets activity, a more pro-business regulator, and the potential for increasing market volatility all bode well for the company’s volumes, account growth, and earnings. We believe Interactive Brokers has a compelling long-term growth path and remain investors.”
2. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 83
Chipotle Mexican Grill, Inc. (NYSE:CMG) was mentioned during the episode, and here’s what Cramer said:
“Alright, you know, Chipotle is a growth stock. Now, I just, I preface that by saying the growth stocks are suddenly incredibly out of favor. I think Chipotle’s good. It has come down a lot. I think that, that Scott Boatwright is doing a good job. I think it’s actually a pretty decent level to start a position. Please don’t buy this all at once. This stock has been, become very erratic of late.”
Chipotle (NYSE:CMG) operates a popular restaurant brand that specializes in serving a variety of Mexican-inspired dishes. Even when the company stock was briefly sidelined in January, Cramer was bullish on it and said:
“Now, we’ve been focused on a handful of great restaurant chains lately, especially the incredible rally of Brinker, which you know as Chili’s. The premier growth stock in the group though has always been Chipotle, but somehow it’s been lost in the shuffle here.
Now maybe this is a chance to get back in before the next big move higher. Buying Chipotle on weakness is generally the right call, like forever. Of course, it has a new CEO Scott Boatwright, but he is an old Chipotle hand, and the rest of the crew’s intact, including friend of the show Jack Hartung, former CFO, now president and chief strategy officer. It might be time to start a position.”
1. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 103
A caller noted that they took Cramer’s advice and sold a few shares of The Boeing Company (NYSE:BA) but took a limit order with a good till cancel on a lower price and said that they have been able to take advantage of it. In reply, Cramer said:
“Well, look, it’s, it’s actually in a real sell-off, you’re gonna get a bad price. And I remember when we had the flash crash, everybody who had those things got just completely ripped off. So I want to be careful. You can do it for some, but please don’t do it for more. You might get lucky but then you might get unlucky. I’ve seen people buy a stock at $60 and the stock finishes the day at $45. That’s what worries me.”
Boeing (NYSE:BA) is focused on the creation, development, manufacturing, and marketing of various products, such as commercial airplanes, defense aircraft, satellites, missile defense systems, and space exploration initiatives.
While we acknowledge the potential of The Boeing Company (NYSE:BA) 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 BA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
