On Monday, Jim Cramer, host of Mad Money, offered his thoughts on the market’s response to President Trump’s tariffs news. He recalled how, during the presidential campaign, Trump had promised to impose tariffs on several countries, including China. Cramer expressed his surprise that people seemed to have convinced themselves otherwise, considering the president’s long-standing position on the matter.
Cramer highlighted one aspect of the tariffs that took him by surprise in a more positive light. He had expected that China would bear the brunt of the tariffs, with Canada receiving the lowest impact due to its strong relationship with the U.S. However, the 25% duty on Canadian goods struck Cramer as unexpected, especially given that there was not a significant issue like fentanyl or migration at the Canadian border.
“It seemed relatively innocent as far as trade policy goes, but President Trump said over and over again that Canada was taking advantage of us. So they got hit.”
READ ALSO Jim Cramer On 9 Stocks That Are Rallying Despite Tariff Worries and Jim Cramer Recently Talked About These 11 S&P 500 Stocks
Cramer then drew attention to Claudia Sheinbaum, the president of Mexico. According to Cramer, Sheinbaum had a clear understanding of the situation. She recognized that Trump was going to shift the rules, and she knew he had the upper hand in the negotiation and understood his goals of curbing illegal immigration and fentanyl trafficking. Sheinbaum understood that a trade war with the U.S. would not be in Mexico’s interest, so she was prepared to adapt and engage with Trump accordingly. Cramer added:
“I think the Chinese will see the 10% number go higher if they recalcitrate. To me, this one’s obvious. The president told me there could be some good news with China when I interviewed him on the floor of the exchange after the election. I have no idea why he went so easy on the Chinese, but it’s possible that he might want to try to extend an olive branch to China, at least to start.”
By starting with the lower tariff, Cramer noted, Trump left himself significant room to maneuver in the future. If he had begun with a 25% tariff, he would have had less flexibility in dealing with China. Now, with more space to negotiate, Cramer believes China recognizes it is receiving a favorable deal.
12 Stocks on Jim Cramer’s Radar
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 3. We listed the stocks in ascending order of their hedge fund sentiment 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).
12 Stocks on Jim Cramer’s Radar
12. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 7
A caller asked about BigBear.ai Holdings, Inc. (NYSE:BBAI), noting the stock’s gains last year while citing short interest. Here’s what Cramer said in answer:
“No, no, you got to go with Palantir. Palantir is not done. This guy is amazing, Karp. I mean, I can’t say enough good about them other than the fact that everybody else is saying it… so you don’t really need me. That’s the one to be in.”
BigBear.ai (NYSE:BBAI) offers AI-driven decision intelligence solutions, including services for national security, supply chain management, digital identity, and biometrics, along with data processing, machine learning, predictive analytics, and visualization. Cramer’s preferred PLTR stock went up over 520% over the last 12 months while BigBear.ai (NYSE:BBAI) gained over 210% during the same period.
11. Beyond, Inc. (NYSE:BYON)
Number of Hedge Fund Holders: 16
When a caller asked about Beyond, Inc. (NYSE:BYON), Cramer noted its recent acquisition and said:
“Yeah, BYON… they’re buying everything. [They] bought Buy Buy Baby too… Look, I actually like their stock. I thought Container Store was poorly run. I thought Buy Buy Baby was poorly run. Maybe it can make it better.”
Beyond (NYSE:BYON) is an online retailer offering a wide range of home products, including furniture, bedding, décor, and small appliances, through its e-commerce platform and mobile app. On January 8, Barclays analyst Seth Sigman reduced the price target on the company stock from $8 to $7 while maintaining an Equal Weight rating on the stock, as part of the firm’s 2025 outlook for the broadlines, hardlines, and food retail sectors.
While the firm is more optimistic about retail in 2025, it does not expect “recovery” growth. According to Sigman, discretionary goods are emerging from a period of weak demand and underperformance relative to GDP. Barclays believes the sector has moved past its worst phase and expects growth this year, though it highlights ongoing cyclical and structural challenges. Over the past year, Beyond (NYSE:BYON) stock has declined over 55%.
10. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 16
Cramer called GameStop Corp. (NYSE:GME) a meme stock and instead, strongly suggested investing in Palantir.
“I think, I’ll tell you, if you want games, you gotta be in Take-Two because Take-Two’s gonna have a Grand Theft Auto brand new edition this year and that’s the one to be in. I mean, you gotta have momentum. I mean, look at what happened to EA, uh-uh, so I can’t recommend GameStop, I just know it’s a meme stock. But if you want a meme stock, of course, you just buy Palantir. I think everyone should just go buy Palantir. I mean like Palantir, it’s like, what can I say? Alex Karp, I think he’d find you if you didn’t buy Palantir and give you a little talking to.”
GameStop (NYSE:GME) is a specialty retailer that sells new and used gaming products, accessories, software, collectibles, and digital content, while also engaging in the digital asset wallet and NFT market. Cramer has previously called GME a cult stock as he commented on the company before it reported its third-quarter earnings result in December 2024.
“We have stocks like SoundHound AI and Hut 8 Corp. where there’s no real news, but they’re just real moves, okay? GameStop seems to have a similar percolation going… That’s right, all week, I’ve been talking about how I’m beginning to see some signs of excess that do make me uncomfortable. I think the reaction to GameStop, both before and after will tell us whether we need to know about how excessive things have really become.
I can’t tell you to sell it. You’ll blame me if it soars on no earnings, but I can’t tell you to buy it either because I don’t have any legitimate reason whatsoever to do so. It’s a cult stock and this is a market where people seem eager to drink the Kool-Aid. Like I said, tough moment if you wanna be a rigorous buyer of inexpensive stocks that belong to great companies.”
9. Five9, Inc. (NASDAQ:FIVN)
Number of Hedge Fund Holders: 29
Cramer called Five9, Inc. (NASDAQ:FIVN) stock good and noted that the stock is quite inexpensive.
“Customer relations management, they do a very, very good stock. Stock is way too cheap. I think I am with you and I would pull the trigger.”
Five9 (NASDAQ:FIVN) provides a cloud-based platform for contact centers, offering AI-powered tools for managing customer interactions, improving agent productivity, and improving the customer experience across various communication channels.
On January 17, Cantor Fitzgerald analyst Thomas Blakey started coverage of Five9 (NASDAQ:FIVN) with an Overweight rating and set a price target of $46. As per TipRanks, the stock has a consensus Strong Buy rating among 17 analysts and the average price target of $52.19 has an upside of 22.20%, as of February 4.
8. Oshkosh Corporation (NYSE:OSK)
Number of Hedge Fund Holders: 33
Cramer expressed surprise at Oshkosh Corporation’s (NYSE:OSK) solid earnings report and called it a “great American company”.
“Yeah, well, they blew away the numbers. I mean, I have to tell you, I was surprised at the numbers being that strong. I know that we had them on, I didn’t see that coming. Another great American company that just shot the lights out that no one was paying attention to it.”
Oshkosh (NYSE:OSK) designs and manufactures specialized vehicles and equipment, including aerial work platforms, tactical vehicles for defense, firefighting apparatus, emergency response vehicles, refuse collection trucks, and construction-related vehicles. The company recently announced its full-year 2024 financial results.
Oshkosh (NYSE:OSK) reported net sales of $10.76 billion and a net income of $681.4 million for the full year 2024, showing growth from the previous year. The increase was driven by better price/cost dynamics, higher sales volume, and a favorable product mix, with strong revenue and double-digit operating income margins across all three segments.
7. On Holding AG (NYSE:ONON)
Number of Hedge Fund Holders: 35
Discussing On Holding AG (NYSE:ONON) during the episode, Cramer said:
“Okay, I think On is a great buy. I think it’s got the momentum, but understand when you say longer term, I get a little nervous because sneakers, unless, you know, look what happened [with] even Nike longer term. I think On is a hot sneaker. I think it’s gonna stay hot for another year and then we have to revisit. But I think you’ve got upside on every single pullback on On.”
On Holding (NYSE:ONON) specializes in creating and selling sports products globally, including athletic footwear, apparel, and accessories for running, outdoor activities, training, everyday use, and tennis. Artisan Partners stated the following regarding On Holding AG (NYSE:ONON) in its Q3 2024 investor letter:
“Notable trims in the quarter included Tyler Technologies, Argenx and On Holding AG (NYSE:ONON). On Holding is an emerging global athletic sports brand focusing on performance footwear and apparel. The category is one of the most challenging to break into, requiring a high degree of technical knowledge, significant investment spending and marketing prowess, each of which the company has achieved over the years. The company’s foundation in performance footwear provides a high barrier to entry and a strong and credible foundation for the brand to continue growing. We believe On will generate attractive growth as it scales across product categories, channels and geographies within the $300 billion global sportswear market. Shares rallied in the quarter, and we trimmed the position due to our valuation discipline.”
6. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 37
Discussing BlackRock, Inc. (NYSE:BLK), Cramer praised the company’s CEO as he commented, “BlackRock might be down because Vanguard cut its fees. I trust Larry Fink. I think it’s a great opportunity to buy.”
BlackRock (NYSE:BLK) is a leading investment management firm known for providing risk management, advisory services, and a diverse range of investment products, including mutual funds, ETFs, and hedge funds across various asset classes. Cramer was bullish on the stock in October 2024 too as he said:
“Larry Fink’s done an incredible job, not only in making money but also in producing the best asset management software. I don’t think this company gets nearly enough credit for either and its stock deserves to trade higher. I think you could break out here.”
Since then, BlackRock (NYSE:BLK) has gained a modest 6.8%.
5. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 38
Cramer admitted that he made a mistake by getting out of Emerson Electric Co. (NYSE:EMR) early.
“Emerson, I got out too soon. I was worried that they did a hostile takeover. I don’t like hostile takeovers. It was a mistake by me. I should have felt, you know something, these guys are gonna pull it off. My bad. Lost, missed out on 20 points, very bad.”
Emerson Electric (NYSE:EMR) offers a wide range of solutions across various industries, including control systems, safety and productivity tools, automation, and asset optimization software. In 2024, Cramer commented on the company and said:
“EMR is, now it’s working. I was upset that they did a hostile takeover. They fixed the situation and the stock’s been a horse and because it’s one of those companies that’s levered to the data center and to the reshoring, reindustrialization, so what can I say? It’s working. It didn’t work and now it’s working.”
Since his comment, Emerson Electric (NYSE:EMR) stock has gone up more than 12%.
4. e.l.f. Beauty, Inc. (NYSE:ELF)
Number of Hedge Fund Holders: 40
A caller mentioned e.l.f. Beauty, Inc. (NYSE:ELF) stock inching down recently amid concerns about tariffs on China and Cramer replied:
“Yeah, well it’s gonna report… They make this stuff in China is real bad and it’s gonna hurt the profit margin and we got to hear what they’re gonna have to say. I have to tell you, I’m very uncomfortable buying something that is all sourced in China given the fact that we don’t know what the president’s going to do if China doesn’t play ball.”
e.l.f. Beauty (NYSE:ELF) is a well-known company in the cosmetics sector, offering a wide variety of beauty and skincare products across multiple brands, such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare. Previously, Cramer noted the stock’s decline in October 2024 as he remarked:
“Well, remember, this is a very tough situation because all of cosmetics are in a downturn that is so staggering that it caught everybody by surprise, especially Fabrizio Freda at Estee Lauder. I think Estee Lauder is not as good as E.l.f, but I recognize that this group is in the doldrums. I don’t want to make a single call on a group decline. I do think that when they come back, this one will come back faster than all of them.”
Since then, e.l.f. Beauty (NYSE:ELF) stock is down over 18%.
3. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 72
The Goldman Sachs Group, Inc. (NYSE:GS) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“I think Goldman is incredible. The stock sells at 13 times earnings. It’s doing amazingly well. I think it is a solid buy. I saw it down at one point today, so low.”
Goldman Sachs (NYSE:GS) is a financial services company, recognized for its expertise in investment banking, wealth management, and a wide range of other financial services. In early January, Cramer commented on GS’s rally and said:
“Last week we finally got some positive action for the stock market in 2025 with the S&P 500 gaining nearly 3% and turning positive for the year. Cooler inflation data pushed down long-term interest rates and we got flooded with great earnings reports. So what performed best during last week’s rally? When you look at the top performers, there are really some interesting patterns here. Two of the big banks that reported strong quarters made the list. Both Goldman Sachs, which we own for the Charitable Trust, and Citigroup rallied 12%.”
2. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
When a caller asked Cramer about Oracle Corporation (NYSE:ORCL), he said:
“Well, I mean Oracle had this gigantic move, I mean just huge, and everyone thought that it was just terrific. And then what happened frankly is that we got all the great news and now we’re waiting for more great news and I don’t see any more great news. I think you have to wait until they report and when they report, they’re gonna have to have something really special. But it’s not till March 11th. I think you’ll be biding time in the stock.”
Oracle (NYSE:ORCL) is a technology company that provides an extensive range of enterprise IT solutions. In December 2024, Cramer opined that ORCL would go lower.
“Okay, remember, we don’t care where [the] stock has come from, we care where it’s going to. Unfortunately, I do think after that last quarter, the stocks that do not make the quarter are being punished here and will continue to be punished until we get better news. So Oracle does go lower in my opinion.”
Since the release of its last earnings report, Oracle (NYSE:ORCL) stock has gone down over 11%.
1. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 91
Cramer lauded Vertiv Holdings Co’s (NYSE:VRT) chairman but advised not to “stick your neck out”.
“Okay, look, Vertiv… You need to know that the chairman of Vertiv is Dave Cote. He was my former next-door neighbor. He’s a brilliant industrialist. The stock is down very big. It’s involved with data centers, indeed. It’s actually a data center play and I think the stock has come down enough that I think you should buy some. But… not all, and not all at once. This is a wild trader and if it’s a wild trader, you don’t need to stick your neck out.”
Vertiv (NYSE:VRT) specializes in developing and supporting critical digital infrastructure solutions and lifecycle services designed for data centers, communication networks, and various commercial and industrial sectors. Cramer was bullish on the company in November 2024 as well as he said:
“It’s a pure play data center supplier. It’s a fantastic company with an amazing chairman, Dave Cote… and I like it very much. No Trump issues, but like so many other good stocks, Vertiv’s at $120, not far from the $130 high it reached on Monday. You could put a starter position on here, but I’d rather wait for a little more weakness.”
Since then, Vertiv (NYSE:VRT) has experienced a decline of over 7%.
While we acknowledge the potential of Vertiv Holdings Co (NYSE:VRT) 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 VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
