Jim Cramer, host of Mad Money, offered some important insights to his viewers on Friday, advising them to closely monitor the upcoming Federal Reserve meeting and the earnings reports from companies. However, he also cautioned that irrespective of what the earnings reveal, the direction of the market will largely be determined by President Donald Trump and the Federal Reserve.
Cramer explained that Monday will mark a significant moment for understanding consumer behavior, as the February retail sales numbers will be released. He forecasted a sharp decline in consumer spending, which he attributed to growing fears among consumers about job security. Cramer noted that many consumers are left wondering if they might be the next to lose their jobs. He added:
“It’s unavoidable, the president’s ability to create a climate of hope or a climate of fear, and lately, Trump’s gone all in on fear.”
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The following day, Tuesday, will bring the release of February housing data, which Cramer emphasized as significant. He stressed that a strong housing market is essential in preventing a recession, which he described as “terrible”.
“Any kind of slowdown is quickly reflected in housing, which then gets reflected in retail. It’s a delicate chain that starts with housing, which is why I’ll be watching these numbers like a hawk.”
Cramer also expressed concern about the high prices of homes, noting that the cost of lumber is a significant factor, with much of the supply coming from Canada. However, he pointed out that the current tensions between the United States and Canada could exacerbate these price pressures.
Wednesday’s events are also of importance, as the Federal Reserve’s Open Market Committee will meet, and the market will hear from Jerome Powell, the Fed’s chair. Cramer noted that the most recent inflation data, including both the Consumer Price Index and the Producer Price Index, have been relatively favorable, which might suggest that inflation is under control. However, he cautioned that certain areas of the economy still experience persistent high prices.
Furthermore, as per Cramer, there is a looming possibility of a new round of tariffs, potentially as soon as next week, which could include a 25% tariff on all imported vehicles, perhaps on those from Germany, Japan, and South Korea. He then added:
“I fear the president will choose Wednesday to lower the boom so be prepared. Sure, the market’s oversold. It may stay oversold by Wednesday so it could possibly handle any auto-related tariff news, but you have to be ready for them.”
According to Cramer, the tariffs are inevitable, and their impact would not be gradual or measured. In conclusion, Cramer reiterated that the fate of the market this week will hinge more on actions from the White House and the Federal Reserve than on the earnings reports of individual companies.
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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).
8 Stocks in Focus Under Jim Cramer’s Game Plan
8. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 56
Cramer reckoned that Carnival Corporation & plc (NYSE:CCL) stands a chance to perform if it is not targeted by the relatively new administration.
“Finally, on Friday, we hear from Carnival, the cruise line. Cruise lines are flagged outside of the U.S., which has made them the target of the Commerce Department. I wonder if Commerce Secretary Howard Lutnick picks this day to lay into Carnival. If not, I think that the group’s been strong even as the stocks have been awful of late. We know the business isn’t weak and therefore, Carnival stock could be ready to roll as long as it’s not attacked by the administration.”
Carnival (NYSE:CCL) is a global provider of leisure travel services, known for its wide range of cruise brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard. Appearing on Squawk on the Street in February, Cramer said:
“Kind of shocking to say, one of the greatest groups in this market has been the cruise lines. It has just become, remarkable comeback, and this is the long on money, short on time. Meaning, let’s find the bar again and travel. . . These all got clocked. Why? Because Howard Lutnick, the new Commerce Secretary said that President Trump might wanna be able to get rid of the, their inability to pay tax. They don’t pay tax. Again, what I keep referring to is, Congress passed an actual codified section . . . saying that their income is not taxable! So you know, you need to get Congress to check off. Now, Citi in its note does say to make these changes we believe President Trump would need to focus on the cruise industry. But I’m implying that if the President does focus, then it gets rid of Congress. Now, look, maybe I’m outmoded. I have been focused on Congress cause that’s the way our country has, since, I don’t know, like Jefferson. But everything’s new! This needs Congressional approval. I don’t know how else he can do it!”
7. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders: 70
Lennar Corporation (NYSE:LEN) was part of his game plan for the week and Cramer said:
“One more, housing kingpin Lennar reports and, and if I think if what I think’s gonna happen, lumber will be on the table, it’ll be discussed very negatively. Stuart Miller, the executive chairman, will speak to the question of affordable housing. He’s been important in trying to make that happen as we saw earlier this week when CNBC focused on a Texas housing project that used 3D printing and concrete to build what looked like some fine homes by Lennar.”
Lennar (NYSE:LEN) is a U.S.-based homebuilder engaged in the construction and sale of single-family homes, residential land development, and the management of multifamily rental properties. For the first quarter of 2025, the company expects new orders to range between 17,500 and 18,000 homes.
It expects deliveries to fall between 17,000 and 17,500 units and the average sales price of homes is projected to be between $410,000 and $415,000. Moreover, Lennar (NYSE:LEN) forecasts a gross margin percentage on home sales to be between 19.0% and 19.25%. Additionally, the company projects operating earnings from its financial services segment to be between $100 million and $110 million.
6. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 73
Cramer noted that there is “minimal downside” to owning NIKE, Inc. (NYSE:NKE) and remarked:
“Then there’s Nike, which needs to officially say that it’s back on track and ready to grow again. If management does, that $71 stock will see $80 very quickly. I regard Nike as a coiled spring, minimal downside, certainly worth doing.”
NIKE (NYSE:NKE) designs, produces, markets, and sells athletic footwear, apparel, equipment, accessories, and services, including products tailored for different sports. RiverPark Advisors stated the following regarding the company in its Q4 2024 investor letter:
“NIKE, Inc. (NYSE:NKE): NKE shares were a top detractor in the quarter following better than expected fiscal second quarter results reported in December but worse than feared third quarter guidance. The company delivered $13.4 billion of revenue (roughly $1 billion better than expectations) and $1.9 billion of EBIT (roughly $500 million ahead of street consensus) and generated better than expected earnings of $1.03 (investors were looking for $0.78). Despite better operating metrics last quarter, the company dramatically lowered expectations for the fiscal third quarter including expectations for double-digit percentage declines in revenue. NKE’s new CEO, Elliot Hill, described several key issues negatively impacting the company’s growth trajectory including 1) a multi-year move away from a focus on sports, 2) a shift away from innovative demand creating marketing, 3) too much centralization, which has led to lack of execution capabilities in local markets, and 4) too much focus on Nike Digital, which negatively impacted the brands standing in the marketplace.
Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $50 billion in revenue, $6.7 billion in FY2024 annual free cash flow, and $10 billion of excess cash. We believe that over the long term, the global secular growth trend towards active wear will continue to aid Nike’s top-line growth driving gross and operating margin improvements and long-term mid-teens or higher annual EPS growth. In the short term, we believe that the company will work through the above headwinds and that revenue and earnings growth will reaccelerate in the next 12 months.”
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Calling Micron Technology, Inc. (NASDAQ:MU) a “valuable chip maker”, Cramer commented:
“Then we got Micron, this very valuable chip maker, one that’s been very committed to the United States more than any other major semiconductor play. Received a $6.16 billion grant from the Biden administration as part of the CHIPS and Science Act. Well, President Trump posted it’s time for Micron to give the money back.
It could definitely be a moment to rain on Micron’s parade as I expect a decent quarter from these guys because the DRAM market’s healthy and more important, their high bandwidth memory product line is integral to the data center and it’s on fire. Should they be attacked for taking money that was offered to them? I think 99% of us would take it.”
Micron (NASDAQ:MU) designs, develops, and produces memory and storage products, providing high-speed, low-latency semiconductor devices and non-volatile memory solutions.
4. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 66
FedEx Corporation (NYSE:FDX) is set to report on March 20 and Cramer said:
“After the close, the big guns come on out. First, we get results from FedEx. The transports hit a new low yesterday and people are really fleeing this group. This may be our opportunity to buy a high-quality transport at a big discount as FedEx continues to cut costs. I like that. I want to start a position here as I think CEO Raj Subramaniam is doing a remarkable job. Fantastic.”
FedEx (NYSE:FDX) offers a variety of services, including transportation, e-commerce solutions, and business services, such as express shipping, small-package deliveries, freight transportation, and other business support services. Sound Shore Management stated the following regarding FedEx Corporation (NYSE:FDX) in its Q3 2024 investor letter:
“Meanwhile, detractors of note for the quarter were connected by a common theme: signs of a slowing economy. NXP Semiconductors, a leading chip maker for the auto industry, was lower on uncertain auto demand and package hauler FedEx Corporation (NYSE:FDX) lagged on muted volume trends. Importantly, both of these companies have ways to increase earnings outside of the business cycle, but are not entirely immune to the recent slowdown. Business cyclicality requires investor patience and a long-term perspective – we have both.”
3. Darden Restaurants, Inc. (NYSE:DRI)
Number of Hedge Fund Holders: 36
While Cramer acknowledged that restaurant stocks have been acting oddly recently, he bet that Darden Restaurants, Inc. (NYSE:DRI) would report “good numbers”.
“Thursday’s abnormally huge. In the morning, we have Darden, the parent of Olive Garden. The restaurant cohort is still all over the map. I see a lot to like about the ones that offer the customers a great value and that’s why I’m betting we’ll see good numbers from Darden.”
Darden (NYSE:DRI) owns and manages a network of full-service restaurants across the U.S. and Canada, including well-known brands like Olive Garden and LongHorn Steakhouse. In December 2024, before the company reported its earnings, Cramer stated:
“Thursday morning: Well, Darden tells us how it’s doing and I gotta tell you, this one’s still being driven by Olive Garden. I think the market’s actually moved away from the formerly important restaurant chain. Instead, it’s focused on the results of Texas Roadhouse and Brinker, both of which offer great value and are being rewarded with tremendous numbers and then much higher stock prices.
I wanna find out if Darden gets the consumers pushing back against high prices. They have to tell us what they’re doing to entice these people who seem to be going elsewhere for casual dining, pretty much for people who want to spend no more than $11 per dinner.”
2. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 49
As per Cramer, General Mills, Inc. (NYSE:GIS) is likely to miss its numbers as he said:
“Now we’ve got some important corporate news Wednesday too. First, General Mills reports and I read a piece this morning that predicted that they missed their numbers. I know Mills is in the crosshairs of the Secretary of Health and Human Services, Bobby Kennedy Jr. (Robert F. Kennedy Jr.) because those artificially colored cereals make you want to eat stuff that’s too sugary.
Plus, it makes some fattening foods that won’t do well when people are continuing to adopt the GLP-1 weight loss drugs with a vengeance. I don’t expect a good number here and nobody else does either.”
General Mills (NYSE:GIS) produces and distributes a variety of branded consumer food products worldwide, such as cereals, snacks, meal kits, frozen foods, and pet food items.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
The first company on Cramer’s game plan for this week was NVIDIA Corporation (NASDAQ:NVDA) and he commented:
“On Tuesday, we’re going all happiness. We’re going to San Jose, California to GTC, the all-things generative AI conference run by NVIDIA, long my favorite company. The event, known as the Woodstock of AI, is a week-long affair and we’ll be there for the crucial events on Tuesday and Wednesday, including Jensen Huang’s, what I think is going to be an amazing, keynote address on Tuesday.
Hey, speaking of someone who missed the original Woodstock, I’m not gonna miss this Woodstock and to me this is Woodstock, okay? Look at these companies. Look at how great these companies are. These are unabashedly positive companies that create, that create wealth, that put food on the table, that give people jobs. This is what I celebrate.”
NVIDIA Corporation (NASDAQ:NVDA) is renowned for its innovations in graphics, computing, and networking technologies, especially for its graphics processing units and the CUDA software platform.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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