Jim Cramer, the host of Mad Money, shared his concerns on Thursday, describing the current stock market environment as a “short sellers paradise,” offering an ideal moment for those betting against U.S. stocks. He pointed to an important deadline approaching: April 2nd when major tariffs are set to take effect.
“We have a tariff deadline, beckoning a frightening deadline, actually April 2nd when the big tariffs are going to kick in, that means we’re headed for a moment of maximum fear as regular stock buyers either flee to the sidelines or move the money to Europe.”
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Cramer emphasized that he does not see how the White House could back down from its stance, suggesting that if the administration wants to maintain credibility, it has no choice but to move forward with the tariffs. He explained that for President Trump, showing resolve by sticking to his promises is a signal of strength, even if it means sacrificing the stock market in the process. Cramer believes that this willingness to endure short-term market pain in favor of long-term trade objectives is a clear sign that the White House is committed to its strategy. He went on to say:
“For years, we’ve been conditioned to believe that everyone must do their part to get prices down because we don’t want inflation to get out of control. Unfortunately, someone isn’t doing it.”
The rising costs brought on by tariffs are forcing the Federal Reserve to pay more attention to inflation, complicating the financial space. Cramer remarked that this creates a difficult situation for money managers who now feel compelled to sell due to the economic uncertainty stirred up by Washington. Wall Street, he added, is already adjusting its estimates, factoring in the potential long-term impact of tariffs.
“But what happens in this market after the tariffs are implemented? Maybe another month of wrangling, maybe two months, maybe the whole summer. It could be real bad. So we end up with this build-in negative that could sink 10 ships.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on March 13 and March 20. 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).
9 Stocks on Jim Cramer’s Radar
9. Sezzle Inc. (NASDAQ:SEZL)
Number of Hedge Fund Holders: 19
When Cramer was asked about Sezzle Inc. (NASDAQ:SEZL) during the lightning round yesterday, he said:
“Well, I think that there’s a lot of these companies and that’s kind of the problem with when you see so many of the companies in the same sector, we’re going to have to say, no, I don’t like it right here.”
Sezzle (NASDAQ:SEZL) is a payments technology company that provides flexible installment options via its Sezzle Platform. It also offers services such as Sezzle Virtual Card, Sezzle Anywhere, and Sezzle Premium, enabling consumers to shop and pay over time. In November 2024, a caller inquired about the company, and in response, Cramer stated:
“I’ve looked at this stock, it’s a straight-up payments play that reported so much better than expected quarters and I understand why it’s going up.”
8. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: 27
During yesterday’s episode, a caller asked if Sam Altman-backed nuclear power startup Oklo Inc. (NYSE:OKLO) being down 50% in the last two months is too early. In response, Cramer said:
“Oh, man. Is it too early? It is way, way too, it is mega too early for that one, buddy.”
Oklo (NYSE:OKLO) focuses on designing and developing fission power plants intended to deliver reliable, commercial-scale energy. In addition to power generation, the company provides services related to the recycling of used nuclear fuel. In February, Cramer commented on the company and said:
“We really don’t need the, if we don’t want them, you know, I’ll tell you what we really don’t need, we don’t need the nuclear fission through Oklo. A total fan favorite. That’s one of the most speculative stocks out there… It’s frightening when you own a stock because of quantum computing prospects and then those hopes are dashed by an authoritative expert.”
7. The Gap, Inc. (NYSE:GAP)
Number of Hedge Fund Holders: 39
On March 13, Cramer referred to his conversation with The Gap, Inc.’s (NYSE:GAP) CEO Richard Dickson, praising the strong fourth-quarter earnings report. He noted that despite slightly lower guidance, the market reacted positively, and the company achieved its eighth consecutive quarter of gaining or maintaining market share across all four brands. He went on to ask:
“How about the trade war though? Won’t President Trump’s volatile trade policy crush The Gap like it’s crushing everybody else in the business? Look, this company gets less than 10% of their products from China with less than 1% coming from Canada and Mexico. On the cost side, they’re fine. The only worry is that the trade war wrecks consumer confidence and crushes the entire economy, which does seem like a possibility at this point. But as I said repeatedly, I think the Federal Reserve will start cutting rates at that point in order to prevent a recession.
When I asked Dickson about the concerns surrounding the health of consumer, he emphasized that what Gap’s been doing to reinvigorate their brands is resonating with customers and their ability to gain market share in declining industry makes him feel pretty confident about the future of the business. I think he’s probably right. Even if the company gets hit with some near-term turbulence, I like it.”
The Gap (NYSE:GAP) is a retail company that sells clothing, accessories, and personal care items for men, women, and children.
6. Ralph Lauren Corporation (NYSE:RL)
Number of Hedge Fund Holders: 43
Cramer expressed confidence in Ralph Lauren Corporation (NYSE:RL) on March 13, citing its strong performance as seen in its quarterly report, with better-than-expected growth across all regions, improved gross margins, and a 12% increase in same-store sales globally for its direct-to-consumer business. He added:
“Plus it doesn’t hurt that direct-to-consumer with its great gross margins makes up two-thirds of the business. So what was driving the stellar growth? The good news is it’s all about Ralph Lauren’s core products and their classics… Pretty extraordinary. These core products make up more than 70% of the business… Of course, you could argue that none of this matters anymore.
Ralph Lauren’s latest quarter took place in a totally different world, one where we weren’t worried about trade wars and plummeting consumer confidence… certainly true but it’s also why the stock has just fallen 25% over a month’s time. It’s on sale, not the goods, the stock. Don’t forget, on the latest conference call, management noted they currently anticipate a minimal annual impact from tariffs. Although again, that was before things started spiraling out of control. Still, I believe Ralph Lauren’s much more likely to make a comeback than your average retail stock.”
Ralph Lauren (NYSE:RL) is a renowned designer, marketer, and distributor of lifestyle products such as clothing, home goods, and accessories.
5. Waste Management, Inc. (NYSE:WM)
Number of Hedge Fund Holders: 67
When a caller asked if Cramer sees Waste Management, Inc. (NYSE:WM) as a strong buy, he replied:
“No, I think it is a super strong buy, a lifetime, super strong buy. I’m a buyer right here and every time I’ve ever sold that, it has been wrong.”
Waste Management (NYSE:WM) offers a variety of environmental services, such as waste collection, recycling, landfill management, and generating renewable energy from landfill gas. Additionally, it provides materials processing, recycling brokerage, and a range of construction and remediation services. Diamond Hill Capital stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q4 2024 investor letter:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway, Aon and Waste Management, Inc. (NYSE:WM).
Waste Management is one of the US’s largest providers of waste-collection services. Its leading footprint of landfill assets provides the company with long-term pricing power. Further, Waste Management has invested heavily in recent years in recycling and renewable natural gas projects — which we believe the market is underappreciating given the value these investments will create as the projects wind down and come online.”
4. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 81
On March 13, Cramer highlighted that The Goldman Sachs Group, Inc. (NYSE:GS) stock had fallen 22% due to fewer IPOs, with much of the risk likely already priced in. He noted that the stock, which peaked at 14.5 times this year’s earnings estimates, is now trading at around 11.5 times, though earnings estimates have likely been revised downward. He then asked:
“Why stick with Goldman in the face of this newfound uncertainty? That’s an excellent question. Here’s my answer because I think it’s too soon to give up on merger mania… Meanwhile, some of the softer economic data has caused long-term interest rates to come down and that should be a boon to Goldman’s debt underwriting while also encouraging more mergers because many of these deals are paid for with borrowed money. Finally, I think Goldman’s best-in-class sales and trading operation… could be in a position to make a killing and miss all this volatility that we’ve seen over the past few weeks…
Look, if I’m right about that and I’m pretty confident about the thesis because these Goldman professionals are the best at what they do, then that strength could offset some of the softer performance from the traditional investment banking side. So for all these reasons, I’m still comfortable with Goldman Sachs, but I do think the stock could go lower because the market’s awful. Alright, but I like to buy low. I like to sell high.”
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.
3. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 88
On March 20, Cramer praised The Home Depot, Inc. (NYSE:HD) for its strong financial performance, noting a compound annual return of 25.5% since its IPO. He highlighted that in the current environment, we need a stock that will up our chances of winning. He added:
“When Home Depot stock gets hit and it will get hit by the pervasive negativity, we got one more reason to feel comfortable owning…. See, this is something I learned during the Great Recession. Back then, I stuck with Home Depot when everyone told me to sell, sell, sell because homes were losing value for the first time since the Depression. Of course, the company ended up buying back a huge amount of stock during that period, ended up in incredible shape versus the competitors, many of which went by the wayside…
Home Depot stock is still cheap and it’s well off its highs, even though the underlying company’s doing incredibly well. Now, you may be skeptical thinking that higher interest rates, tariffs are more important than everything I just said, more important than the specifics of this home improvement chain or what they tell me. I disagree. To me, this is when you keep the faith, and if the stock and Home Depot drops, well guess what?” [Buy, buy, buy]
Home Depot (NYSE:HD) is a home improvement retailer offering a wide range of products, including building materials, décor, lawn and garden items, and maintenance supplies. It also provides installation services for various home features and tool and equipment rentals.
2. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 96
Wells Fargo & Company (NYSE:WFC) was mentioned during the episode on March 13, and here’s what Mad Money’s host had to say:
“I like Wells Fargo down here with these interest rates…Been a long-term turnaround play under CEO Charlie Scharf, whom we greatly respect. Even though Scharf’s now more than five years into the job, at this point, he’s still actively reshaping Wells Fargo for the better, shrinking or exiting businesses that weren’t working well… The last big benefit that could still accrue to Wells would be a removal of the asset cap that’s been in place since early 2018…
I think that you would absolutely get this cap removed. And Wells Fargo, there’s billions of dollars in costs they could take to reallocate, move from compliance efforts to activities. There’s, they have to spend a lot of money on compliance. I’m not against that, but I do think the bank would be much more profitable without the cap. Even with the stock’s recent 16% pullback from its highs, Wells Fargo’s still giving us a nearly 85% gain for the Charitable Trust.”
Wells Fargo (NYSE:WFC) is an international financial services company offering a range of banking, investment, mortgage, and financial products.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 123
On March 13, Cramer commented on JPMorgan Chase & Co. (NYSE:JPM) and said:
“Well, if you agree that the recession fears are overblown, then why not pick up some JPMorgan Chase, nation’s largest and best-run bank. It’s down almost 20% from its all-time highs in mid-February. JPMorgan could certainly get hit harder by a vicious economic slowdown but again, I’m not yet in the camp that expects such a drastic scenario. While there’s been some yellow flags in the economic data recently, these problems are self-made and they can go away with some steadier policy from the White House. Even if we don’t get that, a softer economy will give the Fed the green light to start cutting interest rates again and that will eventually bail you out.”
JPMorgan Chase & Co. (NYSE:JPM) provides a variety of financial services such as consumer banking, investment banking, lending, and asset management, serving individuals, small businesses, corporations, and institutional clients. Yesterday, on Squawk on the Street, Cramer commented:
“By the way, this very morning David, Mike Mayo, a showman from Wells Fargo, calls JPMorgan, the NVIDIA of banking! So this is the piece which bridges me from where we were yesterday.”
While we acknowledge the potential of JPMorgan Chase & Co. (NYSE:JPM) 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 JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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