On Monday, Mad Money host Jim Cramer drew a parallel to 2011 and argued that what we are seeing is another crisis that feels manufactured, one he believes could be resolved just as easily as it was created, “with the stroke of a pen,” as he described it.
“Could this be another earnings season that simply doesn’t matter because there are bigger forces at work that are going to crush the entire market? It’s happened before, back in 2011.”
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Cramer pointed out that the market has opened lower nearly every day, not because of disappointing earnings, those, he said, have largely held up, except in the case of companies with significant exposure to China, which he described as now being a liability for American businesses. He emphasized that the situation is not being driven by corporate fundamentals but by factors outside of earnings. He added:
“At least this time, the problem’s about America itself. As the president begins to create a constitutional crisis over the potential firing of Jay Powell while Congress once again deals with the interminable debt crisis, I think we can expect another ratings agency to begin the discussion of a debt downgrade.”
According to Cramer, investors should begin to accept the reality of a market that drops every morning, regardless of how strong earnings might be. The dominant forces in the environment, he insisted, are not balance sheets or profit margins. He remarked that the current period will be shaped by discussions around tariffs and the ongoing threats to remove Jerome Powell from his position. He added:
“Unfortunately, this time, the United States is not a safe haven as other countries appear much more stable and our bonds act squirrelly, almost as if they’re anticipating another painful debt downgrade. Ironic. We could get much higher yields because a president wants them to be lower in the worst way. The worst way being to poke fun, to ride, chide, and make life hell for a man who has served our country well, and I think deserves better.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 21. 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. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Number of Hedge Fund Holders: 9
A caller inquired if Cramer was still feeling positive about Plains All American Pipeline, L.P. (NASDAQ:PAA). In response, Cramer stated:
“You know, [to] my understanding, Plains PAA is doing quite well. I mean, it’s a very tough moment for this group. There’s a lot of sellers in it, but I understand that Plains is okay. I mean, I don’t know, I’m going to redouble my efforts because it is a little higher yield than it should be.”
Plains All American Pipeline (NASDAQ:PAA) focuses on the transportation, storage, gathering, and terminaling of crude oil and natural gas liquids. The company is also involved in processing and handling various products derived from natural gas and crude oil refining. It is worth noting that when Cramer was asked about the company in March, he said:
“Listen, sunshine, that’s a terrific stock with a 78% yield. Not only am I a buyer, but I wish we had it for the Charitable Trust.”
8. Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hedge Fund Holders: 34
A caller asked if they can build a safe dividend stream with Stanley Black & Decker, Inc. (NYSE:SWK). In response, Cramer said:
“Well, it’s interesting to say that, you know, I’ve been writing this book, it’s actually done now… and what’s incredible is that I was going to have this as an accidental high yielder and at the last minute I pulled it. Why? Because I don’t have the kind of security mentally to be able to do that. I think there are too many problems with the company. We had Mr. Allan on the show, he was talking about a 2027 game plan. So you cannot recommend something for its dividend if you don’t think the dividend is totally safe, and that’s what I worry about with Stanley Black & Decker. Ouch.”
Stanley Black & Decker (NYSE:SWK) is a leading manufacturer that focuses on producing power tools, hand tools, outdoor equipment, and related accessories.
7. Hertz Global Holdings, Inc. (NASDAQ:HTZ)
Number of Hedge Fund Holders: 35
When a caller mentioned that investor Bill Ackman started a sizeable position in Hertz Global Holdings, Inc. (NASDAQ:HTZ), Cramer said:
“Okay, well, you know, I don’t know what Bill Ackman’s going to do because it’s, I don’t know him, and all I can tell you is that the stock’s had a very big run. It’s not a great company. I’ve seen great people befell by the stock. So I think you could take the money and run and be, or at least take out your cost basis. How about that? And let the rest ride. That would be the most prudent thing to do.”
Hertz Global (NASDAQ:HTZ) is a vehicle rental company offering services under the Hertz, Dollar, and Thrifty brands. It also sells vehicles and provides additional services through various locations worldwide. On April 17, BofA highlighted that after Pershing Square disclosed in a Form 13F that it held 4.1% of HTZ shares at the end of 2024, CNBC later reported that the firm had increased its stake to 19.8% through shares and swaps.
BofA suggested that Pershing Square’s investment could provide much-needed capital for the company. If the rise in Hertz Global’s (NASDAQ:HTZ) shares holds, it could give the company more options to tap into equity markets. However, BofA still believes the company will need to raise over $500 million in capital, given its forecasted free cash flow usage of around $920 million in 2025 and $300 million in 2026. The firm maintained an Underperform rating on Hertz with a price target of $2.70.
6. Simon Property Group, Inc. (NYSE:SPG)
Number of Hedge Fund Holders: 40
A caller asked what Cramer thought the tariff impact would be on Simon Property Group, Inc. (NYSE:SPG), and Cramer replied:
“Well, they have some exposure because they have some retail. But you know what, I’ve gotta tell you, they are a terrific company. Got a 5.7% yield. I think Simon Property should be bought and bought right here.”
Simon Property Group (NYSE:SPG) is a real estate investment trust that develops, owns, and manages top retail and mixed-use properties, including malls, outlets, and entertainment centers. On April 9, Stifel upgraded SPG to Buy from Hold and set a new price target of $168.50, lowered from $178.
The firm stated that the stock’s relative valuation is appealing based on multiples and believes the Simon Property Group’s (NYSE:SPG) decreased exposure to OPI justifies a higher multiple. Stifel also noted that a more straightforward business outlook and greater earnings contribution from core real estate operations could create potential for multiple expansion.
5. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 44
A caller asked what Cramer thought of Barrick Gold Corporation (NYSE:GOLD), and he replied:
“A gold company is, I mean, I hate to just say this because it really doesn’t take a weatherman to know which way the wind blows, does it? But gold, I think, is going higher still. And Barrick Gold has a lot more room to run. I think it’s doing better. Like, you know, I wish they weren’t so far flung. Agnico’s doing better than they are, but I think GOLD is a good place to be.”
Barrick Gold (NYSE:GOLD) explores, develops, produces, and sells gold and copper. The company also explores for silver and energy-related materials and handles their sale. Ariel Investments stated the following regarding the company in its Q4 2024 investor letter:
“Lastly, gold mining company, Barrick Gold Corporation (NYSE:GOLD) fell following an investor day where management reduced five-year guidance for gold production and raised cost estimates. Meanwhile, a dispute with the African government of Mali and associated negative headlines created an overhang on shares. Despite ongoing uncertainty, management remains laser focused on upgrading its mining operations and broadly improving efficiencies amid today’s rising prices for precious metals. The company also continues to prioritize capital returns to shareholders via dividends and share repurchases. At current valuation levels, we believe the risk/reward is priced in.”
4. CarMax, Inc. (NYSE:KMX)
Number of Hedge Fund Holders: 57
A caller asked if they should hold or sell CarMax, Inc. (NYSE:KMX). Here’s what Cramer had to say:
“Well, you know I am a Carvana guy. I don’t want you to, this stock, whoa man, this stock has come down so much. No, I can’t, no, I don’t want you to sell it down here. That’s a remarkable decline, down 24%, for a very high-quality company, but that’s what’s happening. That’s endemic of what’s happening in this country right now. We are losing a lot of money, and I don’t need to tell you every single time why.”
CarMax (NYSE:KMX) focuses on selling used cars and related products and offers various models that include electric, hybrid, and luxury vehicles. It also offers financing plans and repair services for customers. In early April, Cramer commented:
“Now anyway, we just profiled a company called CarMax the other night that reports Thursday and when new cars get tariffed, used cars become a lot cheaper by comparison, which should spur sales for CarMax. The stock’s no longer cheap, selling at 23 times this year’s earnings, but I think this might be a real investment given the fact that the president seems unwilling to back down. Then again, if we get a recession, it doesn’t really matter. You don’t want to own anything connected to autos in a recession.”
3. TransDigm Group Incorporated (NYSE:TDG)
Number of Hedge Fund Holders: 69
A caller asked Cramer’s thoughts on TransDigm Group Incorporated (NYSE:TDG). Here’s what Mad Money’s host had to say in response:
“I like aerospace very much. Now my favorite though is, there’s no need to descend to TransDigm when you have GE, which reports tomorrow, and I think is a fantastic company that I’ve been thinking about for the Charitable Trust. I’ve been reluctant to add any names, though, as we’ve been taking off stock. We’re not oversold enough yet.”
TransDigm (NYSE:TDG) designs and manufactures highly engineered components used in aircraft, serving both commercial and military markets. The company also provides specialized parts and systems for non-aviation industries like heavy equipment and space systems. On April 17, Truist reduced its price target on TDG to $1,490 from $1,534 but maintained a Buy rating. The update was part of a broader Q1 preview for the Aerospace & Defense sector.
The firm pointed out that the start of earnings season comes with a lot of uncertainty, and management teams may not offer clear guidance for 2025. Concerns around tariffs and the possibility of a recession could weigh on the cyclical industry. Truist mentioned that investors may want to shift focus toward the more stable defense sector, especially with recent signs of increased defense spending.
2. McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders: 78
Answering a caller’s inquiry about McKesson Corporation (NYSE:MCK), Cramer commented:
“I’m telling you, I am surprised McKesson hasn’t split the stock, but let’s deal with the fundamentals here. This is one of the strongest stocks in the market because these middlemen are making so much money, and I see no end to that. That’s why I like McKesson so much. Even as some people think, including our president, that they are not playing a valuable role, it doesn’t matter. McKesson is a valuable company, and I think its stock should be bought here, not sold.”
McKesson (NYSE:MCK) delivers healthcare services through drug distribution, medical supply delivery, and logistics management. It offers technology solutions, consulting, and support to biopharma companies, healthcare providers, and patients. Conventum – Alluvium Global Fund stated the following regarding the company in its Q4 2024 investor letter:
“McKesson Corporation (NYSE:MCK), the drug distributor (up 15.4%), released a decent set of results which included management again upgrading its guidance. From the immediate share price reaction together with its subsequent performance we surmise the market’s concerns we spoke of in last quarter’s report have now abated. The new guidance is a little above our view of its maintainable earnings, but we saw no need to change our analysis. With our buying last quarter, it had become the Fund’s largest position until we sold a little in December to now hold 6.3%.”
1. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
A caller inquired about Chevron Corporation (NYSE:CVX), and Cramer replied:
“Chevron, It’s funny again… It’s very funny because Chevron was going to be one that I included too as an accidental high yielder, but it’s oil-related, and we can’t tell where oil’s going to go. So I decided I couldn’t include that, even though I know Mike Wirth has done a remarkable job. We got a 5% yield, but I just feel like the principle could go down so much that it doesn’t matter. So I’ve gotta tell you, I like Chevron very much, but in the end, what is it? An oil company and the president seems to want oil much lower. Can’t make money in any market when you have a president who says he wants that one lower. Also seems to want some of the other stocks I like lower too.”
Chevron Corporation (NYSE:CVX) is involved in oil and gas through exploration, production, refining, and transportation. The company also produces petrochemicals and renewable fuels.
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