We recently published a list of Jim Cramer’s Thoughts on These 7 Stocks. In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against other stocks that Jim Cramer has shared his thoughts on.
Jim Cramer, the host of Mad Money, recently revisited one of his core investment principles: “Nobody ever made a dime panicking.” He emphasized that, no matter how many times he has shared this advice, it always feels as crucial as the first time. Observing the current turmoil in tech stocks, Cramer pointed out that panic selling leads to missing out on the recovery that often follows. Specifically, he noted how those who sold their tech holdings this week missed the subsequent surge in tech stocks that delivered strong returns.
READ ALSO Jim Cramer Looked At These 7 Stocks Recently and 7 Stocks on Jim Cramer’s Radar
Cramer explained that the panic was so widespread that it even affected the stocks of companies that were benefiting from the tech boom. He observed that even when good news was on the horizon, fear caused investors to make rushed decisions. He then discussed how a Chinese company recently announced a new innovation suggesting that fewer NVDA chips are needed for artificial intelligence applications.
“The companies that are doing well might even do better if DeepSeek’s formula for success spreads, bunch of knuckleheads.”
While Cramer acknowledged that this new technology, such as DeepSeek’s offering, posed a potential threat to NVDA, he quickly said, “The way I see it, that’s nonsense.” However, Cramer was particularly critical of how the market reacted to this news. He pointed out that the panic was so intense that even companies benefiting from the tech sector’s growth were dragged down.
“Here’s the bottom line: The shoot first ask-questions-later approach works when there’s fraud or chicanery and we know we must sell but when things are complicated or murky, it might not make sense to help create the biggest single-day dollar loss in history, chums. There’s a better way. Just don’t do anything. If you really wanna sell, you can do it into the rebound the next day. In my experience, after one more dip in the morning, you almost always get a better price.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on January 28 and 30. 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).
An array of pharmaceutical pills with the company’s logo on the bottle.
Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 106
Cramer mentioned Eli Lilly and Company (NYSE:LLY) during an episode of Mad Money and here’s what he had to say:
“Okay, so I mean we just found out today that Ozempic has something for kidney failure and that means that maybe Lily has it. Now Lilly has, I will say this, the single worst chart I have seen in a long time and there are a lot of people on Wall Street, are chartists. However, I actually like the fundamentals. Now, David Ricks did on our show, preannounce a better-than-expected quarter and nobody listened. But I do believe in Lilly, we own it for the trust, and I’ve gotta tell you, I think in another dip, you get another opportunity to buy and I’m sticking by that.”
Eli Lilly (NYSE:LLY) focuses on discovering, developing, and marketing a wide range of human pharmaceuticals, including treatments for diabetes, oncology, autoimmune conditions, pain management, and migraines. Cramer has been a fan of LLY for a while now and recently reiterated holding on to the stock.
“Okay, the problem with Eli Lilly is people are saying, you know what, after a year, people are no longer taking the drugs, they’re going off it, a huge percentage’s going off it. I think that you own this thing because it’s about cardiac… It’s about high blood pressure. It’s about dementia, may even be about cancer, not just about weight and diabetes. So I think you hold on to Eli Lilly. We continue to hold it for the trust. I do think there’ll be good numbers, but that last quarter wasn’t good. I totally understand the trepidation about the stock, but I still like it.”
Overall, LLY ranks 1st on our list of stocks that Jim Cramer has shared his thoughts on. While we acknowledge the potential of LLY 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 LLY 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 is originally published at Insider Monkey.
