Jim Cramer, the host of Mad Money, recently shared important lessons from his four decades of experience in the world of investing in an episode on March 3. In a discussion about typical market pullbacks, he explained the various reasons why stock prices can decline.
“How about the garden variety pullbacks we experience all the time? What causes these declines? Well, there are usually a bunch of different varieties. First, you’ve got the sell-offs caused by the Federal Reserve.”
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Cramer said that the Fed is often the focal point of financial discussions, and for good reason. When the economy slows down, the Fed steps in with the goal of stimulating growth. However, Cramer noted that when the Fed tightens its policy, it is common for market predictions to become more dramatic, with some people warning of an impending market crash or severe downturn.
Yet, Cramer cautioned that investors should not panic when hearing such predictions. Fed rate hikes, while impactful, do not always lead to a market crash. In fact, he pointed out that there have been times when these hikes had minimal effect on stock prices. That being said, Cramer acknowledged that there are legitimate reasons for stock market declines when the Fed raises rates. One important factor is the competition for investor capital. He said that stocks are just one asset among many. He added:
“For instance, there’s gold. There’s real estate. Of course, the bonds. I like gold as a safe haven. I believe that every person should hold some gold… Real estate, actual real estate can be a good hedge, but most people don’t have the money to invest in that kind of real estate that big institutions can buy… Finally, we have bonds as an investment alternative and bonds are the source of the problem when the Fed tightens.”
Our Methodology
For this article, we compiled a list of 85 stocks that Cramer was bullish on that he shared during episodes of Mad Money aired in January 2025. We narrowed the list to 10 stocks that were the most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside, as of March 4. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 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).
Jim Cramer and Analysts Like These 10 Stocks
10. Twilio Inc. (NYSE:TWLO)
Average Price Target Upside: 39.40%
Number of Hedge Fund Holders: 74
Cramer commented on Twilio Inc. (NYSE:TWLO) on January 24 when a caller asked if they should hold the stock long-term.
“Yes, I want you to. When I went over the quarter and then I searched through the website, I cannot believe how this company has really become one of the great assistants to small businesses trying to build their business. It’s a great customer relation management tool. I agree with you. I would own it and if it came down, I would buy more. That’s a strong endorsement. But that quarter was really incredibly good.”
Twilio (NYSE:TWLO) provides a customer engagement platform that delivers software and APIs for various communication services, such as messaging, voice, email, and marketing, as well as tools for creating personalized interactions and managing customer data.
9. PayPal Holdings, Inc. (NASDAQ:PYPL)
Average Price Target Upside: 40.04%
Number of Hedge Fund Holders: 94
When a caller mentioned that there is a certain lack of respect toward PayPal Holdings, Inc. (NASDAQ:PYPL), Cramer replied:
“Look, I tell you, this person does have respect for PayPal. They have a meeting in February that is gonna blow your socks off. I have to tell you that I think that this guy, Alex Chriss is the real deal. It’s at $89. Buy some now and if it does happen to come down before February, buy more then. I have total respect for PayPal and total respect for Alex. It’s a good stock and a good company.”
PayPal (NASDAQ:PYPL) is a technology platform that facilitates digital payments for both consumers and businesses. The stock has a consensus Buy rating with an average price target of $94.50, as of March 4. Moreover, on February 28, DZ Bank raised its rating on the stock from Hold to Buy, setting a price target of $92.
8. KKR & Co. Inc. (NYSE:KKR)
Average Price Target Upside: 41.58%
Number of Hedge Fund Holders: 83
In January, Cramer said that he would be a buyer of KKR & Co. Inc. (NYSE:KKR) as he commented:
“I am gonna say that I like the stock very much and I think those guys are so smart. I would be a buyer… At one point it was down really big today. That made no sense to me whatsoever.”
KKR (NYSE:KKR) is a private equity and real estate investment firm that focuses on a diverse set of investments, such as acquisitions, leveraged buyouts, growth equity, and distressed assets. Montaka Global Investments stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q4 2024 investor letter:
“With a collective US$1.7 trillion in assets under management, and with access to the best talent, capital, and deals all around the world, Blackstone and KKR & Co. Inc. (NYSE:KKR), two of Montaka’s largest holdings, are highly advantaged alternative asset managers. They are uniquely positioned to benefit from three structural tailwinds that have commenced:
The structural growth in Asian wealth combined with increasing allocation to alts in the region;
The structural growth in US$85 trillion global private wealth allocations to alts; and
The increasing strategic partnerships between insurers and alts managers, which unlocks access to manage the US$30+ trillion assets of the insurance industry…” (Click here to read the full text)
7. Jefferies Financial Group Inc. (NYSE:JEF)
Average Price Target Upside: 44.84%
Number of Hedge Fund Holders: 41
Cramer and analysts like Jefferies (NYSE:JEF) as Mad Money’s host expressed his bullish stance on the company in January:
“Then after the close we hear from an outfit that you may not know, but I follow pretty close. It’s called Jefferies Financial Group. This stock’s been a total winner. Get this, it ran from $39 and change this time last year to $81 today. That is stellar.
I think the change at the FTC where the chief who’s ideologically opposed to big business is about to be replaced by someone with a more traditional approach will mean many, many, many, many, many more takeovers and that means very big earnings per share for Jefferies, which consults on these deals, I wanna hear about their outlook for 2025.”
Jefferies Financial Group Inc. (NYSE:JEF) is a capital markets and investment banking firm offering a wide range of services while managing several alternative asset management platforms, each focusing on different investment strategies and asset classes.
6. Comfort Systems USA, Inc. (NYSE:FIX)
Average Price Target Upside: 46.68%
Number of Hedge Fund Holders: 50
On January 22, a caller asked about Comfort Systems USA, Inc. (NYSE:FIX), and here’s what Cramer said in response:
“HVAC, whether it be Trane, whether it be Carrier, if you got HVAC, it’s the thing. I mean I know it’s weird because it’s very much like plastics in the movie The Graduate. But like if someone were to tell me right now, a young kid walked by and say, Jim, I’m thinking about going in the stock market. You know what I’d tell him? HVAC.”
Comfort Systems USA (NYSE:FIX) provides a variety of mechanical and electrical services, such as the installation, maintenance, repair, and renovation of HVAC, plumbing, electrical, and other building systems. According to TipRanks, on February 24, Sidoti raised its rating on FIX stock from Neutral to Buy, with a new price target of $552, up from $533.
The analyst pointed out that the recent decline in share price, influenced by uncertainty around AI-related data center construction spending, has presented “a unique entry point to become constructive on a best-in-class company with stellar cash flow and a widening economic moat of skilled labor.” The analyst also noted that shares have fallen 34% since reaching a 52-week high on January 22.
5. Delta Air Lines, Inc. (NYSE:DAL)
Average Price Target Upside: 50.85%
Number of Hedge Fund Holders: 84
In January, before Delta Air Lines, Inc. (NYSE:DAL) reported its earnings, Cramer commented:
“Delta reports too. I think it’ll be stellar. The airlines are a changed breed. They’re no longer building up capacity to meet… demand. Instead, they’re doing their best to keep capacity tight and prevent a ruinous price war. It’s still the right time to own Delta because the air traffic remains robust and profits are flowing like never before.”
Delta Air Lines (NYSE:DAL), a provider of air transportation, offers passenger and cargo services through an extensive network of both domestic and international routes. Cramer is not the only one who is bullish on the stock as it has received a consensus Buy rating from 25 analysts with an average price target of $82.50, as of March 4. Additionally, over the past year, the stock has gained more than 30%.
4. NVIDIA Corporation (NASDAQ:NVDA)
Average Price Target Upside: 50.88%
Number of Hedge Fund Holders: 223
Cramer has been encouraging people to invest in NVIDIA Corporation (NASDAQ:NVDA) and during an episode aired in January, he explained:
“The stock was up 171% last year and also by the way, had a very strong close today of 4.3%. Of course, for a decent chunk of the year, there was a lot of worry about a late product and a fractured client base that wants to design its own chip because NVIDIA’s cost too much even if the return on investment’s really large here.
Believe me, if I thought anyone could touch NVIDIA’s products and platforms, I’d be happy to say, sell it and book the gain but I can’t justify that because this company’s peerless. Frankly, the biggest thing working against the stock is, well, the terrible way it trades, giving up huge clumps after making soft climbs. For any other company, I’d say abandon the stock, but NVIDIA’s products are too good, too indispensable and its CEO runs harder than anyone else I’ve ever met.”
NVIDIA (NASDAQ:NVDA) is known widely for its advancements in graphics, computing, and networking technologies, especially for its GPUs and the CUDA software platform.
3. United Airlines Holdings, Inc. (NASDAQ:UAL)
Average Price Target Upside: 54.27%
Number of Hedge Fund Holders: 86
Cramer was bullish on United Airlines Holdings, Inc. (NASDAQ:UAL) in January as he stated:
“… Simply astounding, it’s United Airlines. For the first time in my life, I’ve seen a trade morph into an investment and that’s what United did. The stock’s up 135%… once the airline started removing capacity. United cut back 3% of its promised midyear capacity, I couldn’t believe it. Of course, I can’t explain the whole run.
Problem with Boeing, the production there kept some airlines from being, they were capacity constraints. They couldn’t get the planes they needed. Plus, the long on money short on time thesis that burst on the scene post-Covid never really quit. Oh, and get this, United still sells for less than eight times this year’s earnings. It can actually power higher. It might be a good buy. I would wait for a 5 to 8% pullback.”
United Airlines (NASDAQ:UAL) is a well-known provider of air travel services, delivering both passenger and cargo transportation.
2. AeroVironment, Inc. (NASDAQ:AVAV)
Average Price Target Upside: 56.80%
Number of Hedge Fund Holders: 24
AeroVironment, Inc. (NASDAQ:AVAV) was mentioned during an episode aired on January 31 and Cramer commented:
“Oh boy, I really like it. It really is the solution, I think, in a lot of ways to a Pentagon budget that may be too bloated but needs to be more effective. I like AVAV and I gotta tell you, Wahid Nawabi, he’s been on the show and every time he’s been a star.”
AeroVironment (NASDAQ:AVAV) creates, engineers, and provides support for various robotic systems and services, such as uncrewed aircraft, ground-based robots, and loitering munitions, with a primary focus on government and allied government clients. The company announced its financial results for the third quarter of fiscal 2025 on March 4.
AeroVironment (NASDAQ:AVAV) reported a revenue of $167.6 million for the third quarter of fiscal 2025, a 10% decrease from $186.6 million in the same period of fiscal 2024. The decline was mainly due to lower product sales and service revenue. The company’s gross margin also fell by 6%, reaching $63.2 million, driven by a decrease in service gross margin.
1. FTAI Aviation Ltd. (NASDAQ:FTAI)
Average Price Target Upside: 61.08%
Number of Hedge Fund Holders: 54
In January, when Cramer was asked about FTAI Aviation Ltd. (NASDAQ:FTAI), he said:
“Aircraft leasing’s a terrific business. I would hold onto that. It’s the opposite of, say the tanker business, which everybody wants to be in.”
FTAI Aviation Ltd. (NASDAQ:FTAI) specializes in the ownership and acquisition of aviation and offshore energy assets to support worldwide transportation services. Cramer maintained his bullishness on the company more recently in February as he said:
“No, no. As a matter of fact, I’ve gotta tell you anything, anything aero, I’m gonna, I’m gonna be in favor of at this point and you’ve got a good one. I think you just hold onto it, even though, I mean, it just got clocked today. I mean that, but it was just part of the whole momentum trade. I think I like it.”
While we acknowledge the potential of FTAI Aviation Ltd. (NASDAQ:FTAI) 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 FTAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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