We recently published a list of 8 Stocks in Focus Under Jim Cramer’s Game Plan. In this article, we are going to take a look at where FedEx Corporation (NYSE:FDX) stands against other stocks in focus under Jim Cramer’s game plan.
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.”
READ ALSO: Jim Cramer’s Latest Lightning Round: 7 Stocks in Focus and Jim Cramer Talked About These 7 Stocks Recently
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).
A driver unloading packages from a van for a time-critical delivery.
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.”
Overall, FDX ranks 4th on our list of stocks in focus under Jim Cramer’s game plan. While we acknowledge the potential of FDX 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 FDX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
