We recently published an article titled Was Jim Cramer Right About These 12 Stocks? In this article, we are going to take a look at where The Procter & Gamble Company (NYSE:PG) stands against the other stocks.
Back then, Cramer was focused on the impact of future rate cuts and how different stocks would react. He argued that the market had become simple:
“Stocks that benefit from rate cuts get bought. Stocks that don’t benefit get sold.”
At that time, Cramer pointed to McDonald’s as an example of a rate-cut winner, despite the company having weak earnings at the time, saying:
“This market doesn’t care that it’s doing badly. It just treats the Golden Arches as a rate-cut winner.”
Meanwhile, he appeared rather bearish around big tech at the time. He warned against buying the “Magnificent 7”, saying that while they had thrived despite rate hikes, they wouldn’t necessarily benefit as rates came down. Here’s how he put it back then:
“For years now, the market has been rallying on companies that don’t need to borrow money, that don’t need rate cuts. But the flip side is that they won’t really benefit as rates come down.”
Tech stocks were under pressure at that time, and Cramer saw no short-term relief:
“For tech, the watchword is three words my staff loves to say: get out now.”
Cramer expressed some interesting opinions in that particular show. Let’s see how each prediction unfolded 7 months later.
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on July 30, 2024. We then calculated their performance from July 30th, 2024, market close to February 14th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q3 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Note: This article covers Jim Cramer’s commentary from July 30, 2024, and does not account for any changes in his opinions regarding the stocks mentioned. Therefore, the commentary should not be mistaken for his latest opinions on any of the stocks that are mentioned.
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).
A happy couple viewing the products of this household and personal product company in a mass merchandiser store.
The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Investors: 76
Cramer saw The Procter & Gamble Company (NYSE:PG) as a strong company suffering from overexposure to China.
“If Procter hadn’t gone so all in on China, I think it would have made the quarter and its stock would have avoided today’s nearly 5% sell-off.”
At the time, Cramer warned that stocks heavily reliant on China were getting crushed.
“Next, if you own stock in a company that’s expanded heavily into China, it’s being killed right now […] That’s become a serious problem for the market, and I don’t see it getting better anytime soon.”
While he still believed in The Procter & Gamble Company (NYSE:PG)’s long-term strength, he wasn’t in a rush to buy back then.
“This is a fantastic company, and I think the stock will come back. We sold some Procter at $166 for the Charitable Trust, and we’d like to buy it back, but it could be restricted for some time.”
Although the stock rose shortly after the episode aired, it has now returned back to almost the same starting point, with a flat 0.7% return since then.
Cramer has also addressed The Procter & Gamble Company (NYSE:PG) in a more recent show, saying:
“For example, there are a bunch of excellent well-run consumer packaged goods. They call them CPG companies. Maybe you want to buy Procter & Gamble, a long-time favourite. There are lots of logical reasons to like them, but like I told you earlier, logic is rarely what drives the stock market on a day-to-day basis. […] Procter, like all consumer-packaged goods plays, is a recession stock because its earnings tend to hold up during a slowing economy, its stock roars when we get lousy economic data.”
Overall PG ranks 6th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of PG 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 PG 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.