On Thursday, Jim Cramer, the host of Mad Money, discussed the recent turbulence in the stock market, pointing to the lack of clarity from the White House as a major contributor to the decline.
“President Trump has put himself in the awkward position of predicting pain and he’s delivering it to owners of stocks in a way that doesn’t have to happen.”
READ ALSO: Jim Cramer and Analysts Like These 10 Stocks and Jim Cramer Looked At These 11 Stocks Recently
He emphasized that the current environment is defined by extreme uncertainty, which is impacting the market and business sentiment. Cramer’s first point centered around the lack of clarity, which he described as one of the biggest challenges facing the market. He warned that business activity would slow down, and hiring in the U.S. could be severely impacted unless clearer signals from the White House are provided.
Cramer predicted that the non-farm payroll report coming tomorrow would likely show weak numbers, marking the beginning of a series of disappointing economic reports. He pointed out that while most businesses oppose the tariffs, what truly worries them is the unpredictability of future actions from the administration.
Moving to his second point, Cramer highlighted the president’s continued threats to impose more tariffs. He stated that the uncertain timeline of these tariff hikes is creating significant anxiety in the business community. Cramer’s third point addressed the widespread caution in corporate earnings forecasts.
He explained that nearly every company reporting earnings during this period has been adopting a cautious outlook, even if their financial performance is strong. This cautious tone, according to Cramer, is largely driven by the fear and uncertainty surrounding the administration’s economic policies. Moving on to the fourth point, Cramer said:
“If we want the consumer who has enough money to keep spending, we need to maintain some degree of wealth effect. It’s not a subsidy, it’s capitalism. I think the consumer’s baffled by the president’s tariff policy.”
In his fifth point, Cramer warned that, in the current climate, saving might not be enough to sustain the economy. He emphasized that no one wants to be caught off guard, and the current environment is ideal for short sellers. Cramer pointed out that in such a volatile and uncertain market, companies are reluctant to go public, as they fear that the negative sentiment could hurt their valuation.
Finally, Cramer addressed the upcoming employment report. He stated that if the report shows a rise in layoffs, investors should not panic about federal job cuts, as this is part of the president’s strategy. However, Cramer stressed that such reports sap confidence and any business hiring in this environment risks “feels like a dope”. He concluded that if stock prices continue to fall, businesses will be reluctant to hire due to a lack of confidence in the market’s stability.
“Here’s the bottom line: I’m saying that the shareholders of great companies shouldn’t have to play the fool and people need to know it’s still worth investing… Wall Street hates uncertainty and until we get some clarity from this administration, it’s going to be tough to advise people to buy anything, even the best companies, because pessimism is the only path investors seem to know.”
Our Methodology
For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 6. 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).
Jim Cramer Commented On These 6 Stocks Recently
6. Diginex Limited (NASDAQ:DGNX)
Number of Hedge Fund Holders: N/A
Mentioning Diginex Limited (NASDAQ:DGNX), a caller asked how long to hold stocks after the companies’ IPOs. In response, Cramer said:
“Okay, I need to see profits, I need to see profits. I’m not seeing profits, therefore I’m not going there.”
Diginex (NASDAQ:DGNX) offers a range of environmental, social, and governance (ESG) solutions, including platforms for reporting, supply chain risk assessments, worker condition data collection, carbon footprint calculation, and advisory services, helping companies manage and report on ESG factors.
Diginex (NASDAQ:DGNX) announced the completion of its initial public offering on January 23, with its common stock starting to trade on January 22. Furthermore, for the year ended March 31, 2024, the company reported a revenue of $1.3 million, a decrease from the previous year’s revenue of $1.6 million.
Additionally, the total comprehensive loss for the year was $4.87 million, an improvement from the previous year’s total comprehensive loss of $9.26 million. Lastly, for the loss per share attributable to the ordinary equity holders of the company, the basic loss per share was $0.51 for 2024, compared to $0.97 for 2023.
5. ZJK Industrial Co., Ltd. (NASDAQ:ZJK)
Number of Hedge Fund Holders: 1
A caller inquired about ZJK Industrial Co., Ltd. (NASDAQ:ZJK) during the lightning round of Mad Money and Cramer said:
“I know it. I know it because of the NVIDIA connection. I have to tell you, they have flat revenues for the last three years… Sounds a little like SoundHound. I’m gonna take a pass on that one.”
ZJK Industrial (NASDAQ:ZJK) manufactures and sells a variety of precision fasteners, structural parts, and metal components, including screws, bolts, nuts, and CNC-machined parts, with applications in industries such as new energy vehicles, electronics, and communication technology. ZJK priced its initial public offering on September 30, 2024, and began trading on the same day.
On February 25, the company provided an update on its growth trajectory throughout 2024, highlighting strong sales performance and expanding partnerships with industry leaders. According to unaudited financial data for fiscal year 2024, ZJK Industrial’s (NASDAQ:ZJK) preliminary figures suggest that its revenue growth is on track to mirror the more than 30% increase seen in fiscal year 2023. It is worth noting that sales from projects with NVIDIA more than doubled in 2024.
4. Tetra Tech, Inc. (NASDAQ:TTEK)
Number of Hedge Fund Holders: 37
A caller highlighted Tetra Tech, Inc. (NASDAQ:TTEK) stock’s decline and asked if they should take the loss and dump it or hold it forever. Cramer replied:
“Very good company, very good. Company’s come down, but it’s a really good company. Does consulting management… I remember it does pollution control, I think you’ve got a winner. Please do not sell that.”
Tetra Tech (NASDAQ:TTEK) is a global consulting and engineering firm that specializes in data collection, analysis, and information management. The company also provides project management and operational maintenance services. In October 2024, Cramer praised the company and remarked:
“Tetra Tech is remarkable and even at 38 times earnings, I gotta tell you, I see people still buying. It doesn’t seem to slow them down. I would take a breather, but it’s been a great one.”
Since the beginning of October 2024, Tetra Tech (NASDAQ:TTEK) stock declined around 35%.
3. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders: 42
Macy’s, Inc. (NYSE:M) was mentioned during the episode, and here’s what Cramer said:
“Nobody wants to come out and say, hey, it’s too crazy out there, the president’s seen the problem. Trump has said there will be pain. So now you think, why should you stick your neck out if you run, say a major retailer like Macy’s and predict you could have a great spring?… Negativity’s pervasive throughout this entire economy and it comes from the top. Again, this is unnecessary. Trump can accomplish his agenda without doing this much damage.”
Macy’s (NYSE:M) is a multichannel retailer that provides a wide range of products, such as clothing, accessories, cosmetics, home goods, and more, under its Macy’s, Bloomingdale’s, and bluemercury brands. On March 6, the company reported its financial results for the fiscal year 2024. The company reported a 3.5% decline in net sales, totaling $22.3 billion.
In terms of comparable sales, there was a 2.0% decrease on an owned basis. Macy’s (NYSE:M) gross margin rate remained unchanged at 38.4%. Merchandise inventories increased by 2.5% year-over-year, with roughly half of this rise attributed to the conversion to cost accounting. The remaining portion of the increase is due to the timing of spring receipts.
2. United States Steel Corporation (NYSE:X)
Number of Hedge Fund Holders: 63
A caller mentioned what Cramer thought of investing in United States Steel Corporation (NYSE:X) with everything that is going on in the market and Cramer said:
“Now, if you’re gonna own a steel company, you have to own the best. We’re best of best people in this. We are best-of-breed people in this, and that is Nucor. At $131, I think it’s a great buy. That’s the one I want you to buy, and I will always want you to buy.”
United States Steel (NYSE:X) is a leading manufacturer of flat-rolled and tubular steel products, operating mainly in North America and Europe. Even when Cramer was asked about the company in November 2024, he expressed a similar opinion and stated, “Cleveland-Cliffs and US Steel should do well too. They’re not as good as Nucor, but they’re good.”
For context, United States Steel (NYSE:X) stock went down more than 23% over the past 12 months while Nucor stock declined over 28%.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 115
Noting Eli Lilly and Company (NYSE:LLY) stock gains, a caller asked if they should cash in or hold on. Here’s what Cramer said in reply:
“You don’t sell Lilly. Lilly’s got the solution that may be good for everything from Alzheimer’s to heart disease, to kidney failure to liver problems, and right now weight and diabetes and that… GLP -1… David Ricks is a visionary. We stay long that stock.”
Eli Lilly and Company (NYSE:LLY) specializes in the research, development, and commercialization of a broad spectrum of pharmaceutical products, including those for diabetes, cancer, autoimmune diseases, pain relief, and migraines. Polen Capital stated the following regarding the company in its Q4 2024 investor letter:
“We also added to our positions in Oracle, Zoetis, and Eli Lilly and Company (NYSE:LLY). Eli Lilly has come under pressure from a series of headlines that we believe are non-issues, and we took advantage of the price decline to add to our position. In its most recent earnings report, the company’s GLP-1 revenue growth was slightly below expectations even though the absolute level of growth was excellent. Secondly, the appointment of RFK Jr. as head of the U.S. Department of Health and Human Services in the upcoming Trump administration has also weighed on sentiment given Kennedy’s vocal criticism of GLP-1s and drug pricing in general. We do not see any potential policy change that would likely reduce the overall demand for GLP-1 drugs nor a significant reduction in the revenue growth potential of Eli Lilly.”
While we acknowledge the potential of Eli Lilly and Company (NYSE: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 time frame. 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 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
