We recently published a list of Jim Cramer Discusses These 10 Stocks & President Trump’s Tariffs. In this article, we are going to take a look at where RH (NYSE:RH) stands against other stocks that Jim Cramer discusses with insights on President Trump’s tariffs.
In a fresh appearance on CNBC’s Squawk on the Street, Jim Cramer started the show by sharing his thoughts on President Trump’s tariffs against Canada and Mexico. Cramer was surprised that markets were reacting negatively to the news as Trump had promised similar actions during his election campaign. “Well, first I mean, he said this over and over again. And if you didn’t take him seriously, I don’t know what you were thinking,” Cramer shared. “I mean this is what you elected, okay. You elected this, you elected the idea that we have too many people coming from Mexico. You elected the fentanyl. You elected that we have a strong stand against China,” he added.
However, Cramer wondered “Did you elect the Canada? That’s a little bit more harder to understand. But I just think well what were you worried about other than the fact he was going to do this.” Tying the President’s election promises into market performance, he outlined “So the market was way too high, but even last night, as soon as this came out, NASDAQ was down 2.6%. Now it’s come back. I think it has to revisit that level, David.”
The CNBC host also cautioned against reading too much into negativity. He shared that “I was watching someone on Frank’s show this morning, 5 o clock, and the person was basically, she was like [an] end of the world-er.” However, Cramer’s “Not an end of the world-er. I think it’s going to be a rough day, the market will. . . one point off a percent and a half of off the high, take it in.”
As to the impact on the US from the tariffs on Canada when it comes to oil, Cramer believes that it can be limited. According to him “It’s oil but it’s only ten percent. They have one terminal that exports in Vancouver. So the oil is going to get ten percent, arguably maybe even we drill more.”
Cramer also believes that President “Trump thinks that Canada is taking advantage of us. Wants that to stop.” As for what he believes, he shared “We have a bad trade deficit with them. We have a trade deficit with Mexico. I think that you can play the obvious ones. The autos are really kind of trying to figure out how much their cars cost.” The host also wondered about the end goal of the President’s tariffs. “I don’t know whether he [Trump] wants Volkswagen to say listen we make fifty thousand cars in Puebla, we’re going to build a plant here,” Cramer said. He added “I mean I think the only way to alleviate it is to say you’re going to build a plant. That takes a long time.”
One announcement that left him confused was the one about 10% tariffs on China, which were quite low compared to the 25% announced on Canada and Mexico. According to Cramer:
“I think that Canada and Mexico can come down. But China, whose really gift. China can go up. I felt China was, listen guys, ten percent’s real low. Come to the table, but we will raise it. So I think the difference is, that Mexico, Sheinbaum they have to talk. Canada they come down. But this was a gift to China. Why don’t people realize it was a gift to China.”
Delving deeper, he outlined:
“I think China can say, holy cow, we’ve gotta come to the table. Or we could get what happened to Canada. . . .the hardliners lost. I think the hardliners lost here. The hardliners wanted a much higher tariff on China. They wanted things shut down.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on February 3rd.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 customer happily browsing aisles of high-end furniture in a large showroom.
RH (NYSE:RH)
Number of Hedge Fund Holders In Q3 2024: 39
RH (NYSE:RH) is a home furnishing retailer that’s another commonly discussed Jim Cramer stock. The nature of its products means that the firm is dependent on interest rates for its performance. RH (NYSE:RH)’s shares are up by 56.9% over the past year as the firm managed to sustain its product demand and benefited from growing belief about the Fed reducing interest rates. Cramer has been optimistic about RH (NYSE:RH) in the context of a broader improvement in the retail industry. Here are his latest comments about the firm:
“Now see RH is an example of how they worked really hard to get out of China. They’ve done a fantastic job about it. If you sell RH I think you’re selling a company that has been moving so aggressively out of China that you’d be making a big mistake. But interestingly enough, they [Goldman] had a sell on RH, the whole way from two hundred to here. And now they’re back . . .putting the hate on again? Why doesn’t that guy just go to his beach house, see how much is RH, and realize that . . .
“That guy’s got a Hampton’s house and it’s filled with RH. That’s what you do. You fill it with RH. You don’t fill it with Wayfair, no partner’s gonna fill his place with Wayfair. They’d really get hurt. Gary Friedman has said over and over again I’m moving out of China. I’m moving out of China. So this guy, who’s hated it all the way, now they’re back putting the hate on. You know I don’t like it.”
Overall, RH ranks 8th on our list of stocks that Jim Cramer discusses with insights on President Trump’s tariffs. While we acknowledge the potential of RH as an investment, our conviction lies in the belief that some 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 RH 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.
