Jim Cramer, the host of Mad Money, recently shared a list of ten stocks he believes will perform well in December. He pointed out that stocks that do well in November tend to continue their strong performance into the final month of the year.
Cramer explained that the beginning of a new month brings attention to the previous month’s performance, and with that, a significant influx of money flows into the market. This money, he said, tends to validate the moves of the largest stocks, creating a cycle where money is immediately put to work, often benefiting the Magnificent Seven.
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Cramer also highlighted a common pattern at the end of the year, noting that people tend to make contributions to their retirement accounts when the year is going well. He emphasized that this trend is already visible in the market. When asked why a strong November often translates into a positive December, Cramer pointed to the mechanics of money management. He said that this pattern isn’t new for him, elaborating:
“Before I started my Charitable Trust more than two decades ago, I ran a hedge fund. I was always looking for an edge, and one of the most reliable patterns I found is that, when December rolls around, you mimic the biggest winners of November.”
Cramer recalled how, during his hedge fund days, he would focus on the top-performing stocks of November, buying heavily into those picks and letting them continue to perform through the end of the year. He remarked that this approach has proven to be successful year after year.
In addition to the stocks he recommended, Cramer also noted a category of stocks tied to travel. He mentioned that travel-related industries, including airlines and cruise ships, were particularly strong in November and could continue to show promise in December.
“Now, there are other[s] underneath this list, ones that involve traveling. To me, that means you could buy anything connected to travel, including the airlines… Cruise ships work… But the bottom line: If you want to know what I think could do best in the month of December, or simply what worked best in the month of November, so now you got your marching orders and I say (buy, buy, buy).”
Jim Cramer Discussed 10 Stocks That Can Do Well in December
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during a recent episode of Mad Money on December 2. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer Discussed 10 Stocks That Can Do Well in December
10. Texas Pacific Land Corporation (NYSE:TPL)
Number of Hedge Fund Holders: 20
Cramer noted that during Trump’s previous term, oil stocks underperformed. He also mentioned how he waited for Texas Pacific Land Corporation (NYSE:TPL) stock to pull back, which did not happen.
“Not long ago we covered Texas Pacific Land Corp, a new addition to the S&P 500, that owns more than 800,000 acres of land in the oil-rich Permian Basin. Now this one’s a holdover from a 19th century railroad bankruptcy. All it does is take in money. Even though they don’t own the mineral rights, they own the land, which means you need to pay them if you want to drill… Nothing like an oil stock after Trump gets elected though but be careful. The oils underperformed during the last Trump administration because there was too much drilling. It could happen again. Although when I profiled Texas Pacific not that long ago, I told you it was worth waiting for a pullback. The pullback never came. It just kept going straight up.”
Texas Pacific (NYSE:TPL) focuses on land and resource management, as well as water services, alongside leasing land and selling materials. In the third-quarter earnings report, the company reported a consolidated net income of $106.6 million and an adjusted EBITDA of $144.1 million. It achieved record royalty production of 28.3 thousand Boe per day and made two notable acquisitions: mineral interests spanning 4,106 net royalty acres in the Delaware Basin, valued at $120.3 million, and approximately 4,120 surface acres in the Midland Basin for $45.0 million.
Tyler Glover, Texas Pacific’s (NYSE:TPL) President and Chief Executive Officer, emphasized that the surface holdings are highly valuable assets, noting that the company has secured numerous contracts in recent years. He highlighted that the company is in the process of developing over 700 megawatts of solar energy, as well as seven utility-scale battery projects.
In addition, the company operates four Bitcoin mines, totaling 78 megawatts of active power, with another 50 megawatts in development. Glover expressed confidence in the company’s position, stating that it is well-positioned to provide land and water solutions as new opportunities outside of traditional oil and gas emerge in West Texas.
9. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 38
Cramer noted that Tapestry, Inc. (NYSE:TPR) has been prospering since the FTC blocked its deal to acquire Capri Holdings.
“Tapestry’s a rebounding apparel company and its stock is on fire thanks to Lina Khan, FTC. Yes, something you almost never hear, something positive. See, she blocked or the FTC blocked Tapestry from acquiring Capri Holdings, which owns Michael Kors. Jimmy Choo, Versace. The market hated that deal. So when Wall Street cheered, when Lina Khan shot it down, and that’s allowed, well, it’s allowed Tapestry to prosper. It’s become an up stock.”
Tapestry (NYSE:TPR) is a luxury goods company offering a wide range of branded lifestyle products, including handbags, accessories, footwear, fragrances, jewelry, home goods, and apparel. In November, it announced the termination of its merger agreement with Capri Holdings Limited. Both companies mutually agreed that halting the merger was in their best interests, given the uncertain legal outcomes and the unlikely resolution of the matter by the February 10, 2025 deadline.
Joanne Crevoiserat, CEO of Tapestry (NYSE:TPR), expressed confidence in the company’s current position, stating that investing in its own stock was the best option at this time. On November 22, the company revealed that it had entered into Accelerated Share Repurchase (ASR) agreements to repurchase $2.0 billion worth of its common stock. These agreements are part of the company’s broader $2.8 billion share repurchase program.
As part of its plan, the company expects to return over 100% of its free cash flow for fiscal 2025 to shareholders through dividends and stock buybacks. The final settlement of the ASR agreements is expected by the first quarter of fiscal 2026, which ends on September 27, 2025.
8. EPAM Systems, Inc. (NYSE:EPAM)
Number of Hedge Fund Holders: 39
Discussing EPAM Systems, Inc. (NYSE:EPAM), Cramer remarked:
“Next is EPAM Systems, which is an enterprise software company for platform engineering development. Now the stock’s come roaring back leading, it is part of the return of the enterprise software primacy over hardware. EPAM’s strength is a green light to buy Salesforce and ServiceNow, the two biggest enterprise software plays that I like.”
EPAM (NYSE:EPAM) offers digital platform engineering, software development, and infrastructure management services, along with consulting, design solutions, and expertise in emerging technologies like AI, robotics, and virtual reality. Arkadiy Dobkin, the Chairman, President, and CEO, recently emphasized that investing in both organic growth and acquisitions is essential for building advanced capabilities and expanding service offerings in talent markets.
In the third quarter, the company acquired NEORIS, its largest acquisition to date, which expands its presence in Latin America and parts of Europe, drives growth opportunities with joint clients, and strengthens its regional delivery platform, particularly in Spanish- and Portuguese-speaking markets.
On December 3, EPAM (NYSE:EPAM) also completed the acquisition of First Derivative, a consulting and managed services firm specializing in the capital markets industry. First Derivative has a strong presence in the U.K., Ireland, North America, and the Asia-Pacific region. This acquisition further expands the company’s service capabilities and delivery network, strengthening its position in the global market.
7. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 43
Cramer discussed Palantir Technologies Inc.’s (NYSE:PLTR) recently reported impressive quarter, and federal contracts and mentioned he liked its defense business.
“Why don’t we start with Palantir, which reported one of the best quarters of the year, fantastic growth, fantastic gross margins. That’s right. growth and gross margins together, that is fabulous. And they’re killing it with federal contracts, including some important work for the Pentagon. Palantir’s people… tend to win almost everything that they tender for. They also have a great commercial group, but I like their defense work. It’s a, what I used to call a total up stock.”
Palantir (NYSE:PLTR) is a prominent developer of advanced software platforms that specialize in integrating and analyzing complex data to aid in decision-making. Known for its work with government agencies, it provides essential tools for data-driven operations. Earlier this year, the company secured a significant $480 million contract from the U.S. Department of Defense to develop a prototype called the Maven Smart System.
This contract, expected to be completed by May 2029, marks a further deepening of the company’s relationship with the Pentagon, following a sole-bid solicitation from the Defense Department. Additionally, we talked about the company’s third-quarter earnings report in our article, Jim Cramer’s Best Performers List: Top 10 Stocks. Here is an excerpt from the piece:
“Palantir (NYSE:PLTR) saw particularly strong growth within its government business. Revenue from government contracts rose 33% year over year to $408 million, with U.S. government revenue alone surging by 40%, reaching $320 million. This marked the highest growth the company had experienced from its largest customer in 15 quarters.”
In November, Palantir (NYSE:PLTR) entered into a partnership with Anthropic and Amazon Web Services to offer U.S. intelligence and defense agencies access to the Claude 3 and 3.5 model families on AWS. The integration of these Claude models within Palantir’s data analytics platform will help government agencies process large amounts of complex data rapidly, identify patterns more effectively, streamline document review, and assist in making informed decisions during time-sensitive situations.
6. Axon Enterprise, Inc. (NASDAQ:AXON)
Number of Hedge Fund Holders: 46
Cramer called Axon Enterprise, Inc. (NASDAQ:AXON) a “definitive Trump stock” because of the notion that law enforcement will benefit from the new administration’s support.
“Second is Axon… that’s the company formerly known as TASER a long time ago. I don’t call it that because it obscures all the unbelievable work they’re doing to rationalize police stations, make things easier for law enforcement and the justice system. Axon had three things happen in November. They reported a much better-than-expected quarter, I mean much. They rolled out a new edition of their software, including valuable AI that saves a huge amount of time and of course, money. And this is a definitive Trump stock because there’s a widespread belief that local law enforcement will get more money from Washington with the GOP trifecta.”
Axon (NASDAQ:AXON) develops and sells conducted energy devices under the TASER brand and provides hardware and cloud-based software solutions to help law enforcement capture, store, manage, and analyze video and digital evidence. It delivered solid results for the third quarter, with quarterly revenue reaching $544 million, a 32% increase compared to the previous year, surpassing expectations.
This growth was fueled by strong performance across all product segments. The demand for its latest TASER and body camera products remained robust, contributing to growth in both TASER and Sensors & Other revenue. The company reported net income of $67 million, or $0.86 per diluted share, resulting in a net income margin of 12.3%. Additionally, adjusted EBITDA came in at $145 million, a 54% year-over-year increase, representing a margin of 26.7%, driven by higher revenue and improved operating efficiency.
Rick Smith, Founder and CEO, highlighted the potential for legislation addressing drone-related challenges, prompting the company to shift focus toward drone technology. Axon (NASDAQ:AXON) made significant progress in expanding its capabilities by acquiring Dedrone in Q3. Dedrone is recognized as the global leader in airspace awareness and security, and its smart airspace security technology integrates with the company’s public safety platform. This acquisition allows Axon to advance drone-based public safety programs, such as Drone as First Responder (DFR), to protect against unauthorized drone activity.
5. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 48
Calling EQT Corporation (NYSE:EQT) “the single biggest beneficiary of Trump’s election”, Cramer stated:
“Finally, number 10, my favorite is EQT, that’s the largest natural gas company in the country. Talk about a Trump stock. Perhaps the single most thriving industry in our country is the liquified natural gas complex, the apex, all of the LNG export terminals in Louisiana and Texas, both in existence and those being built or planned.
Given that we have absurd amounts of natural gas in this country, we’re the largest exporter in the world, the export market is a bonanza. Almost everyone needs our cheap natural gas but at the beginning of the year, Biden put a pause on the approval of these LNG terminals. The move caught everybody by surprise, including companies that have spent billions upon billions of dollars doing these things and it crushed any stock involved in the process. Now we do expect that the pause is… maybe eliminated, go right back to work [on] the first day of Trump’s administration. No wonder EQT stock caught fire. It may be the single biggest beneficiary of Trump’s election.”
EQT (NYSE:EQT) is a leading natural gas production company in the United States, focused on the extraction and sale of natural gas and natural gas liquids. Recently, we covered Cramer’s comments about the stock’s performance post-election in our article, Jim Cramer’s List of 7 Energy Stocks for the Trump Trade. Here is an excerpt:
“After spending a couple years trading sideways, EQT has caught fire since the election, climbing 22% to its highest level since late 2022. Well, even before the election, this stock was getting some buzz.”
On December 5, JPMorgan analyst Arun Jayaram raised the price target on EQT (NYSE:EQT) stock to $50 from $44 while maintaining an Overweight rating. The firm anticipates that in 2025, natural gas producers will benefit from “three powerful secular demand trends”: the expansion of liquefied natural gas export capacity, increased power demand driven by electrification, and the transition from coal to natural gas.
JPMorgan updated its exploration and production models through 2030, reinforcing its outlook for long-term gas prices above $3.50 per MMBtu, as the firm believes prices will need to adjust higher to encourage additional supply growth from the Haynesville and other high-cost gas regions. Additionally, JPMorgan expects the oil market to move from balanced conditions in 2024 to a surplus in 2025 due to supply increases, prompting the firm to adopt a “more defensive stance.”
4. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 49
As per Cramer, Warner Bros. Discovery, Inc.’s (NASDAQ:WBD) stock performance is impacted by the change in the presidential administration and its improving balance sheet.
“Seven: Oh, here’s a wild one, Warner Brothers Discovery. Now this is bouncing for several reasons. First, its balance sheet is actually improving and it was the biggest worry… Second, its assets are worth so much more than the stock’s actually selling for. Third, this new administration will be a ratings bonanza for CNN. Finally, once Biden’s gone, media companies can merge again. That optionality is worth more to Warner Brothers than everything else combined.”
Warner Bros (NASDAQ:WBD) is a media and entertainment company that produces and distributes films, television programs, and streaming services, offering a wide portfolio of content across various platforms. During the third quarter, reported on November 7, it repurchased or repaid nearly $900 million in debt, with another $300 million maturing in the following week.
As reported, management continues to expect a year-over-year reduction in debt, although the decline will be more modest than initially anticipated due to some shortfalls and impairments. The company plans to use nearly all of its free cash flow to retire debt and aims to reach a long-term leverage target of 2.5 to 3 times. For the quarter, the company generated $0.6 billion in free cash flow, ending the period with $3.5 billion in cash and $40.7 billion in gross debt.
During the earnings call, David Zaslav, Warner Bros (NASDAQ:WBD) President and CEO, expressed confidence that the company’s stock price does not reflect the full value of its assets. Management remains focused on demonstrating the company’s fundamental strength and increasing its value. As part of this effort, the company has taken aggressive steps to reduce its expense base and improve its free cash flow conversion. To date, the company has successfully paid down over $16 billion in debt, with its strongest cash generation quarter still to come this year.
3. McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders: 57
Cramer called McKesson Corporation (NYSE:MCK) a “traditional middleman” and said:
“Ninth is McKesson, a traditional middleman between the drug companies and the drug stores. Now it’s a Trump stock, not because Trump loves the drug distributors, but because I think it was only a matter of time before the Biden-Harris regulars went after these guys. There’s a widespread belief that McKesson… got a big reprieve, rightly or wrongly.”
McKesson (NYSE:MCK) provides healthcare services, including the distribution of pharmaceuticals, medical supplies, and logistics, while offering technology, consulting, and support solutions for healthcare providers, biopharma companies, and patients. As seen in its recently reported second-quarter fiscal 2025 earnings, the company’s largest unit by revenue is the U.S. Pharmaceutical segment.
It specializes in distributing drugs for the treatment of complex conditions, such as cancer. In the second quarter, sales in this segment grew by 23% to reach $85.7 billion, driven by higher prescription volumes, specialty products, and GLP-1 medications. For the second quarter of fiscal 2025, the company reported a total revenue of $93.65 billion, which surpassed analysts’ expectations. This growth was primarily fueled by strong performance in the U.S. Pharmaceutical segment. Looking ahead, McKesson’s (NYSE:MCK) fiscal 2025 guidance anticipates a 16% to 19% increase in revenue from the U.S. Pharmaceutical segment, along with a 9% to 11% rise in operating profit.
2. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 97
Talking about Vistra Corp. (NYSE:VST), Cramer commented:
“Number eight: Vistra… Data centers are electricity hogs. We need more power, ideally of the clean variety. That’s Vistra, merchant of clean electricity with a nuclear kicker, although I still do prefer Constellation Energy for nukes.”
Vistra (NYSE:VST) is an electricity retailer and power generation company that serves a wide range of customers, including residential, commercial, and industrial clients. Recently, it completed its acquisition of a 15% minority stake in Vistra Vision and management noted that it is anticipated to enhance shareholder ownership in Vistra’s zero-carbon assets. This acquisition will notably increase the company’s nuclear generation capacity by approximately 970 megawatts and expand its solar and energy storage capacity by around 200 megawatts.
Vistra (NYSE:VST) has also provided financial guidance for the upcoming years. For 2024, the company anticipates its Ongoing Operations Adjusted EBITDA to fall within the range of $5 billion to $5.2 billion. For 2025, it expects this figure to increase, with a forecasted range of $5.5 billion to $6.1 billion. Furthermore, the company has reiterated its 2026 estimate, forecasting a potential midpoint for Ongoing Operations Adjusted EBITDA of over $6 billion.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Cramer once again highlighted how Tesla, Inc. (NASDAQ:TSLA) stands to benefit from Musk’s position under the new administration.
“How about Tesla? What can I say that hasn’t already been said, right? I mean, right now, Elon Musk may be the second most important man in America. He may be the most important man in America for all I know, as long as he stays tight with Trump. Sure, Tesla issued a new software update today, and some people actually talked about that, but everyone knew it was coming. People have been buying this one because they realized that Musk has the President-Elect’s ear, and his loyalty will likely be returned with good news for Tesla, especially the self-driving business. To me, it seems very transactional. Duh.”
Tesla (NASDAQ:TSLA) has seen a significant rise in its stock price following the U.S. presidential election, driven by both financial growth and its CEO’s relationship with President-Elect Donald Trump. This was further amplified when the President-elect appointed Elon Musk to a new role focused on improving government efficiency.
The stock surged again after reports that Trump’s transition team would prioritize creating federal regulations for self-driving vehicles, a key area for the company. Current federal laws limit the deployment of fully autonomous cars, but Musk has said that he supports changes that could benefit the company’s ambitions in this sector.
The company continues to make strides in this area. Recently, Ashok Elluswamy, Tesla’s (NASDAQ:TSLA) vice president of AI software, shared on X (formerly Twitter) that the company has begun rolling out version 13 of its Full Self-Driving (FSD) software to customers.
This update is designed to advance every aspect of the driving network, making Tesla vehicles a step closer to achieving full autonomy. According to the company, the new version of FSD is a crucial component in turning the millions of Tesla cars on the road into truly self-driving vehicles.
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) 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 TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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