In this piece, we will look at the stocks Jim Cramer recently discussed.
In his recent appearance on CNBC’s Squawk on the Street, Jim Cramer started the morning by commenting on the S&P’s best eight-session rally since August. As most stock market gains by then had been due to mega-cap stocks, Cramer shared that “I do like to see that this is a rally that’s not led by” either Wall Street’s favorite AI GPU stock that tumbled by 15% on Monday or by the firm responsible for designing the iPhone.”
In fact, Cramer was happy that stocks were instead being led higher by sectors that had underperformed lately. One of these is healthcare, and the CNBC host shared his excitement by sharing “Or how about the drugs? How about the drugs!” He added “I mean last week I was at the JPMorgan Healthcare Conference. And no one liked the drugs! They exploded yesterday!”
Yet, even though the ‘drugs were exploding,’ Cramer also mentioned other sectors that were having bull markets. According to him “So what I’m saying is that, many bull markets each day. Banks had a bull market. Drugs had a bull market. Rails had a bull market. I think I love it! . . .This is what I want! Not broad on one day, but broad over time.”
As to the reason behind his optimism, Cramer outlined “I just don’t want it to be the same old, same old!” He was irate over market and media sentiment indicating that multiples of the Magnificent 7 stocks were overstretched. Mentioning a piece in the Financial Times, Cramer shared “Like yesterday there was a piece in the FT, I like the FT. But they were talking about how you know, now things are really stretched.” He believes that the argument that the multiples are overstretched doesn’t explain the S&P’s rally as “It’s not a Mag 7 rally for heaven’s sake. It’s not!”
Cramer added, “Well I just think this is one of those markets where when you have a good quarter, bingo.” When co-host David Faber asked him why he believed that non-tech sectors were driving the market since technology stocks had done well until that point, Cramer replied and stated “I’m saying, this particular jaunt is not led by the usual suspects. I said all that stuff.” He added “But what I’m saying is that there are other stocks besides tech. That’s all I’m saying. And that yesterday was about healthcare. It was about healthcare and it hasn’t been about healthcare for a long time. The healthcare stocks, the HMOs were terrific.”
Another topic that he’s recently discussed is European stocks. When Cramer was asked why it’s not easy to find top-tier growth in Europe, he shared that “It is[n’t]. And yet, Europe is much discussed as being doing well because the rates are so low in Germany.”
Cramer also commented on the high power demand from AI data centers and how it’s affecting natural gas stocks. He believes “We have to spend, so much time on power, because we are beginning to get, what I’d be doing with these natural gas companies, they’re being green-lit, and they’re not being talked about, and they’re starting to realize, why is everything being nuclear?” The reason behind some folks doubting nuclear power, according to Cramer, is “Because nuclear is seven to eight years. Okay, seven to eight years.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on January 24th.
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).
10. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Number of Hedge Fund Holders In Q3 2024: 31
Skyworks Solutions, Inc. (NASDAQ:SWKS) is a semiconductor company that sells power management, signal processing, and other products to smartphones, auto, and other industries. Its shares are down by 15.4% over the past year as the firm has struggled to maintain revenue growth due to a slowdown in both of its targeted industries. Skyworks Solutions, Inc. (NASDAQ:SWKS)’s stock slumped by 18% in July and the first week of August after the firm’s profit dropped despite meeting analyst estimates. Cramer appreciated Skyworks Solutions, Inc. (NASDAQ:SWKS)’s management for being honest about its troubles:
“Let’s say you went to Liam Griffin, at Skyworks Solutions, he says listen, I can’t outrun cellphones. Not everybody sells into a data center! Not everyone sells into data center, and everybody seems to want nothing but. . . .”
9. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders In Q3 2024: 52
Twilio Inc. (NYSE:TWLO) is a software company that provides products to businesses to enable them to communicate and stay in touch with their customers. While big tech roils in the aftermath of investor worries about China’s DeepSeek AI startup’s low model costs, Twilio Inc. (NYSE:TWLO) is one of the best-performing stocks year to date. Its shares are up by 27% so far this year primarily on the back of an optimistic margin guidance that predicted that margins will touch at least 21% in 2027. Margins are key for SaaS stocks such as Twilio Inc. (NYSE:TWLO), and here’s what Cramer said:
“[on TWLO saying they’ll meet the top end of their guidance] Yeah the customer relationship management product is really fabulous. They have expanded, they’ve done a great job. It’s a great product. Great product.”
8. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders In Q3 2024: 57
Verizon Communications Inc. (NYSE:VZ) is one of the largest telecommunications companies in America. Its shares have lost 3.5% over the past year as a slow phone upgrade cycle due to inflation-constrained consumer spending and slow wireless equipment sales have led to the firm missing several quarterly earnings estimates. However, the tale turned in January when Verizon Communications Inc. (NYSE:VZ)’s shares jumped by 2.8% after the firm added 568,000 wireless subscribers in Q4 to beat analyst estimates of 487,500 and mark the highest quarterly growth in five years. Cramer, however, believes that the results were insufficient to drive the shares higher:
“[Commenting on Verizon stock jumping after earnings] On that number!”
7. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders In Q3 2024: 57
Texas Instruments Incorporated (NASDAQ:TXN) is one of the oldest chip manufacturing companies in America. Its shares are up by 12.6% over the past year as the firm’s broad product portfolio that enables data center connectivity has helped it navigate the downturn in the industrial sector. As of H1 2024, 76% of Texas Instruments Incorporated (NASDAQ:TXN)’s revenue came from industrial businesses. Consequently, the firm’s shares fell by 3.4% in January after its Q1 midpoint EPS guidance of $1.05 missed analyst estimates of $1.17. Cramer believes that Texas Instruments Incorporated (NASDAQ:TXN)’s exposure to industrial companies means that it should be viewed as an industrial stock:
“Right. People keep wanting Texas Instruments to be something other than it is. It’s an industrial company. Very good. 20% of business is in China by the way. Love the China. And uh why people think they can divorce themselves from the end market, particularly auto and industrial, crazy. You’re gonna have Joe Hinricks on, the CEO of CSX. You know he said, what’s weak? Automotives, uh, interest rate sensitive things, housing. Texas Instruments is an industrial company. And it trades like one. And these analysts keep thinking it’s going to trade like the Texas Instruments of 1982, 84. They ought to get the program. I think that Texas Instruments is very forthcoming. They used to be less forthcoming. But they’re basically saying, look, our markets aren’t that good. And they can’t outrun their own markets.
“I love the fact that they’re straight forward. That they’re not doing well in embedded, they’re saying, listen, we’re missing, we’re missing, we’re missing. People are missing. Enough already.”
6. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders In Q3 2024: 61
Novo Nordisk A/S (NYSE:NVO) is one of the few companies in the world that has successfully made a splash with its weight loss drugs. Most of Cramer’s recent remarks for the firm have analyzed its product strength with respect to American weight loss drug giant Eli Lilly. Novo Nordisk A/S (NYSE:NVO)’s stock slipped by 17.8% in December after its weight loss drug trial missed investor expectations. They shed an additional 5.3% in January after its weight loss treatments were selected for Medicare price negotiations. Here’s what Cramer said about Novo Nordisk A/S (NYSE:NVO):
“[On the results of Novo’s latest drug trial] Okay, one and a half, it’s early. Remember it’s a one half trial. Now, you cane make these, you can finagle Lilly versus Novo. It’s hard, very hard to do actual comparisons because some are by forty eight weeks, some are shorter weeks. Some are bigger. . . what really matters? Boom, Eli Lilly’s scripts are way up. And if you’re looking at the fourth quarter, remember fourth quarter was a disappointment. David Ricks came on Mad Money, he came on our show. What did he say? He said we botched the launch. This is the beginning. Wolfe puts out the scripts, the numbers for Lilly were really good. And that’s what I’ve been waiting for. We can do this head to head of the phase one, the half. Forget that. Novo’s down so much, anything they put out . . .and this thing causes, you know it like makes you feel better. It wouldn’t matter. What matters is that Mounjaro and Zepbound weekly scripts are finally, finally doing good. And they have been not good. . . .”
“Lilly versus Novo this morning. Not one. Looked at every single data test that there is. Not one.”
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders In Q3 2024: 62
Cheniere Energy, Inc. (NYSE:LNG) is an American energy company that operates primarily in the midstream portion of the liquefied natural gas (LNG) supply chain. Its shares are up by 35% over the past year as the firm benefited from higher Asian LNG prices and an 11.6% share price surge after the November Presidential Election. Cheniere Energy, Inc. (NYSE:LNG)’s shares are up by 1.80% year-to-date as well due to rising LNG demand in America which surged to a record 15.2 billion cubic feet per day as 2024 ended. Here’s what Cramer said about Cheniere Energy, Inc. (NYSE:LNG):
“Cheniere’s been an unbelievable story. I remember when Cheniere was at two bucks. I mean cause what happened is this that we ended up having reverse all the pipes when Cheniere started natural gas we were importing. Then it turned to an export. Look they’re not making, they have revenue, revenue downstream.
“Well if you wanna play on what the President is saying about how we can weaponize it, weaponize the natural gas, this is it.”
4. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders In Q3 2024: 62
American Express Company (NYSE:AXP) is one of the most well-known financial services firms in America. The firm is one of the earliest movers in the payment card industry. Its shares are up by 57% over the past year as American Express Company (NYSE:AXP) managed to beat multiple quarterly estimates in 2024 either through higher spending on its platforms or through financial discipline. In 2025, its shares are up by 5.7% after having dropped by 3.2% since its Q4 earnings report. The results saw American Express Company (NYSE:AXP) guide 2025 revenue growth at a 9% midpoint which appeared to be a tepid beat over analysts’ 8.1% estimate. Cramer, however, gushed about the stock:
“What I think that’s most impressive about Amex, and I think that would really perplex Jay Powell, this spend is insane in this country. The amount of people traveling. The bump up to first class, from commercial, from the, you know what second class we’ll call it, David. Uh, the amount of people just, the frequency at which people are having a dinner out. I don’t know what to say, there’s a burst of optimism that is being translated into spend. And particularly for younger people that I’m just flabbergasted about. It just can’t stop!
“[on whether the high spending was leading to the stock’s strong performance] Well I think that this is the last poor quarter, and I talked to Steve Squeri, this keeps happening. The stock goes up huge ahead. I mean there’s one of the greatest charts of all time. And then people say oh it wasn’t, you know eight to ten, it gave to eight to ten, so it didn’t blow things away. I mean this guy is delivering a level of consistency that is so much better than everybody else. You could take all those fintech stories and this is just the best one. . . . .But American Express, no flies, good quarter, Steve Squeri doing a terrific job, at one point the stock was down twelve. I don’t know who does this, uh ahead of the quarter, but when I speak to them I just think, just wow and their customers love it.”
3. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders In Q3 2024: 63
Abbott Laboratories (NYSE:ABT) is a healthcare giant that ended 2024 on a tepid note. Its shares gained a modest 3.8% during the year as the firm battled the fallout from its infant formula lawsuit through mostly strong earnings reports because of its medical devices business. Like other mega American healthcare companies, Abbott Laboratories (NYSE:ABT) is facing tightness in China. However, in his previous remarks, Cramer has been optimistic about the firm’s diabetes portfolio which includes glucose monitoring devices. The optimism was warranted as Abbott Laboratories (NYSE:ABT)’s shares have gained 10% since its Q4 earnings came with a midpoint 2025 profit per share guidance of $5.15 which was in line with estimates. Cramer was surprised about Abbott Laboratories (NYSE:ABT)’s share surge:
“Abbot Labs was the market leader yesterday. That’s new. That’s new.”
2. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders In Q3 2024: 67
Capital One Financial Corporation (NYSE:COF) is an American consumer and commercial bank headquartered in McLean, Virginia. Like other bank stocks, the shares have been on a tear since the November US Presidential Election. Since the election, Capital One Financial Corporation (NYSE:COF)’s shares have gained 25%. The stock has been helped by the fact that consumer spending has remained robust in America to allow it to earn income through interest via credit card debt. Capital One Financial Corporation (NYSE:COF) has sizable exposure to credit card spending, and according to Cramer, its merger with Discover can further improve prospects:
“By the way Capital One when they merge with Discover is going to be really really fabulous and we’re working a lot on that one.”
1. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders In Q3 2024: 78
Union Pacific Corporation (NYSE:UNP) is one of the largest railroad operators in America. Since it primarily transports industrial raw materials and bulk goods all over the US, the stock is dependent on economic activity. Union Pacific Corporation (NYSE:UNP)’s shares jumped by 5% in January after its Q4 results revealed a $2.96 profit per share that beat analyst estimates of $2.78. Following the report, Cramer was full of praise for the company. He commented that Union Pacific Corporation (NYSE:UNP)’s operating ratio was “superb” and added that not only can it benefit from stronger pricing but also from a potential boom in coal demand in America. This time around, he compared Union Pacific Corporation (NYSE:UNP) with another railroad firm, CSX:
“But, you’ll see these beautiful one-off moves. Union Pacific great quarter versus CSX.”
UNP is a stock Jim Cramer recently talked about. While we acknowledge the potential of UNP 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 UNP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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