In this piece, we will look at the stocks Jim Cramer recently discussed.
In a fresh appearance on CNBC’s Squawk on the Street, Jim Cramer started out by commenting on European stock markets. At the start of the day, markets were doing well and European stocks had actually outpaced American stocks in year-to-date performance. Cramer was surprised by their performance because he was “getting a lot of reports about how people are more negative about Europe than ever.” In fact he quoted the manager of one of the largest asset management firms in the world informing him about the “unmitigated negativity” surrounding European stocks.
Cramer reiterated his favored investing approach and reminded users about the need to look deeper than simply analyzing broader market performance. He shared that the strong European performance might “be short lived, because I’m trying to find companies that are doing really well in Europe. And I can’t really find them.” On the flip side, Cramer was able to find many companies “that are doing well in the United States.”
Naturally, when discussing top-performing US stocks, one firm that’s unavoidable is Wall Street’s favorite AI GPU stock whose GPUs are powering up all AI models. The stock had opened lower during the day, and Cramer pinned its performance on “negative things over at Korea!” These ‘things’ concerned the earnings report of Korean memory manufacturer SK Hynix, whose report had created doubts in investors’ minds about the demand for AI GPUs.
His latest stock market comments aren’t the only ones this year. In an earlier show, Cramer remarked on the breadth of market performance as opposed to the rise of just one or two indexes. He had outlined that despite the breadth that markets were experiencing, “the S&P oscillator I follow, [inaudible] is slightly overbought, there’s a lot more room.” Cramer added that even though technology stocks continued to impress, “there’s a considerable part of the market that has done nothing. Nothing for years. And that’s coming on.” He didn’t hold back about small-cap stocks either. The CNBC host believes “That stuff doesn’t work. People always try to chin that up. And then somebody sells a big small cap derivative.”
Another hot topic in the media, particularly after President Trump’s inauguration, has been the role that the ultra-wealthy might play in the US government. Cramer outlined previously that electric vehicle and aerospace billionaire Elon Musk has had a large role to play here. He shared that if you go back over the councils that were disbanded post-Charlottesville, what you would see are a lot of traditional industrialists and drug companies.” Cramer added that these individuals represented traditional wealth in America and they “were the people that were not drawn to, by Elon Musk. Elon Musk has changed the equation.”
This time around, he remarked on the feud between Elon Musk and OpenAI’s Sam Altman over President Trump’s $500 billion Stargate AI project. “I mean, you gotta talk about, oligarchs are mad at each other,” Cramer said. The fights make him want to “do [a] oligarch mad at each other segment.”
Cramer also shared what he believes might be the motivating factors behind President Trump’s intent to place tariffs on America’s trading partners. According to him:
“Look I do think that when we hear Trump talk about it he’s really just saying, listen we got a big trade deficit with you and we gotta put a tariff on unless you buy our stuff. And that therefore people are not as worried. I still come back with Mexico,
Finally, the CNBC host had some good news on the inflationary front. He believes “that things are going to have to roll back prices, things have gotten too expensive.”
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 23rd.
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).
12. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Number of Hedge Fund Holders In Q3 2024: 5
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is an energy company that primarily extracts and sells coal for industrial and power generation purposes. It is the largest coal producer in the Eastern United States and tends to do well in a period of rising industrial activity. During the nine months ending in September 2024, Alliance Resource Partners, L.P. (NASDAQ:ARLP) earned $1.86 billion in revenue which marked a 4.3% annual drop. However, with President Trump in charge and natural gas prices rising, Cramer believes coal companies might start to do well again:
“And David, I think that the coal super cycle, which was of course about as stupid as anything you’ve ever seen, is gonna be back, but I think cause natural gas is going up. I think we all have to accept the fact that means power [inaudible] in coal. And Alliance Resources, that’s the one, 9.9% yield. Absurd that coal could come back.”
11. Banco Santander, S.A. (NYSE:SAN)
Number of Hedge Fund Holders In Q3 2024: 15
Banco Santander, S.A. (NYSE:SAN) is one of the biggest banks in the world. Headquartered in Spain, it has a presence in the retail, corporate, investment, and other banking markets. Its shares are up by 28% over the past twelve months as a diversified global presence has helped the bank benefit from varying economic climates. Banco Santander, S.A. (NYSE:SAN) benefitted from higher rates in Europe last year which enabled it to post a 20% profit growth in Q2. However, falling rates led to a 2% sequential net interest income drop in the third quarter. Banco Santander, S.A. (NYSE:SAN) is also currently evaluating the impact of a UK court ruling against car financing and customer disclosure. Cramer believes that the stock is worth its while when it comes to European equities:
“So it’s obviously a contra rally. If you have to be there [in European stocks], go to Santander, uh, cause they’re going to have the best numbers.”
