In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed China’s retaliatory actions against President Trump’s tariffs. The program was aired on the day China retaliated, and Cramer commented on Chinese actions against coal gas and others and export control on critical minerals. Starting from coal, he shared “Coal, very much in demand in Western Europe. Liquefied natural gas, demand everywhere. Minerals, okay they’ve already had pretty tight controls.”
Since the natural resources targeted by China were already in demand in other regions, he outlined: “So I look at this and I say, alright, what they’re saying is. We don’t wanna go to war. So what we’re gonna do is demonstrate that we’re going after some things. That we know they are not important to you. We know it doesn’t hurt any aspect but we can’t lose face here. We gotta do something.”
Cramer believes that the restrictions against “Liquefied natural gas [are] the funniest one. Because the demand for liquefied natural gas is insane.” As a result, he believes that the Chinese reaction was “a statement which basically says Mr. President, we heard you, maybe we ought to sit down and talk. Now there are some people would say appeasers, I don’t want to use that strong term. There are people within the government who very much want a deal. I think the President very much wants a deal. They can raise the ten to twenty five.”
The CNBC host also believes that the Chinese actions suggested that they were trying to find common ground with the President. He believes “what they’re saying, I think is, you know what. Common ground here. We’re gonna hit you on some things that aren’t gonna hurt you. Let’s talk. And that’s what this is.” On the other hand, the actions against Canada were “very central to their country,” he outlined.
“China is basically saying, look, come on, let’s do some talking,” Cramer added. He believes that it would be important to hear next “is China going to do anything that lessens its friendship with Russia?” When asked why China would do that, Cramer replied “Well because I think that the President perceives . . . .the Russians [are] losers now. And the President does not like losers. I think he’d like to separate China.”
He also shared details about a potential difference in opinion in the White House over the Trump administration’s approach against China. According to Cramer:
“I think China, I just continue to believe that there are two camps. There’s the Navarro camp, his excellent book which talks about what China is about, which is we are at war. . . . And then there’s the China we want a deal [with]. And we don’t know where the President is. We just don’t know. We don’t know where he is. He’s got conflicting voices in the White House saying look we, some saying we’re at war, and some saying let’s deal.”
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 4th.
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. PVH Corp. (NYSE:PVH)
Number of Hedge Fund Holders In Q3 2024: 27
PVH Corp. (NYSE:PVH) is one of the biggest apparel companies in America. It owns well-known clothing brands, Tommy Hilfiger and Calvin Klein. PVH Corp. (NYSE:PVH)’s shares are down by 40% over the past year as the firm is yet to recover from a selloff in April 2024. Back then, the firm cut its 2024 revenue guidance by 6% to 7% and Q1 guidance by 11%. The stock tumbled by 22% as a result. PVH Corp. (NYSE:PVH)’s shares also dropped by 1% in January after China targeted the firm in retaliation to President Trump’s tariffs. Cramer dismissed the Chinese move:
“I thought these were funny. PVH what are they, buttons on the shirt [inaudible]?. But David, PVH, um, Tommy Hilfiger, the sweaters. Is it about the sweaters? Is that what it’s come down to?”
“Could be whimsical, could be actual, but PVH for many years was the master licensee for . . .men’s apparel. Exclusive relationship with Macy’s, great relationship and very nice business. And perhaps, I know that the relationship ended in 2015 when Trump ran for President the first time. PVH has no other business relationship with the President since then. But that would be, kind of uh, nice way to say hey listen . . we’ll even, we’re gonna slap you on the tie. But, so just keep that in mind.”
9. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders In Q3 2024: 35
Cummins Inc. (NYSE:CMI) is an industrial equipment company that manufactures engines, powertrains, and other equipment. Despite a slowdown in the industrial sector due to sluggish activity and high rates, its shares have held their ground and are up by 40% over the year. Part of the strong performance is due to a 9% jump after the November election. Cummins Inc. (NYSE:CMI) has also benefited from investor euphoria surrounding data centers as the firm makes and sells backup power generators for data centers. Cramer’s comments covered this aspect of the firm’s operations:
“I was quite impressed with Cummins. Cummins does a lot of engines for data centers. Really, really good quarter. And they make perfect engines. They’re like one of great companies, ever.”