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 commented on investor worries about lower economic growth and rising inflation. The phenomenon is called stagflation, and Cramer believes that the fears are unwarranted. According to him:
“Well look, when you go over how many times you mention inflation. When you go over how many time you mentioned economic weakness, you could easily craft a story which just says this is the worst possible economy. I come back and say look, we have created a level of negativity in this country that is extraordinary. I don’t think anyone’s really hiding that.”
Another key player in the economy and the stock market has been the Federal Reserve. Interest rates are still high after a record hiking cycle in 2022. For Cramer though, one concern is that President Trump might take aim at Fed Chairman Jerome Powell as the central bank is not lowering rates despite the President’s insistence:
[When asked what he would like the Federal Reserve to do] “Look, uh, there is a. . .theme here. You fired two Democrats. In the FTC. No one knows what to do. If he can fire two, if he can fire two from the FTC, he can fire Powell. Now doesn’t matter whether it’s legal or not. I thought Peggy Newton had a great piece today, talking about President Jackson. Now we’re really going back, even before McKinley, which is somehow the North Star for this administration. And I think people are just worried that Powell will be fired cause he’s not cutting rates. And I think that all of that we just heard is irrelevant. What matters that as long as there’s a belief that despite Fed chief Powell saying twice that he’s not going anywhere, as long as there is a belief that President Trump may actually have this . . where he can fire anyone, no one’s safe. And I think again, that’s what at stake. I mean if you want to know what’s at stake with the Federal Reserve in terms of what they’re saying, sure you could say they’ve got some stagflation. I think the most important thing Steve said was, in the end that he thinks that’s 11% of the economy, it’s important, I’m just getting 12 to 15. But I think that Powell’s in play. And he shouldn’t be. But what is it, the Justice Department, some people say on the left, is owned by the President. So I mean, how many divisions does the Supreme Court have.”
In fact, Cramer believes that Trump’s potential actions against Powell might also be priced into the markets. He added:
“I’m not saying that he will do this. I am saying that since the FTC. . .look if he took it off the table you would see the futures positive right now. I just think that nothing we’re hearing from the Fed is at all unusual. No one’s saying that listen once tariffs go on, then it’s going to be permanent inflation. By the way, there is some growth to the economy. I understand that the new theory is no growth. I understand that the new theory is fear. I want to take the other side of fear. I want to take value. Now I know that I came back from a conference that involved about 20% of the S&P. Which is Jensen Huang’s. . . conference. And everything was positive.”
Amidst a sea of negativity that hasn’t translated well for markets, Cramer also stressed the need to be positive. Mentioning stock futures, he commented:
“But you know I wanna accentuate the positive because it actually is the empirical quality of being right. But right now, if you look at the futures, do you always have to say you know, those. . .future are right. The Dow should be down 386 on implied open. Or should we say, is that wrong? Which makes you more money? Is that wrong? And I’m willing to say it might be wrong.”
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 March 21st.
For these stocks, we also mentioned the number of hedge fund investors. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Darden Restaurants, Inc. (NYSE:DRI)
Number of Hedge Fund Holders In Q4 2024: 36
Darden Restaurants, Inc. (NYSE:DRI) is an American restaurant chain that operates several brands such as Olive Garden, Seasons 52, and Chuy’s. Its shares are up by 28.9% over the past year and 12.5% year-to-date. The 2025 gains have primarily come on the back of a 15.9% jump in March. Darden Restaurants, Inc. (NYSE:DRI)’s stock jumped despite the firm’s fiscal third-quarter earnings missing analyst estimates. The shares rose as Darden Restaurants, Inc. (NYSE:DRI)’s management painted an optimistic picture of the future. Here is what Cramer said:
“But I liked very much what I hear from Darden. I mean why didn’t Darden get mentioned? Why isn’t Olive Garden mentioned in the equation? I mean that’s the consumer. But you know what again, we can focus on the negative. I can have more fun doing the negative than anyone because I read four conference calls that were negative. I read ten that were positive.”
9. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders In Q4 2024: 45
Ford Motor Company (NYSE:F) has been one of the most commonly discussed stocks on Jim Cramer’s morning show. Some of the reasons that he’s talked about the stock include the firm’s share price weakness stemming from sizable warranty expenses and the potential impact of tariffs on the business. Ford Motor Company (NYSE:F)’s shares have gained a modest 5.7% year-to-date, but the recent selloff in tech led Cramer to comment that Elon Musk’s Tesla might be better off trading as a car company:
“So I don’t want to, I look at it in a positive way, I like the idea that it’s [Tesla] going toward tech. But right now tech is so hated, I think I’d rather have it go toward GM and Ford.”
8. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders In Q4 2024: 51
Nucor Corporation (NYSE:NUE) is the largest steel manufacturer in America. Cramer has discussed the stock multiple times this year, primarily due to the firm’s claims of cheap Chinese steel flooding the US market to drive down prices, President Trump’s tariffs, and Nippon Steel’s acquisition of US Steel. Nucor Corporation (NYSE:NUE)’s scale has made it a top Cramer pick in the sector, and he reiterated this fact once again:
“And I was surprised you see Nucor down very big. And Nucor, when I see these numbers I always want to buy Nucor not letter X.”
7. United States Steel Corporation (NYSE:X)
Number of Hedge Fund Holders In Q4 2024: 63
United States Steel Corporation (NYSE:X) is another steel company that has frequently appeared on Cramer’s morning show. The CNBC host has commented about the firm primarily because of Nippon Steel’s bid to acquire it. United States Steel Corporation (NYSE:X)’s shares are up by 28% year-to-date as investors become cautiously optimistic about Nippon being able to convince the Trump administration about the merits of its acquisition offer. Here is Cramer’s take on the deal for United States Steel Corporation (NYSE:X):
“And Nucor, when I see these numbers I always want to buy Nucor not letter X. I know I think that the President, the administrative team is against Nippon Steel because historically the Japanese have subsidized dumping steel in our country. I think that Vice President Vance could play a role here, because he knows that area where steel is.”
6. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders In Q4 2024: 64
Wynn Resorts, Limited (NASDAQ:WYNN) is a casino and hospitality firm. Its stock is up by a modest 1.3% year-t0-date and has gained 10% since mid-February. The shares have benefited from a strong Q4 earnings report saw its $1.84 billion in operating revenue beat analyst estimates of $1.77 billion. Cramer’s previous remarks about Wynn Resorts, Limited (NASDAQ:WYNN) have asked viewers to consider whether the firm is dependent on China for its revenue before investing in it. Here are his latest comments about Wynn Resorts, Limited (NASDAQ:WYNN):
“And we obviously have Wynn. Craig Billings. And I’ve got to tell you that I’m very excited to. . .Craig Billings has done a fantastic job. Alright. The previous two CEOs did a great job, I would go with Steve Wynn. And I’m glad. . .this [Wynn in Delilah, Las Vegas] is really one of the most exciting venues I’ve seen.”
5. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders In Q4 2024: 66
FedEx Corporation (NYSE:FDX) is a courier and logistics firm that is a frequent appearance on Cramer’s morning show. While the firm’s shares have lagged recently, Cramer has pointed out that its stock has significantly outperformed peer UPS’ shares over a longer time horizon. He is also optimistic about FedEx Corporation (NYSE:FDX)’s CEO Raj Subramaniam and has warned about the impact of tariffs on the firm’s shares. Here are his recent thoughts:
“[On FDX’s earnings including a third consecutive guidance cut] Yeah look I would waffle between disappointing and how exciting it is to be able to cut the expenses the way they’re doing. Uh, the leverage here would be humongous Sarah if they are able to get a couple of good quarters. But look I understand. I mean our viewers at home are right now looking and just saying, what. . .happened? Why is it once again even worse? You could argue that the two stocks you have on the screen, both Nike and FedEx, were very disappointing. I would come back and say, are you kidding? Is this really shocking? Yes, Sarah, you know that Nike had a, it was tough to listen to because of the inventories. Raj Subramaniam, little bit tough to listen to cause you are guiding down. But, end of the world? I don’t know, the end of the world thesis is playing out much more aggressively than the actual situation with the economy I think.”
4. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders In Q4 2024: 68
General Motors Company (NYSE:GM) is a legacy American car company whose shares have failed to carry their 2024 momentum into 2025. The stock closed 2024 after gaining 51% despite the fact that the broader auto industry lagged in sales due to inflation and high interest rates. General Motors Company (NYSE:GM) bucked the trend due to what management termed as strong brand loyalty. However, the debate surrounding tariffs has injected uncertainty into the shares this year. Yet, the recent tech selloff made Cramer comment that perhaps Elon Musk’s car company would be better off trading as a car company like General Motors Company (NYSE:GM):
“So I don’t want to, I look at it [TESLA] in a positive way, I like the idea that it’s going toward tech. But right now tech is so hated, I think I’d rather have it go toward GM and Ford.”
3. Marriott International, Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders In Q4 2024: 69
Marriott International, Inc. (NASDAQ:MAR) is a global hospitality chain. Its shares have been disappointing lately as they have lost 4.2% over the year and 12% year-to-date. Marriott International, Inc. (NASDAQ:MAR)’s stock has suffered because the firm has continued to struggle from weak traveling in China which has forced it to cut annual forecasts multiple times. The shares dipped by 5% in March and Cramer used them as an example to point out weakness in travel stocks:
“You know we lost the travel bull market last week and the action in Marriott is just saying, you know what, stay away from the travel bull market.”
2. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders In Q4 2024: 70
Lennar Corporation (NYSE:LEN) is one of the biggest home-building companies in America. In his previous remarks about the firm, Cramer has called the firm a housing “kingpin.” He has added that when it comes to firms like Lennar Corporation (NYSE:LEN), he evaluates them on weekly data instead of monthly. Lennar Corporation (NYSE:LEN)’s shares dipped by 7.2% in March after the firm’s latest gross margin fell to 18.7% from an earlier 21.8%. Commenting on the latest results, here is what Cramer said:
“Right, I mean, I look at these and I say, there are many things that are good, and there are many things that are bad. And that is the way to look at this economy. I mean, are home prices going up in value? No, they were actually down a percent. Does that mean that it’s the end of the world for Lennar? No, they’re still making a lot of money. Are they happy? Well, no, because they used to beat the numbers handily. Should the stock be down another eight dollars? Yes, if you think that the Federal Reserve is going to be on hold. Because higher interest rates hurt them. Should it be down this much and is it the time to buy? I can’t come up with a reason to buy, but I don’t know. It is inexpensive relative to the last five years. And I don’t want to throw out the last five years of history, Sarah, because I think the company is a really good company.”
“[on how the stock rose even when the Fed was raising rates] Well that was the extraordinary thing. Everyone was negative on the stock and it had a big run. People just kept fighting. Look I, there’s no doubt about it, the home builders went up with the price of homes. And now they’re going down with the price of homes. But the price of homes is not falling precipitously. We still haven’t been able to solve the giant shortage of homes. And Lennar’s a great homebuilder. So no I am not encouraging people to buy it. I am saying that unlike at 160, 180, there’s more good that should be factored in.”
1. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders In Q4 2024: 73
NIKE, Inc. (NYSE:NKE) is an athletic apparel company. Cramer has discussed the firm several times this year. Most of his remarks have focused on the firm’s former CEO and his disastrous decisions that led NIKE, Inc. (NYSE:NKE)’s stock to bleed 29.6% in market cap in 2024. The shares dropped by 9.8% in March after the firm’s latest financials saw CFO Matthew Friend warn that fiscal Q4 sales could drop in the mid-teens percentages which was higher than analyst estimates of 12.2%. Cramer discussed NIKE, Inc. (NYSE:NKE) in great detail after the earnings:
“Yes, Sarah, you know that Nike had a, it was tough to listen to because of the inventories.”
“Look, let’s just cut to the chase. What really killed us? . . .is when you hear a company just basically saying look, macroeconomic is bad, I wanna read the words. . .’we expect revenues,’ this was devastating, this is from Matthew Friend, and you know straight shooter right,. . .’we expect Q4 revenues to be down in the mid-teens range,’ why?, okay ‘unfavorable shipment time in North America,’ ‘two points of negative impact from foreign exchange,’ and of course, ‘400 to 500 basis points down creating restructuring charges for gross margins,’ look you’re not gonna want to own that stock if you hear that. But do you want to sell it Sarah at 65? That’s the question.”
“And if we just want to focus, listen, Sarah, if we only want to focus on how Nike Jordan’s are doing, then we are doing a disservice to people. We know that they’ve got that wrong locker, we know that Donahue almost wrecked this company. Which is really a kind of a land speed record. . . I don’t know I would put Donahue in the fastest ever to crash a car. But I liked very much what I hear from Darden. I mean why didn’t Darden get mentioned? Why isn’t Olive Garden mentioned in the equation? I mean that’s the consumer. But you know what again, we can focus on the negative. I can have more fun doing the negative than anyone because I read four conference calls that were negative. I read ten that were positive.”
“But Sarah, let’s talk about a stock that is bad. . . Nike is the paradigm of what is wrong. But, it’s a great franchise so you have to say at 65, is that company worth something? You know the negatives last night were heavy, no real positives. But is that stock deserving of say fifty dollars, fifty five dollars? Is that where you should trade.”
“Well, the uncertain consumer seems to be certain when they’re buying on ON, a little more certain when they’re buying Hoka. I think the uncertain consumer turns certain when they’re buying New Balance. I think that as you know, the Adidas consumer doesn’t seem all that uncertain. I don’t want to hear uncertain. If you’re going to talk about win, you should talk about loss. The company had a huge series of losses. Look I know Corporate America likes to say you know what, don’t worry, let’s forget about the past. Corporate America. . .never wants to be able to say we were gutted by a previous CEO. Because that’s just not the way it’s done. I’m gonna do it. I cannot believe, how that man, the previous CEO, gutted anything that was new, relied on the old, it failed. Decided to sabotage people like Mary Dillon, at Footlocker. Now they have to take back all the inventory. They have no place to put it other than the Nike factory stores. Look there’s a lot of damage. And I think what happened is, there was much more damage than people realized, Sarah. And the other guys didn’t have damage. The other guys didn’t sit still. And I think the company should start acknowledging that not only do they have to win, but the other guys have to lose. And you have to beat them. And I think that while they talk a good competitive game and they talk about the Ohio State football program. . .what they didn’t talk about is how to beat the other guy. Yes, they’re gonna return to sport. . .but that means you’re going to have to design, and you can’t start designing overnight!”
NKE is a stock Jim Cramer recently discussed. While we acknowledge the potential of NKE 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 time frame. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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