In this piece, we will look at the stocks Jim Cramer recently discussed.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer had a lot to say about a lot of stocks. Along with stocks, he was also full of comments about the new Trump administration and how it’s different from the previous one. Cramer shared, “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.” According to him, “These were the people that were not drawn to, by Elon Musk. Elon Musk has changed the equation” to increase the role that technology companies and executives are playing this time around.
Commenting further on Musk, Cramer shared, “Now, by the way, there’s a lot of talk now about where is Elon Musk?” This means wondering where he is “in terms of having people in powerful positions say, in the Defense Department.” Cramer believes that Musk “doesn’t seem to have them” and added, “If Musk wants to be meaningful, I don’t want a seat at the table, I want a table.”
The CNBC host also mentioned some industries that will benefit from AI. As part of a discussion about the returns from the multiple billions of dollars that firms have invested into AI, Cramer cautioned not to “forget healthcare.” He believes “Healthcare’s gonna be a very big, very big part of AI. David, it’s not yet. And we need that, well-meaning people who believe in the industry have to have what people who are more than just trying to figure out how to make it so there’s a call center that’s better.”
Cramer also shared his thoughts about the breadth of market performance during the day. While markets were rising, he noted, “Yet the S&P oscillator I follow, [inaudible] is slightly overbought, there’s a lot more room.” Cramer believes “there’s a considerable part of the market that has done nothing. Nothing for years. And that’s coming on.” He doesn’t like small-cap stocks either. “And I’m not a small cap aficionado,” Cramer commented. He believes, “That stuff doesn’t work. People always try to chin that up. And then somebody sells a big small cap derivative.” The host added that instead of small-cap stocks, he likes “companies that frankly, what we, you know we didn’t think all that much of the second tier tech companies that are really taking off. The semis that haven’t done anything lately.”
As for President Trump, Cramer believes that he needs to look at insurance costs that affect a large number of Americans. According to him:
“The President has to take a look at these issues. Because this is where the, the copay, your insurance, your group insurance, your property, casualty insurance. That’s where the President’s going to put it. If he wants to put a stake in the inflation. He goes after the pharmacy benefits managers.”
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 22nd.
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).
18. Ford Motor (NYSE:F)
Number of Hedge Fund Holders In Q3 2024: 36
Ford Motor (NYSE:F) is one of the oldest and largest car manufacturers in the US. While broader economic sluggishness has hurt the American car industry, the firm’s primary rival, General Motors, has managed to weather the storm well. As a result, Ford Motor (NYSE:F)’s poor share price performance, evident through the stock being down by 11.8% over the past 12 months, is more of the firm’s own doing. At the heart of its troubles are large warranty claims that it is stuck with due to high inflation. Here’s what Cramer said about Ford Motor (NYSE:F):
“Well I wanna talk about Ford. First all it was downgraded by a very good analyst over at Barclays whose basically saying they [inaudible] make the numbers. Looks like it was inventory issues. But David there’s two markets right now, there’s two economies. There’s the housing market which we are not getting that great numbers from and there’s autos, which the numbers are terrible. Okay, including by the way On Semi, NXP, those are the semis connected with auto. And then there’s this Ford downgrade which is emblematic to me of the fact that there are still parts of the economy that the Fed can help. And we’re not focused on that right now. We’re focused on all the exciting things going on in Washington. But remember, these companies employ a lot of people. I think the President wants to make it so that Mexico loses some of the manufacturing investing and it goes up to America. But that would actually be there for high cost, and so in the crosshairs is this value trap called Ford.
“[F is a value trap] Because it sells at a multiple, lowest multiple in the S&P. Now I mean, you could say wait a second even the banks are a value trap. JPMorgan sells at 13 times earnings. Wells at 13. I’m not talking about [that], I’m talking about literally a situation where you would think this is what you want to buy. You got a president that’s coming in, economy’s getting exciting again. This is the kind of thing that could really do well. And the answer’s no. There’s also a big warranty problem. GM was up yesterday. I think that was about as far as you’re going to get. The steel companies aren’t going up. The copper companies aren’t going up. The auto companies aren’t going up. The housing companies aren’t going up. That’s a big part of the economy. Consumer part of the economy.
“I’m just saying that be careful. Not everything’s being lifted here. And a lot of it, the reason why they’re not doing well, I think some of it is because when the Fed cut rates, loan rates went up!”
17. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders In Q3 2024: 37
The Travelers Companies, Inc. (NYSE:TRV) is a New York-based property and casualty insurance provider. While continuous climate disasters have disrupted the insurance industry, the firm has done well recently since its shares are up by 16.9% year-to-date. The Travelers Companies, Inc. (NYSE:TRV)’s stock has gained since high premiums in the insurance industry have enabled the firm to beat earnings estimates in 2024. Cramer’s remarks for the firm were more sarcastic, as he went on to comment on high insurance costs and the need for President Trump to tackle them in order to help Americans. When told that The Travelers Companies, Inc. (NYSE:TRV) CEO had shared that it was too early to estimate the damages from California’s wildfires, Cramer replied:
“[On CEO saying it’s too early to estimate the impact from California fires] Is it too early to put a number on how far our insurance bills have gone up?”
