Jim Cramer, host of Mad Money, expressed his frustration on March 19 about how investors often get caught up in discussions revolving around the Federal Reserve, interest rates, and the President’s trade policies, overlooking other important factors.
“Every now and then, we want to make money in the worst way, and when I say the worst way, I mean the dumbest way. We wind up talking endlessly about the Fed and interest rates or the President’s trade policy, whether it’s punitive tariffs, reciprocal tariffs. Oh man, come on.”
READ ALSO: Jim Cramer Talked About 7 Stocks & Stagflation Fears and Jim Cramer Recently Talked About These 12 Companies
On Wednesday, Cramer noted that investors reacted to the Fed’s open market committee meeting results with the same old rhetoric. The Fed announced, without any surprise, that it was leaving rates unchanged, and the market responded positively to the news.
Cramer clarified, however, that he recognizes the significance of the Federal Reserve in influencing market trends. He acknowledged that any negative remarks from Fed Chair Jerome Powell, like signaling that inflation is still out of control or that tariffs might lead to higher prices, pushing the Fed to raise interest rates, or eliminating the possibility of rate cuts, would indeed have a damaging effect. But, he emphasized, none of that came to pass on Wednesday.
“But there’s more to this market than the day-to-day action, which is why I want to focus on the bigger long-term themes for you.”
Cramer argued that, even with changes in interest rates, these long-term stories will be what really matters. Among these enduring trends, Cramer spotlighted artificial intelligence. He called the cooling off in AI investments in recent months “wrong”.
He maintained that AI is a multi-trillion-dollar force that will continue to drive market growth and innovation. Cramer pointed out that the U.S. is grappling with a significant labor shortage, and robots, capable of handling tedious, hazardous, and undesirable tasks, are here to stay. AI’s influence, according to Cramer, is unstoppable, unaffected by the Federal Reserve or even trade policies.
“It’s a multi-trillion dollar wave that can’t be stopped by the Fed or even the tariffs. Why? Because AI’s going to change the world and if you stand in its way, you’re nothing but a candle in the wind.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 10. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
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).
Jim Cramer Focused On These 9 Stocks Recently
9. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Number of Hedge Fund Holders: 34
Cal-Maine Foods, Inc. (NASDAQ:CALM) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“All right, so Cal-Maine, the reason why it’s going down is because people feel this, this shortage is going to end, when the shortage is going in, the stock is gonna go lower. I totally agree with you on everything, but I do and when I see a stock with a 4 or 5 PE, that means the numbers are going lower and therefore it’s probably not as cheap as you think. And that’s the way I look at Cal-Maine.”
Cal-Maine (NASDAQ:CALM) produces, grades, packages, markets, and distributes a variety of shell eggs and egg products, including specialty options like cage-free, organic, and nutritionally enhanced eggs under various brand names. Diamond Hill Capital stated the following regarding Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q4 2024 investor letter:
“Other top Q4 contributors included Centrus Energy, Graham Corp and Cal-Maine Foods, Inc. (NASDAQ:CALM). Fresh egg producer Cal-Maine Foods has benefited from an avian flu outbreak, which has led to a significant supply disruption and driven egg prices to record highs, in turn raising Cal-Maine’s share price.”
8. Verona Pharma plc (NASDAQ:VRNA)
Number of Hedge Fund Holders: 42
A caller highlighted that Verona Pharma plc (NASDAQ:VRNA) has $400 in financing and is to be bought out by a big pharmaceutical company. Cramer replied:
“Well, we don’t know when, you know what, this is one where I don’t want to tempt fate. There’s no revenues to speak of. It’s kind of a very dicey stock. It’s been supported by a couple of firms and I think that’s terrific. I would sell half and let the other half run. I just cannot recommend a risky stock right here.”
Verona Pharma (NASDAQ:VRNA) is a biopharmaceutical company dedicated to developing and commercializing therapies for respiratory diseases, including Ohtuvayre, a treatment for chronic obstructive pulmonary disease, cystic fibrosis, and asthma.
7. Keysight Technologies, Inc. (NYSE:KEYS)
Number of Hedge Fund Holders: 51
A caller asked what Cramer’s thoughts are on Keysight Technologies, Inc. (NYSE:KEYS) and he replied:
“Keysight just hit anything that’s electronic measurement, I love. I also love Agilent. I think this company’s doing incredibly well and stock is getting hit, being, throw the baby with the bathwater. Good stock.”
Keysight (NYSE:KEYS) provides a range of electronic design and testing solutions, including software and measurement tools, serving various industries like communications, aerospace, and energy. In January, Cramer was equally bullish on the company when he said:
“Yeah, we want this one. We want this one. This is a company that has solutions. First of all, it’s not expensive at all…. Terrific business, niche business. I like it and I think you should own it and I think you should buy it.”
6. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 57
A caller, while noting Tapestry, Inc. (NYSE:TPR) stock’s recent decline, asked if they should hold or sell it. Cramer replied:
“Okay… I’m gonna be tough on this one. My favorite retailer is Ralph Lauren and that stock collapsed today. Collapsed. So I don’t think Tapestry or PVH for that matter can possibly be better than Ralph Lauren. So all I can tell you is that in this market or in this tape as we say, Tapestry is going lower. I hate to always tell people that. I don’t like people to sell, but I gotta, you know, look, this is not buy and hold here. It’s buy and homework.”
Tapestry (NYSE:TPR) is a luxury goods company that provides a variety of lifestyle products, such as handbags, accessories, footwear, fragrances, jewelry, home goods, and clothing. Appearing on Squawk on the Street on March 13, Cramer remarked:
“Here’s an example of the kind of thing that I see that I don’t like, Ralph Lauren had an amazing quarter. Just fantastic, Patrice Louvet. Stock goes down almost everyday but nothing’s really happened.
… And Tapestry today. . .that’s just zeitgeist. That’s just people saying well look I. . .we’re pulling back, I’m going to get away from these uh expensive so to speak, apparel companies. And they’re not that expensive. But, it does, it’s worrisome, because no one can come out and say, hey listen, that’s not true. You have a zeitgeist moment that is really affecting everything. It’s a shame. Doesn’t have to be this way.”
5. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 67
A caller highlighted Honeywell International Inc.’s (NASDAQ:HON) decision to split its businesses and asked which part would be best suited for growth. In response, Cramer said:
“Okay, my Charitable Trust owns it. We have a lot of it, Honeywell. The growth part is aerospace. Nobody wants Boeing. They’ll be buying Honeywell just like they bought GE Aerospace. I will say this, I like the chemicals business. It’s not a growth business, but it’s better than the typical chemical company, so that’s gonna make people like it. The automation business, work in progress.”
Honeywell (NASDAQ:HON) is a diversified company providing technology and manufacturing solutions in aerospace, building automation, energy, and industrial automation. Earlier in February, Cramer commented on HON and said:
“But this is the quarter you have to buy because you’re finally getting the three pieces. The aerospace business is fantastic. This chemicals business is of course a little bit better than the GDP. And then you have this automation business which has been a disappointment…
For aerospace, they have the cockpit. They have a lot of intellectual property in a plane. They have obviously some service, I think that you do want to emulate. Now remember they’re in every plane. They’re in Bombardier, Airbus, they’re in Boeing. They’ve got a hammerlock on the group. Dave Cote put that together and I like that business. You may to just say, old your nose and buy. If you get that business…
That factory automation, David the warehouse business, that was bad. That was bad. . . That’s been a loser… I’m totally with you. Which is why my trust owns it. We’ve been selling higher. Now I’m going to buy it back or hold on.”
4. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 87
A caller asked what was going on with Reddit, Inc. (NYSE:RDDT) and Cramer explained:
“Okay, so there was a big short squeeze. Let me explain this. First of all, I think the company is doing incredibly well, okay? It didn’t do as well as what people felt because the stock had gone up so much, people were expecting something perfect. Second, there was a gigantic short squeeze. People were betting against it, betting it wouldn’t be a good quarter and it didn’t come out a perfect quarter. Third, I think that Steve Huffman’s doing a great job and I would start right here, right here. Let’s say you wanna buy a hundred shares, buy 25. That’s what we’re doing, by the way, guys, we’re not buying a hundred shares all at once. We’re buying 25, 25, 25. Okay, we’re buying down. That’s what you do. Leave room. Okay, leave room.”
Reddit (NYSE:RDDT) operates a popular platform that allows users to participate in discussions, share content, and interact with different communities centered around common interests. Cramer extensively commented on the company more recently i.e. on March 14 as he discussed:
“Just like with Cava, Reddit hasn’t done anything wrong. Last month, they reported a terrific quarter, revenue growth accelerated all the way to 71%. The problem here is that this is exactly the kind of stock that people dump whenever we get hit with the market-wide meltdown. It’s almost programmed. The only scenario in which I’d get more bearish on Reddit’s fundamentals would be if the current period of macro uncertainty turns into an outright recession because a recession would really hurt their advertising business.
In a recession, anything that depends on ads does get crushed but I don’t think we’re headed for a recession, which means Reddit’s pretty darn enticing now that the stock’s practically being cut in half.
… Plus, based on the way that Reddit’s been beating the estimates, I wouldn’t be surprised if the stock ultimately proves to be much cheaper than it looks right now. If only because the future of earnings are likely to come in higher than expected. Again, as long as there’s no recession, as long as this thing continues to be able to spread and grow, not just from this nation, I should say all over the world, Reddit’s a winner, and I think it is going to be very big internationally.”
3. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 91
During the lightning round, Cramer was asked about Merck & Co., Inc. (NYSE:MRK) and he said:
“Okay, Merck is too cheap. I mean, it’s got a 3.4% yield. Rob Davis is doing very well. It’s really, he’s made a couple acquisitions. I think they’re gonna work out and everyone’s just so scared of the Keytruda patent (the drug has patent protection into 2028) … and that’s not anywhere near. I think you buy the stock of Merck.”
Merck (NYSE:MRK) offers pharmaceutical products in a range of health sectors, such as oncology and vaccines, and also develops veterinary medicines. Additionally, the company partners with other organizations to advance cancer therapies and innovative treatments. In February, discussing the stock being down, Cramer stated:
“Although Merck, is, maybe the ultimate laggard. I don’t think I’ve ever seen Merck perform this badly. Here’s this stock, distinguished from the company, which actually got hurt by a decision by the Chinese to not give their people two hundred million vaccines, GARDASIL, RFK, maybe it’s kind of a reciprocal thing [laughs]. . .it’s great vaccine, you may not like vaccines, but great vaccine, and the, the Chinese have chosen not to use it, they haven’t, and some of it’s with a wholesaler that apparently can’t give anymore to because they don’t have enough money. But that’s the one I’m. . . .that used to be called saint Merck, and I know it’s not high growth anymore but wow, I think it’s worth looking at because it trades like a bad tack.
… No, in the way of what’s really going with some of these drug companies. The loss of, they have a loss of exclusivity for an unbelievable drug KEYTRUDA, but it’s not for years. The only one in this group that acts at all well is Lilly, and I do think that when you’re meeting with the President . . .the drug companies meet with the President and it’s like you don’t know what he’s going to say after.”
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Mentioning the sell-off in the market impacting most stocks, Cramer identified Johnson & Johnson (NYSE:JNJ) as one of the exceptions.
“For much of the past few years as the market churned higher, it often felt like you never got a chance to buy the best stocks on weakness. Now you’re getting that opportunity because the selloff has been indiscriminate, really incredibly indiscriminate, taking down the good with the bad, with the exception of Johnson & Johnson, a couple of hospital chains, and utilities.”
Johnson & Johnson (NYSE:JNJ) is a healthcare corporation involved in the research, development, production, and promotion of a wide variety of healthcare products. The next day, on March 11, during an episode of Squawk on the Street, Cramer remarked:
“I have to tell you the one that has to, remember you need to see JNJ down… because that’s where all the money went to. And that was ridiculous. That’s just a program done, again, by incredibly sloppy traders who don’t know how to trade.”
1. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 105
A caller asked Cramer’s thoughts on Marvell Technology, Inc. (NASDAQ:MRVL), noting the recent downturn in the market. Here’s what Cramer said in response:
“Marvell Tech, that’s Matt Murphy. I know there’s, it’s a wild overreaction to that quarter. It’s now below where it was when it didn’t even have it with AI. It’s getting a little crazy out there. I think that Matt has a good company. I would start buying here if I didn’t own any. So all I can do is counsel stay the course. I’m sorry, I wish I had more, but I would be a buyer, not a seller.”
Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor company dedicated to delivering solutions for data infrastructure, offering a variety of products designed to meet the needs of modern data centers. More recently, on March 14, in response to a caller’s question whether there is a buying opportunity, Cramer said:
“The answer is yes. Right now, the stock trades at a level that it did before it even had artificial intelligence. That’s ridiculous. Matt Murphy’s doing an amazing job. I think that stock is an incredible bargain. I am a buyer, Marvell Technology.”
While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ:MRVL) as an investment, our conviction lies in the belief that 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 MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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