On Monday, Jim Cramer, the host of Mad Money, discussed the current market and he identified opportunities for investors amid the volatility.
“Alright, there’s always a bull market somewhere. I end the show with that tagline every night. I say it because it’s true. Look at today, the market looked hideous this morning, right on the heels of some horrific overnight futures action. But after the S&P 500 reached a level where it was down 10% from its highs. where it held last time, we started snapping back.”
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Cramer suggested that the market’s swift recovery might be a result of an overly negative sentiment among investors. He theorized that the S&P 500’s brief drop to the 10% mark could have triggered some buying activity as traders took advantage of the lower prices, possibly fueled by end-of-quarter retirement contributions. The selling pressure, he pointed out, seemed to dissipate, which could have allowed for a bounce in the market. However, Cramer cautioned that the movement was not just coincidental. It appeared to challenge the narrative that the economy was heading toward a stagflation scenario due to tariff-induced inflation.
Cramer suggested that investor exhaustion over the current administration’s unpredictability is a significant factor in the market’s volatility. Cramer remarked that many investors are uncertain about what actions the president might take next, which has created a climate of fear and hesitation in the market. He noted that the bears had dominated the quarter, with a gloomy outlook prevailing throughout, which leaves little room for optimism. Yet, Cramer hinted that it might be shifting. He wondered if the negativity had simply reached a tipping point, which resulted in a shift in market dynamics.
Cramer highlighted the mixed economic signals contributing to the market’s turbulence. While inflation was on the decline, the president’s tariffs were adding inflationary pressure. Unemployment was at historically low levels, yet certain policies from the administration had caused uncertainty and disruption. Cramer noted how the market had been performing well last year before political instability introduced a level of uncertainty that he had not seen since the Carter administration.
“Bottom line: Maybe Wednesday is the liberation day. It’s just the day when American investors may be finally liberated from the president’s not-so-pro-business attitude once he gets the tariffs out of the way.”
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 31. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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 Highlighted 12 Stocks and Tariff Panic
12. Dollar Tree, Inc. (NASDAQ:DLTR)
Number of Hedge Fund Holders: 64
Pointing to the market sentiment around retail stocks, Cramer mentioned Dollar Tree, Inc. (NASDAQ:DLTR) and commented:
“There’s also seems to be a weird belief that somehow the tariffs won’t hurt retail. I mean, that’s how you got very big moves, say in TJ, Walmart, Dollar General, Dollar Tree, maybe their stocks simply got too oversold, or the tariffs are now baked in the stocks. We just don’t know. But we do know that these retail stocks were rallying from the get-go this morning. They’ll definitely be hurt by tariffs. Every one of them.”
Dollar Tree (NASDAQ:DLTR) runs discount stores that sell a variety of products, such as food, household items, seasonal goods, clothing, and electronics. Recently, discussing the company’s decision to leave Dollar Family behind, Cramer said:
“There’s also Dollar Tree, that’s the all-American dollar store. They reported very good numbers today, but mercifully dumped Family Dollar. Now that was an ailing business. It never should have been bought in the first place…. Now I know a very significant portion of Dollar Tree’s merchandise comes from China, but on their conference call, they said they’d be able to mitigate a lot of the cost. Now that is great news. No wonder, the stock’s rallied more than 3%.”
11. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 53
Cramer mentioned Dollar General Corporation (NYSE:DG) during the episode and stated:
“There’s also seems to be a weird belief that somehow the tariffs won’t hurt retail. I mean, that’s how you got very big moves, say in TJ, Walmart, Dollar General, Dollar Tree, maybe their stocks simply got too oversold, or the tariffs are now baked in the stocks. We just don’t know. But we do know that these retail stocks were rallying from the get-go this morning. They’ll definitely be hurt by tariffs. Every one of them.”
Dollar General (NYSE:DG) is a discount retailer that sells a wide variety of products, including everyday essentials, packaged foods, perishables, health and beauty items, pet supplies, seasonal goods, home products, and clothing for all ages. Artisan Partners stated the following regarding the company in its Q4 2024 investor letter:
“Turning to a discussion of full-year performance results, our biggest detractors were aforementioned Dentsply Sirona, Dollar General Corporation (NYSE:DG) and Cable One. Dollar General operates a chain of discount retail stores in the US. A combination of execution issues, competitive pressures and an increasingly constrained lower income consumer are hurting sales growth. Additionally, margins are under pressure due to labor costs, shrink and markdowns. Some of the issues are self-inflicted. After years of focusing on store growth to drive the top line, store standards have suffered. Addressing store standards is needed to turn around flagging traffic, comps and customer satisfaction. Additionally, its strategy to grow the share of sales that come from non-consumables hasn’t achieved its objectives as these products have tended to sit on store shelves, leading to more promotions and inventory write-downs. Turning the business around will take time, but the stock price is now back to 2016 levels, and multiple valuation metrics are the cheapest in the stock’s history.”
10. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) received a comment during the episode as Cramer said:
“There’s also seems to be a weird belief that somehow the tariffs won’t hurt retail. I mean, that’s how you got very big moves, say in TJ, Walmart, Dollar General, Dollar Tree, maybe their stocks simply got too oversold, or the tariffs are now baked in the stocks. We just don’t know. But we do know that these retail stocks were rallying from the get-go this morning. They’ll definitely be hurt by tariffs. Every one of them.”
Walmart (NYSE:WMT) is a retail corporation and it offers a wide range of products, such as groceries, health items, electronics, clothing, and private-label goods. During March 20’s episode of Squawk on the Street, Cramer commented:
“Uh, Klarna, takes the Walmart deal. We don’t even know what they had to give Walmart to get that from a firm. Less than five percent of a firm is a lot of comeback here… No, I’m saying that Walmart’s cheap and Amazon are cheap. And I don’t share the negativity when it comes to the vast number of people who trade.”
9. The TJX Companies, Inc. (NYSE:TJX)
Number of Hedge Fund Holders: 74
Cramer briefly talked about investor sentiment toward retail stocks and mentioned The TJX Companies, Inc. (NYSE:TJX) as he remarked:
“There’s also seems to be a weird belief that somehow the tariffs won’t hurt retail. I mean, that’s how you got very big moves say in TJ, Walmart, Dollar General, Dollar Tree, maybe their stocks simply got too oversold, or the tariffs are now baked in the stocks. We just don’t know. But we do know that these retail stocks were rallying from the get-go this morning. They’ll definitely be hurt by tariffs. Every one of them.”
TJX (NYSE:TJX) is a discount retailer. It offers a wide range of products, including clothing for families, home goods, jewelry, and more. Furthermore, it is worth noting that on March 14, Cramer said:
“You know TJX is about inventory. They all taught us that. And it’s really good to know. If they run out of inventory they do poorly. If they have a lot of inventory, they do well. But that means Kohl’s has to raise cash. And they’ll just, its a annuity for TJX. But the stock is down huge from where Kohl’s. . .that TJX is doing terribly yet TJX is a winner. In this particular instance. And I think that’s kind of emblematic of what I’m talking about where there’s nothing bad happening there but the stock just goes down continually.”
8. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 64
Discussing the possibility of cable TV offering better value, Cramer pointed out Warner Bros. Discovery, Inc. (NASDAQ:WBD) and said:
“Talk about strange leadership, an outfit called CouponCabin has put out a survey showing that cord cutting may finally be cooling. Now that ignited the stocks of Fox and Warner Brothers Discovery, big win. Big, big winners. The reason? Rising prices for streaming services means that cable TV is a better value. Makes sense and of course, there’s no tariff exposure. See the theme?”
Warner Bros. Discovery (NASDAQ:WBD) is a media and entertainment company. It produces and distributes films, TV shows, and streaming services. The company offers a broad range of content on different platforms. Longleaf Partners Fund stated the following regarding the company in its Q4 2024 investor letter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate WBD was a detractor in the quarter and the year. We exited our position during the quarter to reallocate capital to opportunities with stronger qualitative and quantitative characteristics. In retrospect, WBD represents an error of commission as noted above. Our original thesis did not fully account for the company’s leverage and growth challenges in its linear TV and studio businesses. Adding insult to injury, the stock price has gone up since our exit, fueled by rumours of a potential linear TV business deal with Comcast. While this development offers some validation of WBD’s strategic assets, it is tempered by significant insider selling following the recent stock price increase. Time will tell if our decision to sell was the right one, but our focus remains on seeking investments that are growing and on offense.”
7. Fox Corporation (NASDAQ:FOX)
Number of Hedge Fund Holders: 26
Cramer then came to Fox Corporation (NASDAQ:FOX) as he commented:
“Talk about strange leadership, an outfit called CouponCabin has put out a survey showing that cord cutting may finally be cooling. Now that ignited the stocks of Fox and Warner Brothers Discovery, big win. Big, big winners. The reason? Rising prices for streaming services means that cable TV is a better value. Makes sense and of course, there’s no tariff exposure. See the theme?”
Fox (NASDAQ:FOX) is a media company that produces and distributes news, sports, and entertainment content across various platforms. It also operates in the consumer finance marketplace and provides television and film production services. Appearing on Squawk on the Street in January, Cramer said:
“What’s interesting is that you told us a long time ago that Fox turned out to be a carve out winner. And I think that a lot of that’s management. They really know what. . . .they’re doing.”
6. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 53
Cramer highlighted that Chubb Limited (NYSE:CB) recently hit a “new all-time high” as he commented:
“The health insurers are all roaring too. Why? Because they’re domestic, very hard to tariff and they can go much higher… When you look at the regular insurance companies, think AIG, Travelers, and Chubb, they’re all winning and Chubb just hit a new all-time high. Now I think premiums can go higher and the insurers seem like a target poor environment for the President’s tariffs. The insurers, by the way, they’re not anybody’s friends that I know of. The White House doesn’t seem to mind though, so maybe they’re a buy.”
Chubb (NYSE:CB) provides a range of insurance and reinsurance products, including commercial, personal, agricultural, and life insurance, and also offers specialty reinsurance services. In December 2024, Cramer included CB among companies that hit $100 billion in market cap in 2024.
“It’s joined by Chubb Limited, the property casualty insurance kingpin, which was up 26%… The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”
5. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 52
Coming to insurance companies, Cramer took The Travelers Companies, Inc.’s (NYSE:TRV) name as he said:
“The health insurers are all roaring too. Why? Because they’re domestic, very hard to tariff and they can go much higher… When you look at the regular insurance companies, think AIG, Travelers, and Chubb, they’re all winning and Chubb just hit a new all-time high. Now I think premiums can go higher and the insurers seem like a target poor environment for the President’s tariffs. The insurers, by the way, they’re not anybody’s friends that I know of. The White House doesn’t seem to mind though, so maybe they’re a buy.”
Travelers (NYSE:TRV) offers property and casualty insurance products and services for both commercial and personal needs. Back in 2013, Cramer was bullish on the company as he said, “I would buy more. They’re the best. ” Since then, TRV stock gained over 153%.
4. American International Group, Inc. (NYSE:AIG)
Number of Hedge Fund Holders: 48
Discussing the rally in insurance stocks, Cramer pointed out American International Group, Inc. (NYSE:AIG) and remarked:
“The health insurers are all roaring too. Why? Because they’re domestic, very hard to tariff and they can go much higher… When you look at the regular insurance companies, think AIG, Travelers, and Chubb, they’re all winning and Chubb just hit a new all-time high. Now I think premiums can go higher and the insurers seem like a target poor environment for the President’s tariffs. The insurers, by the way, they’re not anybody’s friends that I know of. The White House doesn’t seem to mind though, so maybe they’re a buy.”
American International Group (NYSE:AIG) provides various insurance products, covering commercial, industrial, personal, and specialty areas. The company also offers financial services like loans and insurance for high-net-worth individuals.
3. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 74
Cramer commented on CVS Health Corporation (NYSE:CVS) and said:
“The health insurers are all roaring too. Why? Because they’re domestic, very hard to tariff and they can go much higher if you want to avoid the tariff shroud. CVS, which owns Aetna, moved up against Cigna’s running.”
CVS Health (NYSE:CVS) provides various healthcare services, such as insurance, pharmacy management, and pharmaceutical products. It also offers consulting services to healthcare organizations. Hotchkis & Wiley stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q4 2024 investor letter:
“CVS Health Corporation (NYSE:CVS) is a diversified healthcare company operating a Pharmacy Benefits Manager, health insurer, and retail stores and pharmacies. CVS underperformed in Q4 largely because of underperformance in the Aetna business due to unexpectedly higher costs, as well as the aforementioned decline in valuations across the peer group. Health insurance is a business that reprices yearly, so CVS should be able to recover its higher costs and restore margins within a year or two.”
2. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 89
Recently talked about how the financial sector is doing well, Cramer mentioned Capital One Financial Corporation (NYSE:COF) and pointed out that banks could benefit from the current administration, as there may be no new tariffs on them and possibly fewer regulations. He mentioned that it could make things easier for banks and help them grow. He added:
“Okay, continuing with this theme of financial deregulation, we’re hearing that the very contentious deal where Capital One slated to buy Discover Financial, it looks like it might close. It’s been taking forever. There’s supposed to be some regulatory resistance by the Department of Justice, but the risk of the deal not closing seems now greatly diminished. All of that will be used for Capital One, which I think could easily go up 25 points once the acquisition closes. That’s what we’ve been telling people who subscribe to the CNBC Investing Club. Now we believe Capital One, no matter what goes, it does fine, and again, the positive action here says the tariffs aside, there’s a lot Trump could do that could allow entire segments of the market to zoom higher. The Walmart White House where we get everyday lower prices for stocks, maybe it’s going to spare the financials.”
Capital One (NYSE:COF) is a financial services company that offers a variety of products, including credit cards, loans, banking services, and solutions for advisory and capital markets.
1. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 96
Wells Fargo & Company (NYSE:WFC) was mentioned during the episode, and here’s what Cramer had to say:
“I spied the financials as being good. Wow, what’s that all about? I think we may be going along the route that says there will be no tariffs on the banks and the banks could soon be less regulated under this administration. Just this morning, Morgan Stanley talked about how Wells Fargo could be a huge winner if it finally sheds the darn asset cap implemented back in the early days of 2018…. If you read the piece, you’d think that the stock is just screaming by. It had me from the first line, ‘It’s a new era for bank regulation.’
Morgan Stanley said that once the asset cap is gone, it will allow Wells Fargo, which we own for the Charitable Trust, to put up better loan growth, better trading revenues, and lower expenses. Wow. I think that this piece was a bit of a life raft in the Atlantic. A note that says, ‘Hey, look at me, look at me. Remember the president said, there’ll be less regulation? Now it’s gonna happen. Hey, hey.’ Sure enough, Wells Fargo went up and it took the other big banks along with it.”
Wells Fargo & Company (NYSE:WFC) is a global financial services firm that provides a variety of banking, investment, mortgage, and financial solutions.
Overall, WFC ranks first among the 12 stocks Jim Cramer recently highlighted. While we acknowledge the potential of WFC, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WFC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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