In this article, we will take a detailed look at: Jim Cramer is Talking About These 10 Important Stocks.
Jim Cramer in a latest program talked about the latest market volatility and said using too many AI algorithms, data points and correlations could be useful for short-term traders but for investors, these tools could blur your long-term vision.
“I think as investors we’re putting on mental shackles if we behave like this. Remember back in my hedge fund, our whole goal was day trading, was to scalp pennies from the flow. That’s a lot of risk for not much reward. It’s better to zero in on dollars for the big picture. That’s what I want you to do.”
Jim Cramer said that the market is currently oversold and this happened twice before in 2024. These moments, according to Cramer, proved to be some of the best entry points to pile into stocks in hindsight.
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article we watched Jim Cramer’s recent programs and listed some of the stocks he commented on. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. RH (NYSE:RH)
Number of Hedge Fund Investors: 39
Discussing home furnishing retailer RH (NYSE:RH) latest quarterly results, Jim Cramer praised the company’s CEO Gary Friedman:
“I would tell you that in a market where the worst housing markets in three decades have been pulled off, there’s finally a lot of his European expansion that’s good. In America, it’s been turning well ahead of where I thought it was going to be even last quarter. My hat is off to him. There’s a gigantic short position now, some of it’s set to convert, but Gary bought so much stock, and people just felt he was rolling the dice. But Gary knew his business, and I think he’s a delight. I think he’s a competitor like none other, and congratulations.”
RH (NYSE:RH) revenue in the recently reported quarter rose year over year while the company saw a 120.9% surge in adjusted operating income. During the earnings call, management disclosed that RH gained market share by 15-25 basis points in Q3 and expects to achieve another 25-45 basis points in gains during Q4. The housing market remains weak, so how was the company able to pull this off? The company is expanding to new products to support its outlet business and successfully launching new categories for baby, child, and teen products. RH anticipates that their contract, outlet, baby & child, and teen businesses will continue to drive business growth in FY25.
Polen U.S. Small Company Growth Strategy stated the following regarding RH (NYSE:RH) in its Q3 2024 investor letter:
“We exited four positions during the quarter, including SiTime, AppFolio, RH (NYSE:RH), Doximity, and Alight. We sold our position in furniture retailer RH due to our concerns over the company’s higher-than-average leverage in an uncertain economic environment. We also see the long-term growth outlook as less clear as the U.S. market matures and international expansion is nascent. We do not believe the valuation reflected this risk and envisioned opportunities for better returns elsewhere.”
9. Palantir Technologies Inc (NASDAQ:PLTR)
Number of Hedge Fund Investors: 43
Jim Cramer in a recent program commented on Palantir’s latest quarterly results:
“Palantir Technologies Inc (NASDAQ:PLTR) reported one of the best quarters of the year, showed fantastic growth and gross margins—growth and gross margins together, that is fabulous. They are excelling with federal contracts, including some important work for the Pentagon. They tend to win almost everything they tender for. They also have a great commercial group, but I like their defense work. It’s what I used to call a total up stock.”
That’s a shift from Cramer’s earlier views, in which he expressed his frustration over the lack of visibility into its business and called PLTR a meme stock.
“Palantir Technologies Inc (NYSE:PLTR) is a cold stock. It is a meme stock. It is a stock that has momentum because individual investors keep piling into it. It is not really even a stock; it is just a barometer of enthusiasm for some business that may or may not be doing well. I wish there were more to it,” he said a couple of months back.
What makes Palantir Technologies Inc (NYSE:PLTR) one of the top AI stocks? Its technologies are actually solving the problems of businesses. Palantir’s data technology Ontology is solving the famous hallucination problem for AI systems, thanks to the company’s years of experience with military and defense systems. Earlier this year at an event with customers, Palantir Technologies Inc (NYSE:PLTR) shared some specifics on how its customers are being able to reduce costs and increase profits due to its artificial intelligence platform (AIP) that was launched about a year ago.
Airbus accelerated A350 production by 33%, BP reduced costs per barrel by 60%, and Jacobs Connect cut power usage by 30%. Panasonic decreased waste by 12%, ESI Group sped up ERP harmonization by 70%, and PG&E reduced transformer ignitions by 65%. Eaton boosted productivity by 25%, while Tyson Foods achieved $200 million in cost savings.
Fidelity Growth Strategies Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q3 2024 investor letter:
“Untimely ownership of Palantir Technologies Inc. (NASDAQ:PLTR) (+47%) also hurt the fund’s relative result. This software and services firm, which operates in both government and commercial segments, saw strong growth during the quarter, largely driven by its “AIP” – or Artificial Intelligence Platform – offering. In early August, the company reported Q2 financial results that mostly met somewhat lofty expectations. We established a sizable holding in Palantir Technologies during the quarter, and at quarter end it was the second-largest position and a slight overweight.”
8. Chevron Corp (NYSE:CVX)
Number of Hedge Fund Investors: 63
Cramer in a latest program said the following about Chevron while talking about the impact of Donald Trump’s victory in the election on stocks:
“He’s not going to send the stock of Chevron Corp (NYSE:CVX) up when he says that there’ll be much more oil production that it’ll make up for whatever inflation we have in the system. We know that oil executives’ stocks get clobbered when they overproduced during Trump’s first Administration. They eventually got disciplined about pumping, but the results didn’t kick in until the Biden Administration. Yes, ironically, the oils thrived during the Biden regime, which was sincerely hostile to fossil fuels, especially with that moratorium on approvals of new liquefied natural gas exports.”
Carillon Eagle Growth & Income Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its Q3 2024 investor letter:
“Chevron Corporation’s (NYSE:CVX) lagging performance was tied to a combination of weaker than expected second-quarter earnings and the delay of a much-anticipated merger with a global independent energy company. Performance during the quarter was largely related to the timing of outages and maintenance at several locations, which are shorter-term issues. While the pending merger looks attractive, prior expectations had the deal closing in 2024. It is now more likely to close in mid-2025.”
7. Linde PLC (NASDAQ:LIN)
Number of Hedge Fund Investors: 63
Jim Cramer in a latest program on CNBC said the following about Linde plc (NASDAQ:LIN):
“I mean, Linde plc (NASDAQ:LIN) in the end is an industrial company, and Industrials do go up when rates go down. You’re right. Look, the stock’s been weak this year; it’s not what I want. However, it’s been a great long-term producer. And let’s remember that this company has not had the luxury of having any volume growth yet—that’s going to happen in 2025. Stay long Linde PLC (NASDAQ:LIN), just like we do for the travel Trust.”
Mar Vista Global Strategy stated the following regarding Linde plc (NASDAQ:LIN) in its Q3 2024 investor letter:
“Linde plc (NASDAQ:LIN) is the world’s largest, global industrial gas producer. The company enjoys the highest profit margins and returns on capital in the industry. Linde’s primary products are atmospheric gases and process gases. Industrial gases have benefitted from secular growth trends in decarbonization and carbon sequestration. Moreover, the opportunity in blue and green ammonia and hydrogen are substantial. Projects in these areas are quickly being added to its backlog for future growth. We see these secular trends as long-term positives for Linde and the entire industrial gas industry.
Linde believes it can grow its volumes with new applications; the buildout of small, on-site plants using its technologies; and focusing on growing geographies such as India, Malaysia, Vietnam, China and Brazil. Despite the long-term growth opportunities, recent demand trends have slowed due to weak global industrial production and a challenging year-over-year comparable. Among the regions, the U.S. remains resilient, with volumes flat to slightly negative. Europe, Latin America, the Middle East, and China are all sending mixed to negative economic signals. We believe these slower trends are transitory in nature, providing an opportunity to purchase shares in Linde at attractive prices.”
6. PayPal Holdings Inc (NASDAQ:PYPL)
Number of Hedge Fund Investors: 90
Jim Cramer in a latest program yet again praised PayPal Holdings Inc (NASDAQ:PYPL) CEO Alex Chriss and recommended investors to buy the stock if it pulls back:
“If this stock comes down, you want to buy it because he’s (Alex Chriss) fixing PayPal Holdings Inc (NASDAQ:PYPL), and they’ve got a big February analyst meeting. You’re going to see how much he’s fixed. It was a company that was despised in the end by Wall Street because of a lot of overpromising and underdelivering. This man has had to apologize for much of what happened under the previous regime, but he’s about to go on the offense.”
PayPal Holdings Inc (NASDAQ:PYPL) CEO Alex Chriss is opening new growth horizons for PayPal Holdings Inc (NASDAQ:PYPL) beyond just a way to send or receive money. Thanks to his vast experience with small businesses at Intuit, he is integrating valuable features for customers and merchants to boost small business activity on the platform.
What are these features?
PayPal Holdings Inc (NASDAQ:PYPL) Fastlane offers a seamless checkout experience for customers by storing their data after the first purchase, making future transactions faster. Merchants benefit from higher conversion rates, with tests showing guest conversion jumping from 40-50% to around 80%. Fastlane also speeds up the checkout process by 32%, boosting customer satisfaction. PayPal Holdings Inc (NASDAQ:PYPL) charges merchants a fee for this service, which merchants find worthwhile given the increased conversions.
PayPal Holdings Inc (NASDAQ:PYPL) is also benefiting from its partnerships with companies like Meta, Salesforce, and Adobe. Its PayPal Complete Payments Platform (PPCP) has seen a 40% rise in SMB volume this year, thanks to new merchant integrations.
The company is also launching PayPal Holdings Inc (NASDAQ:PYPL) Ads, a high-margin opportunity that leverages its ecosystem of over 429 million active users. The platform allows merchants to target ads more effectively, increasing their return on investment.
PayPal has also dabbled into cards, with its debit card offering 5% cashback and integration with Apple Wallet. Recent European regulations also allow PayPal Holdings Inc (NASDAQ:PYPL) to use Apple’s NFC technology for contactless payments, enhancing its reach in international markets, especially in Europe where such payments are popular.
PayPal Holdings Inc’s (NASDAQ:PYPL) cash sits at about $14 billion, and long-term debt stands at only $9 billion.
Broyhill Asset Management stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2024 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL). We owned shares in PayPal based on its dominant position in the digital payments industry paired with its reasonable valuation. Following the recent share appreciation on the heels of the rollout of Fastlane, a product whose growth trajectory we see as unclear, we decided to step aside. We exited the position in September.”
5. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
Talking about Tesla Inc’s (NASDAQ:TSLA) spectacular stock performance on the back of the Trump rally, Cramer said the following in a latest program on CNBC:
“Elon Musk may be the second most important man in America; he may be the most important. As long as he stays tight with Trump, sure, Tesla issued a new software update today, and some people actually talked about that. But everyone knew it was coming. People have been buying this stock because they’ve realized that Musk has the president’s ear, and his loyalty will likely be returned with good news for Tesla Inc (NASDAQ:TSLA), especially the self-driving business. To me, it seems very transactional.”
A few weeks ago, Cramer explained why he believes buying Tesla stock just because of the Trump factor isn’t a very good idea. Read his analysis here.
The Trump factor has eclipsed Tesla’s fundamental weaknesses that were impacting the stock price before the Don’s win. The Tesla Robotaxi event disappointed investors. Notably absent was the discussion of a “more affordable” model that Musk had previously mentioned to boost confidence in Tesla’s vehicle sales growth outlook.
There is a lot of hype around Tesla Inc (NASDAQ:TSLA) robo taxis but many believe they will not be enough to fix the company’s long-term challenges.
What are these challenges?
Tesla Inc’s (NASDAQ:TSLA) product lineup is showing signs of stagnation, with over 95% of sales still coming from the Model 3 and Model Y. Meanwhile, competitors are rolling out more advanced models. Even Rivian’s CEO suggested Tesla Inc (NASDAQ:TSLA) could be nearing market saturation for these models. According to Reuters, Tesla’s market share in Europe is slipping as legacy automakers like BMW post stronger sales. Chinese competitor BYD is also gaining ground in Europe, despite talk of tariffs.
Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q3 2024 investor letter:
“The largest relative detractors during the quarter were Apple, Airbnb, and Tesla (not owned). We’ve spoken at length about our rationale for not owning Tesla, Inc. (NASDAQ:TSLA). In short, the market seems to be pricing in a lot of positive optionality for this company in the near-to-intermediate term (and particularly a fully autonomous fleet of electric vehicles in the medium term). What exists today is an automobile manufacturer limited to the higher-income segment that is increasingly challenged to sell vehicles when interest rates are not zero. We continue to question the company’s long-term growth profile and governance.”
4. Adobe Inc (NASDAQ:ADBE)
Number of Hedge Fund Investors: 123
Jim Cramer said the following about Adobe in a latest program while discussing the impact of Donald Trump’s victory in the election on stocks:
“Trump’s pro-Business attitude won’t matter every day. There’s no way the president can expand the gross margins for Adobe Inc (NASDAQ:ADBE) or tell you to ignore the guidance for the next quarter, which was perceptibly weaker. This sent the stock down 75 points or 13%. If either ask for lower prices to compete or come up with something that makes it clearly superior to its rivals, no amount of presidential optimism is going to fix that.”
Parnassus Core Equity Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:
“Also in the Information Technology sector, we exited a position in Adobe Inc. (NASDAQ:ADBE) and initiated a new one in Synopsys. Adobe is contending with market cyclicality, rising competition and lofty AI monetization expectations that are unlikely to be met in the near term. We sold Adobe for Synopsys, which faces fewer competitive threats and has room to grow as companies adopt Synopsys software for custom semiconductor design.”
