On Wednesday, Jim Cramer, the host of Mad Money, shared his thoughts on the volatile trading day, pointing out that President Donald Trump’s actions are reshaping how investors assess stocks. Cramer highlighted that before Trump came into the office, his method of evaluating a stock was looking at its price, earnings, revenues, and gross margins.
“Now, though, I start with a simple question: Can President Trump hurt the stock? Can he damage it with an offhanded comment? Can he crush it in anger? And most important, does the price-to-earnings multiple make sense in this new world in light of the president’s love of tariffs and total hostility to the way this country’s been running the past, not to mention many of our country’s friends?”
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Cramer specifically pointed to the automotive industry as a significant example of how Trump’s approach to trade has shifted the dynamics of the market. He recalled how the North American Free Trade Agreement (NAFTA) was originally created, partly to protect the U.S. auto industry from the influx of low-cost imports from countries like Japan and South Korea.
“Without NAFTA, auto companies couldn’t compete against the flood of imports from Japan and South Korea, which only have a 2.5% tariff on them. The tariffs President Trump slapped on American companies that import products from Mexico or Canada, 10 times that.”
Cramer also acknowledged that the recent pause in tariffs for the auto industry caused a brief surge in market activity, which led to some unpredictability in stock movements. However, he noted that if automakers are forced to either pay the hefty tariffs or shift their production to the U.S., replacing inexpensive labor in Mexico with higher-cost union labor, their earnings could face a sharp decline. Cramer speculated that such a scenario could result in a significant cut in earnings, though he hoped the impact would not be as severe.
“Here’s the bottom line: This market is fiercely trying to revalue stocks because of the president’s comments. And we do it day after day after day because he’s always making so much news. So it’s been doing a poor job and that’s created a ton of opportunities for you to both buy and sell and I say you take them right away.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 5. 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 Looked At These 11 Stocks Recently
11. Shift4 Payments, Inc. (NYSE:FOUR)
Number of Hedge Fund Holders: 38
A caller asked Cramer’s thoughts on Shift4 Payments, Inc. (NYSE:FOUR) and his answer was:
“Yeah, you know, people didn’t like that last quarter. I, I agree with you… I think it’s a remarkable company. It’s just that the payment space is very crowded. Go ask PayPal. So you, what you’re, what you’re hoping for is that the payment space gets less crowded, less crowded. I don’t know if it can do that. So it’s a tough space.”
Shift4 Payments (NYSE:FOUR) offers a variety of payment processing and software solutions, including a platform for omnichannel card acceptance, mobile wallets, and alternative payment methods. It also provides technology tools such as POS systems, business intelligence software, and e-commerce platforms for managing sales, inventory, and customer engagement. Interestingly enough, in November 2023, Cramer commented:
“Now there are so many companies that take care of payments and when interest rates were going higher, the market hated every one of them. But when rates go lower, we’re suddenly enamored to… what feels like a totally homogenized group of stocks. Even as the one company has shown a great flare and that is Shift4 Payments. Yeah, Shift4 Payments, up nearly 48% for November. How do you like that? Shift4 Payments.”
10. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 80
RTX Corporation (NYSE:RTX) provides a wide range of systems and services for commercial, military, and government sectors, focusing on aircraft engines, aerospace technologies, and advanced threat detection capabilities. When Cramer was asked about the stock, he said, “You are buying it right. Keep it. It’s a fantastic stock. I wish I owned it for my Charitable Trust.”
Longleaf Partners Fund stated the following regarding RTX Corporation (NYSE:RTX) in its Q4 2024 investor letter:
“RTX Corporation (NYSE:RTX) – Aerospace and defense company RTX was a top contributor for the year. Our appraisal value has grown nicely since we first purchased the company just over a year ago. While the issues for Pratt & Whitney’s (P&W) Geared Turbofan engine are still not yet fully fixed, they have gotten better and given us another reminder that the point of maximum pessimism is only obvious in retrospect. We continue to have a conservative valuation on P&W so view this as a source of future value upside. The Raytheon segment has also performed better as the year has gone on, with recent signs of margin improvement. Strong industry tailwinds, prudent capital allocation and a solid balance sheet provide a foundation for sustained growth and eventual full value recognition.”
9. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 36
During the lightning round, a caller asked what Cramer thought about the cyclical recovery in commodities amid the tariff talks, especially Albemarle Corporation (NYSE:ALB). Here’s what Cramer said in response:
“I can’t go, I can’t go with it. I can’t go. I’ll tell you why I can’t go with it because in the end we, I, we forgot about EVs. I mean like, you know, we like, pretty soon, we’re going to be like buying gas guzzlers. I want to stay away from that one, but so does everybody else. That’s the only problem.”
Albemarle (NYSE:ALB) offers a range of energy storage and specialty chemical solutions, including lithium compounds for batteries, specialty chemicals like bromine and lithium solutions, and clean fuels technologies. It is worth noting that Cramer has been bearish on the company before as evidenced by the comment he made in August 2024:
“Yeah, it’s a good lithium miner, but a business that we don’t want to be in. I mean this is just an EV. EVs are not ready yet. There aren’t enough charging stations, a lot of other different issues. So we’re gonna steer clear of Albemarle.”
8. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 59
A caller mentioned that they liked United Parcel Service, Inc.’s (NYSE:UPS) cost management strategies and asked if the stock could go higher. Cramer replied:
“I think that I question their strategy and I certainly, I do not question the strategy of another stock that’s down a lot, which is FedEx. That’s the one I’d be buying and that’s Raj Subramaniam is doing a remarkable job. FDX stock’s up today. I think it’s the beginning of a big move. UPS, challenged.”
United Parcel Service (NYSE:UPS) is a major logistics and package delivery company and provides a variety of services including transportation, distribution, contract logistics, ocean and air freight, customs brokerage, and insurance. The company released its full-year 2024 consolidated results on January 30.
United Parcel Service (NYSE:UPS) reported a total revenue of $91.1 billion for the year, with an operating profit of $8.5 billion and an operating margin of 9.3%. The company also saw diluted EPS reach $6.75. Cash flow from operations amounted to $10.1 billion, while the non-GAAP adjusted free cash flow was reported at $6.3 billion.
7. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 64
A caller asked what the play for Palantir Technologies Inc. (NASDAQ:PLTR) is as other players move into its space. Cramer replied:
“Alright, Palantir. Don’t get in front of that swing on the short side. The, the meme guys are pushing it up every day. They push it up in the morning. They usually start around 3:30. I get up earlier than they do so I watch them do it and it’s just, it blossoms each day. What a blast. The manipulation’s incredible but you know what, in the new regime, it’s just called solid buying.”
Palantir (NASDAQ:PLTR) develops software platforms focused on data integration and decision-making, serving government, intelligence, and commercial clients. Its products, including Gotham, Foundry, Apollo, and the Artificial Intelligence Platform, help organizations manage and analyze large datasets. On March 5, William Blair upgraded the stock from Underperform to Market Perform, citing valuation after a 33% drop in shares from $125 to $84 in the last three weeks due to a “DOGE-driven selloff.”
While the firm’s valuation remains high, with risks of over 40% downside from potential delays in government contracts, the analyst noted some positive developments. Blair suggested that if the market shifts back to a risk-on mode, the stock could return to its previous peak. However, the firm expects the shares to remain range-bound over the next year, with continued volatility due to various factors, including the potential for a government shutdown on March 15, which could exert additional downward pressure.
6. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 111
A caller asked if Cramer was still high on GE Vernova Inc. (NYSE:GEV) and here’s what he said in response:
“Yes, I am. I’m high on GE Vernova. I’m high on GE Aerospace. And if that dog, GE Healthcare would stop giving up the gains that it has, we own that for the trust, I’d be higher on that one too.”
GE Vernova (NYSE:GEV) is an energy company that provides products and services related to the generation, transfer, and storage of electricity, including gas, nuclear, wind, and solar technologies, as well as grid solutions and electrification software. In January, Cramer said:
“Now GE Vernova is a beloved company, the hottest one with momentum traders can’t get enough of it precisely because it makes the turbines and windmills, … that you need to power all those new data centers. He appointed Scott Strazik to run what became GE Vernova. The stock started trading independently at $141 about 10 months ago. Now it’s at $383. Oh and don’t forget, it’s also gonna be the company that builds small modular nuclear plants that everybody loves so much.”
5. Foot Locker, Inc. (NYSE:FL)
Number of Hedge Fund Holders: 35
Foot Locker, Inc. (NYSE:FL) was discussed during the episode, and here’s what Cramer had to say about the company:
“Of course, these days we see all sorts of wholesale revisions and no one knows how to value them either. This morning Foot Locker reported a terrific quarter, much better than expected. As CEO Mary Dillon’s turnaround plan takes hold, aided by Nike’s attempts to repair its relationship with actual shoe stores, nobody cared, too much ennui. Under the previous CEO, Nike, Nike didn’t really care for Foot Locker.
They wanted more of an emphasis on direct-to-consumer. It was stupid. That didn’t work out but Elliot Hill, the new CEO, is working very closely with Foot Locker, so is On Holding, so is Deckers, the owner of UGG and, and HOKA, so is Adidas… but people were way too gloomy to even note the same-store sales improvement this morning. That’s nonsense. I think it’s a genuine winner. I can go on and yes, despite all these positives, the stock only gained 89 cents because things are being valued incorrectly.”
Foot Locker (NYSE:FL) is a retailer specializing in footwear and apparel, offering a variety of brands such as Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos, each catering to different customer segments with a focus on athletic footwear and apparel.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
Cramer highlighted Intel Corporation (NASDAQ:INTC) as potentially the biggest beneficiary of the previous administration’s CHIPS Act, which aimed to boost domestic semiconductor manufacturing. He noted that under the leadership of former CEO Pat Gelsinger, the company received a substantial grant of $7.86 billion to support its expansion efforts in the United States. He added:
“He’s gone but the expansion plan he set up is still on, albeit in a curtailed way. Now, we can’t tell how much of the grant will actually go to Intel, except that it’s already took in $1.1 billion last year, another $1.1 billion this year. Even if it hits all of its benchmarks though, a big if, I wonder if the rest of the money will still be there.
We can’t tell if Intel’s gonna get any more money from the government, but the company needs it badly. Intel has $46 billion in long-term borrowings. We keep hearing that there’s a lot of interest from buyers for a stake and they’re more about Altera division, I’ll believe it when I see it. But honestly, it’s shocking that Intel’s stock isn’t down even more here. It fell only 52 cents today after that speech last night.”
Cramer pointed out that, with many of the expansion plans seemingly falling apart and the president furious over the situation, Intel (NASDAQ:INTC) is in a position where it urgently needs to find a way to reconcile with the administration. He went on to say:
“Maybe Trump will help get them a partner to see them through this… I think the stock’s way too expensive here at $20 and change after last night’s speech, just being valued wrong. Talk about being in the crosshairs. Intel’s now ground zero for the end of government largesse, especially after Taiwan Semi committed $100 billion to build semiconductor foundries here in America, and that brings a total of $165 billion, they made a previous commitment. Who the heck needs Intel?”
Intel (NASDAQ:INTC) creates and produces computing products such as processors, memory, and AI solutions.
3. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 53
Discussing BlackRock, Inc. (NYSE:BLK) during the episode, Mad Money’s host said:
“Now, how about one that makes no sense to me? On the upside, we own BlackRock for the Charitable Trust… It’s been trying to crack into infrastructure. It hadn’t really done anything. Well, wait a second, CEO Larry Fink had a brilliant idea. Trump wants the Panama Canal back. You know there are ports on either side and they’re owned by a Hong Kong-based company that were for sale. And well, Fink wanted them. The company CK Hutchison wanted to sell these two and 41 others. Why not buy them, put them in through that new infrastructure portfolio that Fink bought?”
Cramer pointed out that while others had similar ideas, Larry Fink, the CEO of BlackRock (NYSE:BLK), successfully acquired the properties, positioning the company with what he called the premier infrastructure product in the world. Cramer noted that this acquisition, combined with Fink’s recent purchase of Global Infrastructure Partners, could lead to significant returns for both BlackRock and its investors. He added:
“Fink kept Trump up all the whole way. Trump obviously loved the deal. Doesn’t hurt that he praised the Panama Canal last night. These BlackRock shares, what they do, well, they’re still down 5% for the year and, and way below where the company traded after its last good quarter. It’s ridiculous. I think BlackRock stock is worth much more than it’s selling for. We’re buying it for the trust.”
BlackRock (NYSE:BLK) is an investment management company recognized for offering risk management, advisory services, and a wide range of investment products, such as mutual funds, ETFs, and hedge funds, across multiple asset classes.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 68
Cramer started by addressing what he described as the market’s apparent clairvoyance, noting that General Motors Company (NYSE:GM) has one of the lowest price-to-earnings ratios in the stock market. He pointed out that the company’s P/E ratio stands at just 4.3 times earnings, a stark contrast to the average P/E ratio of around 22 times earnings for S&P 500 stocks. He added:
“Ford and GM look like the single greatest bargains in the world. Ford pays a… 6.2% yield. General Motors, has one of the most voracious buybacks I’ve ever seen. Both seem incredibly cheap, at least until this tariff stuff started… Aha. Suddenly we know why those stocks look so cheap is because their future earnings are in grave danger. Turns out Ford and GM could be ridiculous value traps. While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda along with Kia and Hyundai. A 25% tariff on imports from Mexico is basically a subsidy for those companies. Look out for big earnings cuts that will make the PE multiples go from, seem from very small to very large, making the stocks’ true colors come to life.”
General Motors (NYSE:GM) designs, manufactures, and sells a variety of vehicles and automobile parts, including trucks, crossovers, and cars, under several brand names like Buick, Cadillac, and Chevrolet. The company also provides financial services through GM Financial and operates in various market segments.
1. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) was mentioned during the episode and here’s what Cramer said:
“Let’s tackle first the market’s brilliant clairvoyance and I’ve been perplexed by the fact that Ford and General Motors have some of the lowest price-to-earnings ratios in the entire stock market… 7.3 and 4.3 times earnings, respectively. 4.3, remember the average stock of the S&P 500 trades at roughly 22 times earnings. Ford and GM look like the single greatest bargains in the world. Ford pays a… 6.2% yield. General Motors, has one of the most voracious buybacks I’ve ever seen.”
Cramer warned that Ford’s (NYSE:F) stock, which initially appeared undervalued, may be a value trap due to the risks posed by tariff issues that could threaten the company’s future earnings. He added:
“While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda along with Kia and Hyundai. A 25% tariff on imports from Mexico is basically a subsidy for those companies. Look out for big earnings cuts that will make the PE multiples go from, seem from very small to very large, making the stocks’ true colors come to life.”
Ford (NYSE:F) focuses on the design, production, and maintenance of various vehicles, including trucks, cars, vans, SUVs, and luxury models, offered under the Ford and Lincoln brands.
While we acknowledge the potential of Ford Motor Company (NYSE:F) 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 F but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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