We recently published a list of Jim Cramer Recently Talked About These 12 Companies. In this article, we are going to take a look at where Discover Financial Services (NYSE:DFS) stands against other stocks that Jim Cramer discussed recently.
Jim Cramer, host of Mad Money, warned investors on Friday that until there is more clarity regarding the tariff situation, they should brace for continued volatility. His comments followed a day where President Trump suggested that he might be open to flexibility regarding tariffs, leading to a modest rise in the markets.
“After an okay day where President Trump indicated that he might be willing to be flexible in the tariffs, a day where the Dow ultimately gained 32 points, the S&P advanced 0.08%, and then Nasdaq rose 0.52%. After a hideous opening, that made little sense. How do we handle this crazy environment? One way is to get out of the office as we did this week and talk to real business people.”
READ ALSO: Jim Cramer’s Game Plan: 9 Stocks in Focus and 9 Stocks on Jim Cramer’s Radar
Cramer went on to explain that although there are real bargains to be found in the market, investors are hesitant to take advantage of them due to a prevailing sense of fear driven by analysts, hedge funds, and journalists. He pointed out that this fear has been exacerbated by talk of a stagflation scenario.
While Cramer himself disagrees, he mentioned that this is a glass-is-half-full scenario, if not more. He expressed confidence that the tariff issue will eventually be resolved, and when it is, investors will likely be able to move forward without that overhang.
“You can see that stocks want to go higher. If we get just a little bit of a reason to be more positive about the looming April 2nd wave of tariffs, stocks can bounce. It doesn’t even have to be much.”
On Friday, during a midday press appearance from the Oval Office, President Trump used the word “flexibility” when discussing tariffs, stating, “The word flexibility is an important word. Sometimes it’s flexibility. So there’ll be flexibility, but basically it’s reciprocal.” Cramer admitted that this statement did not provide much new clarity, but noted that the market seemed to respond positively to the mention of flexibility. He personally shared that he likes the idea of flexibility as well.
“After all of the major averages were decidedly negative this morning, all then finished in positive territory proving once again that there is too much gloom.”
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 21. 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).
A business professional in a suit swiping their credit card at the store.
Discover Financial Services (NYSE:DFS)
Number of Hedge Fund Holders: 91
A caller expressed uncertainty about Discover Financial Services (NYSE:DFS) in light of recent events, including the company’s and Capital One’s potential merger. Cramer commented:
“I’m betting that Capital One merger’s going to work. I know that there are a lot of people who this week said bad things about the merger. They thought the Justice Department was going to be able to block it. I’m sticking with Capital One, which means I’m sticking with DFS. I think the deal’s going to occur. I could be wrong, but I’m gonna, but I believe that the likelihood is that it does pass.”
Discover Financial Services (NYSE:DFS) provides a variety of digital banking products, credit cards, loans, and payment services. It also operates payment networks for debit and electronic funds transfer, along with merchant acquisition and transaction processing services.
Overall, DFS ranks 4th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of DFS 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 DFS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
