We recently published an article titled Jim Cramer Discussed These 7 Stocks. In this article, we are going to take a look at where e.l.f. Beauty, Inc. (NYSE:ELF) stands against the other stocks Jim Cramer recently talked about.
Jim Cramer, the host of Mad Money, recently shared valuable investing lessons drawn from his 40 years of experience in the field. He noted that he often emphasizes the importance of discipline over conviction, repeating this message regularly on his show.
“I am constantly on this show telling you that discipline always trumps conviction. I tell it to you over and over and over again. In other words, no matter how much you may love a stock, no matter how enthralled you are with the underlying story, if the rules say sell, you sell it.”
READ ALSO: 11 Stocks on Jim Cramer’s Radar and Jim Cramer Said These 13 Stocks Can Hold Their Value Amid Tariffs
Cramer also highlighted one of his fundamental investing rules: “Bulls make money. Bears make money. Pigs, well, they get slaughtered.” He explained that this phrase serves as a reminder, especially when stocks rise sharply, and investors become overly confident in their gains. Cramer observed that, too often, people get intoxicated by their profits and start believing they are invincible. However, it is precisely at that point of overconfidence that caution is most needed, as acting like a pig can lead to significant losses. He then said:
“Just to be clear, bulls don’t have a monopoly on piggishness. The same idea applies to investors who press their bets too shortly, too aggressively on the short side.”
He pointed out that the same principle applies to those who aggressively short stocks. He explained that while there have been significant market declines, such as the dot-com crash of 2000 and the financial crisis of 2008-2009, most stocks tend to recover fairly quickly. Even during the Fed-induced market downturn in late 2021, those who remained too committed to short positions for too long ended up facing painful losses. By the fall of 2022, markets had rebounded, and those who had not adapted to the changes were left with nothing.
“Why is this rule so important? Simple. One of my chief goals is to help you stay in the game. You know that’s the hardest part of investing. It’s holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what’s happened in the stock market for, for a century.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 24. 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 close up of the lip and eye products from the company on a model in a fashion and beauty shoot.
e.l.f. Beauty, Inc. (NYSE:ELF)
Number of Hedge Fund Holders: 35
A caller asked if they should hold or sell e.l.f. Beauty, Inc. (NYSE:ELF) and Cramer replied:
“Oh my, I got to tell you, down 40%, everyone’s decided that it doesn’t work anymore. It’s got tariffs, blah, blah blah. I am not gonna sell Tarang Amin down 40%, that doesn’t mean I’m gonna buy, but I am not gonna sell it. That’s crazy. People hate it. Let’s just wait. Wait, don’t bite. Not yet.”
e.l.f. Beauty (NYSE:ELF) provides a diverse range of beauty and skincare products through several brands, including e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare. In early February, amid tariff concerns, Cramer commented on the company as he said:
“Yeah, well it’s gonna report… They make this stuff in China is real bad and it’s gonna hurt the profit margin and we got to hear what they’re gonna have to say. I have to tell you, I’m very uncomfortable buying something that is all sourced in China given the fact that we don’t know what the president’s going to do if China doesn’t play ball.”
Overall ELF ranks 5th on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of ELF 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 ELF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
