We recently compiled a list of the Jim Cramer and Analysts Like These 10 Stocks. In this article, we are going to take a look at where KKR & Co. Inc. (NYSE:KKR) stands against the other stocks.
Jim Cramer, the host of Mad Money, recently shared important lessons from his four decades of experience in the world of investing in an episode on March 3. In a discussion about typical market pullbacks, he explained the various reasons why stock prices can decline.
“How about the garden variety pullbacks we experience all the time? What causes these declines? Well, there are usually a bunch of different varieties. First, you’ve got the sell-offs caused by the Federal Reserve.”
READ ALSO: Jim Cramer Discussed These 7 Stocks and 11 Stocks on Jim Cramer’s Radar
Cramer said that the Fed is often the focal point of financial discussions, and for good reason. When the economy slows down, the Fed steps in with the goal of stimulating growth. However, Cramer noted that when the Fed tightens its policy, it is common for market predictions to become more dramatic, with some people warning of an impending market crash or severe downturn.
Yet, Cramer cautioned that investors should not panic when hearing such predictions. Fed rate hikes, while impactful, do not always lead to a market crash. In fact, he pointed out that there have been times when these hikes had minimal effect on stock prices. That being said, Cramer acknowledged that there are legitimate reasons for stock market declines when the Fed raises rates. One important factor is the competition for investor capital. He said that stocks are just one asset among many. He added:
“For instance, there’s gold. There’s real estate. Of course, the bonds. I like gold as a safe haven. I believe that every person should hold some gold… Real estate, actual real estate can be a good hedge, but most people don’t have the money to invest in that kind of real estate that big institutions can buy… Finally, we have bonds as an investment alternative and bonds are the source of the problem when the Fed tightens.”
Our Methodology
For this article, we compiled a list of 85 stocks that Cramer was bullish on that he shared during episodes of Mad Money aired in January 2025. We narrowed the list to 10 stocks that were the most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside, as of March 4. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 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 modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.
KKR & Co. Inc. (NYSE:KKR)
Average Price Target Upside: 41.58%
Number of Hedge Fund Holders: 83
In January, Cramer said that he would be a buyer of KKR & Co. Inc. (NYSE:KKR) as he commented:
“I am gonna say that I like the stock very much and I think those guys are so smart. I would be a buyer… At one point it was down really big today. That made no sense to me whatsoever.”
KKR (NYSE:KKR) is a private equity and real estate investment firm that focuses on a diverse set of investments, such as acquisitions, leveraged buyouts, growth equity, and distressed assets. Montaka Global Investments stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q4 2024 investor letter:
“With a collective US$1.7 trillion in assets under management, and with access to the best talent, capital, and deals all around the world, Blackstone and KKR & Co. Inc. (NYSE:KKR), two of Montaka’s largest holdings, are highly advantaged alternative asset managers. They are uniquely positioned to benefit from three structural tailwinds that have commenced:
The structural growth in Asian wealth combined with increasing allocation to alts in the region;
The structural growth in US$85 trillion global private wealth allocations to alts; and
The increasing strategic partnerships between insurers and alts managers, which unlocks access to manage the US$30+ trillion assets of the insurance industry…” (Click here to read the full text)
Overall KKR ranks 8th on our list of the stocks Jim Cramer and analysts like. While we acknowledge the potential of KKR 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 KKR 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.