We recently published an article titled Was Jim Cramer Right About These 12 Stocks? In this article, we are going to take a look at where Stanley Black & Decker, Inc. (NYSE:SWK) stands against the other stocks.
Back then, Cramer was focused on the impact of future rate cuts and how different stocks would react. He argued that the market had become simple:
“Stocks that benefit from rate cuts get bought. Stocks that don’t benefit get sold.”
At that time, Cramer pointed to McDonald’s as an example of a rate-cut winner, despite the company having weak earnings at the time, saying:
“This market doesn’t care that it’s doing badly. It just treats the Golden Arches as a rate-cut winner.”
Meanwhile, he appeared rather bearish around big tech at the time. He warned against buying the “Magnificent 7”, saying that while they had thrived despite rate hikes, they wouldn’t necessarily benefit as rates came down. Here’s how he put it back then:
“For years now, the market has been rallying on companies that don’t need to borrow money, that don’t need rate cuts. But the flip side is that they won’t really benefit as rates come down.”
Tech stocks were under pressure at that time, and Cramer saw no short-term relief:
“For tech, the watchword is three words my staff loves to say: get out now.”
Cramer expressed some interesting opinions in that particular show. Let’s see how each prediction unfolded 7 months later.
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on July 30, 2024. We then calculated their performance from July 30th, 2024, market close to February 14th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q3 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Note: This article covers Jim Cramer’s commentary from July 30, 2024, and does not account for any changes in his opinions regarding the stocks mentioned. Therefore, the commentary should not be mistaken for his latest opinions on any of the stocks that are mentioned.
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).
A toolbox filled with an array of different tools, representing the professional products of the company.
Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hedge Fund Investors: 33
While talking about the “great broadening” once again, Jim Cramer appeared very bullish on Stanley Black & Decker, Inc. (NYSE:SWK), seeing it as a prime beneficiary of future interest rate cuts. He said:
“Investors are dreaming. I like the dream—it’s called leverage.”
Cramer pointed out that Stanley Black & Decker, Inc. (NYSE:SWK) is deeply tied to the housing market, meaning lower interest rates would boost home sales, remodeling, and demand for tools.
“Stanley Black & Decker is levered to housing turnover, so it’s levered to lower rates. When the Fed starts cutting, you’ll see more existing home sales and more remodelling.”
This, he believed, was why big institutions were shifting money away from high-growth tech stocks and into cyclicals like SWK, saying:
“Wall Street, at certain junctures, falls out of love with great growth stocks and abandons them for cyclical stocks that will do much better in an accelerating economy.”
He later revealed that his charitable trust had a sizable position in Stanley Black & Decker, Inc. (NYSE:SWK), believing that they were positioned for a major upside once rate cuts materialized.
However, it hasn’t been going well for the stock, having dropped by 18% since the show aired.
Cramer has also talked about Stanley Black & Decker, Inc. (NYSE:SWK) one more time after the rate cuts were announced, saying:
“We wanted to invest in a company that tends to outperform when mortgage rates go lower and people fix up their homes. After years of lagging the market, Stanley Black & Decker has come back with a vengeance, up 37.9% in the third quarter. It was rallying in anticipation of the rate cuts.”
Overall SWK ranks 7th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of SWK 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 timeframe. If you are looking for an AI stock that is more promising than SWK 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.