We recently published a list of 9 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where McKesson Corporation (NYSE:MCK) stands against other stocks on Jim Cramer’s radar.
On Monday, Mad Money host Jim Cramer drew a parallel to 2011 and argued that what we are seeing is another crisis that feels manufactured, one he believes could be resolved just as easily as it was created, “with the stroke of a pen,” as he described it.
“Could this be another earnings season that simply doesn’t matter because there are bigger forces at work that are going to crush the entire market? It’s happened before, back in 2011.”
READ ALSO Jim Cramer’s Thoughts on These 5 Stocks and Jim Cramer’s Game Plan for Next Week: 25 Stocks in Focus
Cramer pointed out that the market has opened lower nearly every day, not because of disappointing earnings, those, he said, have largely held up, except in the case of companies with significant exposure to China, which he described as now being a liability for American businesses. He emphasized that the situation is not being driven by corporate fundamentals but by factors outside of earnings. He added:
“At least this time, the problem’s about America itself. As the president begins to create a constitutional crisis over the potential firing of Jay Powell while Congress once again deals with the interminable debt crisis, I think we can expect another ratings agency to begin the discussion of a debt downgrade.”
According to Cramer, investors should begin to accept the reality of a market that drops every morning, regardless of how strong earnings might be. The dominant forces in the environment, he insisted, are not balance sheets or profit margins. He remarked that the current period will be shaped by discussions around tariffs and the ongoing threats to remove Jerome Powell from his position. He added:
“Unfortunately, this time, the United States is not a safe haven as other countries appear much more stable and our bonds act squirrelly, almost as if they’re anticipating another painful debt downgrade. Ironic. We could get much higher yields because a president wants them to be lower in the worst way. The worst way being to poke fun, to ride, chide, and make life hell for a man who has served our country well, and I think deserves better.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 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 successful pharmacist in front of shelves of drugs in a community-based oncology pharmacy.
McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders: 78
Answering a caller’s inquiry about McKesson Corporation (NYSE:MCK), Cramer commented:
“I’m telling you, I am surprised McKesson hasn’t split the stock, but let’s deal with the fundamentals here. This is one of the strongest stocks in the market because these middlemen are making so much money, and I see no end to that. That’s why I like McKesson so much. Even as some people think, including our president, that they are not playing a valuable role, it doesn’t matter. McKesson is a valuable company, and I think its stock should be bought here, not sold.”
McKesson (NYSE:MCK) delivers healthcare services through drug distribution, medical supply delivery, and logistics management. It offers technology solutions, consulting, and support to biopharma companies, healthcare providers, and patients. Conventum – Alluvium Global Fund stated the following regarding the company in its Q4 2024 investor letter:
“McKesson Corporation (NYSE:MCK), the drug distributor (up 15.4%), released a decent set of results which included management again upgrading its guidance. From the immediate share price reaction together with its subsequent performance we surmise the market’s concerns we spoke of in last quarter’s report have now abated. The new guidance is a little above our view of its maintainable earnings, but we saw no need to change our analysis. With our buying last quarter, it had become the Fund’s largest position until we sold a little in December to now hold 6.3%.”
Overall, MCK ranks 2nd on our list of stocks on Jim Cramer’s radar. While we acknowledge the potential of MCK 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MCK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
