Jim Cramer Recently Shed Light on These 9 Stocks

7. The Honest Company, Inc. (NASDAQ:HNST)

Number of Hedge Fund Holders: 19

Cramer said that he cannot recommend The Honest Company, Inc. (NASDAQ:HNST) at this point as the company does not make money.

“Look, I totally get it. I get the fascination with it and when they make money, I will recommend it. Now, that means that someone might say, Jim, it was at six bucks, you kept me out of it until it went to $10. I don’t care. I only wanna recommend companies in 2025 that are making money.”

Honest Company (NASDAQ:HNST) produces and sells a range of products, including diapers, wipes, skincare, personal care, household items, wellness products, and baby clothing and bedding. Laura Champine of Loop Capital recently expressed concerns about the company’s fundamentals, particularly regarding potential tariffs on China under the incoming Trump administration. Since the company’s popular baby wipes are produced there, higher shipping costs could negatively impact profitability.

In her opinion, relocating production to U.S. suppliers is not a feasible solution. Despite these worries, Champine highlighted several positive aspects of Honest Company’s (NASDAQ:HNST) business, including its strong relationship with major retailer Amazon, which drives significant sales.

Moreover, the company raised its full-year 2024 projections for both revenue and adjusted EBITDA. It now expects revenue to grow by a high single-digit percentage compared to 2023. For adjusted EBITDA, the revised outlook is in the range of $20 million to $22 million, up from the previous forecast of $15 million to $18 million as of Q2 2024.