Jim Cramer, host of Mad Money, warned investors on Friday that until there is more clarity regarding the tariff situation, they should brace for continued volatility. His comments followed a day where President Trump suggested that he might be open to flexibility regarding tariffs, leading to a modest rise in the markets.
“After an okay day where President Trump indicated that he might be willing to be flexible in the tariffs, a day where the Dow ultimately gained 32 points, the S&P advanced 0.08%, and then Nasdaq rose 0.52%. After a hideous opening, that made little sense. How do we handle this crazy environment? One way is to get out of the office as we did this week and talk to real business people.”
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Cramer went on to explain that although there are real bargains to be found in the market, investors are hesitant to take advantage of them due to a prevailing sense of fear driven by analysts, hedge funds, and journalists. He pointed out that this fear has been exacerbated by talk of a stagflation scenario.
While Cramer himself disagrees, he mentioned that this is a glass-is-half-full scenario, if not more. He expressed confidence that the tariff issue will eventually be resolved, and when it is, investors will likely be able to move forward without that overhang.
“You can see that stocks want to go higher. If we get just a little bit of a reason to be more positive about the looming April 2nd wave of tariffs, stocks can bounce. It doesn’t even have to be much.”
On Friday, during a midday press appearance from the Oval Office, President Trump used the word “flexibility” when discussing tariffs, stating, “The word flexibility is an important word. Sometimes it’s flexibility. So there’ll be flexibility, but basically it’s reciprocal.” Cramer admitted that this statement did not provide much new clarity, but noted that the market seemed to respond positively to the mention of flexibility. He personally shared that he likes the idea of flexibility as well.
“After all of the major averages were decidedly negative this morning, all then finished in positive territory proving once again that there is too much gloom.”
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 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).
Jim Cramer Recently Talked About These 12 Companies
12. NiSource Inc. (NYSE:NI)
Number of Hedge Fund Holders: 36
A caller asked about NiSource Inc. (NYSE:NI) during the lightning round and Cramer answered:
“I’ve liked NiSource forever. I’ve gotta tell you, I recommended it when I was at Goldman Sachs… I think you’ve got a good one there. I like consistency. It’s got it.”
NiSource (NYSE:NI) is an energy holding company that provides natural gas to millions of customers and generates, transmits, and distributes electricity. The company also operates various power generation facilities, including coal, natural gas, hydro, wind, and solar units. In 2021, Cramer was bullish on the company when he said:
“There’s a stock I want to own. Very reliable, good dividend, fantastic management. Buy, buy, buy.”
Since the comment was aired in September 2021, NiSource (NYSE:NI) stock went up over 63%.
11. ResMed Inc. (NYSE:RMD)
Number of Hedge Fund Holders: 37
When a caller asked Cramer’s thoughts on ResMed Inc. (NYSE:RMD), he said:
“Sure. Okay, so Mick Farrell came on the show and told me that I really, that my, let’s say my reservations about recommending the stock, which is about GLP-1, were misplaced and the company’s doing quite well. I’m with Mick, he’s never steered me wrong. I like the stock.”
ResMed (NYSE:RMD) develops and markets medical devices and cloud-based software applications for healthcare, offering solutions for respiratory disorders, sleep apnea, and patient monitoring. The company also provides software for healthcare management, including business solutions for home medical equipment providers and care management tools for senior living and hospice organizations.
Fidelity Growth Strategies Fund stated the following regarding ResMed Inc. (NYSE:RMD) in its Q3 2024 investor letter:
“The fund’s bigger-than-benchmark position in medical equipment designer ResMed Inc. (NYSE:RMD) (+15%) was the next-largest contributor. ResMed’s primary focus is sleep technology – it provides cloud-connected devices for the treatment of respiratory conditions like sleep apnea and chronic obstructive pulmonary disease. The stock declined sharply in the second half of 2023, in the wake of market speculation that the rise of weight-loss drugs would negatively impact sales and usage of ResMed’s devices. But it has risen steadily since then, helped this quarter by an August earnings report that showed steady sales and improving profitability. That said, the stock was no longer in the portfolio at quarter end.”
10. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 45
A caller mentioned that they think that Ford Motor Company (NYSE:F) should trade like a fixed income and that the stock could go up if the Fed lowers rates. In response, Cramer said:
“I think Ford’s got some warranty problems to make it so that earnings always seem to be a black hole. I am not going to bless that. if you feel that way, what you just said, I know GM doesn’t have that big a dividend, but I would prefer GM.”
Ford (NYSE:F) focuses on designing, producing, and servicing a diverse array of vehicles, including trucks, cars, vans, SUVs, and luxury models. More than a week ago, Cramer discussed the impact of tariffs on the company and remarked:
“People don’t realize that when the President was talking about putting bigger tariffs on Canada. That is right, that just kills GM. Explains why their multiple’s really bad. It hurts Ford. These autos are really ping pong. So if you’re gonna hurt GM and Ford, you gotta then put a tariff on Korea. I just wish the President would get over it.”
9. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 47
Asking about Alcoa Corporation (NYSE:AA), a caller noted that with the ongoing conversation about tariffs on steel and aluminum, steel seems to be getting more love than aluminum. Cramer commented:
“I’m worried about aluminum. Aluminum’s been down for three straight, aluminum’s been down for three straight weeks. That does, that does not bode well for Alcoa. I want to stay away.”
Alcoa (NYSE:AA) manufactures and sells bauxite, alumina, and aluminum products, and also runs hydropower plants that produce and supply electricity to industrial and wholesale markets. In December 2024, Cramer expressed a similarly bearish sentiment about the company as he stated:
“Now here’s the problem with Alcoa, in the end, it’s a material stock. The material stocks are linked with China and therefore nobody wants them, even though Alcoa had a great quarter. So I have to go with the crowd and say, not now.”
8. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 66
Cramer discussed the market’s reaction to FedEx Corporation’s (NYSE:FDX) latest guidance cut as he said:
“This morning, investors were obsessing over the negative earnings updates that we got from the likes of Nike and FedEx… that the former was yet in another argument that the consumer’s rolling over while the guidance cut from the latter showed that well, commerce, in general, is slowing down.”
FedEx (NYSE:FDX) provides a range of services, including transportation, e-commerce solutions, and business services, such as express shipping, small-package deliveries, freight services, and various business support offerings. Last week on Squawk on the Street, Cramer commented:
“Raj Subramaniam, Raj Subramaniam is just unbelievable. David, FedEx, talk about a tariff play. Oh my really scary.”
7. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 73
NIKE, Inc. (NYSE:NKE) was mentioned during the episode, and here’s what Cramer had to say:
“This morning, investors were obsessing over the negative earnings updates that we got from the likes of Nike and FedEx… that the former was yet in another argument that the consumer’s rolling over while the guidance cut from the latter showed that well, commerce, in general, is slowing down.”
NIKE (NYSE:NKE) designs, produces, markets, and sells athletic footwear, apparel, equipment, accessories, and services, including products tailored for different sports. RiverPark Advisors stated the following regarding NIKE, Inc. (NYSE:NKE) in its Q4 2024 investor letter:
“NIKE, Inc. (NYSE:NKE): NKE shares were a top detractor in the quarter following better than expected fiscal second quarter results reported in December but worse than feared third quarter guidance. The company delivered $13.4 billion of revenue (roughly $1 billion better than expectations) and $1.9 billion of EBIT (roughly $500 million ahead of street consensus) and generated better than expected earnings of $1.03 (investors were looking for $0.78). Despite better operating metrics last quarter, the company dramatically lowered expectations for the fiscal third quarter including expectations for double-digit percentage declines in revenue. NKE’s new CEO, Elliot Hill, described several key issues negatively impacting the company’s growth trajectory including 1) a multi-year move away from a focus on sports, 2) a shift away from innovative demand creating marketing, 3) too much centralization, which has led to lack of execution capabilities in local markets, and 4) too much focus on Nike Digital, which negatively impacted the brands standing in the marketplace.
Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $50 billion in revenue, $6.7 billion in FY2024 annual free cash flow, and $10 billion of excess cash. We believe that over the long term, the global secular growth trend towards active wear will continue to aid Nike’s top-line growth driving gross and operating margin improvements and long-term mid-teens or higher annual EPS growth. In the short term, we believe that the company will work through the above headwinds and that revenue and earnings growth will reaccelerate in the next 12 months.”
6. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 74
When a caller highlighted that Twilio Inc. (NYSE:TWLO) missed the last quarter “by a penny or two”, Cramer replied:
“They did miss the quarter and I think that, I think the hype’s too great on Twilio. I know everyone got all excited about it, but that’s a very crowded field. I’m going to have to say, no, I don’t want to buy Twilio here.”
Twilio (NYSE:TWLO) offers a customer engagement platform that provides software and APIs for communication services like messaging, voice, email, and marketing, along with tools for personalizing interactions and managing customer data. Earlier in January, Cramer said:
“When I went over the quarter and then I searched through the website, I cannot believe how this company has really become one of the great assistants to small businesses trying to build their business. It’s a great customer relation management tool. I agree with you. I would own it and if it came down, I would buy more. That’s a strong endorsement. But that quarter was really incredibly good.”
5. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 87
A caller expressed worry about Reddit, Inc. (NYSE:RDDT), citing recent increased insider selling activity. Here’s what Cramer had to say:
“Alright, Steve Huffman did a really good job. The people were really, they, they gunned that stock ahead of the quarter. There was no way it could ever meet the expectations. It’s now come down tremendously and I think this is a good time to start a position. Stock was up six today. I don’t want to buy up six. If it comes in on Monday or Tuesday, buy a little.”
Reddit (NYSE:RDDT) runs a widely used platform where users can engage in discussions, share content, and connect with various communities based on shared interests. Last week, whilst commenting on the company, Cramer said:
“The only scenario in which I’d get more bearish on Reddit’s fundamentals would be if the current period of macro uncertainty turns into an outright recession because a recession would really hurt their advertising business. In a recession, anything that depends on ads does get crushed but I don’t think we’re headed for a recession, which means Reddit’s pretty darn enticing now that the stock’s practically being cut in half.”
4. Discover Financial Services (NYSE:DFS)
Number of Hedge Fund Holders: 91
A caller expressed uncertainty about Discover Financial Services (NYSE:DFS) in light of recent events, including the company’s and Capital One’s potential merger. Cramer commented:
“I’m betting that Capital One merger’s going to work. I know that there are a lot of people who this week said bad things about the merger. They thought the Justice Department was going to be able to block it. I’m sticking with Capital One, which means I’m sticking with DFS. I think the deal’s going to occur. I could be wrong, but I’m gonna, but I believe that the likelihood is that it does pass.”
Discover Financial Services (NYSE:DFS) provides a variety of digital banking products, credit cards, loans, and payment services. It also operates payment networks for debit and electronic funds transfer, along with merchant acquisition and transaction processing services.
3. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Discussing the market negativity recently, Cramer mentioned Micron Technology, Inc. (NASDAQ:MU) and stated:
“The negativity even extended to companies with reports that I thought were very positive, such as chipmaker Micron. When Micron reported last night after the close, the shares initially climbed nearly 7% in after-hours trading. But overnight investors decided that, well, in fact, they hated the quarter and the stock was well in the red before the opening bell.”
Micron (NASDAQ:MU) specializes in designing, developing, and manufacturing memory and storage products, offering high-speed, low-latency semiconductor devices and non-volatile memory solutions. On March 21, JPMorgan reduced its price target for MU stock to $135 from $145 and maintained an Overweight rating on the stock.
According to the analyst, Micron (NASDAQ:MU) posted “strong” revenue and earnings per share for the February-ending quarter, with sustained momentum and pricing strength in HBM outweighing a higher proportion of consumer sales in traditional DRAM and NAND. The firm expects the stock to continue outperforming through 2025 as the market factors in stronger revenue, margins, and earnings, but it lowered its price target after adjusting its forward estimates.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 96
Highlighting the stock’s decline in the last 30 days after the company’s DEI-related stance, a caller asked about Costco Wholesale Corporation (NASDAQ:COST). Cramer replied:
“Don’t worry about the DEI stuff with Costco. Yeah, don’t worry about it. Here’s what you think about, you think about profitability. I care about profitability, I care about growth. Costco’s got them. Costco is a buy, stock is way too low. I know people are thinking it’s rolling over. I think that’ll prove to be wrong. Buy some here. Buy some next week.”
Costco (NASDAQ:COST) operates on a membership-based warehouse model, offering a variety of branded and private-label products in bulk at lower prices, appealing to customers looking for savings on larger purchases. A few days ago, Cramer commented on the company during a Squawk on the Street episode as he said:
“Costco, someone lowered their price tag. Costco’s the cheapest place on Earth to shop. And they had a good quarter. People just didn’t recognize it.”
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
When a caller highlighted Alphabet Inc.’s (NASDAQ:GOOGL) recent acquisition in cyberspace, Cramer replied:
“Yeah, you know, I gotta tell you, the more I look at it, the more I am concerned that they bought the Wiz…. And I’m concerned. Why am I concerned? Because I stopped going to Google. I can’t be alone. There’s just other places to go to.”
Alphabet (NASDAQ:GOOGL) provides a wide range of products and services, including advertising, cloud-based tools, AI infrastructure, devices, and digital content. It also offers platforms for communication, collaboration, and data services, as well as healthcare-related and internet services. Oakmark Equity and Income Fund stated the following regarding the company in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”
While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) 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 GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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