Jim Cramer Recently Talked About These 15 Stocks

1. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 59

A caller bemoaned that they experienced rug burn because of the way United Parcel Service, Inc. (NYSE:UPS) stock has slid. In response, Cramer said:

“Look, I think that, you know, rug burn aside… I do think that you’re going to run into a little trouble because world trade is not what we think it is. And look, I really like FedEx, and I’m not just sitting here pounding the table on FedEx either, so we gotta be careful…”

United Parcel Service (NYSE:UPS) is a known name in package delivery and logistics. The company provides a broad range of services that include transportation, distribution, contract logistics, ocean and air freight, customs brokerage, and insurance. River Road Asset Management stated the following regarding United Parcel Service, Inc. (NYSE:UPS) in its Q4 2024 investor letter:

“As of December 31, the portfolio held 29 positions, up four positions from Q3. During Q4, the largest sector increase was 736 bps within industrials, while the largest decrease was -276 bps within consumer discretionary. We established five new positions and eliminated one position

We also initiated a position in United Parcel Service, Inc. (NYSE:UPS) (Cl B) (UPS, 3.0 conviction), the world’s largest package delivery company, which handles over six billion packages annually and can reach 90% of the world’s gross domestic product (GDP) within a day. After years of elevated network investments to expand capacity, UPS has refocused its strategy on growing return on invested capital (ROIC). We believe the stock will rerate higher as margins, which we believe have bottomed, are expected to expand with the price per package growing faster than the cost per package. In the interim, investors collect a 5% dividend, which has grown in 21 out of 24 years since UPS went public. The dividend is supported by healthy free cash flow and an investment grade balance sheet with ~1x net leverage.”

While we acknowledge the potential of United Parcel Service, Inc. (NYSE:UPS) 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. 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 UPS 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.

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