Jim Cramer, the host of Mad Money, on Thursday, shared his thoughts on the market’s volatility following President Donald Trump’s tariff announcements and provided insights into which sectors and stocks could weather the impact of these new trade policies.
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“President Trump is out there fighting inflation every day except not the way we want him to do it. He’s fighting inflation, not in the mall, not in the supermarket, but in the stock market.
He’s trying to give us everyday lower prices. He is rolling back stock prices point by point and if he keeps it up, he will indeed get us back to pre-COVID levels.”
He pointed out that Trump is attempting to reduce prices in the market by gradually bringing down stock values, noting that if the current trend continues, we may eventually see stock prices return to pre-COVID levels.
Cramer also identified stocks he believes could be relatively insulated from the negative effects of these tariffs. He emphasized that these are the companies whose values are not directly impacted by the primary reason many stocks are struggling, tariffs. The protected stocks, according to Cramer, can maintain their worth even if additional tariffs are imposed on other countries. Cramer’s list was aimed at those seeking stability in an uncertain market environment, where the next country to be hit with tariffs remains unclear. He went on to say:
“Starting with tech first. Nothing that can be sold to China has a chance to get out of this thing unscathed. Nothing that has parts made in Taiwan can hold its value. Nothing that’s crafted in China can stay up. If we can’t be sure where the next tariff is gonna land, we can’t own these stocks until they go lower and then we can.”
Turning to the transportation sector, Cramer was blunt in his assessment. He pointed out that transportation stocks are closely tied to global commerce, which in turn is directly affected by tariffs. With tariffs raising the cost of goods, Cramer argued, global trade will slow, which will negatively impact businesses across the board. He highlighted the general economic principle that raising prices leads to reduced sales, making the transportation sector vulnerable to these market shifts. When it came to the auto industry, Cramer described the situation as a tough one.
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 27. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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 Said These 13 Stocks Can Hold Their Value Amid Tariffs
13. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 51
Highlighting that Nucor Corporation (NYSE:NUE) is the “best steel maker”, Cramer said:
“And now I want to give you the number one name in the entire S&P 500 and that one, number one name is Nucor, the best steel maker in the land, if not the world. It’s the one that’s been targeted the most… aggressively by China. But, but, the tariffs means that China’s steel transshiped from Mexico, they’re not gonna get it anymore.”
Nucor (NYSE:NUE) produces and sells a wide range of steel products, catering to customers throughout North America. Earlier in January, Cramer discussed steel dumping and explained:
“I thought Nucor was bottoming. It’s been very, very tough to own this great steel maker. I really gotta see what, look, the material stocks are all weaker and there’s a lot of dumping of steel from China, yet they, all they do is hack and dump and hack and dump and they get away with it. So that’s what’s hurting the stock.”
12. Texas Roadhouse, Inc. (NASDAQ:TXRH)
Number of Hedge Fund Holders: 52
Texas Roadhouse, Inc. (NASDAQ:TXRH) is a popular casual dining restaurant chain with locations throughout the U.S. and abroad. The company stock was one of the only two restaurant stocks on Cramer’s list of stocks that can uphold their value amid tariff chatter as he said, “Texas Roadhouse… may be the most American of any restaurant chain, Texas and Roadhouse.”
In December 2024, commenting on Texas Roadhouse (NASDAQ:TXRH), Cramer stated:
“At the same time, there’s the other consumer who only seeks absolute bargains. The under $11 meal at Chili’s owned by Brinker and at Texas Roadhouse, the same deal. Incredibly attractive… Texas Roadhouse overwhelms you with fabulous food at a price that seems like they forgot to put one of us on the bill.”
11. Brinker International, Inc. (NYSE:EAT)
Number of Hedge Fund Holders: 51
According to Cramer, restaurant stocks like Brinker International, Inc. (NYSE:EAT) stand a chance to perform as they do not partake in importing much. He said, “Restaurants work. Not a lot of imports for these. I like Brinker. Got hit badly today.”
Brinker (NYSE:EAT) owns and manages casual dining establishments, mainly under its two brands, Chili’s Grill & Bar and Maggiano’s Little Italy, in addition to operating through franchising. It was not that long ago when Cramer was singing the company’s praises when he said:
“I want to start with someone we had on the show last night. He’s making more money for you than any company I’m talking about. I’m talking about Kevin Hochman. He’s the CEO of Brinker. Hey, just because it’s small doesn’t mean you can’t make money, there’s no rule. You may know them as the parent of Chili’s… It’s a chain of 1200 casual dining restaurants in the U.S.… A few years ago, Hochman departed a high-level job at Yum Brands where he ran KFC in order to take the helm of Brinker…
I always liked the price point… But I never liked the stock, nothing special, marginal, meaningless, and then less than three years ago, Hochman came roaring in as CEO and it’s never been the same. He simplified the menu that’s too hard… He gave you a value meal dinner under 11 bucks, an inexpensive, terrific mixed drink with real good tequila, special management, and… by the way, and a delicious dinner for everybody… The result? The stock’s now up more than 340% in just the past year.”
10. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 96
Cramer discussed that all banking stocks, including Wells Fargo & Company (NYSE:WFC), stand a chance to do well due to the personnel change among regulators.
“Oh and let’s throw in pretty much every bank. The number one is Wells Fargo, it’s American, it’s well run. It’s been a poster boy for the regulators, which are now going to be gutted, sprayed, and neutered.”
Wells Fargo (NYSE:WFC) is a financial services company offering a variety of banking, investment, mortgage, and financial products. Oakmark Funds stated the following regarding the company in its Q4 2024 investor letter:
“Wells Fargo & Company (NYSE:WFC) was the top contributor during the quarter. The U.S.-headquartered diversified bank’s stock price rose after reporting what we see as solid third-quarter earnings where the company’s efficiency ratio continued to improve as expenses were well controlled. The fee income segment also performed well, growing 12%. In addition, Wells Fargo had the opportunity to repurchase $3.5 billion in shares during the period, bringing the full-year repurchase to roughly $16 billion. In November, the stock price continued its upward trend following the U.S. presidential election as investors are optimistic that the financials sector will benefit from looser regulations and lower corporate taxes, thus stimulating a better environment for dealmaking. We continue to believe that Wells Fargo is a competitively advantaged bank that can use its superior business mix and return potential to unlock further value.”
9. Entergy Corporation (NYSE:ETR)
Number of Hedge Fund Holders: 51
Entergy Corporation (NYSE:ETR) is engaged in the generation, transmission, and distribution of electricity and natural gas, while also owning interests in non-nuclear power plants and providing decommissioning services for nuclear plants. Including the company on his list, Cramer said, “To the endless love for nuclear, I’m gonna give you Entergy.”
On February 19, BofA analyst Ross Fowler increased Entergy’s (NYSE:ETR) price target to $88 from $82 and maintained a Neutral rating on the stock after the Q4 report. According to the analyst’s research note, Entergy provided an optimistic business update, including a raised earnings forecast, capital spending plan, and sales growth projection, which the firm believes supports the stock’s higher valuation.
8. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 47
American Electric Power Company, Inc. (NASDAQ:AEP) generates, transmits, and distributes electricity to retail and wholesale customers, utilizing various energy sources such as coal, natural gas, renewable energy, and nuclear power, while also managing transmission infrastructure and engaging in wholesale energy trading. Counting AEP among the stocks that can maintain their value amidst tariffs, Cramer commented, “American Electric Power, it’s well run.”
American Electric Power (NASDAQ:AEP) recently reported its GAAP earnings for 2024 at $2.97 billion, or $5.60 per share, marking an increase from the previous year’s $2.21 billion, or $4.26 per share. Operating earnings for 2024 were reported at $2.98 billion, or $5.62 per share, showing growth from $2.72 billion, or $5.25 per share, for year-end 2023.
7. Sempra (NYSE:SRE)
Number of Hedge Fund Holders: 34
Sempra (NYSE:SRE) is an energy infrastructure company that offers electric and natural gas services, oversees electricity transmission and distribution, and specializes in developing energy infrastructure. Talking about the stocks that can tolerate the impact of tariffs, Cramer said, “Utilities work too, Sempra after California lowered the boom… on them.”
Sempra (NYSE:SRE) has received praise from Cramer before as he recently stated:
“How about a sleeper stock? One that’s withstood the seller, Sempra. Sempra’s a growth utility with a decent yield and a lot of opportunity. CEO Jeff Martin, that, guest many times, can show you that this stock offered a better return than most of the traditional growth names. You know when this might be worth buying on weakness, I’m debating to put it in the Charitable Trust.”
6. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 29
As Cramer called oil and gas “tempting”, he named Enterprise Products Partners L.P. (NYSE:EPD) and said:
“Oil and gas. Tempting. I can make a strong case that you can own the pipeline stocks, good yield. Going to see interest rates go lower because there’s not as much work as there was. I like Enterprise Product Partners, good.”
Enterprise Products Partners (NYSE:EPD) offers midstream energy solutions, including the transportation, storage, and processing of natural gas, crude oil, NGLs, petrochemicals, and refined products. Cramer was asked about the stock in January and this is what he said in response:
“Oh my God, it’s my absolute, absolute favorite of the group. I think you just gotta, just stand there and buy it. It’s cheap. It’s got a good yield and its business is fabulous. Thank you Rusty Braziel for pointing that one out to me a long time ago.”
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) is a major beverage manufacturer, offering a wide variety of nonalcoholic drinks, including soft drinks, water, tea, juice, and plant-based options, along with beverage concentrates and syrups for retailers. Commenting on the company, Cramer said, “You might want to buy some… Coca-Cola, but it does come in a can sometimes. Could be tariffed.”
In October 2024, Cramer praised Coca-Cola (NYSE:KO) and its CEO when he said:
“… Sometimes companies can practically print money simply because they’re so well run. Take Coca-Cola. Under the steady hand of James Quincey, Coca-Cola has become a low-risk juggernaut with a solid dividend, definitely a stock that is worth owning.”
4. McCormick & Company, Incorporated (NYSE:MKC)
Number of Hedge Fund Holders: 40
On the list of stocks that can retain their value in spite of tariff implementation, Cramer highlighted McCormick & Company, Incorporated (NYSE:MKC) and stated:
“Food, okay, I got one. McCormick international arm might be okay because they’re not gonna put tariffs on spices, are they? And it’s not gonna be hurt by GLPs… nor does it seem to be a candidate for any sort of presidential edict.”
McCormick (NYSE:MKC) is a producer and supplier of spices, seasoning blends, condiments, and various flavorful products for the food industry. The company stock went up more than 22% over the past 12 months. In October 2024, Cramer said:
“I think buying it right here is a very good idea… I thought that McCormick did a good job when the company was on the show… I know it’s a staple, and the staples are out of favor when the Fed cuts, but I think that they’re doing a very good job. Brendan Foley really explained the situation well.”
3. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 54
Unlike other consumer packaged goods plays, Cramer noted that The Clorox Company (NYSE:CLX) is perhaps immune to tariffs as he said:
“How about consumer packaged goods? The makers of these products, long ago, they decided the real money was overseas. They couldn’t make enough money here. We’d have to find one that didn’t diversify internationally perhaps because it didn’t know how to do it. Maybe that makes it immune now. That’s Clorox… Might make for a good investment.”
Clorox (NYSE:CLX) produces and sells a wide range of consumer and professional products, spanning categories such as cleaning, disinfecting, household goods, personal care, food, and health supplements. In January, Cramer said:
“The dollar’s gotten too strong. These consumer packaged goods companies tend to be very big overseas. That’s not the case with Clorox, which is largely domestic. But you know how our stock market works. The consumer staples all trade together. If the dollar hurts a big international company like Procter & Gamble as it is, it’s gonna reverberate even into Clorox because they’re all in the same sector, and sector ETFs are like gravity.”
2. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 95
Intuitive Surgical (NASDAQ:ISRG) was mentioned during the episode and here’s what Cramer had to say:
“Healthcare’s tough. Lots of tariff immunity, but not a lot of immunity from RFK Jr., the Health and Human Services secretary. Oh, and let’s not forget DOGE, which is cutting its teeth, that’s all it’s doing on USAID and the Consumer Financial Protection Bureau rollback… We know that Medicare and Medicaid could be next. They could potentially crush the stocks, so pretty much everything in the group. I don’t know. Let, let’s, how about Intuitive Surgical? We’ll put that one on the buy list.”
Intuitive Surgical (NASDAQ:ISRG) designs and sells products that improve minimally invasive care, including the da Vinci Surgical System and the Ion endoluminal system for diagnostic procedures. The company also offers a range of surgical instruments, training programs, and support services.
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
Cramer mentioned CrowdStrike Holdings, Inc. (NASDAQ:CRWD) when he explained that cybersecurity plays stand a chance against tariffs as they have no exposure.
“You know what that leaves in tech? The cybersecurity plays. Of course, before you buy CrowdStrike, after reading their threat assessment paper today, the one, the one that says North Koreans are infiltrating our workforce through work-from-home programs, fifth column style, you need to know that this cohort’s been rolling over for the last couple of weeks. Still, at least there’s software companies with no tariff exposure and that’s gonna be very valuable for the next four years. I say buy them.”
CrowdStrike (NASDAQ:CRWD) provides cybersecurity services, with its Falcon platform being a standout feature. The platform offers an all-encompassing range of endpoint security tools. Cramer has expressed bullishness for the company before as he said in early February:
“I think CrowdStrike is going up big from here. I think that [the] cybersecurity business is terrific. I think that they are just now beginning to play offense after that glitch that occurred. I do think that this is the time to own CrowdStrike and to own what George Kurtz has built.”
While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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