We recently compiled a list of the Jim Cramer Shed Light on These 8 Stocks Recently. In this article, we are going to take a look at where AbbVie Inc. (NYSE:ABBV) stands against the other stocks.
Jim Cramer, the host of Mad Money, on Tuesday, took a close look at President Donald Trump’s recent actions and his effect on the stock market, urging investors to pay closer attention to his moves.
“Look, people on Wall Street, you better start taking the President of the United States more seriously or else you’re gonna keep losing money. Look, you don’t have to like him, but I’m begging you, listen to his words.”
READ ALSO 12 Stocks on Jim Cramer’s Radar and Jim Cramer On 9 Stocks That Are Rallying Despite Tariff Worries
Cramer pointed to last Friday, when President Trump announced significant tariffs on Canada and Mexico, 25% while only imposing a 10% tariff on China. The decision left many on Wall Street shaken, especially since Trump’s actions have been anything but superficial. Cramer explained that the president’s moves are not idle threats.
“Of course, it’s not just tariffs. Yesterday the president said we’re gonna have a sovereign wealth fund like the Saudis. I heard a lot of snickering about that one, a lot of disparagement, a lot of laughs. “
He questioned why Wall Street seemed to dismiss the idea outright. He pointed out that, despite widespread criticism of many of Trump’s cabinet choices, Senate Republicans have consistently backed him. “They’re scared to death of the guy,” Cramer observed. According to Cramer, whether or not one likes Trump is irrelevant, the fact remains that Congress and the courts are unlikely to stop him, except in cases where his actions are blatantly unconstitutional. Therefore, he argued, the creation of a sovereign wealth fund is likely to be successful.
“Now, I know that the president said on Friday that he doesn’t care what the stock market says about his tariffs, but that’s not because he’s oblivious to the market like his predecessor was. It’s because the sellers don’t get the plan. They’re the oblivious ones. They don’t get that he’s trying to do something that will ultimately end up being really good for the stock market and that’s how the stock market could rally today. That’s how it could recover yesterday.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 4. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist.
AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 68
During the episode, Cramer noted AbbVie Inc.’s (NYSE:ABBV) success and called it a buy.
“Oh, AbbVie is just a gem and… They bought a company that with something, it failed and no one even cared when it had to do with brain work. AbbVie is a winner. I can’t believe the stock dropped so much. I think AbbVie is a buy.”
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company involved in the research, development, production, and promotion of a wide variety of medicines. Polaris Capital Management stated the following regarding AbbVie Inc. (NYSE:ABBV) in its Q3 2024 investor letter:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. AbbVie Inc. (NYSE:ABBV) showed positive top-line growth from its immunosuppressive drugs, Skyrizi and Rinvoq. Abbvie’s management continues to work through the loss of exclusivity from Humira, switching patients to Skyrizi or Rinvoq rather than Humira biosimilars.”
Overall ABBV ranks 1st on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of ABBV 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. If you are looking for an AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
