We recently compiled a list of the Jim Cramer Shed Light on These 10 Stocks. In this article, we are going to take a look at where Jefferies Financial Group Inc. (NYSE:JEF) stands against the other stocks.
Jim Cramer, host of Mad Money, recently offered some important advice on how young people should approach investing and managing their money. He emphasized that the first and most important step for anyone is to invest. Cramer pointed out that investing is the only way to secure financial freedom in the long term. He then stated:
“Before you can start investing, you need to pay off the foreign credit card… No matter how much money you rack up in the stock market, if you’re carrying a balance on your credit cards, then it’s going to eat your returns.”
READ ALSO 10 Stocks on Jim Cramer’s Radar and 17 Best Stocks for Kids According to Jim Cramer
Cramer then shared a few lessons specifically tailored for young investors. He explained that the first piece of advice is valuable to people of all ages. His advice was that young people should save money. He noted that the stock market can actually serve as a tool to help people save by forcing them to set aside a portion of their paycheck that they might otherwise spend. He then added:
“Second lesson for young investors, this is a much more targeted piece of advice: While you’re still young, you can afford to take a lot more risks than say a gray beard like myself.”
Finally, Cramer stressed that it is never too early to begin planning for retirement. He recommended taking full advantage of any employer-sponsored 401(k) plan, especially if the employer matches contributions. He also urged young investors to consider contributing to a Roth IRA, which he described as an ideal option for those early in their careers.
“Here’s the bottom line: For young people just outta college investing is a great way to trick yourself into saving money you might otherwise spend. Beyond that, remember, when you’re young, you can afford to take a lot more risk with your portfolio and it’s never too soon to start contributing to your 401k or IRA.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 24. 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 financial advisor shaking hands with a client, representing the wealth management services of the company.
Jefferies Financial Group Inc. (NYSE:JEF)
Number of Hedge Fund Holders: 43
Discussing Jefferies Financial Group Inc. (NYSE:JEF) during the episode, Cramer said:
“Let me just tell you this, I think that Jefferies had a surprisingly bad quarter. I think Goldman Sachs had a surprisingly good quarter. So here’s what we do, even as I just think the world of the CEO of Jefferies, I want you to sell Jefferies and I want you to buy Goldman. Goldman’s cheaper. Goldman’s better.”
Jefferies (NYSE:JEF) is an investment banking and capital markets firm that provides a broad range of services and oversees various alternative asset management platforms with different investment strategies and asset classes. Before the company reported its earnings in January, Cramer remarked:
“It’s called Jefferies Financial Group. This stock’s been a total winner. Get this, it ran from $39 and change this time last year to $81 today. That is stellar.
I think the change at the FTC where the chief who’s ideologically opposed to big business is about to be replaced by someone with a more traditional approach will mean many, many, many, many, many more takeovers and that means very big earnings per share for Jefferies, which consults on these deals, I wanna hear about their outlook for 2025.”
Overall JEF ranks 5th on our list of the stocks Jim Cramer recently shed light on. While we acknowledge the potential of JEF 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 JEF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.