Jim Cramer in a latest program on CNBC urged investors to start accepting the reality of the new economic system under President Trump and said the new tariffs will result in higher prices and more volatility. Cramer said Trump does not “care” about stock prices or inflation and wants to punish the country’s trading partners.
“Yes, I want this over. Yes, I want clarity. I want some sense of how this can all end, but that makes me a fool like the rest of us. We keep thinking that’s the point. That’s how… that’s not how Trump sees it. Here is the point: we should simply be looking at companies that cater to small- and medium-sized businesses that can’t be hurt by tariffs. We need to accept a higher level of inflation because it’s coming. We should take our out some money and put it on the sidelines, betting that this will end someday, even if we don’t know when. But right now, we have to get with the program and the president. The program is taking down our trading partners and hurting bottom lines all over the place. He doesn’t care. He demonstrated that tonight. So you better get used to it.”
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For this article we picked 10 stocks Jim Cramer was talking about over the past few weeks. With each stock, we have mentioned the number of hedge fund investors. 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).
10. Rigetti Computing Inc (NASDAQ:RGTI)
Number of Hedge Fund Investors: 7
Jim Cramer said in a recent program on CNBC that Rigetti Computing is a “meme stock.”
“I think it’s a meme stock. It’s a meme stock, and therefore it’s a battle between the longs and the shorts. I don’t know who wins in the end, but it is a meme stock. It is not trading on the fundamentals.”
9. Cracker Barrel Old Country Store Inc (NASDAQ:CBRL)
Number of Hedge Fund Investors: 18
Jim Cramer in a recent program on CNBC said Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) is a buy despite being a “work in progress.”
“I’m really interested in this. It’s a stock that’s fallen drastically over the past few weeks, but that’s not without reason either, with management blaming not just the weather, but also macroeconomic uncertainty as a reason for some of the challenges in early February. That’s suboptimal. So, what’s there to like about it? Then how about the stellar set of numbers that the company just reported yesterday morning, with much better-than-expected same-store sales growth? Macro uncertainty is already baked into Cracker Barrel’s four-year forecast at this point, which they raised, by the way, while management admitted that February got off to a challenging start. They said the last two weeks have seen meaningful improvement. I like that. Cracker Barrel is still very much a work in progress, something that CEO Julie Masino is quite candid about on the conference call. At this point, the stock’s almost pulled back to where it was trading when I started recommending it last summer. A U-turn? I think Cracker Barrel is a buy.”
8. Powell Industries Inc (NASDAQ:POWL)
Number of Hedge Fund Investors: 26
Jim Cramer in a latest program on CNBC analyzed the downfall of Powell Industries Inc (NASDAQ:POWL) from being a data center darling to seeing massive declines, especially after the launch of DeepSeek in China. Cramer said Powell Industries Inc (NASDAQ:POWL) rose due to the data center boom but started losing value once the AI trade began to cool off.
“This is not an ordinary moment, people. It’s been really interesting to watch Powell stock since the calendar flipped to 2025. It actually went on a huge run in mid-January, climbing quickly from around $230 to nearly $330 in a blistering six-day rally. At one point, that was right after SoftBank, Oracle, and OpenAI announced their $500 billion Stargate AI data center investment project at the White House. Like I said, when the data center was hot, this thing was unstoppable. However, you live by the data center sword, you die by the data center sword. That January rally was followed almost immediately by a sickening 16% decline on January 27th. You know, that day is now known on Wall Street, at least, as “DeepSeek Monday,” when the AI data center stocks just collapsed after the release of a reportedly low-cost Chinese model that seemed to perform just as well as the US competition while using far less hardware. Since then, POWL stock has become the house of pain. Of course, Powell’s not alone here. Everything connected with the data center theme, as I said at the top of the show, has been taking a hit, including the old-line industrial plays that looked like they had made it last year. I think this is now overdone, but many think that the buildout was overdone and we are now past our due date if we own these stocks.”
Diamond Hill Capital Long-Short Fund stated the following regarding Powell Industries, Inc. (NASDAQ:POWL) in its first quarter 2024 investor letter:
“As valuations have risen, it has become increasingly challenging to find high-quality companies trading at interesting valuations. Accordingly, we didn’t initiate any new long positions during the quarter. However, we did introduce three new short positions, including Powell Industries, Inc. (NASDAQ:POWL), Royal Caribbean Group and YETI Holdings.
Powell Industries designs, manufactures and services complex electrical systems for several industries. While recent fundamentals have been solid, we believe the valuation has become stretched for what has historically been a highly cyclical business and accordingly initiated a new short position in Q1.”
7. Nucor Corp (NYSE:NUE)
Number of Hedge Fund Investors: 32
Jim Cramer recently talked about Nucor during a program on CNBC. Here is what he said:
“Claudia Sheinbaum, the president of Mexico, is totally on board with Chinese steel. Now, the way they’ve been getting steel into this country, China is through Mexico. If she shuts that down, it really demonstrates that she shut it down. She’s going to be able to cut a better deal than anybody else in the world, and that means that steel prices are going to go up, no matter how soft you think the economy is. They’re using a 167 target. I would say this thing can go back to its high, maybe go to the 180s. So, if you—this is a great company, it’s the best steel company in the world, largest in America, and I just think if you really are bullish—not the put, the call, that’s whatever, I—that’s option talk—if you think that the president’s plan has gravitas, go buy NUE.”
6. Sempra (NYSE:SRE)
Number of Hedge Fund Investors: 33
A caller recently asked Jim Cramer about Sempra (NYSE:SRE). Here is what Cramer said:
“They did not do a good job. It was a bad quarter. It is very upsetting to me. I’ve spoken to Jeff Martin several times as CEO, but there are several things that were definite misses. It does deserve to trade lower. It yields almost 4%. I still can’t tell you the B. We have to see another quarter because it was that jarring. I wish I didn’t have to say that, but SRE did not deliver. That’s just plain and simple.”
ClearBridge Dividend Strategy stated the following regarding Sempra (NYSE:SRE) in its Q2 2024 investor letter:
“Utilities rose largely on merchant power companies serving the data centers powering AI; the rest of the sector, along with real estate, suffered as rate cut expectations were pushed out. One exception was our holding Sempra (NYSE:SRE) — a well-managed and diversified utility holding company. Sempra possesses large franchises in Texas and California, as well as a large LNG business. Sempra is a leading player in each of its markets and all its segments enjoy robust growth outlooks, which should drive high-single-digit growth for the company overall.”
5. Gap Inc (NYSE:GAP)
Number of Hedge Fund Investors: 39
Jim Cramer in a latest program on CNBC praised Gap Inc (NYSE:GAP) results and said it’s one of the top stocks to buy in the retail industry.
“These are all almost double what people expected in some cases. Gap, the flagship, more than doubled. A lot of people say, “Well, wait a second, is it going to make any money?” The tariffs—only 11% of its goods are made between Mexico and China. This man (CEO Richard Dickson) has taken this company, came on first and said, “Listen, I got to fix the balance sheet.” Well, he sure has. He’s got 2.6 billion in cash, got a 3% yield. This deserves to trade much higher. Somehow, it dropped. If you take a look at a chart of about maybe three months, you’ll see this thing has just cascaded lower for absolutely no reason whatsoever. This is the stock to buy in retail.”
4. Brinker International Inc (NYSE:EAT)
Number of Hedge Fund Investors: 41
Jim Cramer said in a latest program on CNBC that Brinker International Inc (NYSE:EAT)’s basic story has not changed and mentioned why the company is poised to do well.
“I’ve been a fan of this for ages. I think the basic story hasn’t changed at all. Brinker’s been able to put up great numbers because it offers customers an incredible value proposition. At Chili’s, you get an appetizer, endless chili, endless chips and salsa, endless soft drinks, and a burger—all for $10.99. Need to wash it down? Well, try a $6 margarita. This strategy has clearly been resonating with customers across all income levels. Plus, when I spoke to CEO Kevin Hochman at the end of January, he was adamant that the last quarter was no fluke.”
3. Texas Roadhouse Inc (NASDAQ:TXRH)
Number of Hedge Fund Investors: 45
Jim Cramer continues to remain bullish on Texas Roadhouse. Here is what he said in a recent program on CNBC:
“Texas Roadhouse (TXRH) stock I like so much we decided to buy some for the charitable trust two weeks ago. These guys reported what I thought was a darn good quarter, with better-than-expected same-store sales up 7.7% alongside a healthy earnings beat. Sure, not as crazy as the results from Brinker, absolutely, but Texas Roadhouse is a much more mature company. It just happens to be a real steady operator with a lot of room to grow. Also, unlike Brinker, Texas Roadhouse has held up surprisingly well, with the stock down only a few from early February, even as it had a tough week and a tough day. At one point, it was down 6.5 bucks today. That said, I like this one for the same reason I like Brinker. Texas Roadhouse offers what I call relative value. It may be a steakhouse, but it’s a bargain versus the competition. Where else can you get an 8-ounce steak with two sides for $9.99 on the Wild West?”
Baird Mid Cap Growth Equity Strategy stated the following regarding Texas Roadhouse, Inc. (NASDAQ:TXRH) in its Q2 2024 investor letter:
“Adjustments made to our consumer discretionary exposure include the addition of two new positions, Texas Roadhouse, Inc. (NASDAQ:TXRH) and Dutch Bros—both restaurants. Texas Roadhouse is a full-service casual dining chain with a long history of consistent sales and profit growth and above-average returns. We believe recent inflationary pressures across the restaurant space have broadened Texas Roadhouse’s competitive positioning.”
2. United Airlines Holdings Inc (NASDAQ:UAL)
Number of Hedge Fund Investors: 54
Jim Cramer during a program on CNBC last month said he’s a “buyer” of United Airlines Holdings Inc (NASDAQ:UAL).
“I am a buyer of United Airlines. I know it’s down 15%, but it became, again, a momentum stock. I think you’re right, I think it’s cheap. The travel thesis is strong. If I had to pick up some United Airlines, I’d buy some here, then wait till around 70 and buy the rest. That’s what I’ve been doing for the travel trust when I see stocks just like this.”
Patient Capital Management stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its Q4 2024 investor letter:
“United Airlines Holdings, Inc. (NASDAQ:UAL) had a strong fourth quarter, gaining 70.2% in the period. The company benefitted from continued strong demand that surprised the market as well as the initiation of a buyback program, the first since COVID. There continues to be strong travel demand from both retail and business travelers. According to the International Air Transport Association (IATA), global air passenger travel is still below the pre-COVID implied trend path despite reaching a new all-time high this year. United’s focus on the customer over the last few years has led to strong improvement in net promoter scores (NPS) which should continue to flow through the model via better TRASM (total revenue per available seat mile) and higher cash flows and earnings. As of today, United alone accounts for ~30% of the overall industry’s profits. We expect this market share to grow and be defensible as we transition to an environment where customer service becomes the differentiating factor, and scale provides unparalleled ability to reinvest in the customer experience.”
1. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Fund Investors: 106
Jim Cramer was recently asked about Eli Lilly (LLY). Here is what he said:
“You don’t sell Lilly. Lilly’s got the solution that may be good for everything from Alzheimer’s to heart disease, kidney failure, liver problems, and right now, weight and diabetes. And that’s at GLP-1, and Lilly got the big lead. David Ricks is a visionary. We stay long that stock.”
RiverPark Large Growth Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q4 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY): LLY was a top detractor in the fourth quarter following a rare revenue miss in the company’s 3Q update. The greater than $1 billion miss in the tirzepatide complex (Mounjaro/Zepbound) was caused by a combination of factors, including wholesaler stocking patterns (2Q inventory build, 3Q sell through), refrigerated supply chain constraints, timing of the company’s direct-to-consumer efforts, and the pace of international market launches. We believe the diabetes/obesity/weight-loss market is enormous and that current GLP-1 drugs, though no longer supply constrained, are greatly in demand. We are confident that LLY’s recent sales shortfall was supply chain-related and that the company’s tirzepatide franchise growth will soon reaccelerate.
LLY discovers, develops, manufactures, and markets pharmaceutical products. The company manufactures and distributes products through facilities in the United States and seven other countries and sells into 110 countries. The company has a broad and deep portfolio of products including a focus on diabetes, oncology, immunology and neuroscience. More recently, LLY’s GLP-1 diabetes drug Mounjaro and obesity drug Zepbound, have delivered strong revenue growth, and investors are optimistic that the company’s recently approved Alzheimer drug, Kisunla, will add to that growth.
LLY has a stable portfolio of franchise products, which enables it to invest heavily in its product pipeline. We believe that this combination of franchise and growth products will drive high teens revenue growth and a four-fold increase in free cash flow in the next five years.”
While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY), 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 LLY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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