We recently published a list of Was Jim Cramer Right About These 13 Stocks?. In this article, we are going to take a look at where Capital One Financial Corporation (NYSE:COF) stands against other stocks that Jim Cramer discussed.
During the latest episode of Mad Money, Jim Cramer focused on the recent market volatility and the reasons behind it. He explained that the reason behind this volatility is the escalating trade war with Canada. Here’s how he explained the situation:
“We got a trade war going with Canada. Here’s what happened, they announced a 25% tariff on electricity in our country earlier today. Immediately president Trump announced some hard retaliation doubling the tariffs on aluminum and steel. The steel side can be dealt with. Aluminum, I don’t know but it’s bad news. Canadians produce a huge percentage of that stuff for our airline makers, for trucks, for cars. A 50% tariff would be very inflationary and could destroy the profits of the automakers.”
Cramer’s recent opinion is that the U.S. is no longer a manufacturing-driven economy, but a service-driven one, where businesses thrive on stability and consumer confidence. Here’s how he explained it:
“Now we’re not a manufacturing economy, we’re a service economy. That’s why it stings when you see these retailers, telecoms, and airlines linking the negativity of their customers to political actions. […] The issue is that, again, we’re service. Most of our business is service, and that economy is starting to roll over because consumer confidence is declining as people worry about the impact of these tariffs. They don’t understand them. Sure, we have plenty of room for layoffs, so to speak, because we have very low unemployment. But the stock market is saying the tariffs will be inflationary, and the White House hasn’t explained to the American people why it’s worth it.”
Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money on March 20, 2024. We then calculated their performance from March 20th, 2024, market close to March 12th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
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).
A smiling face of a customer as they make a deposit at this company’s branch.
Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 90
Cramer was positive on Capital One Financial Corporation (NYSE:COF) back then, especially given its Discover acquisition:
“Capital One is terrific. Capital One is terrific. Management is great. The buy—if they’re able to close on that Discover deal—would be amazing. I say stick with that.”
Capital One Financial Corporation (NYSE:COF) has been doing pretty well since then, rising by 20.23%.
Capital One Financial Corporation (NYSE:COF) popped up on Cramer’s and Wall Street’s radar again earlier this year. This is what Cramer said on the 24th of January:
“Now let me tell you a funny thing here. Capital One is actually my favorite. I put it in the bullpen so to speak. I’m thinking about buying it because of the Discover, you know, because of this Discover merger, which is gonna be so bullish, and because I don’t think there will be usury fees. So I want to go against what the president’s musing was right there and buy Capital One, COF, a really well run, really, really well run credit card, credit card company.”
Overall, COF ranks 5th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of COF 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 COF 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 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
