On Friday, Jim Cramer, the host of Mad Money, commented on the current state of the markets as he emphasized that this week’s earnings reports will be the first real indicator of how CEOs are managing tariff-related challenges ahead.
Cramer highlighted the continuing collapse in the markets and remarked that there is a “manmade obliteration”. He mentioned that the crisis is far from over. He also expressed concerns about the rising tariffs, especially with the White House’s current stance on trade policy.
“Right now, I’m most worried about inflation, which is something… let’s say something that we’ll be thinking about a lot when? When we have the CPI report. This is what really matters, see, because this is where we are not going to be able to cut rates if these numbers start being bad. Inflation became very sticky, and it was no longer going the Fed’s way even before the tariffs.”
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Cramer warned that tariffs could drive prices up even further which can lead to reduced consumer purchasing power. Highlighting the scale of President Trump’s tariffs, Cramer said that it was nearly impossible for these tariffs not to raise consumer prices. He noted that the Federal Reserve’s attempts to lower interest rates to stimulate the economy will be met with challenges by inflationary pressure. He added:
“I say the Fed’s locked in a box here and can’t do nearly as much as they might like because they don’t want to spur another route of inflation on their own.”
Cramer pointed out that various banks are predicting that there will be a recession. He mentioned that some are focusing on the 10-year Treasury yield dropping below 4% as a signal of an impending recession. He went on to acknowledge the difficulty of the day and week for investors. He added:
“Our only real hope is that the president comes up with something that can turn this bear into a bull and he can do it even as he seems unwilling to scale back the tariffs. All he has to do is offer our companies a path to get out of this hell that they did not create and they do not deserve. But the bottom line: That’s a very glass-half-full hope in what feels like a glass totally empty market.”
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 April 4. 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’s Game Plan: 10 Stocks in Focus
10. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 96
Cramer highlighted that Wells Fargo & Company (NYSE:WFC) stock is currently “outrageously cheap” and said:
“Charitable Trust owns several financials including BlackRock and Wells Fargo, both of which are just getting clobbered beyond all recognition. I don’t think that they should be, but so what? Wells is a national bank that was doing incredibly well until it ran into a macro buzzsaw that was the president. I think it’s now outrageously cheap. But what, what the heck is CEO Charlie Scharf supposed to say on his call when he is asked about the future? He has no choice but to be cautious and circumspect and the stock can’t rally in that kind of environment.”
Wells Fargo (NYSE:WFC) is a financial services firm. The company provides banking, investment, mortgage, and other financial solutions. During March 13’s episode of Mad Money, Cramer stated:
“I like Wells Fargo down here with these interest rates…Been a long-term turnaround play under CEO Charlie Scharf, whom we greatly respect. Even though Scharf’s now more than five years into the job, at this point, he’s still actively reshaping Wells Fargo for the better, shrinking or exiting businesses that weren’t working well… The last big benefit that could still accrue to Wells would be a removal of the asset cap that’s been in place since early 2018…
I think that you would absolutely get this cap removed. And Wells Fargo, there’s billions of dollars in costs they could take to reallocate, move from compliance efforts to activities. There’s, they have to spend a lot of money on compliance. I’m not against that, but I do think the bank would be much more profitable without the cap. Even with the stock’s recent 16% pullback from its highs, Wells Fargo’s still giving us a nearly 85% gain for the Charitable Trust.”
9. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 53
Calling BlackRock, Inc. (NYSE:BLK) “the best” during Mad Money’s episode, Cramer said:
“Charitable Trust owns several financials including BlackRock and Wells Fargo, both of which are just getting clobbered beyond all recognition. I don’t think that they should be, but so what?… The best for last, BlackRock. I think that CEO Larry Fink, perhaps the most thoughtful exec in the group, will give us a much-needed gut check about what happened here, where we had a well-oiled economy all set for a pro-business president to take it to the moon and instead what we’ve gotten is a journey to the center of the earth. It’s an incredible conundrum, and I really hope Fink will take a moment to tell us what he sees. We need to know.”
BlackRock (NYSE:BLK) is an investment management firm that offers risk management, advisory services, and a range of investment products, including mutual funds, ETFs, and hedge funds.
8. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 64
Highlighting CoreWeave’s recent IPO that was primarily led by Morgan Stanley (NYSE:MS), Cramer remarked:
“Morgan Stanley got the CoreWeave deal done and thank heavens and done at a better price than I thought. Couldn’t be expected given how the press was hectoring the deal so much. Otherwise, there’s not all that much to celebrate in Morgan Stanley though. I keep hoping that something will fall in the capital markets, but if anything, it has just gotten worse because of the tariff issues.”
Morgan Stanley (NYSE:MS) is a financial services firm, which offers products like capital raising, financial advisory, brokerage, and investment management. Nightview Capital stated the following regarding Morgan Stanley (NYSE:MS) in its Q4 2024 investor letter:
“Finance is transforming. Technology is democratizing access, reshaping wealth management, and enabling entirely new models of investing. From algorithmic trading to digital-first advisory platforms, the sector is evolving rapidly. Investors demand smarter, more sustainable options. The potential is significant, and we are focused on companies shaping how people save, invest, and transact in the years to come.
Morgan Stanley (NYSE:MS): Core Opportunity: Morgan Stanley’s diversified business model supports robust growth across investment banking, wealth management, and investment management.
Key Highlights: Investment Banking Momentum: Revenues rose 55% YoY in Q3 to $1.5 billion, driven by market recovery and large public offerings.
Wealth Management Leadership: Record revenues of $7.2 billion, with total fee-based assets reaching $2.3 trillion.
AI Integration: Cutting-edge partnerships enhance advisor productivity and deepen client relationships.
Investment Case: Morgan Stanley offers a compelling blend of growth and resilience, with strong revenue diversification and a dominant wealth management franchise. Its forward P/E of ~14x suggests attractive valuation upside.”
7. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 123
JPMorgan Chase & Co. (NYSE:JPM) received a comment during the episode as Cramer said:
“Friday, well, here we go. Earnings season and it’s real big. It officially kicks off with the big-time financials reporting. These stocks have been crushed because Wall Street now expects a nasty downturn in the economy.
The declines here are staggering. Take JPMorgan, one of the best banks in the world, but people are incredibly skittish about paying up for a bank ahead of an unexpectedly horrendous capital market. So instead of paying 14 times earnings, they’re now paying just 11 times earnings and the stock’s declined from $280 to $210. That’s down 17 points today alone, by the way. That’s an unfathomable journey down from the mid-February high where we believed in a revival of financial activity, spurred by [an] aggressively pro-business president.”
JPMorgan (NYSE:JPM) provides financial services like consumer banking, investment banking, lending, and asset management. It serves individuals, small businesses, corporations, and institutions.
6. CarMax, Inc. (NYSE:KMX)
Number of Hedge Fund Holders: 57
Discussing CarMax, Inc. (NYSE:KMX), Cramer advised not to invest in autos if there is a recession.
“Now anyway, we just profiled a company called CarMax the other night that reports Thursday and when new cars get tariffed, used cars become a lot cheaper by comparison, which should spur sales for CarMax. The stock’s no longer cheap, selling at 23 times this year’s earnings, but I think this might be a real investment given the fact that the president seems unwilling to back down. Then again, if we get a recession, it doesn’t really matter. You don’t want to own anything connected to autos in a recession.”
CarMax (NYSE:KMX) specializes in selling used vehicles and related products, offering a range of models, including luxury, hybrid, and electric cars. The company also provides financing options and vehicle repair services.
5. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 51
Cramer mentioned Constellation Brands, Inc. (NYSE:STZ) as he discussed the headwinds being faced by alcohol stocks.
“After the closing, we get results from one of the most controversial companies in America, and that’s Constellation Brands, STZ. This… company, the maker of Modelo and Corona, simply can’t be sure yet what the tariff impact is. If it’s imported, Mexican beer will be tariffed. At what rate will it not be tariffed? Will it be the old tariff that we had, which was none? Tough to tell… How will Constellation approach things though? I want to know.
This company already has enough problems with the existential threats of anti-craving GLP-1 drugs, including cravings for beer and the health and wellness trends that discourage alcohol. The last thing it needs is tariffs. This stock plagued my Charitable Trust until we finally jettisoned it at a big loss. And I think it’s become totally problematic like all the liquor companies here. I suspect Constellation’s also been hurt by Trump’s immigration crackdown because so much of their customer base is Hispanic. Hard to see what the company can do about any of this. It’s a once great story.”
Constellation Brands (NYSE:STZ) is a major producer and seller of beer, wine, and spirits. The company offers beer under several different brands.
4. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 84
Delta Air Lines, Inc. (NYSE:DAL) is set to report on April 9, and here’s what Mad Money’s host had to say:
“Wednesday, Delta reports. I expect an awful number. They already told us things aren’t so great, but has business stayed weak from their last report or maybe even weaker? I worry that the travel bull market is completely done, especially if we’re gonna go into recession.”
Delta Air Lines (NYSE:DAL) is an airline and the company offers passenger and cargo services on many domestic and international routes. On March 13, Cramer extensively commented on the company as he said:
“Now for those of you who haven’t been paying attention, this week Delta Airlines slashed its first-quarter earnings outlook, citing, ‘the recent reduction in consumer and corporate confidence caused by increased macro uncertainty’, which they say drove ‘softness and domestic demand’ in recent weeks. Now for a long time, Delta was the best of the airlines so you really don’t want to hear that kind of commentary from them. Now these guys cut their guidance ahead of an appearance at the JPMorgan Industrials conference on Tuesday.
But honestly, these names have already come down dramatically over the past few weeks. This makes them very interesting to me. After this week’s blood bath, you got a lot of them are down 35 to 40%. So given all the newfound negativity, why on earth would I stick my neck out and recommend some cheap travel plays? Look, as tough as these airlines, the updates were, the collective news, frankly, it wasn’t that horrible, at least not if you listen closely…
Let’s start with Delta, which kicked things off with this guidance cut. Monday night, Delta CEO Ed Bastian spoke with CNBC’s Phil LeBeau on Closing Bell that night and explained that the domestic, corporate, and consumer spending ‘started to stall’ in February, mostly due to lower consumer confidence. But he also said he believes this weakness is transitory… Bastian is pretty confident we’re not headed for a real recession.
Delta cut the revenue growth forecast from 8% to 4%… It is not great but in a recession, they, they’d be down double digits. Bastian also noted that some of the weakness came after a couple of high-profile air safety instances.”
3. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Number of Hedge Fund Holders: 34
Cal-Maine Foods, Inc. (NASDAQ:CALM) was mentioned during the episode, and here’s what Cramer had to say:
“Tuesday night, we hear from Cal-Maine. Now, normally I wouldn’t care at all about some egg company, but eggs were the key driver of the most serious inflation we’ve experienced in ages. So maybe they can explain what the heck happened.”
Cal-Maine (NASDAQ:CALM) produces and packages different types of shell eggs and egg products. The company provides specialty options like cage-free, organic, and nutritionally enhanced eggs under various brand names. In early March, Cramer commented:
“All right, so Cal-Maine, the reason why it’s going down is because people feel this, this shortage is going to end, when the shortage is going in, the stock is gonna go lower. I totally agree with you on everything, but I do and when I see a stock with a 4 or 5 PE, that means the numbers are going lower and therefore it’s probably not as cheap as you think. And that’s the way I look at Cal-Maine.”
2. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 46
Discussing Walgreens Boots Alliance, Inc.’s (NASDAQ:WBA) decision to go private, Cramer said:
“A few weeks ago, Walgreens decided to sell out to a private equity firm, a storied name. See you later. The company that’s buying them? Sycamore. I think this was a great deal for Walgreens because otherwise, I figured it would go the way of the zombie firm…. But let’s see if things have gotten better or if maybe, there’s some real buyer’s remorse. Nothing would shock me.”
Walgreens (NASDAQ:WBA) is focused on healthcare, pharmacy, and retail. It offers services such as retail drugstores, health products, pharmacy care, and specialty services. Ariel Investments stated the following regarding the copanny in its Q4 2024 investor letter:
“Also in the quarter, we re-initiated our position in retail drugstore operator, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) following the wash sale period for tax loss selling. Recent news reports suggest there is potential interest by a PE firm to take WBA private. We believe the strategic value of WBA’s nationwide footprint and future growth opportunities has substantial upside at today’s valuation. We did not exit any positions in the quarter.”
1. Levi Strauss & Co. (NYSE:LEVI)
Number of Hedge Fund Holders: 31
Starting his game plan with Levi Strauss & Co. (NYSE:LEVI), Cramer commented:
“We will soon find out what CEOs can do to deal with tariffs because Levi Strauss reports on Monday and it manufactures jeans all over the map from Japan and Mexico, Turkey, other places in Asia.
Levi’s offered some weaker guidance last quarter and it got hammered. Apparel’s been a mixed bag, people. The last company that spoke in the space, we just did a piece on, PVH, said very good things. Calvin Klein, Tommy Hilfiger, are doing well. Maybe Levi Strauss made the quarter too.”
Levi Strauss & Co. (NYSE:LEVI) creates and sells a variety of clothing and accessories for men, women, and children. It offers jeans, activewear, tops, footwear, and other items under different brand names.
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