Jim Cramer, the host of Mad Money, recently discussed the crucial events on Wall Street this week and emphasized the importance of watching upcoming earnings reports. He pointed out that the Thanksgiving period often brings a surge of optimism to the market. However, Cramer expressed concern that this enthusiasm is getting out of hand.
“Thanksgiving tends to unleash the animal spirits of the market in a very positive way. I’m no killjoy… but there’s getting to be a little too much speculation for me and if we don’t deal with it, if I don’t talk about it, it’s gonna become a problem.”
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Cramer also turned his attention to Bitcoin, commenting on the growing buzz around the cryptocurrency. He expressed his hope that Bitcoin would finally reach the $100,000 mark so the conversation could move on. According to Cramer, the surge in Bitcoin’s price is largely tied to speculation fueled by the President-elect’s idea of creating a strategic Bitcoin reserve. He noted that many people who had missed out on Bitcoin when it was trading lower are now justifying their purchases at these higher levels.
“As long as it’s legal, I’m all in but understand, I have nothing to offer on Bitcoin’s $100,000 price tag, nor does anybody else, by the way, except to say this: This is what happens when there are more buyers than sellers.”
Turning to broader market trends, Cramer acknowledged that stock trading tends to slow down during the rest of the holiday week. However, he highlighted that Wednesday would bring the latest personal consumption expenditures (PCE) report from the government. This report, a key inflation measure for the Federal Reserve, could give a clue as to whether the Fed will consider another rate cut before the year ends.
Cramer noted that the economy has been running hotter than the Fed would prefer, which has led to speculation that a rate cut in December might not be necessary. The situation is particularly challenging, he explained, because long-term interest rates, including mortgage rates, have been rising since the Fed began its rate cuts. Normally, these rates would decrease in such an environment, so if the PCE report shows a cooler inflation reading, it could fuel another rally. On the other hand, if the report is hot, Cramer suggested it could trigger a downturn in some of the more speculative stocks.
“If you have huge profits in the month of November, could you do me a favor? I would show a little thanks next week and take something off the table in your most risky positions.”
Jim Cramer’s Market Game Plan: 13 Stocks in Focus
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on November 22. 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).
Jim Cramer’s Market Game Plan: 13 Stocks in Focus
13. Kohl’s Corporation (NYSE:KSS)
Number of Hedge Fund Holders: 30
Commenting on Kohl’s Corporation (NYSE:KSS) during the episode, Cramer said:
“Now we’ve seen a bunch of retailers’ reports not sweating numbers yet in many cases, their stocks still roared. Meanwhile, others like Target get clubbed like baby seals. It’s treacherous to start buying these now because many of these stocks have run mightily in the last few days… Kohl’s, let’s just say guilty until proven innocent. Let’s hear what they have to say about Sephora, which I think is the main reason to go to the store now that Kohl’s Cash seems to have lost its allure like Confederate dollars.”
Kohl’s (NYSE:KSS) is an omnichannel retailer that offers branded apparel, footwear, accessories, beauty, and home products both in-store and online, under various brand names including Croft & Barrow, LC Lauren Conrad, and Simply Vera Vera Wang. It has faced challenges in attracting shoppers, particularly as consumers have become more selective in response to ongoing inflationary pressures. Despite offering frequent discounts and promotions, the company has struggled to drive consistent foot traffic and sales.
According to Bloomberg, Neil Saunders, managing director at GlobalData, noted that the company’s poor performance has led to cost-cutting measures, which in turn have contributed to further sales declines, creating a cycle of poor execution. In an effort to reverse this trend, the company introduced partnerships with brands like Sephora and Babies “R” Us. The addition of Sephora shop-in-shops has proven to be somewhat successful, attracting new customers, with around a third of Sephora shoppers also purchasing other products from Kohl’s.
However, Saunders suggested that while such partnerships may offer some short-term relief, Kohl’s (NYSE:KSS) long-term recovery will not rely solely on the strength of other brands. Reflecting ongoing challenges, the company revised its comparable sales guidance downward, now expecting a decrease of between 3% and 5% for the full year 2024. It also projected net sales to decline by 4% to 6%.
12. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 30
Cramer mentioned that The J. M. Smucker Company (NYSE:SJM) stock has a chance of gaining if the company reports in-line numbers for its second quarter of fiscal 2025.
“We have a food stock reporting too, J.M. Smucker, let me talk about this. The market doesn’t seem to like the food stocks anymore, does it? But maybe they’re, at this point, overly hated. Wall Street doesn’t like that Smucker seemingly paid too much for Hostess Brands when it shelled out $5.6 billion for the property that’s known as the king of junk food. But in this market, if Smucker can simply deliver inline numbers, the stock could soar because of all those Twinky bashers who would be ‘leaning the wrong way’, in other words, shorting the stock when they shouldn’t be.”
J. M. Smucker (NYSE:SJM) manufactures and markets a wide range of branded food and beverage products, including coffee, pet food, snacks, and spreads, under well-known brands. In November 2023, the company expanded its portfolio by acquiring Hostess Brands, Inc. for $34.25 per share in a transaction valued at approximately $5.6 billion, including around $900 million in net debt. This acquisition added well-known sweet-baked snack brands such as Hostess Donettes and Twinkies to the company’s offerings.
In the first quarter of fiscal 2025, the company saw a notable increase in its gross profit, which rose by $142.4 million, or 22%. This growth was largely driven by the favorable impact of the Hostess acquisition and positive volume/mix changes. The company is also focused on increasing the market share of its Café Bustelo coffee brand across the U.S. Additionally, the company unveiled its first microwavable Hostess product, Meltamors, as part of its efforts to innovate in the snack category.
However, J. M. Smucker (NYSE:SJM) revised its full-year guidance, lowering its expected net sales growth to a range of 8.5% to 9.5%, down from its previous projection of 9.5% to 10.5%. The company expects adjusted earnings per share to fall between $9.60 and $10.00, a slight reduction from its earlier forecast of $9.80 to $10.20.
