In this article, we will take a detailed look at Jim Cramer’s Latest Calls: 10 Stocks to Buy or Sell.
Jim Cramer in a latest program on CNBC reminded viewers about the Trump playbook in the story market and said that he never believed the President would start a new trade war with China. Cramer explained that Trump’s rhetoric has been “hot” but the reality is “cool” and his much-feared tariffs against Canada and Mexico might also not realize as the new administration said it will “study” the matter.
“The president loves the stock market; he always loves to send signals that all hell is going to break loose, and when it doesn’t, well, guess what? The market flies. This rally is built on the back of tariffs, more specifically small-than-expected tariffs that could grow bigger if countries don’t play ball. It’s built on the backs of new projects like Stargate, a new AI infrastructure initiative.”
Cramer then explained in detail why he believes Biden and his government were against top companies and how it affected the market and economy. Cramer said Trump is better for stock portfolios.
“He knows business people in Silicon Valley; he knows how things work. You may like him, you may hate him, but the bottom line is, if you’re a tech titan, Trump will take your call. In fact, he’ll call you. Biden, I don’t know if he knew who they even were, and he certainly didn’t bother to call them. In the end, I think he preferred to sue them. If you own stocks, which is why you watch me, Trump’s method is a heck of a lot better for your portfolio.”
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Rigetti Computing Inc (NASDAQ:RGTI)
Number of Hedge Fund Investors: 7
Rigetti Computing Inc (NASDAQ:RGTI) makes ICs used for quantum computing. Jim Cramer in a recent program recommended investors to stay away from the stock.
“A Quantum company that was less than a dollar two months ago, they tried to gun it up early in the morning between 4:00 and 5:00. They took it up higher, and now they are wearing it. Please be careful not to take stocks up between four and five because they’re real sellers when the market opens. This is a Quantum Computing company that I, I don’t know when it’ll ever earnings, but boy, is it ever in the face of what Jensen Huang, whose’s owned stock is not doing well today. I don’t want to be in Rigetti Computing Inc (NASDAQ:RGTI),” Cramer said.
9. Lemonade Inc (NYSE:LMND)
Number of Hedge Fund Investors: 16
Jim Cramer was recently asked about insurance company Lemonade Inc (NYSE:LMND). He said the company is losing too much money.
“Okay, Lemonade Inc (NYSE:LMND) stock is one of those stocks that I’m talking about this show. It’s up too much, you got to let it come down. It’s not a joke stock, but it’s losing a fortune. Companies that are losing fortunes go over your portfolio if you own them (sell, sell, sell, house of pain sounds).”
Here is what Artisan Small Cap Fund has to say about Lemonade, Inc. in their Q4 2020 investor letter:
“We also exited our investment in Lemonade. Lemonade is a digital-first insurance provider, offering both domestic and international homeowners and renters insurance. The company is disrupting its industry, having digitized the entire insurance experience—from client onboarding to claims—in order to build generational relationships with first-time insurance buyers. Using its app, the median time to receive a bindable renters insurance quote from Lemonade is less than two minutes, and the time for a homeowner’s quote is under three minutes. All claims are also filed through the Lemonade app, where a claims-specific bot can pay out applicable claims in as little as three seconds. The company’s longterm strategy is built upon acquiring customers cheaply today as they begin their adult life with the anticipation of growing future premiums as customer demands for insurance products naturally increase as they accumulate typically insured possessions—home and car purchases, travel, pets and providing coverage for beneficiaries in the event of an unforeseen death. We believe the addressable market is massive, particularly given the industry has largely resisted change, giving Lemonade a long runway to take share from weaker legacy competitors. That said, with shares appreciating above our PMV estimate, we exited our campaign.”
8. J M Smucker Co (NYSE:SJM)
Number of Hedge Fund Investors: 30
Jim Cramer in a latest program mentioned an analyst downgrade on J M Smucker Co (NYSE:SJM) and reiterated that he believes GLP-1 weight loss drugs are having an impact on investor sentiment.
“The stock is getting hurt on this. It’s part of what I regard as being a reshuffling of this group. Once again, GLP-1. It does yield 4%. Very well-run company, but you can’t , you can’t overrun the sentiment right now. You just can’t.”
Middle Coast Investing stated the following regarding The J. M. Smucker Company (NYSE:SJM) in its Q4 2024 investor letter:
“I’ve been interested in ‘boring’ companies that should do well whatever the market environment, and that have strong balance sheets in case things turn badly. ABM Inc. (ABM) from last quarter, Steelcase, or The J. M. Smucker Company (NYSE:SJM) are examples of these types of companies. SJM has more debt on its balance sheet, but I believe its business will be stable enough for it to pay off the debt, creating more value for shareholders.”
7. Cardinal Health Inc (NYSE:CAH)
Number of Hedge Fund Investors: 40
A caller recently asked Jim Cramer about Cencora. Cramer recommended the questioner to buy Cardinal Health, Inc. (NYSE:CAH) instead.
Ariel Investment made the following comment about Cardinal Health, Inc. (NYSE:CAH) in its Q3 2022 investor letter:
“Additionally, distributor of pharmaceutical and medical products Cardinal Health, Inc. (NYSE:CAH) advanced in the period as leadership changes were viewed to be a positive for shares. Management provided a new profit outlook for Fiscal 2023 and announced an improvement plan for the medical segment. We are encouraged by these changes and think CAH’s underlying fundamentals and competitive advantages around preventative maintenance screenings and medication management will continue to improve. We believe valuations of health care companies like CAH that focus on cost optimization and promote technological efficiency across the supply chain will be rewarded over the long term.”
6. DraftKings Inc (NASDAQ:DKNG)
Number of Hedge Fund Investors: 54
Jim Cramer in a latest program on CNBC said now might be the suitable time to pile into DraftKings Inc (NASDAQ:DKNG). Cramer said DraftKing’s problems have been due to an impact stemming from “bad luck.”
“First, you need to understand what’s been happening with this one stock. It underperformed last year, up 5% for 2024, but really, it was doing great until the stock sold off hard in December. While DraftKings Inc (NASDAQ:DKNG) posted solid results in November, there was one glaring issue: all you people betting at home, you’re winning too much. As CEO Jason Robin said in the Comal, quote, “We experienced the most customer-friendly stretch of NFL sports outcomes we had seen early in the fourth quarter ever.” Ever seen early in the fourth. Imagine that. It caused the company to take a $250 million revenue hit. Boy, is that bad news for shareholders. And these customer-friendly outcomes in the NFL have kept on coming. Basically, the favorites are winning at a higher rate than they normally do, and because more people bet on the favorites, it’s costing DraftKings Inc (NASDAQ:DKNG) money. They’ve just had a real bad run of luck here. Can it last?”
Alger Spectra Fund stated the following regarding DraftKings Inc. (NASDAQ:DKNG) in its Q2 2024 investor letter:
“DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming firm designed to ignite the passion of sports enthusiasts through a diverse offering that spans daily fantasy, regulated gaming, and digital media. We believe the company’s expertise in product development and customer acquisition, which established it as the market leader in daily fantasy sports (DFS), positions DraftKings to be a key driver in advancing the U.S. sports betting market’s growth. The company reported strong fiscal first quarter results, with revenues beating analyst estimates due to broad-based momentum in customer engagement and acquisition. However, on May 28th, the Illinois Senate passed a new state budget that includes a tiered progressive tax on sportsbook operators, effective July 1, 2024. This new tax ranges from 20% to 40% on gross revenues, a significant increase from the current 15% tax rate. Despite management’s belief that it can mitigate the tax impact by reducing promotions in Illinois, this development negatively affected the company’s share price.”
5. PepsiCo Inc (NASDAQ:PEP)
Number of Hedge Fund Investors: 58
A caller recently asked Jim Cramer about PepsiCo Inc (NASDAQ:PEP). Cramer said the stock is under threat from weight-loss drugs.
“It’s right in the wheelhouse. I mean, it, it, it’s talking about salty potato chips. I don’t know what to say. Yields 3.7%. Maybe when it gets to 4%, but right now it’s in the crosshairs of the GLP-1 situation.”
Artisan Global Equity Fund stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its Q1 2024 investor letter:
“In the demographics/consumer trends theme, slowing sales volumes led us to focus more on services versus goods. As an example, we sold our position in food and beverage leader PepsiCo, Inc. (NASDAQ:PEP) given slowing growth in its underperforming core beverage business, one which generates about 60% of revenues. Adding to the uncertainty of growth prospects beverages, PepsiCo was forced by local lawmakers and industry wholesalers to shift to a new distribution model during the rollout of Hard Mtn Dew, a new line of drinks that combines Mountain Dew with malt liquor. We also exited our position in Wal-Mart de Mexico as the company regroups after Hurricane Otis devastated parts of Mexico’s west coast last fall. The damages will likely affect earnings over the medium term. We also sold consumer food and beverage giant Nestle due to slowing sales volume growth. Food inflation over the last two years has increased consumer price sensitivity, putting pressure on many in the industry. In contrast to these goods providers, we bought shares of TUI, an online travel agency that provides custom travel experiences via dynamically priced services such as airfare, lodging and local activities on one platform. We believe the addition of Ryanair to the platform, Europe’s largest airline, will strengthen TUI’s service offering at a time when travel spending is predicted to remain elevated at least through the summer.”
4. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Investors: 61
A caller recently asked Jim Cramer about Danish pharma company Novo Nordisk A/S (NYSE:NVO). Here is what Cramer said:
“I Novo Nordisk A/S (NYSE:NVO), I think, is inferior. They don’t have the production capability. They don’t have what I think is the best pipeline, and I got to tell you, Denmark, jeez, maybe President like Trump’s going to pick a fight with him. I’d be careful.”
ClearBridge Large Cap Growth Strategy stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its Q4 2024 investor letter:
“Similarly, we used a temporary price dislocation caused by disappointing clinical trial results to purchase shares of Novo Nordisk A/S (NYSE:NVO), a Danish-based leader in diabetes and obesity treatments. Novo’s Wegovy semaglutide drug was first to market among the new generation of obesity drugs; however, the company has lost market share to portfolio holding Eli Lilly due to delays in scaling up production volumes and superior weight loss results demonstrated by Lilly’s trizepatide drugs. While the initial market reaction to Novo’s more enhanced CagriSema weight loss treatment was negative, we believe this is a more potent formulation that can better compete with Lilly’s suite. With Novo poised to have a better product portfolio and improved supply position, we find the company’s valuation very attractive given the large secular growth trends behind the diabesity market.”
3. Home Depot Inc (NYSE:HD)
Number of Hedge Fund Investors: 82
During a latest program on CNBC, when host David Faber highlighted that Home Depot Inc (NYSE:HD) shares were trading lower, Cramer said it’s a “mistake” and the stock would be up soon.
“That’s a mistake. It’ll be up soon. We are buying it right now for Charitable Trust.”
Carillon Eagle Growth & Income Fund stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q3 2024 investor letter:
“While Home Depot, Inc.’s (NYSE:HD) recent reported earnings were somewhat tepid, the market seems to be pricing in an inversion of the company’s sales, driven by lower interest rates. Home Depot reported its seventh consecutive quarter of same-store sales declines, giving back substantial gains that it enjoyed during the pandemic. High mortgage rates have also put a damper on existing home sales. People typically spend the most on home repairs and improvements in years when they buy or sell houses, often conducting both transactions in the same year.”
2. Advanced Micro Devices Inc (NASDAQ:AMD)
Number of Hedge Fund Investors: 107
Jim Cramer in a latest program on CNBC commented on a recent bearish report on Advanced Micro Devices Inc (NASDAQ:AMD) by Goldman Sachs. Here is what Cramer said:
“Piece by Goldman Sachs, really, really good one. It really has a lot, wide-ranging both on capital equipment and the regular just semis. But we reduce our 2025-26 revenue per AMD by 10 to 11%. You know, you can’t own a semiconductor stock when they cut number revenue, revenue growth estimates, and that’s very, very negative. And a lot of that is because they really have not been able to accelerate what they’re doing in the data center.”
Goldman Sachs downgraded Advanced Micro Devices (NASDAQ:AMD) from Buy to Neutral, cutting its price target from $175 to $129.
Goldman Sachs cited weaker PC, traditional server demand and slower-than-expected growth in data center demand for Advanced Micro Devices Inc (NASDAQ:AMD) processors as reasons for the rating action.
“We are increasingly concerned that the rise of Arm-based custom CPUs coupled with the competitive intensity in accelerated computing will weigh on AMD’s revenue growth relative to peers, exert upward pressure on Advanced Micro Devices Inc (NASDAQ:AMD) opex profile and, in turn, weigh on the stock’s multiple,” Goldman analysts said.
Advanced Micro Devices (NASDAQ:AMD) bulls believe the market should stop comparing the company’s chips with Nvidia and focus on its data-center growth and its competitive edge over other players like Intel. Advanced Micro Devices (NASDAQ:AMD)’s strong growth in the data center segment is indeed impressive, driven by Instinct GPU shipments and strong sales of EPYC CPUs. Advanced Micro Devices (NASDAQ:AMD) will continue to benefit from organic growth catalysts in this segment despite the competition from Nvidia. According to Goldman Sachs Research, global data center demand could surge by 160% by 2030. In the U.S., data centers are projected to use 8% of total power by 2030, up from 3% in 2022. McKinsey estimates that adding the required U.S. capacity will need over $500 billion in infrastructure investment by the decade’s end.
Rogue Funds stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q3 2024 investor letter:
“We sold our Advanced Micro Devices, Inc. (NASDAQ:AMD) puts for a sold profit after the Japan Carry Trade caused volatility to spike considerably and allowed for a significant increase in the value of our put options. I felt that was an ideal time to capture these profits which has turned out to be a good choice in hindsight.”
1. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Jim Cramer in a latest program explained the reasons why NVIDIA Corp (NASDAQ:NVDA) shares fell after the CES tech show. Cramer called this decline “hideous.”
“Sometimes the stock doesn’t tell the whole story, particularly this stock. First of all, the whole tech sector rolled over today, even as other parts of the market like healthcare and banks held up well. Second, I’d argue the tech stocks were victims of the flailing 10-year Treasury, as I said at the top of the show. Finally, this stock was up huge going into Jensen’s speech last night. At its highs, it was shocking NVIDIA Corp (NASDAQ:NVDA) managed to open up strongly in the morning. It only fell from those levels because the yield in the 10-year Treasury spiked.”
Simply beating earnings estimates is not enough for NVIDIA Corporation (NASDAQ:NVDA) anymore, and the impact of high expectations will continue to weigh on the stock as growth cools. An EPS surprise of 8.5% was not able to help the stock. A similar trend occurred following the second-quarter earnings after a 5.6% EPS surprise. It’s difficult to see Nvidia maintaining a mid-70s gross margin by the end of 2026. Over the last two quarters, Nvidia has already reported a drop in its gross margin from 78% to 74.5%.
Then there’s competition. Amazon (AMZN) recently disclosed its Trainium 3 chip, which is set to be released by the end of 2025. The chip is expected to be twice as fast with 40% more power efficiency than the previous generation, manufactured on TSMC’s (TSM) cutting-edge N3 technology. Reportedly, technology giant Apple (AAPL) will be a consumer of Amazon’s new silicon.
Manole Capital Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA), our conviction lies in the belief that under the radar 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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