In this article, we will take a detailed look at Jim Cramer’s Latest Lightning Round.
Jim Cramer in a latest program on CNBC reiterated his view that the market volatility stems from President Donald Trump’s ever-changing policies and temperament that often spooks investors. He also talked about the increasing chances of recession:
“The stock market matters as a bellwether for the country, not just as a wealth creator. You can gauge the country’s mood from the market, and as of Thursday, it was correcting itself from a positive attitude to a negative one, from an exuberant one to a solemn one, and that’s how you get a recession. Now, it might be true that the old Trump created too much enthusiasm, and that enthusiasm could have led to the euphoria … before COVID hit, he presided over a fantastic economy with great job growth, no inflation, and he did it lightly. He did with a smile. He was consistent in the optimism and his get it done attitude. I miss that President Trump. This new second term President Trump is angry, lashes out especially on Truth Social, and his approach is so inconsistent that it frightens all sorts of business owners to the point where they don’t know what to do. They can’t get their heads around this moly front trade work. They thought they had a friend in the White House, but suddenly it’s like they have an enemy who seems upset and angry with them. The president expressed his fury, and all sorts of workers from all sorts of businesses, many of them voted for them, are worried about their jobs.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
In this article we picked 10 stocks Jim Cramer was talking about in his latest programs. With each company we have mentioned its latest hedge fund sentiment. 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. United Airlines Holdings Inc (NASDAQ:UAL)
Number of Hedge Funds Investors: 22
Jim Cramer in a latest program on CNBC said he prefers United Airlines Holdings Inc (NASDAQ:UAL) over Delta.
“I do prefer United to Delta. The group is really under a lot of pressure right now, but I think that they’re going to have a very strong summer. I would hold on.”
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.”
9. Dow Inc (NYSE:DOW)
Number of Hedge Funds Investors: 31
A caller recently asked Jim Cramer about his thoughts on Dow Inc (NYSE:DOW) Inc. Here is what Cramer said:
“So Dow is trading with all the other chemicals as if they are just calls on China turning around. It’s the wrong thing, but I got to tell you straight—that’s what it’s trading on. And therefore, that means it’s not a stock you should own right now. The yield might not protect you as people thought at five and six percent.”
8. DICK’S Sporting Goods Inc (NYSE:DKS)
Number of Hedge Funds Investors: 35
Jim Cramer in a program on CNBC predicted that DICK’S Sporting Goods Inc (NYSE:DKS) will report a strong quarter.
“I’m keen on Dick’s Sporting Goods, which is pulling away from the others in the sports category. I think they’ll deliver a very strong set of numbers, and it jumps like a pole vaulter when you get that kind of number, so it might be worth being in.”
Cramer was right. DKS beat the latest quarterly estimates on both earnings and revenue. Revenue came in at about $3.9 billion in sales, higher than Street’s forecast and up year over year. Comparable sales rose 6.4% increase.
Forward guidance projects revenue between $13.6 billion and $13.9 billion, with comparable sales growth of 1-3%. Projected EPS for the year ranges from $13.8 to $14.4. At the current share price of $210, the forward earnings multiple is 14.8x, suggesting an attractive valuation given anticipated EPS growth and dividend distributions.
Conventum – Alluvium Global Fund stated the following regarding DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q4 2024 investor letter:
“DICK’S Sporting Goods, Inc. (NYSE:DKS) (up 10.2%) again released better than expected results. Management noted that its House of Sport rollout continues to progress well, and upgraded its guidance. There was no change to our analysis. In our view it remains most reasonably priced as it continues to generate very high returns on capital, yet trades at around 16 times earnings. But, taking into account the 5/10/40 Fund holding restrictions, and noting Dick’s had grown to 7.7% of the portfolio, we sold a little. It is now 7.1% of the Fund. We are generally comfortable with this holding, despite our niggling concerns regarding possible tariff changes under the Trump Administration.”
7. Dollar General Corp (NYSE:DG)
Number of Hedge Funds Investors: 45
Jim Cramer in a latest program on CNBC said that dollar store companies like Dollar General Corp (NYSE:DG) and Dollar Tree are being hammered by giants like Walmart.
“Near the bottom of it, I think this company and Dollar Tree have become the odd man out, as Walmart has hammered prices so low that the guys can’t compete. Dollar stores—they, I don’t know, they seem to be at the mercy of the big suppliers, not Walmart. I am not a buyer of Dollar General or Dollar Tree.”
Broyhill Asset Management stated the following regarding Dollar General Corporation (NYSE:DG) in its Q3 2024 investor letter:
“Shares of Dollar General Corporation (NYSE:DG) lost 36% in Q3. Dollar General has historically proven to be a safe haven for investors in uncertain times as consumers trade down and increase their spending with the retailer. While inflation has certainly put pressure on DG’s core customer in recent years, the retailer has seemingly lost market share to larger competitors. The most recent earnings report highlighted this dynamic, contrary to our expectation for a weaker economic environment to benefit the company.”
6. Fiserv Inc (NYSE:FI)
Number of Hedge Funds Investors: 71
A caller recently asked Jim Cramer about his thoughts on Fiserv Inc (NYSE:FI). Here is what Cramer said in response:
“I think they’re one of the greatest fintech. You know, everyone wanted to go into the really fancy new fintech. You stick with the one that you have, you are doing really well.”
The London Company Large Cap Strategy stated the following regarding Fiserv, Inc. (NYSE:FI) in its Q4 2024 investor letter:
“Fiserv, Inc. (NYSE:FI) – FI delivered another strong quarter, executing well on company initiatives. Merchant revenue growth remains strong, driven by Clover’s notable market share gains through strong distribution, new product launches. and higher attach rates for value-added services. The Financial segment continues to show resilient growth, leveraging digital payments and effective cross selling to expand customer wallet share across segments. Free cash flow generation remains strong with management focusing on organic reinvestment and capital returns. We are confident in Fl’s ability to deliver sustainable earnings growth through its strong product portfolio and disciplined capital allocation.”
5. Nike Inc (NYSE:NKE)
Number of Hedge Funds Investors: 75
Jim Cramer in a latest program on CNBC praised Nike Inc (NYSE:NKE) CEO Elliott Hill and said he might buy the stock on a pullback:
“I think that Mr. Hill is doing exactly as you say. I also think that the stock looks very expensive, but maybe they’re going to have an earnings acceleration. If I owned Nike, I would certainly hold it. If the stock would have dropped back even to the low 7s, I myself might pick some up for my travel trust. So I think that Elliott Hill is making it work. I think he’s doing a good job now.”
Nike’s turnaround will likely take a long time to show results amid worsening macroeconomic outlook and tariff impact. Nike’s troubles in China are increasing and competitors are eating away market share. Recent earnings showed a 9% sales drop to $11.3 billion, with a big 330 basis point cut to profit margins, now at 41.5%. Footwear sales, a key area, fell 11.7% year-over-year to $7.2 billion. Net income fell a large 32% to $800 million. Even though they cut inventory by 2% and spending by 8%, the third quarter was worse than the first two quarters. Nike’s forecast for the next quarter is bad, saying sales could drop by mid-teens, and profit margins could fall by 400 to 500 basis points.
With a forward price-to-earnings ratio of 34, and a dividend payout ratio going towards 50%, the stock looks overpriced.
RiverPark Large Growth Fund stated the following regarding NIKE, Inc. (NYSE:NKE) in its Q4 2024 investor letter:
“NIKE, Inc. (NYSE:NKE): NKE shares were a top detractor in the quarter following better than expected fiscal second quarter results reported in December but worse than feared third quarter guidance. The company delivered $13.4 billion of revenue (roughly $1 billion better than expectations) and $1.9 billion of EBIT (roughly $500 million ahead of street consensus) and generated better than expected earnings of $1.03 (investors were looking for $0.78). Despite better operating metrics last quarter, the company dramatically lowered expectations for the fiscal third quarter including expectations for double-digit percentage declines in revenue. NKE’s new CEO, Elliot Hill, described several key issues negatively impacting the company’s growth trajectory including 1) a multi-year move away from a focus on sports, 2) a shift away from innovative demand creating marketing, 3) too much centralization, which has led to lack of execution capabilities in local markets, and 4) too much focus on Nike Digital, which negatively impacted the brands standing in the marketplace.
