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.
4. Costco Wholesale Corp (NASDAQ:COST)
Number of Hedge Funds Investors: 75
Jim Cramer in a latest program on CNBC affirmed his bullish views on Costco Wholesale Corp (NASDAQ:COST) despite the selloff following the company’s latest quarterly report.
“One stock I am a buyer of, though, is Costco, which reported excellent numbers last night and still got obliterated. Wait until Tuesday and then buy some—all the sellers will probably be done. It’s a long-standing position for my charitable trust. I actually want to buy more—I haven’t wanted to do that in a very long time. After the close—and by the way, it did not miss earnings. That’s just wrong. Those are people who don’t know how to read Costco’s report. I do.”
Aoris Investment Management stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2024 investor letter:
“Firstly, I think we exercised good valuation discipline in our sales of Costco Wholesale Corporation (NASDAQ:COST) and Cintas. The share prices of these two companies had increased by more than 60% and 40% respectively in the year prior to our sale. It can be difficult as investors to remain objective and not ‘fall in love’ with an investment when it is performing well. A higher share price doesn’t make a business more valuable!
We sold both Costco and Cintas simply for reasons of valuation. These are exceptional businesses that we’d love to own again if valuation permits. Their sales allowed us to recycle portfolio capital into more attractively valued businesses.”
3. Oracle Corp (NYSE:ORCL)
Number of Hedge Funds Investors: 91
Jim Cramer in a program on CNBC said the following about Oracle Corp (NYSE:ORCL) ahead of the company’s earnings:
“Oracle is going to report, I bet they’re going to have some really positive things to say. Now, Oracle, very good software company, has become a great data center company, which was terrific until we learned that some Chinese outfit could create high-quality AI models using very much less expensive hardware.”
Oracle’s latest quarterly results missed estimates but there were some positive points. While overall revenue increased by 6% to $14.13 billion, and net income rose 22% to $2.94 billion, the cloud services segment, which makes up 78% of total sales, saw a 10% year-over-year increase, hitting $11.01 billion. Notably, cloud infrastructure revenue surged by 49% to $2.7 billion, driven by AI demand.
Oracle’s remaining performance obligations (RPO) surged to $130 billion, a 63% increase year-over-year, even without including contracts from Project Stargate. Project Stargate, a $500 billion AI infrastructure initiative involving major tech players and government backing, is expected to significantly impact Oracle’s revenue and RPO.
Oracle anticipates revenue growth of 15% for fiscal year 2026 and potentially 20% for fiscal year 2027. Given the growth in RPO and the potential from Stargate, the company believes it can exceed consensus revenue estimates for fiscal year 2025.
Polen Focus Growth Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q4 2024 investor letter:
“We added to several existing positions in the quarter including Oracle Corporation (NYSE:ORCL), Zoetis, and Eli Lilly. Oracle was a recent addition to the portfolio last quarter, and results so far indicate an accelerating trajectory that we expect will continue for many years. The company’s OCI (Oracle Cloud Infrastructure) cloud infrastructure business enjoys large and durable advantages and is seeing much demand for normal cloud workloads with generative AI training and inference workloads as nice potential optionality on the upside.”
2. Adobe Inc (NASDAQ:ADBE)
Number of Hedge Funds Investors: 123
Jim Cramer in a program on CNBC said the following about Adobe Inc (NASDAQ:ADBE) ahead of its earnings:
“Adobe reports, it’s got to break the spell of undeserved negativity surrounding its stock. I bet CEO Shantanu Narayen will deliver something that makes the stock worth owning into the print.”
Adobe beat estimates for its latest quarter but the stock fell amid AI growth-related concerns. However, Wall Street sees hope for the stock.
“ADBE has been a frustrating stock for much of FY24,” stated Mizuho analyst Gregg Moskowitz. “Having said that, today’s disclosures indicate that ADBE is beginning to meaningfully monetize its Generative AI innovations, and we continue to expect solid upside to the FY25 ARR/revenue guidance as the year unfolds.” Mizuho adjusted its price target for the stock to $575, down from $620. “While we lower our PT to $575 due to comp multiple compression and a quarter that was a bit less clean than hoped, we reiterate our Outperform rating, and ADBE remains one of our top picks over the next 12 months,” he added.
KeyBanc Capital Markets maintained its Underweight rating and decreased its price target to $390 from $450. “Adobe provided the AI ARR from just four standalone products of $125M, which it looks to double by the end of the fiscal year,” said KeyBanc analyst Jackson Ader, in an investor note. “It’s important to note that the Company is still generating revenue from what we’d consider AI-related activity. No, it’s not a huge number, but at least the Company isn’t padding its AI stats.”
RiverPark Large Growth Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q4 2024 investor letter:
“Adobe Inc. (NASDAQ:ADBE): ADBE was a top detractor in the quarter after giving disappointing FY2025 guidance despite reporting strong FY4Q24 earnings. Better revenue growth (+11% versus expectations of +10%), operating margins (47% versus expectations of 46%), and Digital Media Net New Annual Recurring Revenue (“DM NNARR,” a key metric,$578 million versus expectations of $555 million) were driven by both new customers and expansion of existing relationships. Despite these strong numbers, the company guided the current year DM NNARR to $1.9 billion, below expectations of $2.0 billion, leading some investors to speculate on the maturity of Adobe’s business and its competitiveness against emerging AI solutions.
Some investors believe that AI, and Open AI’s Sora product specifically, pose an existential threat to Adobe’s Creative Cloud Suite. We do not share these concerns and believe that AI is a tremendous growth opportunity for Adobe, a view shared by ADBE management. ADBE is the leading software and solutions provider in the content creation and content management space. The company offers a line of products and services used by creative professionals, communicators, businesses of all sizes, and consumers for creating, managing, delivering, measuring and optimizing content and experiences across personal computers, smartphones, other electronic devices and digital media formats. The company has grown revenues in the double-digit percent range for the last decade, and as it enters its 43rd year since its founding, we expect ADBE to continue to grow revenue greater than 10% per year through 2028. The company generates 41% EBITDA margins, which we think can expand to nearly 50%, and we believe the company will more than double last year’s roughly $7.9 billion of free cash flow over the next five years.”
1. BlackRock Inc (NYSE:BLK)
Number of Hedge Funds Investors:
Jim Cramer in a latest program on CNBC reiterated his bullish views on BlackRock Inc (NYSE:BLK).
“This stock has been a dog for me, candidly, for my travel trust. And we buy it—why do we buy? Because it’s the best-run fin with no exposure to credit.”
The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q3 2024 investor letter:
“BlackRock, Inc. (NYSE:BLK) – Shares of BLK rallied during 3Q as organic growth improved sequentially. Our long-term view of BLK has not changed. In the near-term, strong equity market performance is supportive of AUM and fee growth, and, visibility on declining interest rates is a potential tailwind to the fixed income ETF business. We continue to view BLK as a long-term share gainer with a broad spectrum of solutions, and we appreciate the strong balance sheet and steady capital return.”
While we acknowledge the potential of BlackRock Inc (NYSE:BLK), 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 time frame. If you are looking for an AI stock that is more promising than BLK 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. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at Jim Cramer Discusses These 12 Stocks & Says Mag 7 Stocks Are A Thing Of The Past and the 12 AI Stocks on Wall Street’s Radar Today.
