Jim Cramer, the host of Mad Money, recently shared his insights on several key topics. He discussed the recent turmoil in the pharmaceutical sector, which followed the news that President-elect Trump is considering Robert F. Kennedy Jr. for the position of Secretary of Health and Human Services.
Cramer pointed out that the pharmaceutical industry took a significant hit after the announcement, but he believes this may present solid buying opportunities. Cramer acknowledged that RFK Jr., whom he humorously referred to as “Bobby Jr. for some Sopranos flavor,” has a strong anti-big pharma stance, which could be a concern for the sector. However, Cramer emphasized:
“… There’s a whole federal bureaucracy at HHS and frankly, I don’t think Trump will let him wreck a pretty important sector of the stock market.”
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Cramer further addressed the potential confirmation of RFK Jr. as Secretary of Health and Human Services. He suggested that while there is a debate about whether the Senate will provide confirmation for him, he believes RFK Jr. will likely be approved. However, Cramer remained less concerned about RFK Jr. causing significant damage to the pharmaceutical industry, noting that he doesn’t expect him to have much success in pushing his anti-vaccine or anti-pharma agenda. Moving on to broader market trends, Cramer commented:
“After the initial Trump rally euphoria in the wake of the election, we quickly transitioned to a Trump rally hangover last week with the averages getting clobbered.”
He highlighted that semiconductor stocks were among the hardest hit, partially due to the typical tech sector sell-off when bond yields rise, as they did last week. Cramer also expressed concern, saying:
“With the election results from earlier this month and the second Trump administration coming in about two months, I am very worried about companies that are hostage to the Chinese economy.”
Finally, Cramer turned his attention to autonomous vehicles, suggesting that while the Trump administration’s plans for self-driving cars may sound ambitious, they could be more difficult to execute in practice.
He pointed out that a variety of state and local governments would need to align on new regulations, and the notion that the federal government could allow self-driving cars nationwide with a simple executive order seemed “just plain fanciful.” Despite this, Cramer advocated for owning TSLA, not because of any regulatory changes under Trump, but because he believes in the vision and leadership of the company’s CEO, Elon Musk.
Jim Cramer’s Lightning Round: 8 Stocks to Watch
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 18 and listed the stocks in the order that Cramer mentioned them.
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Jim Cramer’s Lightning Round: 8 Stocks to Watch
8. Apple Inc. (NASDAQ:AAPL)
Cramer reiterated his “own it, don’t trade it” philosophy for Apple Inc. (NASDAQ:AAPL) but also pointed out that the bears are out to get it these days.
“Apple, own it don’t trade it. If I had no stock, would I buy it right here? I would wait for a dip because the bears are all over it, every minute of the day. Keep that in mind and then pull the trigger.”
Although Apple (NASDAQ:AAPL) remains a dominant force in the smartphone market, recent years have presented challenges for the company. On November 15, according to TipRanks, Jefferies pointed out that the company was granted an exemption from import tariffs during the final years of the Trump administration, and since then, the company has actively worked to diversify its production outside of China.
However, currently, only around 10% of iPhone production occurs outside China. While it is possible that Apple (NASDAQ:AAPL) could receive another exemption, Jefferies’ analysis suggests that without it, gross margins could face a potential decline of 3% to 6.7%, and the company’s value could drop by roughly 5% to 10%, assuming no changes in average selling price or volume. Jefferies has maintained a Hold rating on the company stock.
It ought to be noted that the company is always at the forefront of innovation. Its incorporation of advanced AI tools into its flagship devices (and others) comes at a time when there is growing enthusiasm around the potential of this technology. The company is only beginning its journey in this area as CEO Tim Cook remarked that it is “just the start of what we believe generative AI can achieve” during the fourth-quarter earnings call.
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Cramer likes Marvell Technology, Inc. (NASDAQ:MRVL) and commented:
“Okay, I happen to like Marvell, that’s Matt Murphy. He bought a million dollars worth of stock not that long ago. Really important to note that it’s really in the data center. It’s got an optic component that’s very important. I like Marvell. Wish we hadn’t sold it but we did make a lot of money.”
Marvell (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure, offering a range of products. For the second quarter of fiscal 2025, the company reported a notable performance, with data center chip sales reaching $881 million. This marked a remarkable 92% increase compared to the same period in the previous year.
The data center segment represented 69% of its total revenue for fiscal Q2, reflecting the growing importance of this sector to the company’s overall business. A key contributor to this growth is the company’s ongoing efforts to ramp up production of its AI chips, which the company believes will play an important role in sustaining this momentum.
Marvell (NASDAQ:MRVL) CEO Matthew Murphy shared positive developments during the company’s earnings call, noting that the AI custom silicon programs are advancing well. According to Murphy, the first two AI chips are now moving into volume production, and the company is on track with additional custom programs that have already been secured, including partnerships with new Tier 1 AI customers announced earlier in the year.
For fiscal Q3, Murphy expressed confidence that the data center segment would continue its growth trajectory, projecting a sequential revenue increase in the high teens percentage range. Furthermore, management remains optimistic about exceeding its earlier forecast of $1.5 billion in AI-related revenue for fiscal 2025.
6. Cameco Corporation (NYSE:CCJ)
Cramer mentioned that Cameco Corporation (NYSE:CCJ) is expensive and said:
“Look, all the uranium players are up. I think that they’re going to amount to very little in the end. This is not an expensive stock. I understand why you want to be in it, not versus the others, but it is an incredibly expensive stock versus the rest of the market. That’s what I care about. I am a kaching kaching when it comes to Cameco.”
Cameco (NYSE:CCJ) supplies uranium for electricity generation and offers nuclear fuel processing, reactor technology, and related services to commercial utilities and government agencies worldwide. As per CNBC, on November 20, according to Goldman Sachs, the company is well-positioned for growth, particularly in light of the increasing demand for nuclear power in the United States.
The company is expected to benefit from uranium prices, which are projected to rise due to a widening gap between supply and demand. Goldman Sachs raised its 12-month price target for the stock to $64 per share, highlighting the company’s potential as uranium prices climb. The stock has risen by approximately 33% so far this year.
Analyst Neil Mehta highlighted the company’s integrated business model across the nuclear fuel cycle, emphasizing its strengths in uranium mining, conversion, fabrication, and nuclear services through its stake in Westinghouse. Mehta also noted that Cameco is an appealing partner for Western utilities due to its limited geopolitical risks, with operations primarily based in Canada and the U.S., alongside a single site in Kazakhstan.
According to the firm, Cameco’s (NYSE:CCJ) contracts are supported by favorable uranium pricing, with current contracts seeing prices ranging from $70 to $130 per pound, with the midpoint around $100, which is higher than the current spot price of approximately $80 per pound. Additionally, Cameco’s 49% stake in Westinghouse, which is poised to play a key role in the construction of new power plants with its AP1000 reactor, presents further growth potential, as noted by Goldman Sachs.
5. Semtech Corporation (NASDAQ:SMTC)
Talking about Semtech Corporation (NASDAQ:SMTC), Cramer said:
“I do think that Semtech is just a traditional kind of semiconductor company. I do prefer Texas Instruments to that one.”
Semtech (NASDAQ:SMTC) designs, manufactures, and markets analog and mixed-signal semiconductors and advanced algorithms, offering a wide range of products for applications in data communications, protection, sensing, voltage regulation, and IoT solutions. As per the company’s third-quarter guidance, it expects net sales to be approximately $233 million. Net sales from the infrastructure market are expected to grow sequentially, with data center applications leading this increase.
This sector is anticipated to be a key driver for the company’s near-term growth. Similarly, the high-end consumer market is forecasted to see an increase in sales, influenced by typical seasonal trends. Industrial net sales are also expected to rise slightly, aided by recovering booking activity that began in the first quarter and continued into the second quarter.
Semtech (NASDAQ:SMTC) also provided expectations for its gross margin, projecting it to reach 52%. If this forecast holds true, it would represent a 160 basis point improvement sequentially. Management further estimated net EPS to be $0.23. In terms of adjusted EBITDA, the company anticipates $48.7 million, which would result in an EBITDA margin of 20.9%.
4. IES Holdings, Inc. (NASDAQ:IESC)
Cramer commended IES Holdings, Inc.’s (NASDAQ:IESC) CEO and remarked:
“This is a terrific infrastructure play. We know it and one of the things I didn’t know about it is it’s Jeff Gendell’s company. He’s a terrific money manager. He’s really fabulous. He gets everything. This is just [a] fantastic stock.”
IES Holdings (NASDAQ:IESC) specializes in the design, installation, and maintenance of electrical and technology systems, providing infrastructure products and services across various sectors, including residential, commercial, industrial, and infrastructure solutions. Under the leadership of Jeffrey Gendell, who has served as the CEO since October 2020, the company has expanded its reach and capabilities.
Gendell is also the founder and managing member of Tontine Asset Management, a private investment management firm that is the majority shareholder of IES Holdings. During the third quarter, Gendell highlighted the continued growth within the company’s Residential segment. He noted that this segment has expanded its plumbing and HVAC service offerings into new markets, alongside its established electrical services, and is seeing growth that outpaces the general housing market.
Additionally, IES Holdings (NASDAQ:IESC) is increasing its market share in existing electrical markets, further supporting the segment’s success. Gendell also pointed out that the Communications, Infrastructure Solutions, and Commercial & Industrial segments are benefiting from strong demand, particularly driven by the data center market. He expressed optimism about the continued positive performance of these segments through the remainder of fiscal 2024 and into fiscal 2025. The company is set to announce its fourth-quarter and year-end results for fiscal 2024 on November 22.
3. Coinbase Global, Inc. (NASDAQ:COIN)
Cramer called Coinbase Global, Inc. (NASDAQ:COIN) an “up stock” and said:
“Coinbase is what I call an up stock. It’s just an up stock. You’re not gonna stop it. Palantir’s an up stock. Coinbase is an up stock. Robinhood’s an up stock. These are stocks that there are buyers every time they pull back and there probably will be to year end. Coinbase is a winner.”
Coinbase (NASDAQ:COIN) offers financial infrastructure and technology for the crypto economy, providing a primary financial account for consumers, a marketplace for institutional crypto transactions, and tools for developers to build and accept crypto payments. In its third-quarter report, it posted a net income of $75.5 million, or $0.28 per share. While these results were positive, they fell short of analysts’ expectations.
Revenue for the period increased significantly year over year, reaching $1.21 billion, up from $674 million during the same period last year. However, it still did not meet analysts’ projections. A significant portion of the company’s revenue comes from transaction fees, but in Q3, transaction revenue saw a decline of 27% from the previous quarter, dropping to $483 million. Additionally, subscription and services revenue also experienced a decrease, falling by 7% to $556 million.
Despite these setbacks, Coinbase (NASDAQ:COIN) management expressed satisfaction with the company’s progress toward diversifying its revenue streams. They highlighted that subscription and services revenue is on track to surpass $2 billion for the year, showing the effectiveness of the company’s long-term strategy.
During the earnings call, management also discussed the challenges the company is facing in the fourth quarter. They noted that the outlook for subscription and services revenue in Q4 is impacted by a 10% drop in Ethereum prices in October compared to the average for Q3, as well as the effects of lower interest rates.
2. Eli Lilly and Company (NYSE:LLY)
Cramer pointed to the market’s reaction to Eli Lilly and Company (NYSE:LLY) stock and stated:
“This stock is as hated now as it was loved not that long ago. It is rather amazing. I’m kind of blown away. I think that it is a buy… I think it’s enough on the selling.”
Eli Lilly (NYSE:LLY) is a global pharmaceutical company that develops and markets a range of treatments, including insulin products for diabetes, drugs for obesity and type 2 diabetes, oncology medications, and treatments for various conditions. In the third quarter, it reported impressive revenue growth, reaching $11.4 billion, which marks a 20% increase year-over-year.
Despite this substantial rise, the company’s shares took a significant hit as the company missed both revenue and earnings estimates. Additionally, the company slightly reduced its guidance for the full fiscal year.
On November 14, Wolfe Research started coverage of the stock with an Outperform rating and a $1,000 price target. The firm noted that the company has experienced a decline of more than $100 billion in market capitalization recently, presenting a potentially favorable buying opportunity as much of this is not yet reflected in the stock price.
Wolfe Research believes that Eli Lilly’s (NYSE:LLY) expected strong performance in 2025, driven by growth in GLP-1 volume, is currently undervalued, and the firm also anticipates continued manufacturing efficiencies from the company’s established production sites.
1. Sezzle Inc. (NASDAQ:SEZL)
When a caller asked Cramer about Sezzle Inc. (NASDAQ:SEZL), he said:
“I’ve looked at this stock, it’s a straight-up payments play that reported so much better than expected quarters and I understand why it’s going up.”
Sezzle (NASDAQ:SEZL) is a technology-enabled payments company offering flexible installment solutions through its Sezzle Platform, along with services like Sezzle Virtual Card, Sezzle Anywhere, and Sezzle Premium, allowing consumers to shop and pay over time. In its recently reported third-quarter results, it saw substantial growth, driven by a significant increase in both subscriber numbers and consumer engagement. Total revenue for the quarter rose by 71.3% year-over-year, reaching $70.0 million.
This growth was further reflected in the company’s Underlying Merchant Sales (UMS), which grew by 40.6% year-over-year, hitting $659.9 million. This figure surpassed the previous high of $636.5 million, which had been recorded in the fourth quarter of 2023. The company’s improved performance was largely fueled by increased consumer activity, as evidenced by a rise in overall purchase frequency. Consumers made an average of 5.4 purchases in the third quarter of 2024, up from 4.1 in the same period of the previous year.
As of September 30, Sezzle (NASDAQ:SEZL) reported approximately 529,000 active subscribers using its Anywhere and Premium services in the United States and Canada. This increase in subscribers contributed significantly to the growth in revenue and consumer engagement. Additionally, the company reported a net income of $15.4 million for the quarter, which translates to net income per diluted share of $2.62, compared to just $0.23 per share for the same period in 2023. The net income represented 22.1% of total revenue, marking a significant 18.9% improvement from the prior year.
While we acknowledge the potential of Sezzle Inc. (NASDAQ:SEZL) as an investment, our conviction lies in the belief that 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 SEZL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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