Jim Cramer, the host of Mad Money, recently revisited one of his core investment principles: “Nobody ever made a dime panicking.” He emphasized that, no matter how many times he has shared this advice, it always feels as crucial as the first time. Observing the current turmoil in tech stocks, Cramer pointed out that panic selling leads to missing out on the recovery that often follows. Specifically, he noted how those who sold their tech holdings this week missed the subsequent surge in tech stocks that delivered strong returns.
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Cramer explained that the panic was so widespread that it even affected the stocks of companies that were benefiting from the tech boom. He observed that even when good news was on the horizon, fear caused investors to make rushed decisions. He then discussed how a Chinese company recently announced a new innovation suggesting that fewer NVDA chips are needed for artificial intelligence applications.
“The companies that are doing well might even do better if DeepSeek’s formula for success spreads, bunch of knuckleheads.”
While Cramer acknowledged that this new technology, such as DeepSeek’s offering, posed a potential threat to NVDA, he quickly said, “The way I see it, that’s nonsense.” However, Cramer was particularly critical of how the market reacted to this news. He pointed out that the panic was so intense that even companies benefiting from the tech sector’s growth were dragged down.
“Here’s the bottom line: The shoot first ask-questions-later approach works when there’s fraud or chicanery and we know we must sell but when things are complicated or murky, it might not make sense to help create the biggest single-day dollar loss in history, chums. There’s a better way. Just don’t do anything. If you really wanna sell, you can do it into the rebound the next day. In my experience, after one more dip in the morning, you almost always get a better price.”
Jim Cramer’s Thoughts on These 7 Stocks
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on January 28 and 30. 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 Thoughts on These 7 Stocks
7. RadNet, Inc. (NASDAQ:RDNT)
Number of Hedge Fund Holders: 20
A caller noted the dip in RadNet, Inc. (NASDAQ:RDNT) stock and asked if they should take advantage of it. Here’s what Cramer said:
“Well, I’d like to see some sort of, I mean, the stock did bounce $2 today… It’s a very expensive stock. I’ve been, I’m trying to sell… GE HealthCare if I can just because I kind of just feel this group is just not strong enough, that includes this one. Let’s give it a pause for a second. Let’s see if it can’t bottom for more than just one particular day. But I understand it was a great stock for a long time. I need to see a real bottom.”
RadNet (NASDAQ:RDNT) provides outpatient diagnostic imaging services and develops advanced imaging technologies, including AI solutions to improve radiology interpretations and support cancer screening. Cramer has called RDNT stock expensive before in 2023 as he said:
“We opined positively about RadNet before, diagnostic company, and I think it’s too expensive versus GE Healthcare, which we own for the trust…it sells at 21 times earnings, and is much more connected with what Biogen and Eli Lilly are doing when it comes to Alzheimer’s and dementia.”
6. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 40
Cramer explained that Cleveland-Cliffs Inc.’s (NYSE:CLF) difficulties stem from Chinese steel dumping, but noted that the issue will be resolved through tariffs that will be actively enforced.
“Look, I think Cleveland-Cliffs is so cheap now when you get the tariffs. The only reason they’ve really been crushed is because of all that Chinese dumping and that’s going to end with the tariffs because that’s what they’re going to really police. I like Cliffs. Of course, I think Nucor is a better stock.”
Cleveland-Cliffs Inc. (NYSE:CLF) is a manufacturer of flat-rolled steel, offering a variety of steel products. Early January, when a caller asked Cramer about the company, he said:
“Well, I know I was, I was into the company today, trying to get them to come on tonight’s show. Now here’s the problem: Honestly, the steel stocks are the worst stocks in the market and I think that you could buy this stock and if you’re willing to take a point or two down, then I think it’s okay but you have to accept the fact that that’s exactly what could occur.”
5. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Number of Hedge Fund Holders: 41
To a caller’s question about Viking Therapeutics, Inc. (NASDAQ:VKTX), Cramer’s response was:
“Okay, people, people think that even if Lily’s stock can’t go up, why would we want Viking Therapeutics? And a lot of people were in it for a takeover. So far it doesn’t look like that’s materializing, so they’re giving up and they are selling it. I prefer Eli Lilly.”
Viking Therapeutics (NASDAQ:VKTX) is dedicated to developing innovative treatments for metabolic and endocrine diseases, with multiple drug candidates undergoing clinical trials for conditions like non-alcoholic steatohepatitis and type 2 diabetes. Cramer recently discussed the company and said:
“I want you to sell Viking Therapeutics and roll it into Viking Holdings, which is a fantastic cruise line, does not save lives, does not lower your blood pressure… but darn, you’ll have a good time.”
Year-to-date, Viking Therapeutics (NASDAQ:VKTX) stock has declined more than 20% while Cramer’s preferred stock, LLY, has gone up over 4%.
4. AutoZone, Inc. (NYSE:AZO)
Number of Hedge Fund Holders: 47
Cramer expressed appreciation for AutoZone, Inc. (NYSE:AZO) as he said:
“Okay, now listen to me. Listen to me good, AZO is a great stock and you always hear people say, well, wait a second, they buy a lot of parts, AutoZone, from China so therefore it’s no good. Forget that. AutoZone is good. They buy a lot of their own stock.”
AutoZone (NYSE:AZO) sells and distributes a variety of automotive replacement parts and accessories, including hard parts, maintenance products, and non-automotive items. While Cramer had nothing but good things to say about the company recently, in December 2024, he said:
“Here we have a company that imports aftermarket auto parts, including some from China, and any company that imports anything from China is viewed with tremendous skepticism right now, right here. AutoZone, though, has a gigantic buyback that kicks in on any weakness, so can it sidestep tariff worries? I can tell you from the disappointing portion of my Charitable Trust that you simply can’t own stocks with China exposure here. That’s been the case ever since the election. I don’t think anything has changed, so I don’t know. I used to love it, I can’t load the boat up here.”
3. Waste Management, Inc. (NYSE:WM)
Number of Hedge Fund Holders: 54
Cramer likes Waste Management, Inc. (NYSE:WM) and expressed approval of the company’s CEO.
“I like Waste Management very much. I think it’s an absolutely terrific stock. I think Jim Fish is a remarkable CEO and the answer is absolutely yes, I would start a position right now.”
Waste Management (NYSE:WM) provides a range of environmental services, including waste collection, recycling, landfill management, and renewable energy generation from landfill gas. It also offers materials processing, recycling brokerage, and various construction and remediation services. Cramer has been a fan of the stock for years now. In 2020, he commented:
“This stock’s been getting killed. It’s gotten downgrade after downgrade after downgrade. Down five today. [CEO] Jim Fish does a great job. It’s got a ton of cash flow. Yields 2%. … Buy small and then buy big as it goes down.”
Since then, the stock has gained more than 80% and it currently has a dividend yield of 1.43%.
2. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 59
Cramer acknowledged that First Solar, Inc. (NASDAQ:FSLR) is a cheap stock these days as he said:
“It is a very inexpensive stock. I’m telling you, I’m still reeling from the fact that NXT, Nextracker… actually reported an upside surprise tonight. And… when I look into that and it says that it’s good for solar, I will tell people who belong to the Charitable Trust, to CNBC Investing Club, whether it’s time to get a little more aggressive on solar.”
First Solar (NASDAQ:FSLR) is a solar technology company that specializes in manufacturing and selling thin-film photovoltaic solar modules, offering a lower-carbon alternative to traditional solar technologies. In June 2024, Cramer was enthusiastic about the company as he remarked:
“First Solar, this is the All America maker of industrial scale solar modules, up nearly 34%… Plus it didn’t hurt that the government doubled the tariff on cheap Chinese imports. Unlike so many solar plays, First Solar is usually profitable and it’s been a low-cost producer for ages… I love the solar theme and I believe that solar, currently about 5% of the grid right now.. could go to 25% by the end of the decade.”
Since Cramer’s comment in 2024, First Solar (NASDAQ:FSLR) stock has declined over 25%.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 106
Cramer mentioned Eli Lilly and Company (NYSE:LLY) during an episode of Mad Money and here’s what he had to say:
“Okay, so I mean we just found out today that Ozempic has something for kidney failure and that means that maybe Lily has it. Now Lilly has, I will say this, the single worst chart I have seen in a long time and there are a lot of people on Wall Street, are chartists. However, I actually like the fundamentals. Now, David Ricks did on our show, preannounce a better-than-expected quarter and nobody listened. But I do believe in Lilly, we own it for the trust, and I’ve gotta tell you, I think in another dip, you get another opportunity to buy and I’m sticking by that.”
Eli Lilly (NYSE:LLY) focuses on discovering, developing, and marketing a wide range of human pharmaceuticals, including treatments for diabetes, oncology, autoimmune conditions, pain management, and migraines. Cramer has been a fan of LLY for a while now and recently reiterated holding on to the stock.
“Okay, the problem with Eli Lilly is people are saying, you know what, after a year, people are no longer taking the drugs, they’re going off it, a huge percentage’s going off it. I think that you own this thing because it’s about cardiac… It’s about high blood pressure. It’s about dementia, may even be about cancer, not just about weight and diabetes. So I think you hold on to Eli Lilly. We continue to hold it for the trust. I do think there’ll be good numbers, but that last quarter wasn’t good. I totally understand the trepidation about the stock, but I still like it.”
While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY) 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 LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
