In this article, we will take a look at 12 stocks that Jim Cramer discussed 6 months ago during his show on July 26, 2024, and examine whether he was right or wrong about those stocks.
Back in July, Cramer was talking about the market’s turbulence which was driven by a rotation out of large-cap tech stocks and into small-cap stocks. He said:
“This rotation has been agonizing for anyone who’s stuck with the long-standing winners, including today, but it’s Nirvana for those who dived into the losers, the worst performing stocks, the ones that are buried in the Russell 2000 and the S&P 600 small cap index.”
Cramer suggested that this “change in market leadership” began on July 11, following the release of a “cooler than expected” CPI report. Cramer also talked about key events that further propelled this change in the markets, such as Donald Trump becoming the frontrunner for the U.S. presidential elections and then doubling down on his protectionist economic stance by selecting J.D. Vance as his running mate, a move that was seen as “incredibly hostile towards companies that move their manufacturing overseas”.
The rotation from large-cap tech to small-cap was exacerbated due to Trump’s comments where he questioned whether it was worth defending Taiwan from China. These remarks specifically hit Nvidia at the time, due to the company’s reliance on Taiwan for advanced semiconductor manufacturing.
Cramer expressed his concerns about the U.S. government policies regarding semiconductors labelling them as “the heart of computing and artificial intelligence” at the time. Former U.S. Secretary of Commerce Gina Raimondo also joined his show six months ago and discussed semiconductors, as the Mad Money host was worried about escalating tensions between the U.S. and China back then.
Throughout the episode, Cramer examined a variety of stocks and industries, providing bullish or bearish perspectives on their performance and potential. For this article, we went over all of the stocks that Jim Cramer talked about during his program on CNBC and how they fared since the episode aired.
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on July 26, 2024. We then calculated their performance from July 26, 2024, market close to January 28, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q3 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
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).
12. Nvidia Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 195
Jim Cramer and Secretary of Commerce Gina Raimondo discussed Nvidia’s heavy reliance on Taiwan for the production of its advanced AI chips. With geopolitical risks increasing, Nvidia’s dependence on Taiwan Semiconductor Manufacturing Company (TSMC) was framed as a major vulnerability. Raimondo said:
“93% of our chips come from one company in Taiwan… every single AI chip that Nvidia designs is made in Taiwan.”
Cramer highlighted the potential disruption of Nvidia’s supply chain and the market’s skepticism about AI investments:
“Wall Street began to question the future of artificial intelligence, doubting whether all these big data centers are ever going to pay off.”
Although Raimondo reassured that Nvidia only exports chips to China with government approval, Cramer seemed bearish on Nvidia.
Nevertheless, the stock is up 15% since then.
11. Taiwan Semiconductor Manufacturing Company (NYSE:TSM)
Number of Hedge Fund Investors: 160
TSMC (NYSE:TSM) was at the center of the conversation as the leader of the global semiconductor supply chain. Cramer was worried about the stock’s outlook. He emphasized the risks associated with their proximity to China and its “near-monopoly” on advanced chip manufacturing. Raimondo, however, re-assured Jim by mentioning the company’s commitment to U.S. investments, stating:
“They are an amazing company… deeply committed to their investments in the United States.”
The stock is still going strong since, being up by 26%.
10. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Investors: 107
Both Cramer and Raimondo praised Micron (NASDAQ:MU) for its commitment to expanding memory chip production in the U.S. and how they will benefit from the CHIPS Act:
“Tens of billions of dollars will allow them to expand in the United States, which is good for America. We need memory made in America.”
Cramer was very proud of Micron’s strategy. However, the stock has not done well since the program aired and is down 18%.
9. Hasbro Inc. (NASDAQ:HAS)
Number of Hedge Fund Investors: 30
Cramer sounded very bullish on the stock following a “dynamite quarter” (Q2 2024) reporting a “monster” $0.44 EPS beat and its management raising their forecasts. He praised the company’s transformation under CEO Chris Cocks who joined the show to talk about its booming gaming division. Cramer praised Hasbro’s strategy, stating:
“They reported substantially higher-than-expected sales… it’s got room to run.”
Since the July episode, Hasbro (NASDAQ:HAS) kept rallying from around $64 per share up to $73 in October 2024 when the company faced legal action for misrepresenting inventory levels. Since then it’s all been downhill for the stock, dropping as low as $56 per share with an overall performance of -8% since Cramer’s bullish comments.
8. Cracker Barrel (NASDAQ:CBRL)
Number of Hedge Fund Investors: 18
Jim Cramer couldn’t hide his excitement about Cracker Barrel’s turnaround efforts under new CEO Julie Felss Masino. He noted the company’s initial struggles, including an 80% dividend cut earlier in 2024, but emphasized that the worst is behind it:
“Cracker Barrel’s gotten the dividend cut out of the way… I think the turnaround plan is real.”
The CEO joined the show and explained the company’s three-year plan that will focus on store remodels, menu innovation, and technology improvements, including a loyalty program with 5 million members in its first year. Cramer was impressed with Julie’s plan, saying:
“This is a brand that people love… it’s going to take a while, but give her time.”
With strategic investments and early positive signs from remodeled stores, Cramer saw long-term upside for Cracker Barrel.
Indeed, Cracker Barrel (NASDAQ:CBRL) has done a wonderful job since the show, being up by more than 45% since.
7. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Investors: 31
Cramer admitted that he sees a positive outlook for Dow Inc. (NYSE:DOW), emphasizing its resilience despite weaker pricing and sluggish consumer durables and housing markets. Although the company missed on earnings and revenue at the time, Cramer noted the stock’s ability to rebound indicated that the bad news was already priced in. He praised the company’s consistent dividend, stating:
“It’s a very big yield, and if the Fed’s going to cut, your stock will be a rocket ship.”
Cramer also applauded Dow’s commitment to sustainability, specifically its investments in a net-zero ethylene cracker, calling it an “elegant approach.” Cramer concluded by saying investors are “being paid to wait for the big turn,” making Dow an attractive pick for those looking for yield and long-term growth.
However, since the episode aired in July, Dow Inc (NYSE:DOW) is down 22%.
6. Dell Technologies (NYSE:DELL)
Number of Hedge Fund Investors: 60
During the lightning round, a caller asked Jim Cramer whether he recommended buying Dell (NYSE:DELL) to which Jim answered with a big yes, at the time. Cramer then expressed his surprise at how much the stock has pulled back from its highs around $180. He was very optimistic about the company’s fundamentals, even outside of its AI segment, and said:
“It is such a good company even without most of this AI… the answer is yes, you want to buy it.”
The stock is down 9% since.
5. Five Below (NASDAQ:FIVE)
Number of Hedge Fund Investors: 36
Cramer advised a caller to move on from Five Below (NASDAQ:FIVE), due to operational challenges, rushed store openings, and leadership issues:
“I don’t know what happened there… until they get their act together, I have nothing good to say about them.”
The stock is up 34% since the show.
4. Toyota (NYSE:TM)
Number of Hedge Fund Investors: 18
One caller asked Cramer whether they should invest in Toyota (NYSE:TM) and he said that he was bearish on the auto sector in general, citing pricing pressures and volatility:
“I don’t really want the auto stocks right here… they’ve just become way too dicey.”
He made an exception for General Motors (NYSE:GM) due to its share buybacks and emphasized that he regards Tesla (NASDAQ:TSLA) as a tech stock rather than an auto company and likes it.
Toyota (NYSE:TM) is down 5% since, while General Motors (NYSE:GM) and Tesla Inc. (NASDAQ:TSLA) are up 14% and 80% respectively.
3. CrowdStrike (NASDAQ:CRWD)
Number of Hedge Fund Investors: 73
When asked about the cybersecurity stock CrowdStrike (NASDAQ:CRWD), Cramer expressed his admiration of the company’s management, stating that they are close to resolving their issues:
“I think CrowdStrike’s going to bottom here… I don’t want to write this company off, George Kurtz (the company’s CEO) is too good.”
Indeed, the stock is up 61% since then.
2. A10 Networks (NYSE:ATEN)
Number of Hedge Fund Investors: 20
When asked about A10 Networks (NYSE:ATEN), Cramer redirected the conversation to Palo Alto Networks (NASDAQ:PANW), recommending it as the stronger option in the network security space:
“I do like Palo Alto… even after what happened with CrowdStrike, they are cheaper rivals, and it seems wrong to me.”
For context, A10 Networks (NYSE:ATEN) is up 35% since, while Palo Alto (NASDAQ:PANW) is up 21%.
1. Dream Finders Homes (NYSE:DFH)
Number of Hedge Fund Investors: 8
A caller mentioned that his son bought a lot of shares in Dream Finders Homes (NYSE:DFH). Cramer endorsed the company, praising its focus on single-family housing:
“I like that business very much… your kid’s got Horse Sense.”
The stock is down 24% since that statement.
While we acknowledge the potential of DFH 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 DFH 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
