Jim Cramer, host of Mad Money, discussed how the stock market responds not to current conditions but to expectations about the future. According to Cramer, the reason behind what makes interest rate hikes damaging to Wall Street, well before Main Street feels the consequences, or why stocks often soar the moment there is any indication that rate hikes might come to an end, is the same.
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“I’m talking about the very nature of the stock market itself. I like to say that the market’s a forecasting machine. The business is all about anticipation. Millions of traders and investors make bets on stocks.”
Cramer explained that the result is that the market typically reflects Wall Street’s collective expectations for the future, usually projecting six to nine months ahead, and noted that it is the prevailing mindset. He added that when a new piece of data emerges, one that shifts the expected outlook, it can have an immediate and significant impact on stock prices.
“The bottom line here: Everyone in this business is constantly looking at the data to piece together their own worldview, a view of how things will look in the near to medium-term future. When the Fed or the president or some foreign actor does something that dramatically alters Wall Street’s worldview for the worse, it can slay a bull market in the blink of an eye, leading you to some frightening declines, which is why I am trying to prepare you for them… in any business cycle.”
Our Methodology
For this article, we compiled a list of over 200 stocks that Jim Cramer was bullish on during episodes of Mad Money aired between May 22 and June 11. We narrowed the list to 10 stocks that had a forward price-to-earnings ratio of under 15 (as of June 19) and were the most widely held by institutional investors. We listed the stocks in ascending order of their hedge fund sentiment, which was taken from Insider Monkey’s Q1 database of 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Cheap Jim Cramer Stocks to Invest In
10. Amentum Holdings, Inc. (NYSE:AMTM)
Number of Hedge Fund Holders: 37
Forward P/E: 10.41
Amentum Holdings, Inc. (NYSE:AMTM) is one of the 10 cheap Jim Cramer stocks to invest in. On June 12, the company announced a new contract from Atomic Energy of Canada Limited to deliver operations and management services for Canadian Nuclear Laboratories. The work will be carried out through Nuclear Laboratory Partners of Canada, Inc., a joint venture.
The contract is valued at an average of CAD$1.2 billion per year. It includes a six-year base term with the possibility of extensions based on performance, for up to twenty years. The transition is expected to begin this summer.
As this joint venture strengthens Amentum’s (NYSE:AMTM) stronghold in North American nuclear, the company is already one of the UK’s major players in the energy market. In May, the company was appointed as the program manager and lead design engineer for Sizewell C, a new nuclear power station intended to support the United Kingdom’s energy infrastructure. According to the CEO’s comments at the latest earnings call, the long-term contract involves the construction of a station featuring two 1.6-gigawatt reactors, with the capacity to supply electricity to six million homes annually.
It is worth mentioning here that on June 11, Cramer extensively commented on the company when he said:
“Now, when Amentum reported its latest quarter in early May, the results were good, better than expected revenues, a healthy earnings beat, management reaffirmed the full year earnings and cash flow guidance. Not bad. Sounds good. Then how come the stock dropped 4.5% the next day? Well, it seems that the market wasn’t overly impressed with Amentum’s growth story. While the company beat estimates, [it] still only posted 1% revenue growth year over year, and the earnings were just up 4%. That’s not good enough…
Amentum’s laid out a long-term growth plan calling for 4 to 6% compound annual revenue growth through 2028. They haven’t been able to gin up much excitement with that forecast. There’s a lot of companies that are growing much faster that aren’t that expensive, but I think they can hit these numbers… It’s important to remember that Amentum isn’t a newcomer to this space. It’s made up of a series of legacy businesses with deep roots in federal contracting, businesses with incumbent status, and longstanding agency relationships.
This familiarity is something incredibly important. When the government decide[s] where to allocate funds, they also have the scale to compete. Their $45 billion in backlog is one of the highest in the sector. This isn’t some fly-by-night outfit that’s going to have to fight tooth and nail for government contracts. This is a well-known commodity in a space where that really matters. … If there’s one thing that gives me pause about the stock, it seems that… and this is a… theme… for many of our homework names, that’s the ownership concentration.
More than 35% of Amentum is still owned by American Securities and Lindsay Goldberg, the company’s former private equity sponsors. This private overhang, it can be a real issue if these firms ever decide to unload their shares… The bottom line: While I’m worried about the private equity shareholders, I think this stock already has too much caution priced into it. Amentum sells for less than 10.5 times this year’s earnings estimates. That’s a pretty compelling valuation for a company with this kind of scale and long-term positioning. At the end of the day, I’d like to see some of the large shareholders, these private guys, reduce their stakes before jumping in. But Amentum’s definitely worth keeping on your radar.”
Amentum (NYSE:AMTM) is a holding company with subsidiaries that provide services in environmental sustainability, intelligence, analytics, engineering, research, and citizen systems.
9. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 44
Forward P/E: 12.18
DICK’S Sporting Goods, Inc. (NYSE:DKS) is one of the 10 cheap Jim Cramer stocks to invest in. On June 12, the company and Uber announced a partnership that will make a wide range of DICK’S products available on the Uber Eats platform. Customers can now order sporting goods, athletic apparel, footwear, team sports gear, golf equipment, and fan merchandise for on-demand or scheduled delivery from over 800 DICK’S Sporting Goods and Golf Galaxy locations nationwide.
DICK’S (NYSE:DKS) has recently made several noteworthy deals, the most significant of them is its acquisition of Foot Locker for approximately $2.5 billion. At its Q1 2025 earnings call, the Executive Chairman, Edward Stack, said that the company has long admired Foot Locker, and the acquisition positions the combined business to participate in the $300 billion global sports retail market and expand its footprint to more than 3,200 stores worldwide.
Furthermore, on May 29, Cramer recommended buying the stock as he said:
“Oh, I like DICK’S very much and you know a lot of people, that’s both Ed Stack but don’t forget Lauren Hobart. Lauren Hobart as CEO is fantastic, a lot of people think that they stubbed their toe when they bought Foot Locker. I’m going to say the opposite. I’m going to say that they may have stubbed their toe, but this stock is so much down. It was at 254, now it’s at 181. It more than reflects [that] they can write off Foot Locker right now, and frankly, yeah, of course, they don’t need to, it would still work out. Buy DICK’S Sporting Goods.”
DICK’S Sporting Goods (NYSE:DKS) is a retailer that provides sports equipment, apparel, footwear, and accessories through multiple sales channels.
8. Leidos Holdings, Inc. (NYSE:LDOS)
Number of Hedge Fund Holders: 47
Forward P/E: 13.77
Leidos Holdings, Inc. (NYSE:LDOS) is one of the 10 cheap Jim Cramer stocks to invest in. As per a news release on June 17 on the company’s website, it has received a five-year, $35 million award to support the Cross-Domain Enterprise Services program for the Defense Information Systems Agency (DISA). The company will oversee the design, engineering, and operations of DISA’s data-sharing platform, which supports the transfer of information between classified and unclassified networks.
At its latest earnings call, Leidos (NYSE:LDOS) management strongly emphasized the company’s “NorthStar 2030 strategy.” Following that, the company announced the acquisition of Kudu Dynamics in an all-cash transaction, valued at approximately $300 million, on May 28 (closed May 23). With the acquisition, Leidos (NYSE:LDOS) aims to accelerate the growth of its AI-enabled cyber capabilities for defense, intelligence, and homeland security customers.
Additionally, on June 17, when a caller inquired about the company, Cramer replied:
“Leidos, I like it. You know, look, I am worried that the defense budget may be cut, but this is homeland security. I think it’s a good opportunity. The stock’s come down a great deal. Let’s pull the trigger.”
Leidos (NYSE:LDOS) provides technology and engineering solutions in defense, cybersecurity, healthcare, energy, and infrastructure. The company’s products include national security software, air traffic management systems, power grid support, and border security technologies.
7. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 48
Forward P/E: 12.63
The Mosaic Company (NYSE:MOS) is one of the 10 cheap Jim Cramer stocks to invest in. On June 6, the company updated its second-quarter and 2025 guidance. Phosphate pricing for the second quarter has been raised. Additionally, second quarter phosphate sales volumes are now expected to range from 1.5 to 1.6 million tonnes, down from earlier guidance of 1.7 to 1.9 million tonnes. Full year 2025 phosphate production is projected at 7.0 to 7.3 million tonnes, revised from the previous outlook of 7.2 to 7.6 million tonnes.
The company continues to target an 8 million tonne run rate across its U.S. phosphate facilities in the second half of the year. Second quarter potash sales volumes are forecast between 2.3 and 2.5 million tonnes. Full year 2025 potash production guidance remains at 9.0 to 9.4 million tonnes. After the guidance, the company’s stock declined in the following days. The stock was down around 6.4% between June 5 and 10, before making a sharp recovery.
Additionally, whilst discussing stocks on his “new high” list, Cramer mentioned the company on June 5, and said:
“There’s no real theme to the other stocks on the list… Then there are two one-offs, Roblox and Mosaic… Here’s a real tough one to understand, Mosaic. It’s a fertilizer company. Now this one’s an oddity. It’s entirely possible that people are playing a theme of China food shortages.
And that’s one, by the way that, I’m not seeing. I think what it really is is farmers are flush, and that means they’re capable of buying tons of fertilizer, which doesn’t cost that much anyway.”
The Mosaic Company (NYSE:MOS) produces and sells phosphate and potash-based crop nutrients, animal feed ingredients, and industrial products. The company also provides blended fertilizers, biological additives, and related services.
6. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders: 56
Forward P/E: 13.15
Lyft, Inc. (NASDAQ:LYFT) is one of the 10 cheap Jim Cramer stocks to invest in. According to Axios on June 12, the company is expanding its advertising business with the introduction of three new formats: Sponsored Map Vehicles, Sponsored Rides by Mode, and Vertical Video. Sponsored Map Vehicles will feature a full-day takeover of the Lyft map. Sponsored Rides will allow branding to appear on the Lyft homepage and during the ride. Vertical Video will consist of full-screen, non-skippable video ads that play when riders choose the Wait and Save option.
At BofA Securities’ 2025 Global Technology Conference on June 3, when asked about Lyft Media’s ad performance, referencing its projected $100 million annual run rate, CEO Erin Brewer replied that video ads have driven most of the growth. Brewer noted that brand partners are seeing a 7x increase in brand favorability and 10x higher click-through rates compared to other formats.
Furthermore, on May 23 during an episode of Mad Money, Cramer stated:
“Look, I like David Risher. The stock’s just had a nice pop. I would not come in on top of this pop, I would let it come down. I think it just had too big a move, and I don’t like parabolic moves, but you nailed a good one. And if you’re up big, how about this? How about a little schnitzel, take some off, and then play with the house’s money.”
Lyft (NASDAQ:LYFT) operates a platform that links riders to drivers for on-demand transportation. The company also provides rental options for cars, bikes, and scooters for short trips via its mobile app.
5. Truist Financial Corporation (NYSE:TFC)
Number of Hedge Fund Holders: 57
Forward P/E: 10.01
Truist Financial Corporation (NYSE:TFC) is one of the 10 cheap Jim Cramer stocks to invest in. At the Morgan Stanley US Financials conference call on June 11, the CEO, William Henry Rogers, noted that the company has invested in capital markets, investment banking, and trading for over 20 years, achieving high single-digit annual growth. After the merger and creation of Truist Financial (NYSE:TFC), the business remained 50% underpenetrated, leaving room for expansion.
The firm has developed sector expertise in consumer and retail, TMT, financial institutions, energy, and healthcare. He added that trading activity mirrors investment banking trends. While the first quarter was slower, recent weeks show improved momentum.
Truist Financial (NYSE:TFC) reports its earnings in a month and for the full year 2025, management projects revenue growth between 1.5% and 2.5%, with adjusted revenue expected to reach $20.1 billion, which is lower than the previous forecast of 3% to 3.5%. Furthermore, net interest income is expected to grow by 3% in 2025, assuming low-single-digit loan growth and three quarter-point cuts to the Fed Funds rate in June, September, and December, an update from the earlier expectation of reductions only in March and September. Lastly, regarding share repurchases, the company plans to target up to $750 million in buybacks during the second quarter.
It is worth noting that on June 11, when Cramer was asked about Truist Financial (NYSE:TFC), he commented:
“You know, I am really surprised that Truist is doing badly as it is. I think it’s a pretty good situation. I would, I would hang on to this one. The fact that it yields 5%, I think that that’s at 10 times earnings. I think it can go to 12 times earnings… I think you should hold on to Truist, if not even buy some.”
Truist Financial (NYSE:TFC) offers a wide range of financial services, including deposit accounts, lending, asset management, investment banking, and wealth management. The company provides products such as mortgages, credit cards, insurance finance, and treasury services.
4. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 63
Forward P/E: 12.36
Dell Technologies Inc. (NYSE:DELL) is one of the 10 cheap Jim Cramer stocks to invest in. On June 17, the company announced a quarterly cash dividend of $0.525 per common share, payable on August 1 to shareholders recorded as of July 22. The company raised its annual cash dividend by 18% to $2.10 per common share after receiving board approval in February.
In the last quarter, Dell (NYSE:DELL) returned $2.4 billion to shareholders, including the repurchase of 22.1 million shares at an average price of $90 per share and a dividend payment of approximately $0.53 per share. As of the FQ1 2026, the company has paid out $13.2 billion to its shareholders through buybacks and dividends since the beginning of FY2023.
Discussing the company on June 9, Cramer stated:
“So traders say if I can’t make money after Broadcom reporting a great quarter, the playbook says time to move into the lower quality, cheaper stocks that are less likely to disappoint or should never have been down to begin with. I understand the sentiment, but the problem is that these stocks have already rallied pretty hard, too. Take Dell. It reported an excellent quarter on May 29th… Stock initially failed to rally, but that’s because it had run up into the quarter…
Now, this kind of rotation could be a good one. The stocks that are rallying are excellent. They may be just playing catch-up. It’s a heavily broadening out of the winners, right? Remember when it was just the Mag Seven? We’ve come a long distance, but what comes after this could be treacherous. I’ve seen the end of rallies, and they often take up the laggards last. After it happens, if we have good news, everything’s fine. However, if there’s any degradation in the numbers, it could get very ugly. Right now we’re fine. I think Dell’s incredibly cheap versus last quarter. The stock can go up 10 points before I would even think about worrying about it.”
Dell Technologies (NYSE:DELL) develops and sells a broad range of hardware, software, and services, including storage systems, servers, networking equipment, personal computers, peripherals, and customer support solutions. The company also provides financing options, subscription-based services, and various consumption models.
3. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 77
Forward P/E: 13.94
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the 10 cheap Jim Cramer stocks to invest in. On June 11, BofA analyst Ebrahim Poonawala maintained a Buy rating on the stock with a price target of $700. The analyst highlighted GS stock as a strong candidate for a secular re-rating due to its ongoing shift toward a structurally higher return on equity, its ability to deliver superior and durable earnings per share growth, and its better-than-perceived resiliency in capital markets.
Poonawala also noted that Goldman Sachs (NYSE:GS) possesses a strong combination of scale and flexibility, which makes it an attractive investment at current levels. Moreover, at the Morgan Stanley US Financials, Payments & CRE Conference on June 11, CEO & President, Brian Thomas Moynihan, highlighted the firm’s 25 straight quarters of net new checking account growth in consumer banking. The retail business, which accounts for 70% of customers and 30% of balances, maintains average checking balances triple the industry standard.
Over the past decade, primary account usage increased from 60% to 90%, with notable gains in customer satisfaction. He added that Goldman Sachs’ (NYSE:GS) sales and trading revenue has increased year-over-year for 12 consecutive quarters, with the 13th expected.
Furthermore, on June 11, Cramer commented:
“I’ve tried to be skeptical of these three red hot areas, but as I told you last week, once the thing really takes off, you can’t be a scold. I’m not about you not making money, I’m about you making money. And the market’s saying, listen, these companies can raise some money, and I think you’re going to see scores more coming public. By the way, we own Goldman Sachs for the Charitable Trust; that’s another way to play it. The investment banks are eager to give it to them, and they know that there’s a thirst that can’t be slaked without more deals.”
Goldman Sachs (NYSE:GS) is a financial company that provides advisory, lending, investment management, and banking services across a wide range of asset classes and financial products, including services such as mergers and acquisitions advice, underwriting, credit solutions, investment strategies, and transaction banking.
2. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 87
Forward P/E: 13.37
AT&T Inc. (NYSE:T) is one of the 10 cheap Jim Cramer stocks to invest in. On June 10, the company announced that it has surpassed 30 million fiber locations passed across the U.S., meeting the milestone ahead of schedule and reaching halfway to the company’s goal of reaching approximately 60 million homes and businesses with fiber. The company has invested over $145 billion from 2020 to 2024 in network infrastructure, including spectrum acquisitions. AT&T (NYSE:T) now passes more fiber locations than any other U.S. provider and plans to double availability by 2030. Since 2020, the company has added 5.7 million AT&T Fiber customers.
On June 17, Citi analyst Michael Rollins added a “30-day upside short-term view” on the stock while maintaining a Buy rating and a $32 price target. The firm noted that the company is positioned to report another strong quarter, supported by potential early share repurchases. Despite heightened wireless promotions, (NYSE:T) is expected to deliver solid second-quarter results, with performance balanced between customer volume and financial metrics.
In addition, on May 22, Cramer made the following comment about the stock:
“I came out this, came out this morning very much in favor of ATT because of that 4% yield, but there’s lots of other 4% yielders around these days.”
AT&T (NYSE:T) provides a broad range of telecommunications and technology services, including wireless voice and data, broadband, internet, and managed network solutions.
1. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 93
Forward P/E: 12.70
Capital One Financial Corporation (NYSE:COF) is one of the 10 cheap Jim Cramer stocks to invest in. During the Morgan Stanley U.S. Financials Conference in June, the company’s CEO, Richard Fairbank, while marking the completion of the largest banking transaction since the global financial crisis, remarked that the company is not actively pursuing a strategy of acquiring numerous banks.
He noted that most banks tend to expand by purchasing others and acknowledged that Capital One Corporation (NYSE:COF) did go through a period when it acquired banks, but the objective then was to shift its funding structure away from capital markets and toward FDIC-insured deposits. Fairbank stated that the phase has concluded. He described the Discover acquisition as a distinct opportunity that aligns more closely with what he considers an organic path of growth.
According to TipRanks, on June 5, BTIG analyst Vincent Caintic noted that Capital One (NYSE:COF) may improve Discover’s acceptance rate by employing similar tactics that American Express previously used to grow its network. Caintic maintained a Buy rating with a $264 price target, and one of the main factors of being bullish on the stock is its potential for broader merchant acceptance.
Furthermore, on June 5, discussing the company, Cramer said:
“You know what, I’m hoping that COF, Capital One, which just bought Discover Financial, that it could enter the 52-week hallowed ground. It’s cheap. It’ll have a gigantic buyback come July… COF, I feel very lonely, but I won’t come July.”
Capital One (NYSE:COF) is a financial services holding company that provides credit cards, loans, and banking services. Additionally, the company offers advisory services and capital markets solutions.
While we acknowledge the potential of Capital One Financial Corporation (NYSE:COF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COF and that has 100x upside potential, check out our report about this cheapest AI stock.
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