On Thursday’s episode of Mad Money, Jim Cramer took a look at President Donald Trump’s unwavering stance on tariffs and expressed concern about the broader economic and constitutional implications.
“Now it didn’t even seem to matter to the president that the US Court of International Trade thought that he exceeded the checks and balances protected by the institution and the constitution.”
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Cramer pointed out that while tariffs might bring in a substantial amount of money, potentially even hundreds of billions of dollars, the reality is that even the most optimistic projections fall short of making a meaningful dent in the massive budget deficit. He referenced the president’s ambitious budget proposal and said that even doubling revenue from tariffs would not come close to covering what he called a potential $3 trillion shortfall. He added:
“When we saw this huge burst of futures buying and then a barrage of selling after the president made it clear that the ruling meant nothing to him, well, it got me to think, who really wants these tariffs?”
As most recent retail earnings have been announced, Cramer argued that it is clear consumers are feeling the impact. He noted that prices are rising and stressed that it is not a theoretical concern anymore, as businesses are not absorbing the cost of tariffs. Instead, almost all of them are passing those costs on to the consumer. “So as a consumer,” he said, “you have to be rooting against tariffs.”
Cramer likened the current environment to a ticking clock. The timing and execution of the tariff strategy, in Cramer’s view, have contributed to volatility and uncertainty. He mentioned that if the policy had been rolled out with more foresight and planning, markets would not have reacted so erratically to a temporary halt. He questioned whether it is too late to change direction, but still held onto some hope that there is time to adjust course.
“My hope is that the tariffs can still be laid out in a way that creates jobs, raises some money for the treasury, gives companies enough heads up to mitigate the damage. Wasn’t that the plan? Is there anyone, perhaps even including the president, who believes that’s what we’re currently doing right now?”
Our Methodology
For this article, we compiled a list of 65 stocks that Cramer commented on during episodes of Mad Money aired between April 24 and May 2. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of May 30. We also mentioned the hedge fund sentiment around each stock, 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 Stocks on Jim Cramer and Wall Street’s Radar
10. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 93
Average Price Target Upside: 18.95%
During April 24’s episode of Squawk on the Street, Cramer made the following comment about Capital One Financial Corporation (NYSE:COF):
“We own Capital One. Now I don’t know… people… in your world, this Capital One, it got approved, and, and, Fairbank is gonna stand there after this thing closes, and I think he’s gonna buy back a ton of stock because his stock is really cheap and he’s a reaallyy good banker […] Capital One, they’re supposed to be missing the quarter, people are supposed to be defaulting. It is the oddest time, it’s the strangest angst, David, I see people having angst and doing crazy things. They have angst, and they’re paying off their credit. You know when you have angst, you default.”
Capital One Financial Corporation (NYSE:COF) provides a broad range of financial services, including banking, lending, and credit products. The company offers checking and savings accounts, various types of loans, and digital banking services to individuals, small businesses, and commercial clients.
On May 21, BofA analyst Mihir Bhatia increased the price target for Capital One (NYSE:COF) to $233 from $223 and maintained a Buy rating after the recent acquisition of Discover Financial. The analyst highlighted that the closed-loop Discover network provides significant strategic opportunities that could strengthen Capital One’s deposit, banking, and card businesses. The firm noted that credit metrics are improving and expects expense synergies to be easily attainable.
9. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 139
Average Price Target Upside: 21.31%
Nearly a month ago, a caller inquired about UnitedHealth Group Incorporated (NYSE:UNH), and here is what the Mad Money host had to say:
“Okay, it’s going to be under pressure for some time because a lot of companies really, a lot of big pension funds and mutual fund managers, thought everything was perfect. But I am going to say today at $400, I would indeed start a position. I have been very negative on UnitedHealth from 630 down to this caller right here. I would start a position at 400 bucks. That’s a big change for me.”
UnitedHealth (NYSE:UNH) offers a wide range of healthcare services, including insurance, pharmacy benefits, care delivery, and health technology solutions. The company’s operations support individuals, employers, and government programs through medical, pharmaceutical, and digital services.
On May 21, HSBC analyst Sidharth Sahoo downgraded UnitedHealth (NYSE:UNH) to Reduce from Hold and lowered the price target to $270 from $490. The firm noted that the stock has lost half its value since Q1 after a CEO transition, the withdrawal of 2025 guidance, and Medicare fraud claims. HSBC sees pressure on earnings and ongoing policy uncertainty. The firm thinks that downside risks now outweigh the rewards and that more earnings revisions may follow.
8. Fair Isaac Corporation (NYSE:FICO)
Number of Hedge Fund Holders: 68
Average Price Target Upside: 29.28%
Discussing Fair Isaac Corporation (NYSE:FICO) at the end of April, Cramer made the following comments:
“Now we’re back on familiar ground with number 17, a company we’ve had on the air. It’s called Fair Isaac, up 5,732% in the Mad Money era. These guys are the keepers of FICO… Okay, they provide businesses with all sorts of software and services to help them manage credit risk.
Over the past 20 years, we’ve seen all sorts of fintech disruptors arrive on the scene, touting some new fancy lending decision-making technology that will ‘Make the FICO score obsolete.’ Some of these companies are great, but nobody’s been able to beat the FICO score, have they? It’s still universally used.”
Fair Isaac (NYSE:FICO) creates software and analytics tools that help businesses automate and improve decision-making. The company provides credit scoring and advanced decision management solutions for various industries.
On May 28, Baird upgraded FICO to Outperform from Neutral and set a price target of $1,900, lowered from $2,021. The recent drop in shares, driven by shifting views on regulatory risk, has brought FICO’s valuation to a level that offers strong long-term growth potential with less downside risk.
The analyst praised FICO Scores as the best financial model they’ve seen and highlighted the company’s strong market position and systemic value. Baird expects Fair Isaac (NYSE:FICO) to manage pricing changes for Scores and foresees a return to normal mortgage volumes. While there are regulatory risks, they are now fairly reflected in the stock price and appear manageable.
7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
Average Price Target Upside: 29.77%
At the end of April, while discussing the best-performing stocks of the last 20 years, Cramer said that NVIDIA Corporation (NASDAQ:NVDA) went from graphics card maker to “king of artificial intelligence.”
“Second place, okay, a name you know very well from the show, and that’s NVIDIA. Do you know that NVIDIA’s up more than 50,000% since the show began? NVIDIA? It piqued my interest over 15 years ago when it was originally just a maker of graphics cards for video games. Since then, we’ve had the privilege of watching NVIDIA blossom into the king of artificial intelligence and accelerated computing. You know, I named my late dog NVIDIA because I wanted you all to know about it… I say, you bet against NVIDIA at your own peril.”
NVIDIA (NASDAQ:NVDA) develops computing and graphics solutions used across gaming, AI, data centers, and automotive industries. The company offers products like GPUs, cloud services, and enterprise software.
On May 29, Truist analyst William Stein increased NVIDIA’s (NASDAQ:NVDA) price target to $210 from $205 and maintained a Buy rating following the company’s strong first-quarter results. Stein said AI demand and solid execution are pushing growth despite export restrictions to China. Without those controls, first-quarter results and second-quarter guidance would have topped expectations by a wide margin. The firm sees continued growth in demand from cloud providers, businesses, and government buyers.
6. Churchill Downs Incorporated (NASDAQ:CHDN)
Number of Hedge Fund Holders: 39
Average Price Target Upside: 42.45%
Toward the end of April, Cramer called Churchill Downs Incorporated (NASDAQ:CHDN) a “one-trick pony,” as he said:
“Oh, you know what, that’s kind of, hey, it’s a one-trick pony. I’m not a fan, but I am a fan of yours.”
Churchill Downs (NASDAQ:CHDN) provides racing entertainment, online wagering, and casino gaming, including horse racing events, sports betting, and gaming at its properties. The company also offers technology and data services for wagering platforms and race operations.
On May 27, Citizens JMP cut its price target on Churchill Downs (NASDAQ:CHDN) to $138 from $144 and maintained an Outperform rating. The analyst noted that the company removed its historical racing machines in Louisiana, which were expected to generate $10 to $15 million in annual EBITDA. The firm added that efforts are in progress to recover the lost income.
5. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 26
Average Price Target Upside: 46.41%
During the May 2 episode, a caller asked Cramer about Applied Digital Corporation (NASDAQ:APLD), and he replied:
“I know the company, and it’s the kind of thing, we have so many of these digital infrastructure plays. I actually just prefer if you’re going to go there, just go buy Salesforce. I’m not kidding. Go buy CRM, I would feel better that way.”
Applied Digital (NASDAQ:APLD) provides digital infrastructure and cloud services tailored for high-performance computing and AI workloads, including data center operations and GPU-based solutions for tasks like machine learning and crypto mining.
On May 22, Citizens JMP analyst Greg Miller started coverage on Applied Digital (NASDAQ:APLD) with an Outperform rating and a $12 price target. He believes companies set up for bitcoin mining have a strong position to offer extra space and power for data centers. The firm noted that despite the higher risk and controversy, fully utilizing capacity in the high-performance computing business could, in theory, eventually push the stock to $30.
4. Abercrombie & Fitch Co. (NYSE:ANF)
Number of Hedge Fund Holders: 42
Average Price Target Upside: 46.65%
When a caller inquired about Abercrombie & Fitch Co. (NYSE:ANF) on April 29, Mad Money’s host replied:
“You know what, I’ve got to see what they look like in a tariffed world… because I don’t know exactly how much of their stuff is going to have to go up in price. The stock is reflecting a lot of that, but you’re right, it’s six times earnings. But you and I both know six times earnings means usually that the earnings are too high. But it’s 65 bucks, $3.3 billion company. I think you can pick up a little, but then wait.”
Abercrombie & Fitch (NYSE:ANF) is a retailer that provides clothing, accessories, and personal care products for all ages through multiple brands and sales channels, including stores and online platforms.
On May 29, Raymond James analyst Rick Patel increased the price target on Abercrombie & Fitch (NYSE:ANF) to $99 from $90 and maintained an Outperform rating on the stock. The firm noted that while the Abercrombie & Fitch brand sales and gross margin fell short, the company exceeded expectations on EPS, revenue, and SG&A management and considers the fiscal 2025 guidance attainable.
3. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 36
Average Price Target Upside: 46.86%
During an episode at the end of April, Cramer remarked the following about Sunrun Inc. (NASDAQ:RUN):
“No, a bad couple quarters. I can’t be there. And by the way, look, First Solar’s a really good company. It got clubbed the other day. I think the group is very fraught right now. It’s fraught.”
Sunrun (NASDAQ:RUN) is a residential solar energy company that designs, installs, and maintains solar systems and battery storage. On May 22, BMO Capital analyst Ameet Thakkar downgraded Sunrun’s (NASDAQ:RUN) rating to Underperform from Market Perform and also lowered the price target to $4 from $9. The firm believes changes proposed in President Trump’s “One Big Beautiful Bill Act” could block the company from claiming solar investment tax credits on residential leases under Section 48E starting in fiscal 2026.
Although the bill is not yet final and may be revised, the recent draft dropped Section 25D credits, and there appears to be little support in the Senate to bring back residential credits. Since most of Sunrun’s (NASDAQ:RUN) customers lease their systems and the company keeps the tax benefits, losing access to 48E poses a serious threat to its business model.
2. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 70
Average Price Target Upside: 47.71%
During the May 2 episode, Cramer mentioned DraftKings Inc. (NASDAQ:DKNG) and said:
“Will DraftKings make a comeback here? We like this company very much, but the stock does seem stalled, doesn’t it? Maybe it needs more states to legalize sports betting.”
DraftKings Inc. (NASDAQ:DKNG) is a digital gaming company that focuses on online sports betting, daily fantasy sports, online casino games, and a digital collectibles marketplace. Additionally, the company develops software for sports betting and iGaming across both online and retail platforms.
On May 30, Morgan Stanley analyst Stephen Grambling reduced the price target on DraftKings (NASDAQ:DKNG) from 53 to $51 while maintaining an Overweight rating. The firm slightly increased estimates for its Gaming & Lodging coverage due to stronger first-quarter results, expected guidance, and updated valuations based on higher multiples. The analyst noted that low valuations in the sector indicate the market remains cautious in the near term.
1. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 73
Average Price Target Upside: 50.43%
On May 2, Cramer said that he would buy the stock of Marvell Technology, Inc. (NASDAQ:MRVL), as he commented:
“It’s, you know, its stock is the same price as it was before it got into AI. This is ridiculous. It’s below right around where Matt Murphy, the CEO, bought stock back, bought it personally. I would buy the stock of Marvell, and I’d buy it on Monday.”
Marvell (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure as it focuses on system-on-a-chip designs that integrate analog, mixed-signal, and digital processing. The company’s offerings include ethernet products, processors, custom chips, interconnect and storage solutions, and high-speed data transfer components.
On May 27, Susquehanna reduced its price target on the shares to $90 from $110 while maintaining a Positive rating. The firm expects results to meet expectations but sees more uncertainty around T2 volume rollout. Sentiment around XPUs and Inphi has also declined after the delayed Investor Day.
While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ:MRVL) 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 MRVL and that has 100x upside potential, check out our report about this cheapest AI stock.
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