In this article, we will take a detailed look at the 10 Stocks on Jim Cramer’s Radar Amid Market Volatility.
Jim Cramer in a latest program on CNBC commented on the reasons behind the recent selloff and said the market correction isn’t always healthy. He continues to believe the key reason behind the latest market drop was President Trump’s volatile tariff policies.
“I think Trump’s core thesis is right, our trading partners have taken advantage of our country for decades and it’s worth trying to set that right, but it’s a very big but, Trump’s approach has been way too erratic, it’s terrified both the stock market and the broader economy, not just the stock market, the broader economy. Most of the substantive tariff news comes in the form of postings on Truth Social, they come fast and furious, they’re incredibly important, they’re incredibly contradictory. These posts involve hundreds of billions of dollars if not trillions of dollars and more importantly hundreds of thousands of jobs, including yours. The Mercurial postings, the scatter shot approach to trade policy is the approximate cause of the correction.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article we picked 10 stocks Jim Cramer talked about in his programs recently. With each stock, we have mentioned the number of hedge fund investors. 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. Fubotv Inc (NYSE:FUBO)
Number of Hedge Funds Investors: 9
Jim Cramer was recently asked about live TV streaming platform company Fubotv Inc (NYSE:FUBO). Here is what Cramer said:
“You flatter me with that tuning into my show, but I don’t like stocks that just have companies that just do nothing but seem to lose money, and that is in that category.”
9. AllianceBernstein (NYSE:AB)
Number of Hedge Funds Investors: 43
When asked about asset management company AllianceBernstein (NYSE:AB) during a program on CNBC, Jim Cramer said the following:
“I never understood why AllianceBernstein is so low. It’s absolutely, you know, it was weird. I mean, it’s just a great company. All systems go there.”
8. Arthur J. Gallagher & Co. (NYSE:AJG)
Number of Hedge Funds Investors: 44
Asked about insurance brokerage Arthur J. Gallagher & Co. (NYSE:AJG), here is what Jim Cramer said during a program on CNBC:
“Oh my god, yes, that is just a solid company. We used to call it, in the old days, you just call it a blue chip. Great company. Should have been doing stuff with it. You know, sometimes stocks are just kind of quietly going up, and that’s one of them.”
Andvari Associates stated the following regarding Arthur J. Gallagher & Co. (NYSE:AJG) in its Q3 2024 investor letter:
“Arthur J. Gallagher & Co. (NYSE:AJG) and Rollins are two other serial acquirers in Andvari’s client portfolios. Both are some of the largest, and best, businesses in their respective industries. AJG is a leading property and casualty insurance and reinsurance broker. Rollins is home to many of the top brands in the pest service industry in North America.
Importantly, while both AJG and Rollins have large market shares, their respective markets are still highly fragmented. There are thousands of small and medium-sized businesses left for AJG and Rollins to acquire. Gallagher currently has a pipeline of 100 potential acquisitions that represents about $1.4 billion of annualized revenue (compare this to $10.1 billion of revenues for 2023). Andvari believes the pace of acquisitions for both companies can continue for many years to come. Just see below the acquisition track records of both companies since 2014…”(Click here to read the full text)
7. Nu Holdings Ltd (NYSE:NU)
Number of Hedge Funds Investors: 54
Jim Cramer recently said on CNBC that he was “wrong” to be bullish on Nu Holdings Ltd (NYSE:NU).
“I’ve got to tell you, I came out hot on this one. I really liked it. I’ve been wrong. I don’t know why. I thought it was just a really cool idea. I mean, it’s, you know, I think maybe it’s like digital banking. I thought it was the way to go. So far, I’m wrong. I’m not. I can’t. I’m not going to repeat my bullishness. It would be a mistake.”
Baron FinTech Fund stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its Q4 2024 investor letter:
“Nu Holdings Ltd. (NYSE:NU) is a digital bank with operations in Brazil, Mexico, and Colombia. Shares fell after the company reported a lower net interest margin and tightened underwriting criteria for unsecured loans. We see these impacts as temporary and tied to the company’s growth. The margin contraction was largely driven by rapid deposit growth in Mexico and Colombia, an intentional part of Nu’s client acquisition strategy. The tighter underwriting standards are a necessary part of the ongoing process of adjusting lending criteria to new clients. We remain confident in Nu’s growth prospects as the company is addressing key pain points faced by banking customers across the region, including high fees, poor customer service, and limited access to financial products. We believe its superior product offering will lead to continued share gains in the large and growing Latin American market.”
6. Waste Management Inc (NYSE:WM)
Number of Hedge Funds Investors: 54
A caller recently asked Jim Cramer about Waste Management Inc (NYSE:WM) during the Lightning Round segment of his program on CNBC. Here is what Cramer said in response:
“You know, I sold that for the charitable trust after making a huge gain, and I left 100 points on the table. That company is fantastic. They got some golf thing I’m trying to get through to. People tell me it’s fantastic.”
Parnassus Core Equity Fund stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q3 2024 investor letter:
“Waste Management, Inc. (NYSE:WM) announced second-quarter revenue and earnings that fell just short of analyst expectations, weighing on the stock. However, company management reiterated their optimistic full-year guidance for adjusted operating EBITDA (earnings before interest, taxes, depreciation and amortization) and free cash flow.”
5. Verizon Communications Inc (NYSE:VZ)
Number of Hedge Funds Investors: 57
A caller recently asked Jim Cramer about Verizon Communications Inc (NYSE:VZ) during a program on CNBC, saying he owns some shares in the company.
“I want you to keep that position small because it’s terrible. Sorry, it’s true. I took a picture of a Verizon store last night and posted it on X. Verizon is not the stock it used to be. AT&T is the stock it used to be, but Verizon’s not. Verizon switched with AT&T. It’s like a man with two brains, and now he has one brain. The brain you want is AT&T, not Verizon.”
Third Point Management stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:
“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”
4. Chevron Corp (NYSE:CVX)
Number of Hedge Funds Investors: 63
Jim Cramer was recently asked about ExxonMobil during a program on CNBC. He said he prefers Chevron Corp (NYSE:CVX).
“I like Chevron better. I like Chevron better. You’ve got Mike Wirth doing something. The stock hasn’t moved nearly as much as ExxonMobil, and it’s Chevron’s time because of that 4.4% yield.”
TCW Relative Value Large Cap Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its Q3 2024 investor letter:
“Chevron Corporation (NYSE:CVX), headquartered in San Ramon, CA, is an integrated energy company. At elimination, the stock had a $273 billion market capitalization and met all five valuation factors, including a robust 4.4% dividend yield. Chevron’s planned acquisition of Hess† would yield a strong restructuring catalyst through elimination of duplicate corporate costs and a new markets catalyst through Hess’ 30% interest in the Stabroek oilfield off Guyana; these blocks have a very low cost of supply and decades of reserves that would support strong free cash flow. While Chevron recently received Hart[1]Scott-Rodino (HSR) clearance to acquire the company, the closure timing has extended from Q4 2024 to possibly to Q2 2025 as Chevron is engaged in arbitration with peers ExxonMobil (XOM; 2.47%**) and Chinese state-owned CNOON over rights of first refusal (ROFR) for Hess’ interest in Stabroek. As Chevron’s expected arbitration resolution timeline has slipped, we believe that ExxonMobil and CNOOC’s ROFR case may have more merit than expected, thus putting the entire Hess acquisition at risk. Given an increasingly reasonable outcome that Chevron might abandon the Hess acquisition altogether, we eliminated the position in the stock.”
3. Occidental Petroleum Corp (NYSE:OXY)
Number of Hedge Funds Investors: 71
Jim Cramer in a latest program on CNBC said that Occidental Petroleum Corp (NYSE:OXY) is “not a great company” and Warren Buffett owning a stake in the company does not “matter.”
“OXY is not a great company. I know, I know, like Buffett owns it, and that’s just great, but it doesn’t matter. It’s got a lot of debt, and it’s just not that great. And, you know, the fact that he owns it doesn’t make it great. I’m sorry to be, I don’t mean to be like a naysayer, but geez, get a better Royal.”
2. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Funds Investors: 99
Jim Cramer in a latest program on CNBC said he checked with famous chartist Larry Williams about the valuation of Tesla Inc (NASDAQ:TSLA) and forecasting the stock’s future. According to Cramer, Larry believes Tesla is nearing its bottom.
“We’re going off the charts with Larry Williams. He’s the legendary technician and market historian who’s been the best in the business since before I learned how to draw. He’s written over a dozen books, created a ton of proprietary technical indicators, and most importantly, he’s got a stunning track record, especially over the past 5 years. I revere him, always have. Larry’s the one who called the COVID bottom, for instance, in April 2020, back when just about everyone was terrified that we’d be stuck in a prolonged government-mandated recession. And you know what he’s doing tonight? He’s calling the bottom in Tesla. Larry loves to look at how stocks tend to trade over the course of the year. He goes over the history, then finds the seasonal pattern, and it plays out time after time. The true seasonal pattern in blue shows that Tesla typically begins rallying at this time of the year. Sure enough, the stock’s already going up, so I’ve got to tell you, I’m with that. Now, Larry also likes to hunt for cycles that seem to be repeating themselves beyond the annual seasonal cycle. He’ll identify a bunch of these, then combine them together into a wave that predicts where the stock is likely headed. So, here’s what Tesla looks like with this cycle forecast attached to it. The forecast is blue on the way up, gray on the way down. Right now, it suggests that Tesla should be ready to rally—maybe furiously—with a pullback creating another buying opportunity around mid-June. Larry notes that we’ve seen this wave in Tesla stock numerous times before. Historically, stocks rallied 80% of the time during this time period. I think that’s pretty good odds. So, if you believe Larry Williams—and he’s earned a lot of credibility over the years—then this is a “gentleman starter” electric engines moment for Tesla. Assuming he’s right, the stock’s rebound of the past couple of days is just the beginning of a huge move. And I’ve got to tell you, all aboard, I’m with Larry.”
Analysts are looking beyond Elon Musk’s big claims and digesting the harsh reality facing the company. Tesla’s sales are falling all over the world despite the broader industry growth. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years.
Things aren’t looking good for Tesla in Europe, too. For example, in Germany, Tesla delivered just 1,429 new cars in February, down 76% from the same month last year. In contrast, battery-electric vehicle (BEV) registrations surged 30.8% during the month.
Tesla Inc’s (NASDAQ:TSLA) product lineup is showing signs of stagnation, with over 95% of sales still coming from the Model 3 and Model Y. Meanwhile, competitors are rolling out more advanced models. According to Reuters, Tesla’s market share in Europe is slipping as legacy automakers like BMW post stronger sales. Chinese competitor BYD is also gaining ground in Europe, despite talk of tariffs.
Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“The largest relative detractors in the quarter were Tesla, Inc. (NASDAQ:TSLA) (not owned), Thermo Fisher Scientific, and Broadcom (not owned). We’ve spoken at length about our rationale for not owning Tesla. The stock enjoyed a 54% return during the quarter, with effectively all of the share price performance strength coming in the post-election period, as the market expressed a positive view on Elon Musk’s prominent role in the incoming Trump administration and its potential implications for Tesla. While we agree this development should be a net positive for Tesla and recognize the company’s interesting future prospects for autonomous driving and humanoid robots, its current valuation demands that shareholders pay primarily for potential innovations that have yet to materialize, with uncertain risks and timelines, presenting a different type of risk profile than we are comfortable with. Today, Tesla is an automobile manufacturer limited to the higher-income segment and is increasingly challenged to sell vehicles when interest rates are not zero. As such, we continue to question the company’s long-term growth profile, its ability to scale a large robotaxi service (which seems to be the source of euphoria in Tesla shares), and its corporate governance.”
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Funds Investors: 286
Jim Cramer in a latest program on CNBC affirmed his bullish view on Amazon.com Inc (NASDAQ:AMZN).
“I’m saying that Amazon is my favorite stock of what used to be the MAG 7 before they broke up that gang. This is the equivalent of Yul Brynner from the movie. I don’t know if people remember Yul, he was so cool. It’s incredible; only Steve McQueen was cooler.”
Despite weak guidance, Amazon could easily surpass $100 billion in operating income within the next two years because of its AWS growth engine. In the latest quarter, Amazon Web Services sales jumped 19% and operating profit for the segment jumped 62% in 2024 on an annual basis.
The market is currently forecasting $6.27 per share in profits this year (a 13% YoY growth) and $7.59 per share next year (a 21% YoY growth). Amazon’s stock is priced at a profit multiple of 30.2x. This valuation might look rich, but when we incorporate AWS growth, the stock seems to have more upside potential.
Parnassus Core Equity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) posted better-than-expected quarterly earnings, lifting investor confidence in the e-commerce giant’s ability to generate margin while continuing to invest into its large AI and retail end markets.
Amazon’s shares experienced volatility throughout the year as IT spending and the company’s margin structure came under scrutiny. Despite this, the stock outperformed as sentiment and results improved across both the overall environment for Amazon Web Services and the company’s ability to show margin.”
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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