On Wednesday’s episode of Mad Money, host Jim Cramer broke down what he saw as a sharply divided stock market.
“We got two markets, a set of stocks that goes higher and another set of stocks that seems to do nothing or drift lower. They seem pretty equal in number. To me, the differences couldn’t be more stark, though. The winner’s so obvious. The loser’s walking around with a[n] L on their forehead.”
READ ALSO: 14 Stocks Jim Cramer Recently Shared Insights On and 12 Stocks on Jim Cramer’s Radar Recently.
When turning to sectors he believed were underperforming, Cramer mentioned the auto industry. He described the situation these companies are facing as “tariff hell”. He admitted he could not guess what the final cost per vehicle might be under current and future tariffs. He noted that it is a sentiment that is shared within the industry itself.
Cramer pointed out the industry’s reliance on Chinese rare earth minerals, globally sourced parts, and access to affordable financing. He referred to these dependencies as a “real fearful trifecta” that is currently weighing heavily on the sector.
“So here is the bottom line: Now, you know the five ins and the five outs of what’s working in this market. Never forget it… Whenever we have downdrafts, even intraday downdrafts, remember what’s been working and what hasn’t… And things can change, but for the moment, I expect the winners to keep winning and the losers to keep losing.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on June 25. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s 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).
13 Stocks Jim Cramer Recently Shed Light On
13. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 44
Constellation Brands, Inc. (NYSE:STZ) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer called the company “four times cursed,” as he commented:
“Or how about Constellation Brands? The alcohol company has been four times cursed. GLP-1 drugs cut the craving for beer. Gummies give you the same high… I have no idea about that. Younger people don’t want to pollute their bodies with alcohol. I don’t know anything about that either. Its big Mexican beer brands, Corona, Modelo, and Pacifico, are victims of the White House immigration crackdown, which the CEO pointed out on their conference call in April. Unfortunate for Constellation shareholders, these immigration policies are impacting a meaningful chunk of their customer base.”
Constellation Brands (NYSE:STZ) produces and sells a diverse portfolio of beer, wine, and spirits under well-known brands across various markets. Oakmark Fund stated the following regarding Constellation Brands, Inc. (NYSE:STZ) in its Q1 2025 investor letter:
“Constellation Brands, Inc. (NYSE:STZ) is the leading imported beer company in the U.S. The company has a strong portfolio made up of iconic premium beer brands such as Modelo, Corona and Pacifico. We like that Constellation’s beer segment has consistently outgrown the industry and believe it can further benefit from demographic tailwinds, new distribution points, and future price increases. More recently, the stock price has come under pressure due to both stock specific and industry-wide challenges, some of which we believe will prove transitory. Despite the company’s strong historical performance and expectations for continued above-market beer growth, Constellation trades at a meaningful discount to other consumer packaged goods companies with similar growth outlooks. This dislocation afforded us the opportunity to initiate a position in the company at a significant discount to our estimate of intrinsic value.”
12. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 37
The J. M. Smucker Company (NYSE:SJM) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer discussed the impact of the company’s acquisition of Hostess Brands. He said:
“Meanwhile, usually strong stocks like Colgate or Procter & Gamble, they can’t get traction at all. Hey, two weeks ago, we got this quarterly report from J.M. Smucker. With a name like Smucker, it was horrendous, hurt by its ill-fated decision to buy Hostess Brands, the parent of Twinkies, right on the eve of the GLP-1. I am told that people who take GLP-1 are repulsed… by HoHos. They hate HoHos.”
J. M. Smucker (NYSE:SJM) produces a wide variety of branded food, beverage, and pet products, including coffee, spreads, baked goods, snacks, and pet food. The company’s offerings are sold under well-known names like Folgers, Café Bustelo, Dunkin’, Jif, Smucker’s, and Smucker’s Uncrustables, among others, through retail, online, and foodservice channels. Additionally, Cramer discussed the company on June 10 and said:
“But let’s look at the other way. Let’s talk about what old folks were interested in. There’s a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It’s covered by 15 different firms… It’s real. We’ve all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn’t seem to notice. They ran into the fire, they bought Hostess, that’s right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that’ll be the last one, as Twinkies and Ho Hos may not turn very well. Let’s just say they’re going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker’s talking about a 20% boost in coffee prices. That’s not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.”
11. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 43
General Mills, Inc. (NYSE:GIS) is one of the 13 stocks Jim Cramer recently shed light on. Cramer said that the company has to “cut price big time,” as he remarked:
“Finally, there are the miserable consumer packaged goods plays. Oh my god, they’re so horrible. Today, the once invincible General Mills… put up incredibly weak numbers. The General used to be the most clockwork of the group. Today, the stock slipped over 5%. Amazing. Look, if you listen to management on the conference call, they don’t even sound challenged. It seems like they think it’s business as usual. They chatter on and on about some algorithm that gives them the numbers they want, but they don’t seem to understand that they gotta cut price big time or do some merging in order to make things palatable.”
General Mills (NYSE:GIS) produces and markets a wide range of packaged food and pet products, including cereals, snacks, baking goods, frozen meals, and pet food.
10. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 102
The Home Depot, Inc. (NYSE:HD) is one of the 13 stocks Jim Cramer recently shed light on. The company was mentioned during the episode, and here’s what Mad Money’s host had to say:
“Next up, retail. Oh man, it’s all over the map, but for the most part, the stocks are awful. Kohl’s looks so troubled. Macy’s can’t get out of its own way, closeout stores Ollie’s just downgraded. Burlington, Ross, TJX, all trading terribly. Target’s been clobbered. Home Depot, ouch. I like it, but it’s very, very hard to own with such a horrendous housing market and a miserable garden season. If you want to own Home Depot, you have to hold your nose and buy it in anticipation of the rate cuts from the Fed. That’s what we’re doing for the Charitable Trust, but it’s a struggle…. We are sticking with it.”
Home Depot (NYSE:HD) is a home improvement retailer that offers building materials, décor, garden supplies, and maintenance products, along with installation and equipment rental services.
9. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 62
FedEx Corporation (NYSE:FDX) is one of the 13 stocks Jim Cramer recently shed light on. Cramer mentioned that there is an “opportunity” in the stock, but it is dependent on tariffs, and he remarked:
“Third loser, freight transportation. Truckers can’t seem to make their numbers. The railroad stocks can’t get any momentum. FedEx showed you how hard this business is when they reported last night. Their business-to-business service has been stuck in neutral, even as the business-to-consumer side is okay, but FedEx hasn’t been able to make the Street’s numbers.
I think we’ve got some opportunity here, though. FedEx has cut its capital expenditures and chopped its expenses. It’s a coiled spring. I like coiled springs, but understand that it won’t spring until we see how the tariffs shake out, because so much of the business involves import-export. Until then, spring stays coiled.”
FedEx (NYSE:FDX) provides a range of transportation, logistics, and business support services, including express and ground delivery, freight shipping, and supply chain solutions. Moreover, the company offers e-commerce, customs brokerage, and trade management tools for global commerce.
8. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders: 59
Toll Brothers, Inc. (NYSE:TOL) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer mentioned the stock as he discussed the perils of the housing market and commented:
“Alright, now, the losers. Let’s start with housing. We’re seeing anemic new housing starts. We’ve seen terrible mortgage numbers. The home builders have put up awful reports. Inventories are beginning to rise at some of the big builders, so they’re cutting price. Home building is a terrible business right now. You can’t touch this group until the Fed starts cutting rates. Toll Brothers, Lennar, KB Home, all weaker, all toxic.”
Toll Brothers (NYSE:TOL) builds and sells luxury homes, condominiums, and rental apartments, and also provides custom design options and community amenities. Additionally, the company operates related services in architecture, engineering, mortgage, and home technology to support a wide range of upscale homebuyers. Baron Real Estate Fund stated the following regarding Toll Brothers, Inc. (NYSE:TOL) in its Q1 2025 investor letter:
“Toll Brothers, Inc. (NYSE:TOL) is a leading luxury homebuilder in the U.S. with an exceptional management team and a large, valuable owned land real estate portfolio. Toll Brothers is more insulated than its peers from elevated mortgage rates because approximately 25% of Toll Brothers home buyers pay 100% in cash.
The company is valued at only 1.1 times 2025 estimated tangible book value and a P/E multiple of less than 7 times earnings per share. In the past, Toll Brothers’ shares have appreciated to a peak multiple of 2.0 times tangible book value which would represent over 50% upside. We believe a multiple of 1.8 to 2.0 times tangible book value will ultimately be warranted based on the company’s aspirations to generate a consistent return on equity in a range of high teens up to 20% or more.”
7. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 93
Capital One Financial Corporation (NYSE:COF) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer said that it is his “favorite” stock, as he commented:
“Fifth and finally, and yes, oddly, the banks. It’s been ages since it’s been a leadership group, but interest rates are high, and the banks do well in that environment. They do terrifically when unemployment is low because people rarely default on their desks when they have jobs. On Friday, after the close, we’re going to see the banks’ stress test… the grades. Those are the ones that are administrated by the Fed.
I think it could be still one more positive catalyst for a group that’s been a real winner under President Trump, who obviously favors deregulation. Today, the banks were told that they can have a little more leverage and don’t need to put up as much cash, that’s just incredibly bullish. My favorite is Capital One, which just closed on a key acquisition, Discover Financial. I think it’s, that it will turn its credit card business into an even bigger house.”
Capital One (NYSE:COF) provides a broad range of financial services, including credit cards, loans, and deposit products, along with digital and in-person banking solutions.
6. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the 13 stocks Jim Cramer recently shed light on. Cramer said that the company reported a “pretty good number,” as he remarked:
“Fourth group of winners, the semis. There are lots of overlaps with the data center, okay…. There are plenty of semiconductor and semiconductor capital equipment stocks that are on fire. There’s Texas Instruments, NXP Semi, Applied Materials, KLA… You know what, Lam Research, gotta put them in too. Don’t forget Micron, which reported a pretty good number this very evening.”
Micron (NASDAQ:MU) develops and sells memory and storage solutions, including DRAM and NAND products, under its own and private-label brands. The company’s technologies support high-speed data access and are used across data centers, mobile, PC, automotive, and embedded applications. During a May episode, when a caller inquired about the company, Cramer replied:
“I think it is getting a little toppy. I think the market’s getting a little toppy and Micron’s going to go with it. Now, it went down to 66. I think it could go down to 80 without a problem, and then you’ll probably want to buy it again. But I sense that there is a trade here, not an investment, for the moment, and you need to do a little [kaching kaching].”
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer called the stock a “semi-meaningful competitor” to NVIDIA. He said:
“Lately though, we’ve been seeing AMD, their only semi-meaningful competitor; stock’s up like 40 straight points, win[s] a lot of business. Same with Cisco, Arm Holdings. Marvell Tech. Broadcom plays a huge role in these. Vertiv makes power and cooling equipment for the data center.
CoreWeave runs data centers and rents out their computing power. Dover and Eaton supply parts of the infrastructure. Vistra Energy and Constellation Energy produce and sell electricity for the data center. GE Vernova makes the turbines for the power plants…. The data center alone has caused a huge spike in electricity demand, and the ancillary players from that anomaly are doing well too.”
Advanced Micro Devices (NASDAQ:AMD) designs and sells a wide range of semiconductor products, including AI accelerators, microprocessors, GPUs, FPGAs, and adaptive SoCs for applications in computing, graphics, gaming, and data centers.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 13 stocks Jim Cramer recently shed light on. While discussing the data center stocks, Cramer mentioned the company and said:
“Third, the data center, which is just going bonkers. You need to know what’s in the data center. It starts with NVIDIA, of course, which is at an all-time high today and is now the largest stock in the world… The data center is built around NVIDIA’s chips… Fourth group of winners, the semis. There are lots of overlaps with the data center, okay, including the biggest being NVIDIA.”
NVIDIA (NASDAQ:NVDA) delivers advanced computing, graphics, and networking solutions spanning gaming, AI, data centers, and automotive technologies. The company’s products include GPUs, AI software, cloud services, and tools that power visual computing, autonomous systems, and enterprise AI development. During a May episode, Cramer said the company makes the “most sophisticated chips in the world,” as he commented:
“Currently, NVIDIA makes the most sophisticated chips in the world, and until a few years ago, it had 95% of the Chinese market, giving potential Chinese rivals zero room to compete. Now that was a pretty great situation, but our nation’s interests in China have totally diverged under Trump… Last night, after NVIDIA reported one of the best quarters I’ve ever seen, CEO Jensen Huang made a plea on this show to keep doing business with China, both to maintain U.S. semiconductor supremacy and to keep the profits flowing…
He said that we act like China can’t build the highest-end chips themselves when we know they’re doing so, including DeepSeek’s new semis that were just announced. If we sell our chips to China, he says we can regain our supremacy, but if NVIDIA can’t do that business, it’s effectively a huge subsidy for the Chinese chip makers. Hmm, look, I’m a hardliner on China, but I see the point… NVIDIA could cede its crown to China very quickly if it isn’t allowed to sell a lot of chips there, returning a lot of the profits from that $50 billion in sales to the U.S. to build more capacity here. I just don’t know if President Trump cares because from his latest actions, it feels like we’re just a few years away from a total shutdown in relations with China…
Fortunately, there’s still a ton of opportunity for NVIDIA outside of China because its chips are that great. To me, though, the president’s in no mood for any of our companies to do more business in China than they have to. I think that’s a mistake when it comes to semiconductors, but right now, I fear that’s exactly what’s going to happen.”
3. Circle Internet Group (NYSE:CRCL)
Number of Hedge Fund Holders: N/A
Circle Internet Group (NYSE:CRCL) is one of the 13 stocks Jim Cramer recently shed light on. While discussing crypto-related stocks, Cramer mentioned the company, as he said:
“Second group of winners, pretty much anything related to crypto. Now, some are linked to buying and selling crypto. Think Coinbase. Robinhood, the Circle Internet, that’s that newly public Stablecoin play, which came out of the IPO gate super hot. Let’s cool off… There are lots of smaller stocks that emulate these big dogs, and you see them trading all the time. You know what I mean? Meme.”
Circle (NYSE:CRCL) provides a platform that supports stablecoin and blockchain-based financial applications, including a U.S. dollar-backed stablecoin. The company’s services include tokenized assets, payments, liquidity, and tools for developers to build within the digital finance ecosystem. During June 9’s episode of Mad Money, Cramer discussed the stock in detail, as he commented:
“Last week, we saw one of the flashiest deals of the year when Circle Internet Group came public… Speaking of the financials, Circle’s numbers, they’re pretty impressive. In the first quarter of the year, they posted 59% revenue growth, 75% net income growth. So, at the end of the day, where do I come down on Circle? Look, this is actually a pretty darn good business. USDC’s popular.
The financials look pretty good for an IPO name, but the stock, okay, look, very hard to recommend after watching the company’s valuation jump from $5.5 billion at the beginning of the IPO process to over $25 billion in just a matter of weeks. I mean, if we divide Circle’s 2024 net income by the number of shares outstanding after this offering, then last year, it earned about 70 cents per share at its current price. That means Circle’s selling for roughly 165 times last year’s earnings…
… Okay, long story short, I like Circle. I’m having trouble getting to this price. I’m not willing to pay through the nose for it. It doesn’t help that more than half of the shares sold in Circle’s IPO came from early investors and… company insiders, including the CEO, rather than the company itself. In part, that’s because the company didn’t really need to raise money, which is good, but if the insiders would ring the register at 31, do you really want to be a buyer at 115? Or maybe the insiders were dead wrong? I don’t know.
Plus, Circle’s joined at the hip with the crypto ecosystem, and crypto… it’s inherently volatile. I think you’ll get a better opportunity simply by being patient. Honestly, the IPO market’s starting to get a little crazy here… Here’s the bottom line: Circle Internet Group’s a solid company, but the stock right now has gotten too hot for me. I can’t recommend it up here. Why don’t you let it cool off before you even think about pulling the trigger?”
2. Zscaler, Inc. (NASDAQ:ZS)
Number of Hedge Fund Holders: 46
Zscaler, Inc. (NASDAQ:ZS) is one of the 13 stocks Jim Cramer recently shed light on. Discussing the compan, Cramer stated:
“It’s rare for us to have two stocks in the same relatively small sector, but the companies are doing so well that I kind of wish we even owned the third, Zscaler, which is doing as well, if not better, than the two that we own.”
Zscaler (NASDAQ:ZS) provides cloud-based security tools that protect user access to the internet, cloud, and internal applications. The company’s platform uses zero trust principles to secure data, devices, and workloads, and also monitors user experience and manages identity and access. In a May episode of Mad Money, Cramer mentioned the stock and commented:
“Oh, and then there’s a… stock, Zscaler, cloud-based cybersecurity company that’s gotten into the habit of reporting upside surprises. It’s unnerving to me that it doesn’t seem to matter what this company reports. It seems to be so loved these days. That’s where the opportunity is.”
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer showed bullish sentiment toward the cybersecurity industry as he discussed the stock. He commented:
“First positive area is cybersecurity. The dangers have never been greater, and the group’s winners are bountiful because there’s just so much business, because there are so many cyber criminals, and some of them are state-sponsored. We’re doing something for the club that we’ve never done. We actually own two of them for the trust, two… We own CrowdStrike and Palo Alto Networks. It’s rare for us to have two stocks in the same relatively small sector, but the companies are doing so well that I kind of wish we even owned the third… Still, Palo Alto and CrowdStrike are winning huge deals. And while their stocks have been volatile at reporting time, their long-term direction is clear: It’s higher.”
CrowdStrike (NASDAQ:CRWD) provides a cloud-native cybersecurity platform through a subscription-based model. The company’s solutions include threat detection, identity protection, vulnerability management, and AI-driven automation to support modern security operations.
While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CRWD and that has 100x upside potential, check out our report about this cheapest AI stock.
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