On Monday’s episode of Mad Money, Jim Cramer broke down the day’s market rally and argued in favor of staying invested, even in times of uncertainty. He pointed out that earnings are once again playing a significant role in driving market behavior.
“Earnings matter again, okay? That’s what happened last night when the United States and China reached an agreement, however temporary, to hold off trade armageddon. The rollback of the exorbitant tariffs to much more reasonable levels caused the stock market to explode.”
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He highlighted that the rally was not limited to companies directly tied to U.S.-China trade. He called it “a spectacular day for the bulls.” Still, Cramer was quick to ground the excitement. He pointed out that despite the dramatic gains, the S&P 500 remains essentially flat for the year. While he welcomed the reversal, he said:
“Now don’t get me wrong, I’m glad it happened, but I just spent a week in Europe, and it is stunning how much better the markets are doing over there.”
He expressed hope that the rebound in U.S. stocks continues but warned investors not to ignore other global opportunities. “If we find ourselves in trouble again, something that’s still a real possibility, please don’t forget that Europe’s also an option,” he said. He acknowledged that European markets have been the best-performing so far this year.
“Bottom line: It’s better to stay in, stay on, and let her ride than to try to pick the perfect moment to trade in and out and in and out of the stock market. By the way, that’s not much of a strategy. It’s more of a game of chicken where there are no winners, just losers who think they are smarter than the average bear.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 12. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 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 on Jim Cramer’s Radar Recently
13. Banco Santander, S.A. (NYSE:SAN)
Number of Hedge Fund Holders: 17
Banco Santander, S.A. (NYSE:SAN) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“Long time Cramer fave, Banco Santander, which is the second-best performing in the index (IBEX 35), up almost 52% for the year. Hey, by the way, Santander’s American Deposit Receipts, SAN for you home gamers, are up almost 50% since we last spoke to Executive Chair Ana Botín back in October. Due to an embrace of technology and a knowledge of the consumer worldwide, Botín has built a powerhouse that’s the envy of Europe. They just did a really smart transaction in Poland last week… Many reasons I’m partial to Santander, symbol, SAN.”
Banco Santander (NYSE:SAN) provides a wide range of financial services, including banking, lending, mortgages, asset management, insurance, and digital payments. The company also offers corporate and investment banking, and its offerings include online financial products.
12. Harrow, Inc. (NASDAQ:HROW)
Number of Hedge Fund Holders: 20
A caller asked Cramer’s latest thoughts on Harrow, Inc. (NASDAQ:HROW), and he said:
“Look, it’s going to make money. Eye care is a good business. I don’t want to go away from it because if it makes money, then we’ll say, hey wait, wait a second, why did we get out right before the earnings breakout? So I’m okay with it.”
Harrow (NASDAQ:HROW) develops and markets a range of pharmaceutical products for eye care, including treatments for inflammation, infections, pain, and other ophthalmic conditions. The company’s offerings include compounded medications, gels, drops, injections, and emulsions used in various eye-related therapies. On May 12, Craig-Hallum analyst Chase Knickerbocker reduced the price target on HROW to $54 from $58 but maintained a Buy rating after the company missed Q1 earnings expectations. Revenue came in at $47.8 million compared to the Street estimate of $57.0 million, and adjusted EBITDA was $1.9 million versus $11.9 million expected.
The firm cited headwinds from complex destocking and GTN factors. Iheezo fell short due to greater-than-anticipated distributor inventory reductions, and anterior segment products were impacted by previous under accruals. The compounding business also missed projections. On a positive note, Vevye exceeded internal goals and is projected to generate around $100 million for the year.
11. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 26
A caller asked Cramer’s thoughts on Manulife Financial Corporation (NYSE:MFC), and he said:
“That’s good. Got a good yield. It’s John Hancock. I mean, look, they’re all, the insurers are really terrific right now, and they have been good for some time. No one’s come in underneath them. They’re all making fortunes, so I’m not going to go against any one of them.”
Manulife Financial (NYSE:MFC) provides a broad range of financial products and services, including investment solutions, insurance, annuities, reinsurance, and banking. The company also manages assets like timberland and agricultural holdings and operates in areas such as fund management and financial advising.
10. Kinsale Capital Group, Inc. (NYSE:KNSL)
Number of Hedge Fund Holders: 36
A caller asked Cramer’s opinion of Kinsale Capital Group, Inc. (NYSE:KNSL), and he remarked:
“Very good group. Very good, very good stock, especially insurance, good business. Good business, especially right now. I would own the stock.”
Kinsale Capital Group (NYSE:KNSL) provides a wide range of insurance solutions, covering both commercial and personal needs. The company’s offerings include coverage for specialized industries, high-risk areas, and high-value personal assets. Madison Investments stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q1 2025 investor letter:
“We added two new investments in the quarter, Kinsale Capital Group, Inc. (NYSE:KNSL) and Trex. Kinsale is a fast-growing excess and surplus (E&S) insurance company. The company is managed by its founder and is run as a true owner-operator. Kinsale’s proprietary technology systems produce tremendous efficiencies and give the company a low-cost advantage. The company’s strong entrepreneurial culture and insistence on doing things in-house and their own way (as opposed to industry convention) results in superior underwriting performance. With only ~1-2% market share within the E&S industry today, the growth runway is long. The stock had underperformed due to a combination of slowing premium growth and concerns over the insurance industry pricing cycle, resulting in a reasonable valuation given the quality of the business and potential for long-term compounding.”
9. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 37
A caller asked if Cramer was still positive on Energy Transfer LP (NYSE:ET), and he replied, “Oh yes, I am. 7.6% yield and I tell you, the pipes are a great business here, they really are.”
Over the last year, Energy Transfer LP (NYSE:ET) stock went up more than 13%. Back in February, when Cramer was asked about the company, he remarked:
“Yes. ET is smart. I mean, look, you buy, this is the way you buy ET, just so you know, this is a pipeline company. You, you, you buy it by the percentage yield. So it’s got a 7% yield now, you buy some, 8, you buy some, 9, you buy some. That’s how you buy these stocks and I’m gonna continue to pound that that’s the way to do it.”
8. Iron Mountain Incorporated (NYSE:IRM)
Number of Hedge Fund Holders: 40
A caller asked if they should buy more, sell, or hold Iron Mountain Incorporated (NYSE:IRM). Here’s what Cramer had to say in response:
“No. Better places to be, better places to be. You know, like we have Kimco on tonight, give you a better yield. I think that’s a better place to go.”
Iron Mountain (NYSE:IRM) offers a wide range of solutions to meet its clients’ needs in information management, digital transformation, data security, data center services, and asset lifecycle management. On May 1, the company reported a record revenue of $1.6 billion for the first quarter of 2025, which was a 7.8% increase on a reported basis.
Iron Mountain (NYSE:IRM) saw strong growth in its data center, digital, and asset lifecycle management businesses, which grew over 20%. Net income for the quarter was $16 million, and adjusted EBITDA reported was a record $580 million.
7. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 55
A caller asked if they should be “loading the truck” with Devon Energy Corporation (NYSE:DVN), given its current valuation. Here’s what Cramer had to say:
“No, you can’t. I mean, Devon has been such a poor performer. I can’t have you do that. It’s really been a nightmare, frankly. Maybe it’s starting to bottom, but oh my, has it been bad.”
Devon Energy (NYSE:DVN) is an independent energy firm involved in exploring, developing, and producing oil, natural gas, and natural gas liquids across the U.S. Back in February, Cramer said:
“Devon has run too much, I gotta tell you. I watched it go up. We saw the quarter, it’s terrific. We got Coterra on Monday. That’s great. And if EQT comes down, I like that too better than Devon. Devon is not my stock of choice at this time.”
6. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 55
A caller inquired about Cramer’s views on Mondelez International, Inc. (NASDAQ:MDLZ), and he replied:
“You know, it’s a really interesting question because this has been the food stock that’s been the best, okay. The best. Even though it’s got a lot of chocolate in it, which doesn’t make much sense to me because chocolate’s supposed to be something that’s really been attacked by the GLP-1s. That said, I think that it’s done well and it’s got a 3% yield. I’m not against it. And Dirk Van de Put has done a pretty good job there.”
Mondelez (NASDAQ:MDLZ) manufactures and sells a variety of snacks and drinks, including biscuits, chocolate, gum, candy, and other packaged foods. Its brands include several familiar names in cookies, crackers, chocolate, and snack bars. On May 1, Barclays increased its price target on MDLZ to $74 from $71 and maintained an Overweight rating. The firm expects stronger earnings visibility in 2026 despite high cocoa prices. It noted that Mondelez has secured much of its 2025 pricing in major markets with little impact on volume.
5. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 66
When a caller inquired about Hewlett Packard Enterprise Company (NYSE:HPE), Cramer said:
“Well, you know it’s a very competitive spot…. It’s a very competitive area. You’re up against Dell, a bunch of other companies, and so therefore I think that even though it sells at 10 times earnings, it is still a very difficult stock to own. So I’m not going to recommend the stock to you.”
Hewlett Packard Enterprise (NYSE:HPE) delivers data solutions that support customers in handling and using information efficiently. Its products include servers, high-performance computing systems, and storage equipment. On March 26, answering a question about the company, Cramer commented:
“No, you did not make a mistake. Now, I did spend a lot of time with Antonio Neri when I was out at GTC. It was a nice time… But what concerned me was that last quarter was bad and they’re in the penalty box with me and I would have done the same thing. Once I saw that quarter, I would say, okay, I gotta move on. There’s not much here. Now be aware that everything’s headed down now to where HPE is, but that may afford you an opportunity to swap out of, to put money into a new name that’s better than HPE. And here what I’m thinking about is Dell.”
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Noting that the stock has been down and the company’s dividend, a caller inquired if they should add to their position in Chevron Corporation (NYSE:CVX), and here’s what Cramer had to say:
“I think the answer is yes. You get a 4.8% yield. They return a lot of money to shareholders. I think they’re doing terrifically. The problem, of course, is you have to like oil to own Chevron. If you do like oil, I think it’s a terrific place to be….”
Chevron (NYSE:CVX) works in the oil and gas industry through exploration, production, refining, and transport. The company produces petrochemicals and is involved in creating renewable fuel sources. TCW Relative Value Large Cap Fund stated the following regarding the company 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. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 92
A caller asked Cramer’s take on Pfizer Inc. (NYSE:PFE), and he said:
“You know, look, I think Pfizer, I think it can bottom here. I do believe, I still believe in the Seagen acquisition. I know I seem like, that I’m alone along with Dr. Bourla, but I think that there’s a lot of good stuff that they have, so I would say keep it here.”
Pfizer (NYSE:PFE) focuses on creating, manufacturing, and delivering biopharmaceutical products. The company’s products include treatments for heart conditions, infections, cancer, immune disorders, and vaccines. On April 17, Cramer commented:
“You know, this is a quandary. And I’ll tell you what, Dr. Bourla, terrific guy, he bought Seagen, I think it’s going to be great. Right now, it’s caught in a vortex where they can’t seem to be able to produce things to offset things that are coming off patent. I want to stick with it, but that 7.7% yield is not a sign of strength. It’s now a sign of weakness.”
2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 115
A caller asked if they should buy, sell, or hold Eli Lilly and Company (NYSE:LLY), and in response, Cramer said:
“I want you to buy more… The reason why you want to buy it is because there was definitive data that came out last night about Novo Nordisk not being anywhere near as good as Eli Lilly when it comes to weight loss, which is what a lot of people are in the GLP for. And it was not reflected because the things were so crazed because of what the president announced. I think the stock could be up a hundred points when people realize, wait a second, it is definitively better than Novo. I would buy Eli Lilly handover fist.”
Eli Lilly (NYSE:LLY) develops and sells a broad range of medicines for conditions like diabetes, cancer, autoimmune diseases, pain, and migraines.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
A caller asked if their child should start a position in Tesla, Inc. (NASDAQ:TSLA), and Cramer commented:
“Absolutely. Absolutely. And… Tesla, you know, broke down after that report, that bad quarter. Adam Jonas, my favorite analyst in this space, said, listen, it’s time to start thinking about this. This is a technology company. I went out hard with his, I don’t mind being derivative with his idea. Boy, we’ve caught a lot and we’re not done. It’s going to go higher.”
Tesla (NASDAQ:TSLA) designs, builds, and sells electric cars and energy products. The company offers services that include selling vehicles, providing financing. It provides energy storage solutions and delivers solar power systems. Baron Focused Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles (EVs), solar products, and energy storage solutions alongside the development of advanced real-world AI technologies. Shares fell due to declining analyst expectations for auto delivery volume and margins in 2025 as a result of 1) a refresh of the Model Y, its highest volume vehicle and the world’s best selling car in 2024; 2) Elon Musk’s controversial role in the Trump administration; and 3) regulatory changes that could pose potential operational challenges. Despite these headwinds, we remain confident in Tesla’s long-term growth, underpinned by secular trends in EVs and energy storage adoption, a compelling product line, its leading cost structure, and cutting-edge technology. A Model Y refresh alongside the debut of new mass-market models should boost demand. Over time, we expect the political pressure to fade, while Tesla’s AI ambitions—a robotaxi service launching this year and a fast-growing humanoid program—hold the promise of transforming its growth story.”
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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