On Friday’s episode of Mad Money, Jim Cramer reflected on this week’s market performance, with attention to upcoming earnings reports and broader market sentiment.
“Now we’ve been on a real rebound since post-Liberation Day meltdown back in the first week of April, with tech leading the way after really taking it on the chin.”
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According to Cramer, the rebound has been largely driven by tech stocks, which had previously been under pressure. However, he expressed uncertainty about whether that trend will hold, as he mentioned that the tech sector has been relatively quiet in terms of news, aside from a keynote from Jensen Huang. Looking ahead, Cramer noted that more retail earnings are expected this week.
“But here’s the bottom line: Unless we get news of new hostilities in the trade war with China, I think this market’s propensity will still be to go higher, even though we are overbought. And even with this late-night credit rating downgrade of the US debt, which is very quizzical to me, I think we’re containing the downside of the economy, and that means no recession, which tells me the negativity may be out of sync with the reality. That’s often the best kind of market…”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 16. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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).
Jim Cramer Had These 14 Stocks On His Radar
15. Deckers Outdoor Corporation (NYSE:DECK)
Number of Hedge Fund Holders: 66
Cramer called Deckers Outdoor Corporation (NYSE:DECK) “excellent operators” and noted that the company is unlikely to report another bad quarter.
“You want a company that’s in a suddenly red-hot segment of the shoe business? Look at Deckers. Think about this, think about what’s happening in the shoe business. First, we get, Sketchers gets a bid to go private. Huge win. Then we got this spectacular quarter from On Holding. On top of that, DICK’s Sporting Goods pays almost twice the price to acquire Foot Locker, a remarkable bid.
So last time, Deckers, which owns HOKA and UGG, reported its first disappointing quarter in ages, and the stock was just clubbed. HOKA was incredibly strong, though UGG didn’t have enough inventory, so there was no blowout, and the stock got crushed. These guys are excellent operators, though, so I don’t think that will happen again. I’m inclined to be in favor of Deckers ahead of the quarter here.”
Deckers (NYSE:DECK) sells a variety of footwear, clothing, and accessories. The company’s lineup includes high-end UGG items, performance products from HOKA, and casual shoes and sandals from brands such as Teva, Sanuk, Koolaburra, and AHNU.
14. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 89
While Cramer noted that Intuit Inc. (NASDAQ:INTU) stock is expensive, he said that it is “worth it”.
“Now, we got a bunch of controversial ones coming on Thursday. Intuit is a stock that’s been all over the map, but the company’s a godsend for small business owners. The stock’s expensive here. I think it’s worth it.”
Intuit (NASDAQ:INTU) provides a wide range of financial, compliance, and marketing offerings, including tools for managing businesses, services for tax preparation, platforms for personal finance, and solutions for automating marketing tasks. During an episode of Squawk on the Street in February, Cramer remarked:
“Carl there was a thought that maybe Intuit was not gonna make the quarter. Uh, its [inaudible] about global business solutions. Consumers only have three percent. But, uh, Credit Karma was magnificent, uh, 16% dividend boost. Morgan Stanley goes hold to buy, fantastic, just fantastic situation. I like those guys very much. I think people really misjudge, there are small businesses still very strong in this country.
… [On whether tax filing plays a large role] They’ve managed to be able to kind of avoid that by making it really much more small businesses. Uh, and, wow I mean having used it as a restaurant owner it’s a really extraordinary, it’s a powerful product. Makes it easygoing.”