On Thursday’s episode of Mad Money, host Jim Cramer turned his attention to the consumer packaged goods sector and expressed a clear sense of frustration and disappointment with how these stocks have been performing.
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Cramer stated that he feels sorry for companies in the space that depend on consumer spending to stay afloat. He recalled a time when packaged goods stocks were market favorites, capable of sparking rallies off news that today would trigger selloffs. What once inspired confidence now draws skepticism.
Cramer pointed out that even the highest-quality names in the group, companies that used to be seen as dependable performers, are being punished by the market. As for the weaker players, Cramer said they are not just facing scrutiny, they are being “buried alive in criticism.”
“Sometimes misery loves company. Sometimes you just hate a company, and this market sure seems to hate the consumer packaged goods space. Without growth, pure growth, Wall Street, it’s having nothing to do with it.”
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 June 5. 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).
15 Stocks on Jim Cramer’s Radar
15. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 44
Coming to Constellation Brands, Inc. (NYSE:STZ), Cramer remarked:
“Hey, no wonder Constellation Brands has tumbled 3.6%. The maker of Corona [and] Modelo must be doing really badly. Maybe they’re the benchmark of a bad alcohol business.”
Constellation Brands (NYSE:STZ) produces, imports, and sells a wide range of alcoholic beverages, offering beer, wine, and spirits under names such as Corona, Modelo, Robert Mondavi, Kim Crawford, The Prisoner, Casa Noble, High West, and SVEDKA. When Cramer was asked about the company earlier in May, he commented:
“Oh, I know it’s trying to bottom, but you know what? The beer business is soft. The spirit business is not so good, and frankly, I expected more from the company. I think the company has been a very big disappointment, and I just have to say, I don’t need to be in stocks that have been disappointing. I’m sorry. I wish it were doing better for certain, my wife’s in that business itself, but I don’t see it.”
14. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 37
Calling Brown-Forman Corporation (NYSE:BF-B) the “worst one”, Cramer commented:
“But the worst one, Brown-Forman, the maker of Jack Daniel’s, which reported a truly terrible quarter. Although if you read the press release propaganda, you might have thought everything’s fabulous. Of course, when you look at the stock, which plummeted nearly 18% today, you’ll notice that it finished even worse than Tesla stock, which is saying something given the war of words between Elon Musk and President Trump, one of the worst spitball competitions I have ever seen.
The conference call for Brown-Forman, which used to be a terrific investment, was surreal. They took whatever they could find that was at all good, and there wasn’t much, and that’s all they really wanted to talk about. You think this whole company is Woodford Reserve, which was the best-performing liquor. Of course, the analysts weren’t buying it, not one bit…
There’s the brand issue. Somehow, Jack Daniel’s just isn’t selling as, the way as it used to. Hey, by the way, same goes for their biggest tequilas, like el Jimador and Herradura, two mainstays that both declined 13% in the fiscal year that just ended in April.
It’s not their forte or a needle mover, but those are horrendous numbers. After all, one of the few bright spots in the entire liquor business is the agave spirit, and yes, think margarita, but it’s not so bright for Brown-Forman. Amazing. As badly as they’re doing in whiskey, they’re actually doing worse in tequila. Wait, there’s a silver lining: Whiting points out in the call that spirits continue to take share from beer and wine.”
Brown-Forman (NYSE:BF-B) produces, markets, and sells a variety of alcoholic drinks, including spirits, wines, and ready-to-drink options. The company also provides contract bottling and sells whiskey and wine in bulk.
13. Kimberly-Clark Corporation (NYSE:KMB)
Number of Hedge Fund Holders: 45
Discussing how Kimberly-Clark Corporation (NYSE:KMB) stock suffered despite its news of selling the majority stake in its international tissue business, Cramer said:
“Then there’s Kimberly-Clark. Today, it took decisive action to cut its exposure in one of the most difficult businesses, its global Kleenex and tissue division, by selling 51% of the business to the Brazilian supplier, Suzano, for $1.73 billion. I like this. Kimberly-Clark gets out of a cyclical business that has not great margins and its far more proprietary business, especially diapers, get to shine.
I thought it was one more attempt by the gutsy CEO, Michael Hsu, to reinvent this company as a consistent grower, much more like Procter & Gamble. I figured the stock could rally a couple of bucks from the news. It was that creative of a deal. Nah, the stock got crushed. It is down more than 2%, crazy town.”
Kimberly-Clark (NYSE:KMB) manufactures personal care and tissue products and provides items such as disposable hygiene goods, facial tissues, paper towels, and hygiene solutions for commercial use.
12. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
Discussing what is affecting the consumer packaged goods stocks, Cramer mentioned The Procter & Gamble Company (NYSE:PG) and stated:
“We learned this morning that Procter & Gamble, the unbelievably best consumer packaged goods enterprise on Earth, plans to cut 7,000 jobs over two years. This trimming the workforce would normally have the stock jumping, the market loves cutting costs. It would’ve been still one more sign that Procter will stop at nothing to keep profitability growing. In a good tape, we would’ve presumed that P&G is using cheap AI to replace expensive people. But now, when we read the headline, we assume something must be really terribly wrong at the company, and it gets hammered.”
Procter & Gamble (NYSE:PG) provides a wide range of consumer packaged goods across categories such as beauty, grooming, health care, home care, fabric care, baby care, feminine care, and family care, sold under established brand names.
11. EHang Holdings Limited (NASDAQ:EH)
Number of Hedge Fund Holders: 16
A caller asked for Cramer’s opinion on EHang Holdings Limited (NASDAQ:EH), and he said:
“You know, I’m not going to really want to do a lot of China right now. I think that the President and China, just don’t feel that, I just don’t, I’m not getting that vibe, you know what I mean?”
EHang (NASDAQ:EH) develops and sells autonomous aerial vehicles and related systems for use in passenger transport, logistics, urban management, and aerial media. The company offers aircraft models, flight control technology, operational software, vertiports, and charging infrastructure for electric vertical takeoff and landing operations.
On May 27, BofA reduced the price target on EHang (NASDAQ:EH) from $26 to $24 and maintained a Buy rating after the company missed expectations in the first quarter due to weaker sales. Taking the first-quarter performance into account, the firm lowered its volume sales projections for 2025 and 2026 by 7% and 8%, and revised its non-GAAP net profit estimates for those years down by 63% and 12%, respectively.
10. Lincoln National Corporation (NYSE:LNC)
Number of Hedge Fund Holders: 42
When a caller asked Cramer about Lincoln National Corporation (NYSE:LNC) during the lightning round, he remarked:
“Well…. You cut me to the quick, you got my accent, and then you, you drill me with Lincoln… No, we’re not going to recommend that stuff. We’re going to go, we’re going to buy Chubb. Then I don’t have to worry about how badly I pronounce it. Chubb is the one you want.”
Lincoln National (NYSE:LNC) provides a range of insurance and retirement products, including life insurance, annuities, group benefits, and retirement plans. On May 8, the company posted a first-quarter net loss of $756 million, or $4.41 per share. The difference was mainly due to a $0.9 billion after-tax loss tied to market risk changes from falling interest rates and lower equity markets.
9. Gorilla Technology Group Inc. (NASDAQ:GRRR)
Number of Hedge Fund Holders: 5
A caller asked for Cramer’s thoughts on Gorilla Technology Group Inc. (NASDAQ:GRRR) during the lightning round, and he replied:
“Man, you’re like, you’re way over the edge… We’re going, you know what we’re going to do for video surveillance, I’m going to send you to Axon.”
Gorilla Technology (NASDAQ:GRRR) delivers advanced solutions in AI-powered monitoring, security, and IoT applications across various sectors, including smart buildings, policing, transportation, and port operations.
On May 22, Gorilla Technology (NASDAQ:GRRR) announced that it completed repurchasing more than $1.8 million of its own shares in April and May. The company raised the total buyback under the current program to $5.4 million over the last year, with $4.6 million still available from the $10 million approved by the Board.
8. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 49
Answering a caller’s query about Altria Group, Inc. (NYSE:MO), Cramer commented:
“Alright, but here’s, okay, so I’m going to give you two answers to this because I’ve been trying to change my mind about some things…. I personally would not own Altria. Why? Because I don’t like what they do. Is it a superior stock better than most? The answer is, as I was writing How to Make Money in Any Market, the answer is yes. So you’ve got two answers. It’s up to you. I couldn’t own it for my trust. I couldn’t live with myself.”
Altria (NYSE:MO) produces and markets a range of tobacco and nicotine products, including cigarettes, cigars, smokeless tobacco, nicotine pouches, and e-vapor devices, sold under brands like Marlboro, Black & Mild, Copenhagen, and NJOY ACE. Andvari Associates stated the following regarding Altria Group, Inc. (NYSE:MO) in its Q1 2025 investor letter:
“Last year, Andvari made its first investments in tobacco companies with the purchase of Philip Morris International and Altria Group, Inc. (NYSE:MO). At the time of our purchase, Philip Morris and Altria had underperformed the S&P 500 over the prior 5- and 10-year periods. Both traded at low valuations and with high dividend yields. But thanks to following the industry o and on for 10+ years, and thanks to many discussions with long-time shareholders of the companies, Andvari felt the time was right to make the plunge. The timing could not have been much better for us as both companies have so far contributed positively to Andvari’s recent overall performance.
The problem—or the feature, depending on your perspective—with the tobacco industry has been a declining population of cigarette smokers in developed countries. Over the last four or five years, the decline in these smoking populations has accelerated, which in part explains the poor share performance of the tobacco companies between 2017 and 2023. Despite this, the tobacco companies have maintained, or slowly increased, their revenues and profits with regular price increases on cigarettes…” (Click here to read the full text)
7. RELX PLC (NYSE:RELX)
Number of Hedge Fund Holders: 18
During the lightning round, a caller asked what Cramer thought of RELX PLC (NYSE:RELX), and he said:
“Oh, well, you know what, finally, someone asked me about the old Reed Elsevier, which I’ve always liked. They’re putting up great numbers. That’s one of the reasons why people want to go to Europe to buy stocks. No controversy. Reed Elsevier, RELX, two thumbs up.”
RELX (NYSE:RELX) delivers data-driven analytics and tools that support decision-making and improve efficiency for professionals and businesses across various industries. The company’s services include risk evaluation, scientific research support, legal insights, and market engagement solutions. Aoris Investment Management stated the following regarding RELX PLC (NYSE:RELX) in its Q4 2024 investor letter:
“RELX PLC (NYSE:RELX) is a leading global provider of data, decisioning tools and analytics to users in professional markets, including legal, academic, banking, and insurance underwriting. RELX has transitioned from a provider of simple data and content, to increasingly being a supplier of productivity enabling analytic and decisioning tools, thereby becoming more relevant to its professional users. This became more apparent in 2024 when RELX’s growth accelerated notably in several key end markets, and we expect growth will continue to gradually accelerate for a number of years.
As well as the good operating performance from these three portfolio companies, their attractive valuation at the beginning of the year contributed to their strong share price performance in 2024.”
6. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Number of Hedge Fund Holders: 29
Cramer was bullish on Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) as he said:
“I’ve been following this folksy off-highway restaurant/retail chain for a little over a year, and I started pounding the table on the stock last July after speaking to CEO Julie Masino, who I think is orchestrating just one heck of a turnaround… The stock rolled over, especially after Liberation Day, at its April lows, it came all the way back down to 33 bucks. Now, I told you that was an incredible buying opportunity. I hope you took my advice because Cracker Barrel’s now up 38% since I last recommended it in April, climbing back to the mid-50s even after it got hit today. So this has been a big winner for us.
But this morning, Cracker Barrel reported, and Wall Street clearly didn’t like what it saw, and that’s why the stock tumbled over 7% today. I think it was a solid quarter, and the market’s overreacting because Cracker Barrel’s run so much over the past couple of months… Cracker Barrel’s revenue and same-store sales were a bit squishy, but after the company recognized that and clamped down on expenses, it was still able to deliver a blowout earnings number, and that’s what good companies do…
Cracker Barrel will definitely feel the impact of the president’s tariffs on the retail side of the business. Management disclosed that roughly one-third of its retail products are sourced directly from China and said that it had additional indirect exposure to tariffs via products from domestic vendors that also source from China. Oh, that’s going to hurt… Frankly, I never cared much about the retail side of the business, which accounts for only 20% of the company’s sales, but I can’t ignore it as any company that has gotten hit by tariffs bears a sort of scarlet letter going forward…
… Here’s the bottom line: When you see Cracker Barrel coming down like this, you know what I think? I think it’s a buying opportunity. This is a true turnaround story with a great CEO, one that I think will produce terrific results going forward. And even though the quarter wasn’t perfect, the turnaround, it’s very much intact.”
Cracker Barrel (NASDAQ:CBRL) runs restaurants that serve all-day meals and include gift shops offering home goods, seasonal items, apparel, toys, and packaged food. The company provides dine-in, pick-up, and delivery options.
5. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 55
Acknowledging that they recognize that Cramer considers Royal Caribbean Cruises best of breed, a caller inquired about Carnival Corporation & plc (NYSE:CCL). Cramer replied:
“Look, I know, you correctly nailed me and my view, which is that Royal Caribbean’s the best. I frankly just have to own best of breed. I know that may make me into someone who’s hidebound. I might miss some good stocks. Carnival’s good, but Royal Caribbean is great…”
Carnival Corporation (NYSE:CCL) provides leisure travel services through a variety of cruise brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard. On June 5, Citi analyst James Hardiman increased the price target on CCL from $25 to $28 and maintained a Buy rating.
The firm pointed to recent web traffic and pricing analysis that showed improvement from April to May, calling it a positive shift after some softness in April data. Citi noted that pricing remains steady, suggesting cruise operators are showing restraint, especially with most capacity already booked through 2025.
4. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 48
During the episode, a caller asked about Generac Holdings Inc. (NYSE:GNRC), and here’s what Cramer had to say in response:
“Generac, okay. Alright, so Generac got hit by tariffs. As soon as you hear tariffs, unfortunately, the market runs. I agree with you that it’s a great company, but I’ve gotta tell you something, it’s not a great stock. I know you said a lot of good things, absolutely, but the stock cannot rally if it’s got that kind of tariff problem.”
Generac (NYSE:GNRC) develops and supplies a wide range of energy technology products, including backup generators, battery storage systems, smart home energy devices, outdoor power equipment, and software for managing distributed energy resources. Matrix Asset Advisors stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its Q1 2025 investor letter:
“The market’s volatility during the quarter gave us the opportunity to be more active than usual with portfolio buys and sells. On the buy side, we added two new positions to the portfolio, Generac Holdings Inc. (NYSE:GNRC) and PepsiCo. Generac provides backup and prime power generation products for residential and commercial & industrial (C&I) applications. The company’s corporate purpose is to lead the evolution to more resilient, efficient, and sustainable energy solutions around the world. Generac’s business gets a lot of attention when there are power disruptions from weather-related events or other natural disasters, but we believe this is a long-term secular growth story as the demand for reliable power increases. We did the work on this company last year and have been waiting for the opportunity to purchase the shares on price weakness. Our initial purchase was made at $125 per share, down from a 52-week high share price of $195.”
3. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 96
The Boeing Company (NYSE:BA) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“Here’s a dreamliner of a story: After years of struggling, Boeing’s finally taken off in the last two months… I told you Boeing was ready to make a comeback in March when the stock was at $181 because it started reporting stronger orders and delivery numbers as well as some surprise contract wins… Don’t sell it. I think the stock has a lot more room to run. Why? First and foremost, Boeing’s cleaned up its balance sheet… Second, the numbers coming out of Boeing keep trending in the right direction.
In late April, the company reported a solid quarter with slightly higher than expected sales and operating earnings that trounced the estimates. Boeing’s combined backlog stood at $545 billion at the end of the quarter… So the numbers have been great, but there’s a third thing that’s been happening here. Boeing’s likely to be a big winner from President Trump’s global trade war… Now, we’re already seeing evidence that Boeing’s a trade war winner so far. Trump’s only closed one trade deal since Liberation Day, and that’s that new agreement with the United Kingdom.
Alongside that deal, the parent company of British Airways, no coincidentally, agreed to buy $13 billion worth of jets from Boeing. Plus, during President Trump’s visit to the Middle East, earlier this month, Qatar Airways placed an order for up to 210 wide-body aircraft, including 130 Dreamliners. That’s the largest order for that plane in history… At the end of the day, there’s a whole lot going right for Boeing, and the stock has rightfully reflected its momentum these past couple of months.
But here’s the bottom line: With a cleaned up balance sheet, rapidly improvement results and the prospect of the president of the United States becoming the world’s number one aircraft salesman as part of these trade negotiations, I think Boeing’s got a bright future and knowing how the stock tends to trade historically, I’m betting it could really still soar.
My only concern with Boeing is that they do have a not-so-great track record of dropping the ball just when the stock takes off. But I doubt that will be a problem anymore under Kelly Ortberg’s new leadership team. Boeing’s on the way to restore its greatness, and you want a piece of that promise as this one, once it gets going, can exceed any of the price targets that the analysts have ever dreamed of.”
Boeing (NYSE:BA) focuses on designing, building, and selling products such as commercial aircraft, military jets, satellites, missile defense systems, and space programs.
2. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 106
When a caller inquired about ServiceNow, Inc. (NYSE:NOW), Cramer remarked:
“Oh, oh yeah…. I bought it for the club. I gotta tell you… over and over again, I thought about it because it’s such a good company. I know its earnings are, it looks like it’s expensive stock, but in the Rule of 40, it’s terrific. I gotta hand it to Bill McDermott. I am never going to say a bad word about ServiceNow. If you want to buy some, I am certainly going to green light that. By the way, can I just tell you, I looked at what they’re doing and I say to myself, wow, they’ve really figured out AI. Where’d I get that from? Jensen Huang.”
ServiceNow (NYSE:NOW) provides a cloud platform that uses AI, automation, and low-code technology to support digital workflows. The company’s tools are used in IT, customer service, risk, HR, legal, and other business areas.
1. Dutch Bros Inc. (NYSE:BROS)
Number of Hedge Fund Holders: 47
Acknowledging that they exited the position after making a “lot of money” from the stock at Cramer’s behest earlier, a caller asked if it was time to get back in Dutch Bros Inc. (NYSE:BROS). In response, he said:
“Okay, Christine Barone was in town the other day. I said hello to her. The stock’s up on a real spike, was up really big yesterday. It’s a very hot stock. I would suggest buying it down 5%, but boy, do I like it.”
Dutch Bros Inc. (NYSE:BROS) operates drive-thru locations across the United States. The company manages these stores under different names, including Dutch Bros Coffee and Dutch Bros Rebel. On May 23, Cramer was similarly bullish on the stock when he was asked about the company, as he said:
“The Dutch Bros be going higher, sir. I mean, when they were on just last Friday, as a matter of fact, we had Christine Barone, and I thought she told a great story. The stock has had a nice dip, and you know what I say about that dip? I say [buy, buy, buy].”
While we acknowledge the potential of Dutch Bros Inc. (NYSE:BROS) 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 BROS and that has 100x upside potential, check out our report about this cheapest AI stock.
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