We recently published a list of Jim Cramer Discussed These 12 Stocks Recently. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other stocks that Jim Cramer discussed recently.

Jim Cramer, the host of Mad Money, recently examined the latest market trends, highlighting some important themes where stocks have faced challenges, especially those reliant on business with China.

He pointed out that certain stocks often experience significant drops after earnings reports, a trend he has observed consistently. However, Cramer cautioned that finding buying opportunities from these dips is not always as simple as it may seem. While these stocks might appear attractive when they get hit, he emphasized that they are typically impacted unjustifiably, suggesting that if you buy them whenever they drop, you would likely see positive returns. He added:

“So you’re probably saying, can it really be that easy? I mean, why aren’t I a millionaire? Well, I’ll tell you why. Because there are landmines, real landmines in the yellow brick road times when the dips are milling at the beginning so I’m gonna spell those out for you too.”

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One of the first questions Cramer believes investors should ask themselves is whether a stock is tied to China in any way. This dependency, he mentioned, has severely impacted many companies recently. Cramer also pointed out that retailers, especially department stores, have taken a hit, as well as companies in the chemical sector, which heavily rely on Chinese demand. According to Cramer, these businesses need orders from China to stay afloat, making them vulnerable to fluctuations in that market.

Another factor Cramer highlighted is the growing impact of GLP-1 drugs, which have the potential to curb cravings for certain food products. Cramer pointed to beloved brands like Hershey, Oreos, and Fruit Loops, among others, which are now facing challenges as these drugs reduce consumer desire for such treats. He noted that with demand for these products waning, the stocks of companies producing them are suffering.

“Bottom line: Always remember that there are indeed Teflon stocks in any market. The key? Don’t buy them unless and until they get knocked down and then remember they’ll get up again. You are never gonna keep them down.”

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on February 5. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Cramer said that Apple Inc. (NASDAQ:AAPL) is under similar kind of pressure from the Chinese Communist Party as it did from the US Justice Department.

“We’re worried about Apple now, which has to be one of the largest employers in the entire People’s Republic. The Chinese Communist Party is now going after Apple for the service dream almost as hard as the US Justice Department did under Biden.”

Apple (NASDAQ:AAPL) designs and sells a wide range of consumer electronics, including smartphones, computers, tablets, and wearables, along with various accessories and services. It also offers subscription-based services like Apple Music, Apple TV+, and Apple Arcade, and operates platforms such as the App Store and Apple Pay. Earlier in January, Cramer said:

“I’m about to be facetious. I want you to hear this. It’s facetious but here’s what we’re gonna hear. Let’s see. We have horrendous Chinese cell phone orders, no lift from new AI, a surprising slowdown in service revenues, lackluster Vision Pro sales, and of course, a radical chop to the forecast for the rest of the year, all way below the consensus. There, that’s everything I’ve heard about Apple for the last two weeks.

Since the year began, I just keep hearing that over and over again but if everyone knows it’s gonna be worse than expected, can it still be worse than expected? How could it be a surprise if everyone expects the worst and we get the worst? Will the stock still get clocked? Kind of, yeah because Apple’s priced for slightly better-than-expected set of numbers and we won’t get one but so why not dump it?”

Cramer recommended holding Apple (NASDAQ:AAPL) stock, highlighting the company’s strong management and the long-term benefits of keeping it rather than trading.

Overall, AAPL ranks 5th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of AAPL 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. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.