In this article, we will look at “Jim Cramer Analyzed 5 Stocks While the Market Was Oversold”. Please visit “Jim Cramer Analyzed 13 Stocks While the Market Was Oversold” if you’d like to see the extended list and the methodology behind it.
5. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the oversold market. A caller asked which of the three metrics is most important for the company: procedure growth, system placements, or hospital utilization. Cramer replied:
It’s hospital utilization, and what gets me down here is that the stock, the earnings are good, but the multiple is too high. And when I say that, you have to go back to How to Make Money in Any Market. My book spends a lot of time about the idea that, you know what, if the multiple’s too high, it doesn’t matter what the sales are and the earnings [are], it’s just not going to be able to go higher. And that’s going on with Intuitive. It’s just gotten too expensive per share.
Intuitive Surgical, Inc. (NASDAQ:ISRG) designs and manufactures robotic systems and instruments that enable minimally invasive surgical and diagnostic procedures. Polen Capital Management Llc stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Polen Focus Growth Strategy’s Q4 2025 investor letter:
In Q4 2025, we initiated a new position in Intuitive Surgical, Inc. (NASDAQ:ISRG) and sold our positions in Netflix and Workday. We initiated a 2.25% position in Intuitive Surgical who maintain a de facto monopoly in soft tissue robotic surgery globally. They have become the standard of care in many surgical modalities while there are many more open and laparoscopic surgeries that can be converted to robotic over time. The barriers to entering their market are large based on decades of proven efficacy and safety, as well as the fact most surgeons are trained on the company’s Da Vinci robots either in medical school or on the job, and they continue to innovate and distance themselves from potential entrants. The company recently fully launched its next generation platform that should lead to accelerating procedure growth and revenue growth for years. Current results show this acceleration, and we see clear business momentum and a reasonable valuation considering this is an accelerating monopoly.
4. Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the oversold market. Cramer was quite bullish on the company’s stock, as he stated:
Yesterday, we got some terrific news from Johnson & Johnson, but because the tape was so ugly, the stock did nothing. Actually finished the session down 0.35%. Oh, it was a brutal session… Sometimes, a terrible, horrible, no good, very bad day for the averages creates buying opportunities for you, and I think we’re getting one right now in Johnson & Johnson. Why? Because yesterday morning, we learned that they got FDA approval for ICOTYDE. Now, that is their oral treatment for moderate to severe plaque psoriasis…
Right now, AbbVie and Johnson & Johnson both have injectable drugs in the same category, but nobody wants to use a needle if they can use a pill instead. AbbVie’s plaque psoriasis drug, Skyrizi, did over $17.5 billion in sales this year. Now, J&J has a pill version that I think could conceivably eat that drug alive. We’re talking about an enormous total addressable market year, and yet the stock actually went lower in response. That’s silly… We’ve been trying to own this one. I think that right now it’s just trying to catch its breath, but it is such a winner… I’ve been pushing JNJ hard since last September… Management thinks the new drug can ultimately do $5 billion in peak sales. I think that’s a very low-ball number. Some of Wall Street is even more bullish…
Here’s the bottom line: The market-wide sell-off yesterday masked some very good news for JNJ with their novel plaque psoriasis pill gaining FDA approval. I think you’re getting a great buying opportunity here because this was a genuine positive development that absolutely, it did nothing for the share price because of what’s happening in Iran. Long story short, JNJ’s story keeps getting better and better and better, and it is still not too late to buy the stock. Plus, this company’s more or less immune to the price of oil. It’s a textbook slowdown stock.
Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases.
3. Dollar Tree, Inc. (NASDAQ:DLTR)
Dollar Tree, Inc. (NASDAQ:DLTR) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the oversold market. Cramer highlighted the stock’s recent performance, as he said:
This whole group has rallied like crazy since the post-Liberation Day lows last April. Initially, everyone thought these companies would be crushed by the tariffs because they relied heavily on cheap imports, but then most of these tariffs got rolled back, allowing the dollar stores to rebound. Lately, though, the dollar stores have pulled back hard. Dollar General’s down nearly 15% since it reported last Thursday morning. Dollar Tree had already started coming off its highs in January and February. When it reported Monday, the stock rallied 6.4%, but since then, it’s given back all of its post-quarter gains. Both Dollar General and Dollar Tree reported solid results, but… somewhat disappointing guidance.
Dollar Tree, Inc. (NASDAQ:DLTR) sells everyday essentials, household items, toys, and seasonal products at low prices. The company focuses on providing affordable food, personal care, home goods, and holiday merchandise.
2. Five Below, Inc. (NASDAQ:FIVE)
Five Below, Inc. (NASDAQ:FIVE) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the oversold market. Cramer highlighted the company’s “incredible set of numbers,” as he commented:
Last night, we got an incredible set of numbers from Five Below. The discount retailer’s made a monster move over the past 12 months, and the stock shot up more than 10% today. You just can’t keep a good stock down, can you? This spectacular quarter almost came out of nowhere… There was some concern, real concern, that Five Below might blow up. Instead, Five Below shot the lights out. How’d they do it? Okay, keep in mind that Five Below has been roaring in large part because the company’s under new management. When the old CEO stepped down in July of ‘24, he was not doing that good a job, frankly. The company was having an identity crisis, making a push to sell product that costs more than $5 while pursuing an aggressive growth plan.
After a period with an interim CEO, Five Below brought in Winnie Park from Forever 21 of all places… to take the reins in December of 2024. And Park is a miracle worker. She transformed the company, reshuffled management, expanded Five Below’s target demographic to include younger children. At the same time, she’s embraced social media and made it a top priority to quickly capitalize on new trends, which is the way it started out. That was the roots of Five Below. Now, this is part of a huge strategy shift, though… These moves have paid off as the stock caught fire last year. It is still on fire now. When Five Below reported last night, expectations were high, and they still managed to beat the stuffing out of the estimates.
… Put it all together, and you can see why Five Below pulled away from the dollar stores this quarter. The company has delivered several incredibly strong quarters in a row at this point. And through its guidance, it’s indicating that it should keep going higher. I know it seems odd, but I think it will. The bottom line: At the end of the day, this turnaround’s all about management. Under the leadership of Winnie Park, Five Below has become a company that knows its target customer and is serving that customer incredibly well. Stock has already more than tripled over the last 12 months, and even after today’s magnificent move, you know what? I think it’s got more room to run.
Five Below, Inc. (NASDAQ:FIVE) sells a wide range of low-priced essentials, decor, tech accessories, toys, crafts, snacks, and seasonal items.
1. Reddit, Inc. (NYSE:RDDT)
Reddit, Inc. (NYSE:RDDT) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the oversold market. Noting that the stock has been down for a while despite reporting a great last quarter, a caller asked what is going on with the company. Cramer replied:
Oh man, I’ve gotta tell you something. I’ve watched this Reddit. I’ve mentioned it in How to Make Money in Any Market. I never thought it would get down this low. I think it’s an incredibly valuable property. It charges too little for advertising. It’s got a great group of people who are very, very active in constantly checking the site. I’m sticking by Reddit. As a matter of fact, I’d like to buy some stock right here at 27 times earnings.
Reddit, Inc. (NYSE:RDDT) runs an online platform that hosts communities where users connect over shared interests, exchange ideas, and share content such as posts, images, and videos. A caller asked about the February 26 episode, and Cramer replied:
Oh, I think you buy Reddit. In my book, in How to Make Money in Any Market, I… struggled to make it one of my absolute top five stocks because I think it’s worth so much more than what it’s selling for. Let’s buy that one.
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