On Monday, Jim Cramer, the host of Mad Money, highlighted how the market has turned upside down, with investors now buying stocks that they used to dislike, saying:
“If you told me this is where the market was headed two or three months ago, I would have thought you were insane, even crazier than I am. This radical transition over the past few weeks has just been frankly unfathomable. We’re now buying stocks we hated and we’re despising, and guess what we are now selling short the stocks that we used to worship. And it’s all happening on the fly. […] You can’t tell what’s underneath though but that makes it much easier for those real seekers who want to surf the Trump ‘stock wave’.”
READ ALSO: Jim Cramer Sounds the Alarm on China Rhetoric and Dollar Panic Then Analyzes 11 Key Stocks and Jim Cramer Hints at a Bigger Agenda Behind Tariffs and Breaks Down These 7 Stocks
Cramer centered the episode around the question on every investor’s mind: has the market finally bottomed?
“Fresh off a turbulent week for the tape, I’m opening up the phone lines and answering your most pressing questions because are we at a bottom? That’s what everybody wants to know. […] Well, the tariff exemptions, it looks like they’re coming. Market was eager to take a sigh of relief. I’m not so sure where we are with them, but the major indices jumped higher on President Trump’s announcement of temporary exemption on tariffs for phones computers and semiconductors, and really, I guess the subtext is for Apple. But in a tape this volatile we have headlines dropping left and right, I’ve got to tell you, I spend so much time trying to figure out what’s going on, but I think that periodically I nail it. So tonight what I want to do is open up our phone lines to hear directly from you, from the people of America.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 14. 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).
11. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 53
A caller asked about Dollar General Corporation (NYSE:DG), noting how dollar store stocks have been beaten down recently. Cramer admitted he initially misjudged the situation, focusing too much on tariffs, but he now sees a bullish move ahead for the stock, saying:
“Here’s what I did wrong with Dollar General. I first thought of it as having to do with tariffs, and it’s not a good situation. What I didn’t think about is how Dollar Tree is doing so poorly and getting offloaded a lot of Family Dollar and a lot of Family Dollar stocks are right against Dollar General and the Family Dollars are going to- a lot of them are going to close, which gives a free reign for Dollar General. So where’s that lead me? Even though it imports a lot from China, I say it’s a buy, wow.”
Responding about the divergence between Dollar General Corporation (NYSE:DG) and Dollar Tree, Jim Cramer said the following:
“[DG and DLTR shares trading differently due to their different exposures to China] Yes, Todd Vasos got very lucky with Dollar General. Dollar Tree is really struggling. No I know that was very, that was interesting. That was interesting. And I know that, that, five below went five below. I mean that’s like, really below. These companies you have to go case by case.”
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