We recently published a list of Jim Cramer is Bullish on These 10 Stocks. In this article, we are going to take a look at where AT&T Inc. (NYSE:T) stands against other stocks that Jim Cramer discusses.

On Friday, Mad Money host, Jim Cramer, shared his perspective on how investors might approach the stock market given the current economic uncertainty.

“You gotta make a list and decide what you can live with and what’s simply too dicey to buy. That my good friends, is how you have to think about stocks right now if you’re willing to be a slave to this crazy market in order to try to pocket what you can during this difficult period.”

READ ALSO: Jim Cramer’s Game Plan: 15 Stocks to Watch and Jim Cramer Discussed These 12 Stocks.

Cramer emphasized that before making any trading decision unless the plan is to hold it long-term and ride out near-term turbulence, investors should run what he described as a “gauntlet” of significant considerations. The first question he raised is whether the company in question does business in any foreign country. While it is common for investors to be cautious about China these days, Cramer pointed out that any nation could suddenly draw the ire of the U.S. president.

“Now, it’s one thing to be worried about China, but it’s another to recognize that any country could at any time find itself on the president’s bad side. And once they get on his bad side, any American company doing real business there, finished.”

Cramer stressed the importance of avoiding companies that rely on international operations or resources. The second point on his checklist involved evaluating whether a company is cyclical, essentially, if it is vulnerable to swings in the broader economy. Highlighting the scale of the current trade friction, Cramer pointed out that the United States is effectively embargoing $439 billion worth of goods from China. He noted that it is likely to push inflation to levels not seen in a very long time. He added:

“It’s hard to disagree with that assessment and I say that as someone who generally supports a trade crackdown on the Chinese government.”

Our Methodology

For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 11. 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).

AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 80

AT&T Inc. (NYSE:T) was mentioned during the episode, and here’s what Cramer had to say:

“So what made this list so far? Right now there’s peace among the phone companies. The big price war seems to be a thing of the past. That means you can own both Verizon and AT&T. Both have good yields. Both are reporting better-than-expected earnings. They’re worth owning because their businesses have very little cyclicality. So that’s the paradigm, okay?”

AT&T Inc. (NYSE:T) delivers various telecommunications and technology services, including wireless voice, data plans, broadband internet, cloud tools, and managed service options. TCW Relative Value Large Cap Fund stated the following regarding AT&T Inc. (NYSE:T) in its Q3 2024 investor letter:

“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”

Overall, T ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of T 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than T but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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