On Thursday, Mad Money host Jim Cramer addressed the tension many investors feel as markets continue to rise in ways that defy long-held skepticism.
“The cynics just can’t believe what’s happening in this market. They’re so used to finding reasons to be bearish that they’re being overrun by positive events… Can these negativists stay baffled? Will they have to commit, convert, get bullish? I don’t know if they can do it, but they’re going to have to if…they want to stop losing the money that they have under management.”
READ ALSO: Jim Cramer Talked About These 18 Stocks and Jim Cramer Weighed In on These 9 Stocks.
Cramer reiterated a theme he has been stressing for some time, saying, “I told you this was the year of magical thinking.” He noted that many undervalued stocks are being gradually recognized by the market, stating that they “are going to be less cheap as they go up.” Still, he mentioned that bearish investors resist the idea that any of these stocks should be appreciating.
“The moral of the story: when there is this much money sloshing around, okay, when there are funds and families with trillions of dollars being put to work, it’s awfully hard to ignore what they’re going to do with that money.”
Cramer said that the bearish investors have likely seen minimal gains heading into September, which historically carries a negative reputation. He said that they seem to be waiting for the market to stumble before reentering, but “it’s not.” With only four months left in the year, he suggested that those still waiting for a correction might be running out of time to act, even if doing so means walking away from their entire investment thesis.
“But the bottom line: If the bearish money doesn’t pull the trigger soon and become buyers, their investors will go somewhere else, and then the bull market won’t be the manager’s problem anymore.”
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 September 11. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Commented on These 10 Stocks
10. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 43
Canadian National Railway Company (NYSE:CNI) is one of the stocks Jim Cramer commented on. During the lightning round, when a caller asked about the stock, Cramer remarked:
“I think Canadian National is way too cheap. You get that 2.7% yield. You’ve got a very low price-to-earnings multiple. I like Canadian Nat.”
Canadian National Railway Company (NYSE:CNI) provides rail, intermodal, trucking, and supply chain services, providing door-to-door transport, logistics solutions, and specialized cargo handling. Appalaches Capital stated the following regarding Canadian National Railway Company (NYSE:CNI) in its Q1 2025 investor letter:
“Both Canadian National Railway Company (NYSE:CNI) and CSX are exposed to imported freight volumes, yet both have held up well despite the fact. With an increase in port fees for Chinese ships in the U.S., Mexican and Canadian ports on the Pacific Coast will likely see more volume, the latter of which benefits Canadian National. Both Canadian National and CSX are positioned to benefit from a tightening trucking market with tender rejections rising. CSX recently suggested that any rebound in industrial production resulting from the tariffs would be highly constructive for East Coast volumes. Similar to Lithia, near-term risks certainly exist, but the valuation is very agreeable from a longer-term perspective.”
9. Resideo Technologies, Inc. (NYSE:REZI)
Number of Hedge Fund Holders: 25
Resideo Technologies, Inc. (NYSE:REZI) is one of the stocks Jim Cramer commented on. Inquiring about the stock, a caller noted its Honeywell spin-off origin, recent 52-week high, an upgrade from Morgan Stanley, and insider buying. Cramer replied:
“Okay, so candidly, when it was first spun off, I was not a fan because I did not think rates were going to come down and really be good for the housing market. Now, that’s precisely the kind of stock that you should be buying. I’ve been saying to the club that Home Depot is the best stock to buy right here for the last 40 points. I like it, but I think Resideo is interesting even up here.”
Resideo Technologies, Inc. (NYSE:REZI) provides comfort, energy management, and security solutions, in addition to with distributing low-voltage and smart home products. Ariel Investments stated the following regarding Resideo Technologies, Inc. (NYSE:REZI) in its second quarter 2025 investor letter:
“Additionally, supplier of residential thermal, comfort and security solutions, Resideo Technologies, Inc. (NYSE:REZI) advanced following solid quarterly earnings results highlighted by organic revenue growth and margin expansion. Synergies from the integration of Snap One are also ahead of expectations. Meanwhile, REZI expects to substantially mitigate any headwinds from tariffs by increasing prices, repositioning inventory and by running its factories at different utilization rates. We believe REZI’s earnings potential is underappreciated. The company is entering a new phase of sustainable growth driven by a secular preference for more connected smart home solutions and product innovation.”
8. MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 40
MP Materials Corp. (NYSE:MP) is one of the stocks Jim Cramer commented on. A caller mentioned holding 500 shares of MP on margin and expressed interest in adding more. In response, Cramer commented:
“Okay, first, I want you to do well. I want you to get off margin. MP Materials, I don’t want you to buy more with margin. I like, I think the stock, the company has convinced me, Litinsky has convinced, the CEO, that it is worth more than it’s selling for. I had been a little bit worried because it had doubled. I think you’re fine, but don’t, please don’t buy anymore. You’re fine with what you have.”
MP Materials Corp. (NYSE:MP) produces rare earth materials through its Mountain Pass mine and processing facility and manufactures magnetic precursor products to support advanced technologies. In a July episode, when a caller asked Cramer how he sees the stock over the long term, he replied:
“But they’ve got tons of EBITDA. No, look, I mean, the stock has moved to 61. Now, I have done more work on it, and I really think that I was a little, you know, I wasn’t negative, but I think there’s even more upside, and I think you’re onto something really big.”
7. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 46
Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of the stocks Jim Cramer commented on. Cramer sees the breakup as a positive outcome for the company, as he remarked:
“If you want a company with a perfect track record of strategic decision making, whoa, this one is not for you. But if you want a company that’s finally headed in the right direction with a stock that’s gotten too cheap, then I think Keurig Dr Pepper makes a lot of sense. First, they’re right to break up the business. In retrospect, there were never any real benefits to combining a coffee machine company with a soda company. Wall Street likes bite-sized companies that are easy to understand…
This is how breakups create value. Money managers who were turned off by the combined entity might happily buy one of the components as soon as it trades separately. Second, in terms of valuation, now this is what really intrigues me, I think finally the stock has gotten way too cheap. If you use Keurig Dr Pepper’s current enterprise value… and divide it by the company’s trailing 12 months… EBITDA, you get an enterprise multiple of 8.5%. This is a metric we like to use in merger breakup situations…
Of course. that ignores the new debt that Keurig Dr Pepper’s going to have to take on to buy the JDE Peet. But even if we assume that they’re going to plan to borrow 18 billion, the stock would have an enterprise multiple of 11.4, which is still a huge discount to Coke and a small discount to Pepsi. I think this gap is pretty compelling. Of course, there will likely be twists and turns over the next year and a half as this merger breakup unfolds.
So I need more details before having real conviction in the new companies that will be created by the breakup. But the bottom line: Regardless of how Keurig Dr Pepper got to this point, I think the breakup could unlock a tremendous amount of value. Given how much the stock’s come down since the announcement, I think you have to be a buyer here, not a seller, as shocking and contrarian as that is to the current Wall Street wisdom on the matter.”
Keurig Dr Pepper Inc. (NASDAQ:KDP) produces and distributes a wide portfolio of beverages and single-serve brewing systems, including soft drinks, coffee, tea, and specialty drinks.
6. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 81
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the stocks Jim Cramer commented on. A caller asked how Oracle’s strong earnings might impact Cisco’s future performance. They inquired whether the company could deliver similar results and whether the stock is currently a buy, hold, or sell. In response, Cramer said:
“This is a great question… We own it for the Charitable Trust. It’s not done anything… not done anything. I wish that Oracle were more relatable to it. It’s not. The problem here is that Cisco doesn’t have the kind of growth that those companies have, but why do we own it then for the trust? Because it does have the risk. And I think that not every stock has to be in there making it so that you’re going to get something that, be a big pop like Oracle. I like some slow and steady. You got a good yield, and you got good management.”
Cisco Systems, Inc. (NASDAQ:CSCO) provides networking, security, collaboration, and cloud solutions, offering hardware, software, and services that enable secure connectivity, data management, and digital transformation.
5. Axon Enterprise, Inc. (NASDAQ:AXON)
Number of Hedge Fund Holders: 62
Axon Enterprise, Inc. (NASDAQ:AXON) is one of the stocks Jim Cramer commented on. Cramer was highly bullish on the company as he commented:
“There are a couple of really winning companies I like to check in on from time to time, and some of them get better with every single look. Consider the case of Axon Enterprise… Now, here’s the stock that’s rallied almost 800% over the past five years… including a 26% gain for 2025. And I’m proud to say that I have liked this one all the way. I think it’s just got more room to run too…
Even after decades of service, TASER remains in growth mode… But don’t forget this is a razor-razorblade business model. Every time you use the TASER, you need to buy a new cartridge. That’s what money is. The future of Axon, though, is all about body cameras and evidence management software. But within the hardware side of the business, Axon now offers surveillance drones as well as a suite of tactical indoor drones…
They’ve got virtual reality training equipment too… While this VR segment is still a small part of the business, it’s about roughly 10% of revenues, it’s growing like crazy, up 87% last quarter. Yet another reason why Axon could deliver a knockout set of numbers when the company reported last month…
Here’s the bottom line: While Axon’s up big for the year, the stock has now pulled back more than 15% from its August highs, and I think you’re basically getting that incredible last quarter for free here. Anytime this stock pulls in, I’d be a buyer. It’s had a great run. I can’t say it is just beginning. I can say though, that Axon’s been so creative and so helpful to police departments that I think the stock could continue to rally for a very, very long time.”
Axon Enterprise, Inc. (NASDAQ:AXON) develops TASER devices and provides body cameras, digital evidence management software, and connected solutions for public safety.
4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer commented on. Cramer discussed the stock’s momentum during the episode, as he said:
“As of last night’s close, JNJ was the 10th best performing healthcare stock in the entire S&P 500, up 21.5% for the year. Now, if you’ve been paying attention to this one, that might come as quite a surprise. J&J still has a major litigation overhang, and more important, it’s primarily a pharmaceutical company in a market that hates pharma, or at least we thought it did…
I also think there’s a feeling that at this point, the plaintiff’s lawyers pursuing these cases have overplayed their hand… And by the way, for what it’s worth, I also think that change in administration has helped J&J on this front as well.
President Trump’s not exactly a big fan of lawsuits… but he does seem to be a fan of J&J… So after a couple years where the stock was in purgatory, JNJ is now having a standout year in spite of the overall weakness in healthcare, especially in pharma. They’re defying the broader group because they have the right portfolio with a robust med tech business supplementing the core pharma business and no over-the-counter business to drag them down.
And because J&J’s drug division has proven to be much stronger than expected across several major areas, especially oncology, Wall Street’s no longer fixated on the talc lawsuits or the fact that their number one drug’s now facing generic competition. And look, despite the nice gain to start the year, JNJ still only sells for 16.5 times this year’s earnings estimates, below the market multiple with a nice yield that’s just under 3%. Very rare triple-A balance sheet.
Bottom line here: With so much momentum but still a reasonable valuation, I think JNJ can keep running, maybe for a while. The next target is the company’s early 2022 all-time high of 186 and change within sight, up less than 10 bucks from here. After that, I say it could go through $200.”
Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products spanning pharmaceuticals, medical devices, and vision care. The company provides treatments in immunology, oncology, neuroscience, and cardiovascular diseases, as well as surgical technologies, orthopedics, and contact lenses.
3. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 79
Airbnb, Inc. (NASDAQ:ABNB) is one of the stocks Jim Cramer commented on. A caller asked whether they should buy, sell, or hold the stock, and Cramer replied:
“Oh man, I’ve been looking at it too, and I’m telling you that whole class of equities from that period that came public, they’re all on fire except for this one. I think you buy Airbnb.”
Airbnb, Inc. (NASDAQ:ABNB) operates an online platform that connects hosts with guests to book stays and experiences. Cramer discussed the company’s latest earnings in an August episode. He remarked:
“Long story short, while the second quarter numbers were strong, Airbnb’s guidance was more guarded… which made investors worry that management was bracing itself for a slowdown… And if they’re going into a slowdown, then it’s hard for Wall Street to get excited about these new growth initiatives… Basically, Airbnb gave us a, what’s called a beat and meet quarter and signaled that its margins would likely contract in the back half of the year. We’re no longer paying up for these kinds of stocks, and in many cases, we run from them… Airbnb is the more richly valued of the companies, trading at almost 29 times this year’s earnings estimates.
In other words, the one that is the most valued was the one that’s went down the most… They’re more than double the multiple of Expedia, that kind of tells you what’s going on here, which sells for only 14 times earnings, okay? Those multiples, by the way, are after Airbnb’s pullback and Expedia post quarter. So Airbnb’s almost twice as costly, alright? Needless to say, when you have a higher multiple, more is expected of you, and Airbnb didn’t meet those elevated expectations, hence the decline…
I gotta tell you, Airbnb is really still just a consumer story… Remember, we are in an environment where the consumers clearly become more value-conscious, and Airbnb’s betting on businesses that require consumers to open their wallets… Of course, I’ve always felt that at its core, Airbnb represents tremendous value…
So let me give you the bottom line of this very complex story: There’s a reason why Airbnb stock tumbled after earnings while Expedia soared the very next day. Expedia had a pure beat and raise with very little hair on it, while Airbnb had a beat, but also gave investors some reasons to worry about its guidance. Plus, Expedia’s got an advantage with much more business-to-business exposure than… [Airbnb]. At the end of the day, I think Expedia’s thriving because of its laser focus on value, while Airbnb is making a bunch of big bets that may or may not pay off in this environment. I say stick with what’s working. I say stick with Expedia.”
2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 67
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the stocks Jim Cramer commented on. Cramer mentioned the stock during the episode and said:
“Finally, during less ebullient periods, whenever you get some good news in the morning, you can be assured something bad will come later in the day that you can hang your bear’s hat on as the market sinks. No, not in this tape. Are you kidding me? In the midst of a typical update comes a story about, I mean, Jeff Marks sitting next to me, but he says, Hey Jim, there’s a potential, there’s a takeover bid for Warner Brothers Discoveries… Come on, they got so much debt. Uh-huh.
Not that long ago, the skeptics were shorting the heck out of this one because of that hideous balance sheet. They got the whole zeitgeist wrong. You see, in a bull market, that balance sheet’s what has kept the equity valuation down well below where it should trade. To the owners of the potential acquirer of this company, Paramount Skydance, including the Ellison family, yeah, the one that owns most of, of the larger share of Oracle, this potential acquisition is just a rounding error. Larry Ellison’s worth over $300 billion. If someone wants to buy Warner Brothers for 40 billion, he owns, he has 300… Hey, what the heck. That could be good.”
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company producing films, TV programs, and streaming content while operating networks and interactive gaming.
1. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 73
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the stocks Jim Cramer commented on. Mentioning the stock during the episode, Cramer said:
“I told you this was the year of magical thinking… There’s the IPO market. The bears are looking at the number of deals and are saying, oh man, the Wall Street IPO machine has gone crazy. But any market historian knows that that’s simply reminiscent of previous good times. It’s more of a beginning than an ending when you see these deals… Go buy some Goldman Sachs.”
The Goldman Sachs Group, Inc. (NYSE:GS) delivers financial services including investment banking, markets, asset and wealth management, and platform solutions. After a caller inquired about the stock in a July episode, Cramer replied:
“I don’t know. You know Sweeney, Rob Sweeney, my friend Rob Sweeney, or my wife would say an acquaintance, Rob Sweeney, is doing that deal, and he’s real money, good. So I see why they might have done that. And Tim Wentworth’s there too. I don’t know. I mean, I’m a believer. I wouldn’t leave that deal even if I tried.”
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