Jim Cramer, the host of Mad Money, spent Thursday explaining how each major market sector performed in 2025, and pointed out what worked, what lagged, and what that might signal going forward.
“Tonight, I want to break down the performance of each major sector in the market for 2025. Now, there are 11 of them, and they give us a real good sense of what worked and what didn’t… Last year, only three of them outperformed the S&P 500: Communication services, that was up 32%, information technology up 23%, and industrials, they were up almost 18%.”
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Cramer pointed out that information technology was the second-best performing group, and explained that much of the upside came from semiconductor stocks, with memory and data storage companies leading the charge. At the same time, he noted that those stocks have started to cool off and are taking what he described as a necessary pause after running too hot. Turning to industrials, Cramer emphasized that the sector is made up of many different sub-groups, which means investors need to be selective. He pointed out that areas tied to power generation and aerospace delivered strong results in 2025, while other parts of the industrial space did not keep pace.
“Looking at all the groups that underperformed last year, I think the financials will be the winners this year. I still like the utilities. I’m optimistic about healthcare after its rebound late last year… If we get… the lower rates that I’m looking for, it’ll be good for the material sector, real estate sector, and the consumer discretionary cohort. Energy might benefit too, but I’m less optimistic there because the White House is so aggressive about boosting production, which is bad for pricing. As for the staples, the best thing I can say is that some of those stocks have just gotten cheap, cheap, cheap, and their yields look great. I just don’t know if that will be enough. The bottom line: Now you know why the 11 big sectors are positioned as the new year gets going, we know what they look like, or you know how I feel they’ll be. We can make predictions about where these groups might be headed based on what we saw last year.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 8. 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 2025, which was taken from Insider Monkey’s database of 978 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Commented on These 13 Stocks From Different Market Sectors
13. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 87
The Procter & Gamble Company (NYSE:PG) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer mentioned the stock while discussing the performance of consumer packaged goods companies, as he commented:
“The packaged food stocks were mostly lower, with some huge names down… the big ones just down horribly, and some of that was GLP-1. The consumer packaged goods stocks also drifted lower, with even high-quality operators like Procter & Gamble down double digits. Now, I recommended Procter here yesterday, and it rallied $3.5, and I do not think it is done today. A weaker operator like Clorox tumbled 38%. Target was a one-off disaster, down 28%, and the alcohol companies, they were just eviscerated.”
The Procter & Gamble Company (NYSE:PG) provides branded consumer goods across beauty, grooming, health care, home care, and family care. The company sells its products through renowned names such as Tide, Pampers, Gillette, Crest, Olay, and Febreze. Cramer discussed the stock during the January 7 episode and said:
“I can go over how NVIDIA or Broadcom are down huge too much, and they’re way, way from their highs, but well, then again, I’ve been recommending them consistently for club members, so there’s no real revelation there. So let me give you another one that’s on my radar screen that might intrigue you, one that is hated, despised, one that I wrote up in How to Make Money in Any Market as a tremendous company, that’s become a complicated, unloved stock because it’s not tech and it doesn’t have great growth right now. I’m talking about Procter & Gamble. The Cincinnati colossus has seen its stock tumble remarkably from $180 in March to $138 today. This is P&G. It doesn’t usually have that kind of move. It’s a dividend aristocrat. Some people call it a dividend king because it’s increased its payout for 69 consecutive years. You’re now getting the stock with a 3% yield. I’m not calling the bottom, but it does have a new CEO. It has the opportunity to shake things up.
Procter’s already pre-announced a nasty quarter, and it’s one of the few consumer package goods companies that doesn’t have a GLP-1 problem. I got no illusions. I don’t think it will necessarily stop at 3%. That’s not that high a yield. Many of the packaged goods companies… 4, 5, 6%. Those are mostly food-related. How do you approach it? Okay, let’s say you want to buy 100 shares tomorrow, don’t. Only buy 25 shares. Then you wait for it to fall to another level… and then you buy another 25. It gets down low to say, 4%, be extremely, that would be a big, big move… big dividend yield. Well, then you can have 50 shares. You have a very nice-size position slowly but surely, not at one price. Okay, it’s not CrowdStrike. It’s not Microsoft. It’s not Broadcom. It’s not NVIDIA. But you can’t just have all tech.”
12. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 54
Dollar General Corporation (NYSE:DG) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer discussed the stock while showing optimism around dollar stores, as he remarked:
“How about the plight of the consumer staples cohort? This was the second worst group in the market last year, was up just 1.3%. How about some standouts? The dollar stores, they did well, with Dollar General and Dollar Tree checking off tariff worries to rally 75 and 64%, respectively. Monster Beverage also had a good year, up 46%, and the long-hated Estee Lauder mounted a recovery, up 40%. That was just, wasn’t a dead cat bounce, but man, that stock had fallen way too low. Philip Morris International posted 33% gain. Walmart… up 23%, beating the market. You know now I like the underperforming Costco, and I accept that the dollar stores will just keep running. They are Wall Street faves, but the rest of the sector, really awful.”
Dollar General Corporation (NYSE:DG) sells everyday essentials, including food, household items, personal care products, and apparel at affordable prices. In addition, it provides seasonal goods, pet supplies, and home products.
11. ONEOK, Inc. (NYSE:OKE)
Number of Hedge Fund Holders: 42
ONEOK, Inc. (NYSE:OKE) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer called the company the “caboose of the sector,” as he said:
“Next, there’s the energy sector that finished up 5% for the year. Now, we got some major cross-currents here. The refiners mostly did well, and some natural gas-focused producers did fine. But the integrated oil giants that we all consider as the oils, like Exxon Mobil and Chevron, they underperformed. The exploration and production companies were lucky to manage low single digits. Texas Pacific Land, a quirky story that we’ve been behind, was a huge gainer, pulled back in 2025, was down 22%. And ONEOK, the natural gas-focused pipeline play, was the caboose of the sector, down 27%. I talk about ONEOK in How to Make Money in Any Market. I think this is a great opportunity and I wrote this, the chapter that includes it was, included the fact that the stock was already down, and I thought it was a great buy.”
ONEOK, Inc. (NYSE:OKE) provides midstream energy services, which include handling the gathering, processing, transportation, storage, and export of natural gas, natural gas liquids, refined products, and crude oil.
10. Ralph Lauren Corporation (NYSE:RL)
Number of Hedge Fund Holders: 58
Ralph Lauren Corporation (NYSE:RL) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer mentioned the company during the episode and said:
“Next, both of the main consumer sectors were soft last year. The stronger consumer discretionary group put up just 5.3%. That’s a gain in the aggregate. So, you had some big winners worth pointing out. One that we’ve championed for a long time, Carvana, that was up 108%… In addition to Carvana, we got nice gains from Tapestry and Ralph Lauren, both terrifically well-run companies, and General Motors, thank you, Mary Barra, all up more than 50%. Expedia, Hasbro, Ulta Beauty, DoorDash, and Cramer fave, TJX, because we own it for the Charitable Trust, also posted nice gains.”
Ralph Lauren Corporation (NYSE:RL) designs and sells apparel, footwear, accessories, home products, and fragrances across multiple luxury and lifestyle brands. Cramer called it one of his favorite apparel stocks during the December 17, 2025, episode. The Mad Money host stated:
“Third, here’s a fun one, Ralph Lauren, one of my favorite apparel stocks in this environment. The company’s retired 34.1% of the shares since the end of 2015, though its stock is basically even with the S&P 500 over the same period. That’s because Ralph Lauren’s true outperformance only started in the past few years, especially this year, with RL up nearly 60% while many other consumer names are in tatters. Now, the company really… came… [to] its fore under CEO Patrice Louvet, whom I think the world of. I am a huge fan. I bet that they draw a lot of attention at the Winter Olympics in a couple of months, where Team USA will be rocking Ralph Lauren gear. It is still a buy.”
9. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 55
- Cardinal Health, Inc. (NYSE:CAH) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer highlighted the company’s noteworthy performance, as he commented:
“The drug distributors continue to relentlessly climb higher. There’s nothing, you know, people hate the pharma middleman. Even the president doesn’t talk, like… them. But I got to tell you, their stocks, they are juggernauts. Cardinal Health, Cencora, and McKesson, they were all up more than 40% last year. Cardinal is really the monster of that group.”
Cardinal Health, Inc. (NYSE:CAH) supplies branded, generic, and specialty medicines and provides pharmacy and specialty drug services. The company also makes and distributes medical and surgical products and procedure kits. Brown Advisory stated the following regarding Cardinal Health, Inc. (NYSE:CAH) in its third quarter 2025 investor letter:
“Cardinal Health, Inc. (NYSE:CAH), one of the three major U.S. drug distributors, continues to benefit from rising demand for complex specialty and biologic therapies, where it is expanding value-added service offerings. The company also serves adjacent markets such as third party logistics and the fast-growing nuclear medicine space. Its medical distribution business remains an execution turnaround story, with new management narrowing service gaps with peers and showing early progress in improving margins.”
8. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 78
CVS Health Corporation (NYSE:CVS) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer made bullish comments on the stock during the episode, as he remarked:
“The sixth best sector and the only other sector to finish 2025 up double digits was healthcare, which finished up 12.5%. Coming into last year, there was a lot of worry about what the health and human services department might do to the industry under the leadership of RFK Jr. But when the worst of these fears failed to materialize, the healthcare stocks were able to make a big run into the end of the year. Guess what was the best performer? CVS Health, up nearly 77% as the company recovered under new CEO David Joyner, and their top competitor Walgreens, is shutting down a lot of stores. Joyner’s money. I’m looking for another huge year.”
CVS Health Corporation (NYSE:CVS) provides healthcare solutions through insurance, pharmacy benefit management, and retail pharmacy services. During the episode aired on December 9, 2025, Cramer praised the company’s performance under its CEO, as he commented:
“This stock has become the best performer in the healthcare sector under CEO David Joyner and shot up another 2% today as management laid out some bullish long-term earnings targets.”
7. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 129
Capital One Financial Corporation (NYSE:COF) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer mentioned the company while discussing the performance of the financials sector, as he stated:
“Let’s go through the other eight sectors, the ones that underperformed. Descending order… First, the financials were the fourth-best sector in the market last year. They were up 13.3%. Now, there were some huge winners like Robinhood, that was up more than 200%. The big banks did very well. Citi, Goldman Sachs, Morgan Stanley, JPMorgan, Wells Fargo, they were up more than 25%. Banks. Capital One, made you a bundle, too. Now, we own Goldman, Wells, and Capital One for the Charitable Trust… For 2026, I say, please, just keep it simple. Stick with the banks. They’re still cheap, especially the investment banks. Even after these moves, I really like them… And you know, I like Goldman, I like Capital One. Both of them are absolutely terrific, and Wells looks like, I think it’s going to go to par, standard Wall Street gibberish for $100.”
Capital One Financial Corporation (NYSE:COF) provides banking and financial services, including credit cards, loans, deposit accounts, and commercial banking solutions.
6. Paychex, Inc. (NASDAQ:PAYX)
Number of Hedge Fund Holders: 53
Paychex, Inc. (NASDAQ:PAYX) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer discussed the market sentiment and his thoughts on the company’s latest earnings, as he said:
“Other economically sensitive names like Paychex, we have them all the time, and people didn’t like the last quarter. I thought it was okay. And Paycom Software, both of which are kind of odd to see in the industrial sector.”
Paychex, Inc. (NASDAQ:PAYX) provides human capital management solutions, including payroll processing, payroll tax and compliance, HR administration, benefits, and workforce management for small to mid-sized businesses. During the December 19, 2025, episode, Cramer discussed the company’s earnings, as he commented:
“If you want to get a real read on employment, I always like to check in with Paychex. That’s the payroll processor and outsourced human resources play, mainly serves small and medium-sized businesses. This morning, Paychex reported a modest top and bottom-line beat, management raising the midpoint of the full-year earnings forecast for the second quarter in a row. So far, so good.
But when some of these analysts dug down, they saw things they didn’t like. The company’s management solutions business narrowly missed its revenue estimates. They said that full-year revenue outlook could come in closer to the low end of their previous forecast. I wouldn’t be sure about that, but that is why the stock got hit today. Although then again, Paychex tends to sell off on earnings even when the quarter’s pristine.”
5. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 66
International Business Machines Corporation (NYSE:IBM) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer highlighted the “big runs” in companies like IBM, as he remarked:
“Apart from that, retail favorites like Palantir and AppLovin stood out… And I also like to see some big runs in old tech that’s names like IBM, which I think is still very inexpensive, and Cisco Systems, which we own for the Charitable Trust, they were up 35 and 30%, respectively.”
International Business Machines Corporation (NYSE:IBM) provides software, consulting, and cloud and on-site technology solutions, along with financing to help clients use its products. During the December 22, 2025, episode, Cramer called the company’s stock cheap despite trading at record highs. The Mad Money host commented:
“I also asked if some of the legacy tech giants, like Cisco and IBM, could continue the better performance they’ve been putting up, and I’m happy to say that by and large, they have. Cisco’s climbed nearly 32% year to date about three weeks ago. The stock closed at a record high for the first time since March of 2000. Great win for the CNBC investing club there. Meanwhile, IBM’s up more than 38%, trading at record highs. It’s still cheap, by the way, and it still should be bought.”
4. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 75
Corning Incorporated (NYSE:GLW) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer showed bullish sentiment on the stock for the current year, as he said:
“Now, some of the other data center hardware plays did very well. Look at Corning, GLW… a key holding of the Charitable Trust. That leading maker of fiber optics, up 84% this year, and I still think it may be one of the best performers for 2026.”
Corning Incorporated (NYSE:GLW) develops optical fiber, cables, and related hardware for telecommunications, and produces glass substrates for displays used in TVs, computers, and mobile devices. Moreover, it supplies specialty materials, emission control products, and laboratory equipment. Cramer highlighted the company’s role in the data center business during the episode aired on December 12, 2025. He stated:
“And if you really want to own data centre stocks, one of the names that’s been crushed, investment club stock, is Corning, because it’s working to displace copper wiring everywhere, and the data centre is the legitimate copper, ultimate copper backer. That would be the one I would suggest to start with. Start small. We don’t want to miss a possible rotation right back because of the news flow I’m anticipating from OpenAI next week.”
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer highlighted the company’s Gemini 3 AI platform’s potential, as he commented:
“Apart from that, Alphabet was very strong last year, up roughly 65%, as the outcome from its antitrust trials amounted to really just a slap on the wrist, while their Gemini 3 AI platform… I use it all the time, although I don’t use it authoritatively. I just use it as some way, as a compilation, it compiles things for me. It’s a home run, and it’s now threatening ChatGPT for mindshare.”
Alphabet Inc. (NASDAQ:GOOGL) provides tech-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms like YouTube and Google Play. During the January 6 episode, Cramer discussed the company while reviewing the Magnificent Seven stocks, as he commented:
“Let’s take them one by one because this feels like 2026 will be another year where individual stock picking is really going to start mattering. Remember, this is my big theme. Alphabet and NVIDIA, I think, are going to be two huge outperformers just like 2025… I gotta tell you, it does hurt me to see Alphabet as the best performing Mag Seven stock last year because, like an idiot, I sold it for the Charitable Trust. We threw in the towel last spring… But I spent the rest of the year regretting that move…
How about those AI worries? Turns out you didn’t need to be worried at all. You didn’t be afraid of generative AI when you got the best platform, and that’s what Google has with Gemini. Plus, there was never going to be any cannibalization here because Google just slapped their AI overview right on top of their search results page. Brilliant… Being the default generative AI platform for Google Search is a huge advantage. Who knows, maybe they’re going to pay Apple and do it for that, too.
Finally, in November, as the rest of the AI complex started to roll over, Alphabet surged higher because that’s when they released the latest version of Gemini, Gemini 3, which was almost instantly recognized as the best in the business… Look, that’s just search and AI. Alphabet’s got a lot more going for it. YouTube may be the most important and well, of course, watched force in media… Waymo’s the undisputed leader in robotaxis.
These guys even made some big advances in quantum computing, and don’t forget about Google Cloud, that’s their thriving cloud infrastructure business that competes with Amazon Web Services and Microsoft Azure, and many people think it does better than both. Of course, the one thing you can’t say about Alphabet anymore is that the stock is cheap. For a while last year, it was trading at a discount to the S&P 500, but it now sells for a nice premium. Still, the stock’s not that pricey at 28 times this year’s earnings estimates when you consider the growth rate. Given everything Alphabet has going for it, I think that’s reasonable, which is why we bought the stock for the Charitable Trust. We bought it back again near the end of the year. I intend to make it a big position. I bet it keeps climbing in 2026. I was tempted to buy some even today for the trust when this stock was down almost five points. It closed down $2.22.”
2. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 75
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer highlighted the stock’s performance in light of Electronic Arts going private. He said:
“… Electronic Arts, that’s also got a takeover bid. It jumped almost 40% because it’s being taken private by a group of investors led by Saudi Arabia’s Sovereign Wealth Fund. The pin action from that deal boosted the other video game stocks, like Take-Two Interactive, TTWO, which will be the only independent publicly traded game publisher after EA goes private. Take-Two is up 39%, great scarcity value there, and a hope for the launch of the new edition of Grand Theft Auto in the works. By the way, it’s the greatest performing entertainment property in history.”
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) creates video games for consoles, PCs, and mobile devices. Some of its well-known games include Grand Theft Auto, Red Dead Redemption, and BioShock. During the episode aired on December 17, 2025, a caller asked whether the launch of GTA VI could potentially boost the share price. Cramer responded:
“Absolutely. Absolutely. It’s the greatest entertainment franchise of all time. I think you can buy some here and buy some a little lower. Strauss Zelnick will deliver for you. He will.”
1. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 70
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the stocks from different market sectors that Jim Cramer commented on. Cramer noted the company’s spectacular gains last year, as he remarked:
“So MSCI, which is the keeper of these groupings, combine a bunch of telecom, media, and entertainment companies, as well as some other companies, well, that we think of as tech companies, I know it’s strange because it’s Alphabet and Meta Platforms, these are really big companies into the hodgepodge sector now known as communication services. Probably confusing to you. It’s always confused me. It’s very artificial. Alright, that hodgepodge did great in 2025, led by Warner Brothers Discovery, which is finishing up nearly 173% after late-year bidding work that ended with the company announcing its sale to Netflix, although there’s still a possibility that it might go to this Paramount. Congratulations to Warner’s David Zaslav for delivering phenomenally for its shareholders. I gotta tell you, what a performance this thing was at eight bucks when he told me, ‘Listen, this thing’s worth 30.’ And boom, guess what? Probably get 30.”
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company that creates and distributes movies, TV shows, and streaming content.
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