Jim Cramer, the host of Mad Money, recently shared a list of ten stocks he believes will perform well in December. He pointed out that stocks that do well in November tend to continue their strong performance into the final month of the year.
Cramer explained that the beginning of a new month brings attention to the previous month’s performance, and with that, a significant influx of money flows into the market. This money, he said, tends to validate the moves of the largest stocks, creating a cycle where money is immediately put to work, often benefiting the Magnificent Seven.
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Cramer also highlighted a common pattern at the end of the year, noting that people tend to make contributions to their retirement accounts when the year is going well. He emphasized that this trend is already visible in the market. When asked why a strong November often translates into a positive December, Cramer pointed to the mechanics of money management. He said that this pattern isn’t new for him, elaborating:
“Before I started my Charitable Trust more than two decades ago, I ran a hedge fund. I was always looking for an edge, and one of the most reliable patterns I found is that, when December rolls around, you mimic the biggest winners of November.”
Cramer recalled how, during his hedge fund days, he would focus on the top-performing stocks of November, buying heavily into those picks and letting them continue to perform through the end of the year. He remarked that this approach has proven to be successful year after year.
In addition to the stocks he recommended, Cramer also noted a category of stocks tied to travel. He mentioned that travel-related industries, including airlines and cruise ships, were particularly strong in November and could continue to show promise in December.
“Now, there are other[s] underneath this list, ones that involve traveling. To me, that means you could buy anything connected to travel, including the airlines… Cruise ships work… But the bottom line: If you want to know what I think could do best in the month of December, or simply what worked best in the month of November, so now you got your marching orders and I say (buy, buy, buy).”
Jim Cramer Discussed 10 Stocks That Can Do Well in December
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during a recent episode of Mad Money on December 2. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer Discussed 10 Stocks That Can Do Well in December
10. Texas Pacific Land Corporation (NYSE:TPL)
Number of Hedge Fund Holders: 20
Cramer noted that during Trump’s previous term, oil stocks underperformed. He also mentioned how he waited for Texas Pacific Land Corporation (NYSE:TPL) stock to pull back, which did not happen.
“Not long ago we covered Texas Pacific Land Corp, a new addition to the S&P 500, that owns more than 800,000 acres of land in the oil-rich Permian Basin. Now this one’s a holdover from a 19th century railroad bankruptcy. All it does is take in money. Even though they don’t own the mineral rights, they own the land, which means you need to pay them if you want to drill… Nothing like an oil stock after Trump gets elected though but be careful. The oils underperformed during the last Trump administration because there was too much drilling. It could happen again. Although when I profiled Texas Pacific not that long ago, I told you it was worth waiting for a pullback. The pullback never came. It just kept going straight up.”
Texas Pacific (NYSE:TPL) focuses on land and resource management, as well as water services, alongside leasing land and selling materials. In the third-quarter earnings report, the company reported a consolidated net income of $106.6 million and an adjusted EBITDA of $144.1 million. It achieved record royalty production of 28.3 thousand Boe per day and made two notable acquisitions: mineral interests spanning 4,106 net royalty acres in the Delaware Basin, valued at $120.3 million, and approximately 4,120 surface acres in the Midland Basin for $45.0 million.
Tyler Glover, Texas Pacific’s (NYSE:TPL) President and Chief Executive Officer, emphasized that the surface holdings are highly valuable assets, noting that the company has secured numerous contracts in recent years. He highlighted that the company is in the process of developing over 700 megawatts of solar energy, as well as seven utility-scale battery projects.
In addition, the company operates four Bitcoin mines, totaling 78 megawatts of active power, with another 50 megawatts in development. Glover expressed confidence in the company’s position, stating that it is well-positioned to provide land and water solutions as new opportunities outside of traditional oil and gas emerge in West Texas.
9. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 38
Cramer noted that Tapestry, Inc. (NYSE:TPR) has been prospering since the FTC blocked its deal to acquire Capri Holdings.
“Tapestry’s a rebounding apparel company and its stock is on fire thanks to Lina Khan, FTC. Yes, something you almost never hear, something positive. See, she blocked or the FTC blocked Tapestry from acquiring Capri Holdings, which owns Michael Kors. Jimmy Choo, Versace. The market hated that deal. So when Wall Street cheered, when Lina Khan shot it down, and that’s allowed, well, it’s allowed Tapestry to prosper. It’s become an up stock.”
Tapestry (NYSE:TPR) is a luxury goods company offering a wide range of branded lifestyle products, including handbags, accessories, footwear, fragrances, jewelry, home goods, and apparel. In November, it announced the termination of its merger agreement with Capri Holdings Limited. Both companies mutually agreed that halting the merger was in their best interests, given the uncertain legal outcomes and the unlikely resolution of the matter by the February 10, 2025 deadline.
Joanne Crevoiserat, CEO of Tapestry (NYSE:TPR), expressed confidence in the company’s current position, stating that investing in its own stock was the best option at this time. On November 22, the company revealed that it had entered into Accelerated Share Repurchase (ASR) agreements to repurchase $2.0 billion worth of its common stock. These agreements are part of the company’s broader $2.8 billion share repurchase program.
As part of its plan, the company expects to return over 100% of its free cash flow for fiscal 2025 to shareholders through dividends and stock buybacks. The final settlement of the ASR agreements is expected by the first quarter of fiscal 2026, which ends on September 27, 2025.
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