Jim Cramer, host of Mad Money, advised investors on Thursday to look into sectors other than tech.
“You gotta be thinking long term because right now, putting new money to work in this scrum of a sector feels a little ill-advised, especially when the best acting tech stocks right now have the worst balance sheets and income statements and the real good ones, crossfire. Again, I’m not turning against tech. I’m simply saying that when I pick stocks, I like easy money and I like to avoid the battlegrounds. Lately, I’ve been trying to direct your attention to the easy money groups like the banks, wow, the transports, woo, and even the healthcare companies, which have been tremendous.”
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Cramer said that with the Federal Reserve in a rate-cutting mode, investors should look for companies that tend to benefit from “easy money,” such as a railroad operator with essentially no real competition, a major credit-card business, travel and leisure-related names, or fast-growing retailers. He also highlighted dollar-store chains, and said that those businesses are “on fire” and there is not a “not a lot of battleground”.
“Here’s the bottom line: I’m not advocating the wholesale abandonment of the best sector in history, not at all. I am saying, however, that there is a fierce competition with enfilading fire and exploding claymores everywhere, and it’s showing no signs of abating, but boy oh boy, is it entertaining. Unfortunately, we don’t value stocks on entertainment per share, which is why you should focus on boring stocks of companies that tend to win big when interest rates come down, aside from just owning a lot of tech.”
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For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on December 4. 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 Discussed 11 Stocks and the Tech Battleground
11. Five Below, Inc. (NASDAQ:FIVE)
Number of Hedge Fund Holders: 60
Five Below, Inc. (NASDAQ:FIVE) is one of the stocks Jim Cramer discussed, along with the tech battleground. Cramer noted that the company’s CEO “set up Five Below for multi-year growth,” as he stated:
“… It’s Park (CEO Winnie Park) who set up Five Below for multi-year growth, even as the chain already has 1,900 stores across almost every state in the union. And look, the numbers were incredible. In the latest quarter announced last night, Park delivered an astounding 14% same-store sales growth, almost unheard of for a chain like Five Below. Some of the transformation comes from going back to basics.
Park has worked hard to, as she said in the conference call, sharpen the focus on the customer, the kid. Second, she’s using digital channels and social media to help drive people to the stores. Third, she’s developed what Five Below calls curtain-up moments, holiday merchandise for six different occasions. She says this management’s job is to please the boss, which isn’t her; it’s the customer. She killed it in the two most recent curtains-up: Halloween and back to school. They caused sales acceleration throughout the quarter, and now we’re in the biggest shopping season of all. Some of the success came from scrapping the Five Beyond section of the store, which had hobbled stores with a kind of a no-fly zone of expensive merchandise. They’ve taken that space for big-time seasonal merchandise instead.
Now, there’s some secret sauce we don’t know about… We don’t know how they avoided taking a profit hit from tariffs either… All in all, I think Five Below’s story is all about curation. Park uses terms like generation of content, not clothes, content, not toys. She’s basically putting on six shows a year that are driving an immense amount of traffic. The changes, though, are still in their infancy. That’s why I think that Five Below, last year, the butt of many jokes, is firmly in the turnaround mode. A successful turn can generate years of terrific gains for you, the shareholder, meaning the stock might indeed have a lot more room to run.”
Five Below, Inc. (NASDAQ:FIVE) sells a wide range of low-priced essentials, decor, tech accessories, toys, crafts, snacks, and seasonal items.
10. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 60
Tapestry, Inc. (NYSE:TPR) is one of the stocks Jim Cramer discussed, along with the tech battleground. Cramer mentioned the stock during the episode and said:
“I love turnaround stories. If you catch a turnaround early, you can make big, long-term money, and that’s especially true in retail, where comebacks are very hard to find. But if you do find them, ooh, they tend to be bountiful. We’re seeing one right now in Gap under Richard Dickson. We’ve seen one in Williams-Sonoma, of course, created by Laura Alber. I like what’s happening in Tapestry under Joanne Crevoiserat. And who can quibble with the work that Patrice Louvet has done, resuscitating Ralph Lauren.”
Tapestry, Inc. (NYSE:TPR) designs and sells handbags, accessories, footwear, and apparel. Its brands include Coach, Kate Spade, and Stuart Weitzman. During the December 3 episode, Cramer highlighted the retailers that performed well and mentioned the stock. The Mad Money host said:
“And that’s not all. Consider this list of retailers that performed sharply better than expected: Tapestry, Ralph Lauren, Kohl’s, TJX, Urban Outfitters, and, of course, Walmart. In fact, I can only recall Target, Burlington Stores, and Home Depot being disappointing. That’s extraordinary. It should not be happening when there’s a slowdown in hiring.”
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