Jim Cramer, the host of Mad Money, on Monday, discussed the latest changes coming to the S&P 500.
On Friday night, we got some big stock market news… S&P Dow Jones Indices, that’s the keeper of the S&P 500, announced a series of changes for its key benchmark index… With these changes, the S&P 500 will become even more levered to tech than it already is. Right now, the information technology sector alone accounts for 32.4% of the index, but there’s a ton of tech that’s classified under communications or consumer discretionary… It’s losing a healthcare stock and a consumer staple to make room for a couple more tech stocks.
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Cramer explained that he brings up these adjustments because the S&P 500 behaves more like an actively curated portfolio than many investors realize. He said that the index performs well over long periods in part because of that ongoing selection process. He mentioned that in his book, How to Make Money in Any Market, he advises investors to divide money between index funds and individual stocks.
I’m comfortable doing that largely because the best indices are constantly being adjusted, and this latest batch of changes really reinforces the importance of the AI data center buildout. Especially since the war with Iran got going, it often feels like the data center buildout is the only theme that’s really working in this market. When you look at the new entrants into the S&P 500, three out of four are data center plays, and one of the stocks that got the boot is an AI exile. So here’s the bottom line: In two weeks time, the S&P 500 will expel four underperformers and welcome their outperforming replacements, three companies that supply the data center and a satellite play that’s been selling a spectrum at a huge premium to what people thought it could get. I’m just glad there’s a theme that we can hold on to, even in this time of what I now have to say is extreme turmoil.
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For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 9. We listed the stocks in the order that Cramer mentioned them.
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Jim Cramer Discussed 8 Stocks Amid the S&P 500 Reshuffle: Vertiv, Paycom, and More
8. Paycom Software, Inc. (NYSE:PAYC)
Paycom Software, Inc. (NYSE:PAYC) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer discussed the threat from AI for the company, as he commented:
Finally, Paycom Software does online payroll and human resource software at a time when there’s just so many of these companies doing the same thing. In addition to the big payroll processors like ADP and Paychex, there are smaller players like Paycom. The whole group is being weighed down by worries about AI disruption. On the one hand, Paycom’s HR software becomes less enticing when Claude can whip up something similar.
On the other hand, if you believe in AI, then you believe it will destroy jobs. That’s how it saves money, which is, of course, bad news for the payroll processors. The big dogs, ADP and Paychex, they’ve been gutted, and Paycom is down 35% over the past 12 months. It’s also off 75% from its highs in late 2021, just at $7.5 billion market cap now at these levels. Wow.
Paycom Software, Inc. (NYSE:PAYC) provides a cloud-based software suite that helps small to mid-sized businesses manage the entire employment life cycle. The company’s platform offers tools for talent acquisition, time management, and data analytics. We recently mentioned the company while discussing oversold value stocks. You can read about it here.
7. Lamb Weston Holdings, Inc. (NYSE:LW)
Lamb Weston Holdings, Inc. (NYSE:LW) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer highlighted the major decline in the stock over the past couple of years, as he said:
Third, Lamb Weston sells frozen potatoes. They dominate that entire business. The company was spun off by Conagra in 2016, and for a big chunk of the following decade, Lamb Weston was a consistent winner. But in the last few years, the stock’s been eviscerated. Now, look, maybe it’s a victim of the GLP-1 weight loss drugs, or maybe it just reflects the broader struggles of the restaurant industry. Either way, the stock’s down 55% over the past two years to the point where Lamb Weston’s become a $6.4 billion company. It’s now the subject, by the way, of an activist push from Starboard Value, a very smart firm that wants Lamb Weston to aggressively cut costs.
Lamb Weston Holdings, Inc. (NYSE:LW) produces and markets frozen potato products, appetizers, and commercial ingredients and distributes them through its network of sales personnel and independent brokers to restaurant chains, grocery stores, and foodservice institutions.
6. Molina Healthcare, Inc. (NYSE:MOH)
Molina Healthcare, Inc. (NYSE:MOH) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer highlighted it as a long-term loser, as he remarked:
Next, Molina Healthcare is a managed care play with lots of exposure to Medicare and Medicaid, the weakest part of a weak business. That includes the kind of Medicare Advantage plans that have been wrecking the entire industry. The stock is down 63% over the past two years. This is another one where the market cap got too small. Plus, S&P Global is not exactly reluctant to get rid of long-term losers.
Molina Healthcare, Inc. (NYSE:MOH) provides managed health services specifically tailored for low-income individuals and families, delivered through federal and state programs. Cramer mentioned the stock during the March 26, 2025, episode, as he said:
Finally, look at a little outfit called Molina Healthcare, again, I’m looking at the leaderboard, the domestic health insurer that works with state governments to give people healthcare while trying to keep costs down. These guys have no exposure to tariffs whatsoever, one reason why the stock rallied more than 4% today. That’s an ideal service business when you’re talking about 25% tariffs on foreign cars.
It is worth noting that the company’s stock is down nearly 55% from the time when the above comment was aired.
5. Match Group, Inc. (NASDAQ:MTCH)
Match Group, Inc. (NASDAQ:MTCH) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer highlighted the shrinkage of the company’s market cap over the past 5 years, as he commented:
So what about the companies that got expelled from the S&P? First, Match Group. Now, this is a dating app company that you might recognize as Tinder, Hinge, Match for several other platforms. I know nothing about online dating, thank heavens, but I do know that Match’s stock is down nearly 80% over the past five years. The market cap has shrunk to $7 billion, which is now too small for the S&P 500.
Match Group, Inc. (NASDAQ:MTCH) provides digital technologies primarily for dating and connection, through brands including Tinder, Hinge, and OkCupid. We recently discussed several analysts’ price revisions around the stock, which you can read about here.
4. EchoStar Corporation (NASDAQ:SATS)
EchoStar Corporation (NASDAQ:SATS) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer explained why the stock has been “skyrocketing,” as he stated:
Finally, there’s EchoStar, which is a satellite play. After doing nothing for basically 17 years, this company burst into the scene last year with some huge deals to sell spectrum. In late August, EchoStar announced it would sell certain wireless spectrum licenses to AT&T for $23 billion. Just a couple of weeks later, in early September, they rolled out a separate deal to sell spectrum licenses to SpaceX for $17 billion.
In November, they increased the size of that SpaceX transaction. Basically, the market dramatically underappreciated the value of EchoStar’s spectrum assets, which is why the stock has been skyrocketing, up nearly 300% over the past year. Following the SpaceX deal, which included some stock consideration, I think some people might have bought EchoStar purely as a backdoor way to get some exposure to Elon Musk’s SpaceX ahead of its IPO. That’ll probably be smart. It’d probably be red-hot.
EchoStar Corporation (NASDAQ:SATS) provides networking technologies and communications services, including satellite television, streaming video, wireless connectivity, broadband access, and 5G infrastructure.
3. Lumentum Holdings Inc. (NASDAQ:LITE)
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer noted NVIDIA’s decision to invest in the company, as he said:
Next, a week ago, we learned that NVIDIA was investing $2 billion apiece in a pair of fiber optic plays, Coherent and Lumentum. They both have a lot of exposure to AI infrastructure. Apparently, S&P and NVIDIA have the same style because both those stocks are getting added to the S&P 500… Lumentum is similar, except that stock has been even hotter. It’s up more than 1,300% from its post-Liberation Day lows. The stock’s a lot more expensive than Coherent on a price-to-earnings basis, higher risk, higher reward. But they’re both plays on optical networking equipment for the data center.
Lumentum Holdings Inc. (NASDAQ:LITE) designs and sells optical and photonic products, including lasers and components, for cloud networking, data centers, and industrial applications. During the February 27 episode, a caller sought Cramer’s advice on whether they should sell a little of the stock or hold their position. The Mad Money host replied:
Alright, so Lumentum, Jeff Marks, who is my colleague, he and I looked at this stock, and also Ben Stoto, who is a research director, and the stock’s like this. Okay, so we think that if we come in, we are going to get annihilated. So we did a hard pass on it, and I’m going to ask you to do a hard pass. A stock like Lumentum that is up in a straight line, it’s just too dangerous for me. I would be a seller, not a buyer.
2. Coherent Corp. (NYSE:COHR)
Coherent Corp. (NYSE:COHR) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer highlighted the stock’s massive rally, as he commented:
Next, a week ago, we learned that NVIDIA was investing $2 billion apiece in a pair of fiber optic plays, Coherent and Lumentum. They both have a lot of exposure to AI infrastructure. Apparently, S&P and NVIDIA have the same style because both those stocks are getting added to the S&P 500. Coherent’s rallied more than 450% from its post-Liberation Day lows last April. It’s now a $47 billion company. I’m very excited about this because we’re going to have on this one tomorrow, CEO Jim Anderson, for an interview. That’ll be something. This company, I think this company’s just terrific.
Coherent Corp. (NYSE:COHR) manufactures engineered materials, laser systems, and optoelectronic components used across the communications, industrial, and electronics sectors. Cramer was bullish on the stock when a caller asked about it during the January 22 episode, as he replied:
Coherent is so good. Now, the stock has been just a banshee. But I gotta tell you, the technology’s really good. It’s a winner. I would use any dip to buy more stock.
1. Vertiv Holdings Co (NYSE:VRT)
Vertiv Holdings Co (NYSE:VRT) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. The Mad Money host noted that it is a “Cramer fave,” as he remarked:
First, there’s Cramer fave Vertiv, which makes power and cooling equipment, especially for the data center. Since Vertiv came public through a SPAC merger just over six years ago, the stock has rallied over 1,950%, and it’s been profitable for five full years with a market capitalization now in excess of $101 billion, wow. Purely on the basis of size, it would’ve been very hard for S&P Global to keep Vertiv out of the index. What a stock, what a company.
Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and manages power and cooling systems for data centers and digital networks. The company also provides services to keep these systems running smoothly and efficiently. During the lightning round of the February 23 episode, a caller inquired about the stock, and Cramer responded:
Well, Vertiv’s the best one. No, Vertiv’s the best. I love Vertiv. That’s, of course, the chairman of that is Dave Cote. It just had a very big jump, so it might pull back because the market’s gotten ugly. But just be aware, it’s a very good company.
While we acknowledge the potential of Vertiv Holdings Co (NYSE:VRT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VRT and that has 100x upside potential, check out our report about this cheapest AI stock.
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