Jim Cramer, the host of Mad Money, said on Thursday that the market is moving through a familiar rotation in which stocks that led gains previously are now being sold to raise cash, while names that lagged are starting to attract interest again.
“Sometimes things just get out of whack with stocks at the beginning of the year. No worries. The market has an astounding ability correct itself, right in front of you. It can look inconsistent, even crazy, when it all happens, but it’s all part of a natural order of rationalization you need to embrace if you want to be a successful investor.”
READ ALSO: 15 Stocks Jim Cramer Talked About and Jim Cramer Recently Reviewed the Magnificent Seven Stocks.
Cramer added that some of the recent rebounds are driven by renewed hope rather than fresh capital. He said optimism often shows up early in the year, but it does not arrive with new money attached. Instead, the buying power has to come from somewhere else. He said that on Thursday, investors paid for beaten-down stocks by taking profits from last year’s winners, especially technology stocks. He added that those former leaders are now being used as funding sources for the new trades.
“I don’t know how long this rotation from high-performing stocks to low-performing stocks will last. The valuations are shifting rapidly. I’ve seen this kind of early-year action time and time again in my 44 years of trading and investing. Can you believe that? Sometimes, they last about five days. Other times, I’ve seen it go for two weeks. Equilibrium tends to be reached by week three. But the bottom line: For now, brace yourself… So keep your eyes open because the wheel’s still in spin for the loser now will be later to win because the times, they are changing.”
Our Methodology
For this article, we compiled a list of 11 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 Discussed These 11 Stocks and Recent Market Rotation
11. Starfighters Space, Inc. (NYSE:FJET)
Number of Hedge Fund Holders: N/A
Starfighters Space, Inc. (NYSE:FJET) is one of the stocks Jim Cramer discussed, along with recent market rotation. Highlighting its IPO in December 2025, a caller inquired about the stock, and Cramer stated:
“Here’s what I want you to do. This is, as I say in my book, How to Make Money in Any Market, you have a spot for a spec. FJET is what I call an uber spec, and there is room for an uber spec.”
Starfighters Space, Inc. (NYSE:FJET) operates a fleet of flight-ready F-104 supersonic aircraft and delivers pilot, astronaut, and in-flight testing services. In addition, the company provides launch and access-to-space solutions and supports aerospace, defense, and hypersonic research. On January 5, the company completed a supersonic flight test campaign for GE Aerospace under the ATLAS program. It completed three captive-carry flights using an F-104 aircraft that flew an advanced propulsion test vehicle at supersonic speed above Mach 2, or more than 1,500 miles per hour. CEO of Starfighters Space, Rick Svetkoff, said:
“These missions not only validate our business model, but also demonstrate the advanced capabilities of our aircraft, our flight operations team, and our ability to support complex test campaigns through contracted flight services.”
10. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Number of Hedge Fund Holders: 37
Viking Therapeutics, Inc. (NASDAQ:VKTX) is one of the stocks Jim Cramer discussed, along with recent market rotation. When a caller asked about the stock, here’s what Cramer had to say in response:
“Okay, no, look, I’m a Eli Lilly guy, okay? I’m going to stick with it. If I’m going to do Viking, I’m going to do Viking Cruises, right? VIK. That’s the one you want to own, I mean, of the Vikings.”
Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company developing therapies for metabolic and endocrine disorders. A caller made a note of their long-term position in the stock during the episode aired on November 4, 2025, and mentioned that the caller has been observing Novo Nordisk and Pfizer’s bidding war for Metsera. Cramer responded:
“Yeah, I know, and I’ve watched that, and I don’t, I think that Viking would’ve gotten a bid if it didn’t get it yet. I know people are expecting whoever loses in that war that you just mentioned is going to buy Viking. I tell you what, you should buy. You own Eli Lilly. That’s been the winner. The trust owns it. I really like it a lot.”
9. QXO, Inc. (NYSE:QXO)
Number of Hedge Fund Holders: 65
QXO, Inc. (NYSE:QXO) is one of the stocks Jim Cramer discussed, along with recent market rotation. During the lightning round, a caller asked if the stock is a buy, and in response, Cramer said:
“I think it’s a buy because it’s Brad Jacobs. You can’t bet against Brad Jacobs. They do have a 10% short position. I tell you, while I’m not just pounding the table because it’s all the way up, I think it’s a buy.”
QXO, Inc. (NYSE:QXO) supplies roofing, waterproofing, and building materials, including siding, insulation, and construction accessories. On November 12, 2025, a caller sought Cramer’s advice on whether they should buy the stock or wait for a better entry point. The Mad Money host replied:
“All right, that’s Brad Jacobs. Brad Jacobs is going to find a way to make money. Now, I personally do not think the roofing business is that good. He’ll consolidate. He’ll do something special. He’ll come on the network. He’ll look really smart because that’s who he is and what he does.”
8. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 50
Constellation Brands, Inc. (NYSE:STZ) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer showed mixed feelings around the stock during the episode, as he remarked:
“I gotta tell you, Constellation Brands looks a heck of a lot more attractive here, down here, I should say, than a year ago. This thing was trading at about 20 times earnings when things started going wrong in 2024. Now, it sells for just 13 times this year’s earnings estimate. It pays a decent dividend now, and that wasn’t because it was raised. It was because the stock went lower, 2.8%. So is the worst over? Look, I’m open to the possibility, but I don’t think we’re there yet. See, just because a quarter’s better than expected, that doesn’t mean it’s good…
Of course, it’s the beer business that really matters here. It makes up roughly 90% of its sales. Beer revenue came in a little light, mostly driven by lower volumes, although that was partially offset by higher pricing. Now, you really want it to be the other way around. This one is down so much, those numbers looked up to me, though… Again, none of this is super encouraging, but I think it’s good to see shipments so close to depletions because that means the wholesalers are no longer trying to lower their inventory. Very big positive in terms of branding…
Overall, this was an encouraging quarter from Constellation Brands. Management is talking a lot these days about controlling the controllables, and I think that’s the right perspective because these guys have no control over tariffs. They have no control over immigration policy. I am glad they are not over-promising either. So the bottom line: Look, I’m not ready to pound the table on Constellation Brands again. I’d like to see their volume start rising before going positive. But I am open to the idea that this comeback can maybe be real and that you get a trade here. The expectations are low enough. The stock’s multiple’s low enough, and the core business is stabilizing, if not yet improving. Too soon for me, but I don’t think you’re crazy if you want to start a small position, trading or otherwise, in Constellation Brands, STZ.”
Constellation Brands, Inc. (NYSE:STZ) sells beer, wine, and spirits, with beer brands such as Corona, Modelo, Pacifico, and Victoria. Its portfolio also includes wine and spirits labels, including Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, and SVEDKA.
7. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 49
Best Buy Co., Inc. (NYSE:BBY) is one of the stocks Jim Cramer discussed, along with recent market rotation. A caller asked whether BBY’s historically moderate-to-high short-selling volume should be considered, in light of the stock’s recent upward price movement. Cramer replied:
“If I think the company is crummy, I don’t regard it as an issue. It’s going to go, they’re right to short it. If I think it has got a good dividend and has some high quality management and I see a big short position like this one with 8%, I do take a look at it and I think it’s valuable to look at because you might have a coiled spring here… Best Buy does have a 5% yield, but you need lower rates for that one to work.”
Best Buy Co., Inc. (NYSE:BBY) sells technology products, electronics, appliances, and entertainment items, along with related services like delivery, installation, and technical support. Cramer discussed the company during the November 25, 2025, episode and said:
“This morning, we had a bunch of surprisingly good retailers… with Abercrombie & Fitch and Kohl’s flying to the stratosphere. But you know what? We also got a great quarter from Best Buy. That’s the world’s largest specialty consumer electronics retailer. They posted a 9-cent earnings beat off a $1.31 basis, higher than expected revenue, strong same-store sales. At the same time, management raised their full-year forecast pretty much across the board, which is why the stock jumped over 5% today.”
6. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 44
SoFi Technologies, Inc. (NASDAQ:SOFI) is one of the stocks Jim Cramer discussed, along with recent market rotation. Noting that the stock has somewhat declined recently, a caller asked if they should buy more shares at the lower levels. Cramer replied:
“I think actually, believe it or not… I think the stock has not come down enough. But I think the stock acts what I call heavy. There’s a lot for sale. I want you to wait. I’m not going to give you the go-ahead to buy it. And by the way, I’ve liked the stock since 5. I’m on record telling Anthony Noto. I think it was right. So, I’ve got some what I call gravitas.”
SoFi Technologies, Inc. (NASDAQ:SOFI) provides lending, banking, investment, and insurance services through digital platforms. The company offers personal, student, and home loans, cash management, investment tools, credit cards, and financial wellness products. On December 17, 2025, a caller asked for Cramer’s advice on the stock, and he responded:
“Okay, SoFi stock is right now enjoying, I could say, a pullback, and I don’t want to buy it until I think we’re further along in the pullback because now it got a very high price-to-earnings multiple. Why don’t we wait to see if it can’t, you can’t get this stock at $20. You can buy a little, 23 say, but I don’t want you to pay at these prices.”
5. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 104
The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer showed optimism around the stock, as he said:
“Finally, the homebuilders. Hardly a day goes by without an analyst downgrading these stocks. cutting the price targets, but today turned out to be a cut too far, and the home builders actually bounced. Do I want to own them? I don’t know. But I do want to own the stock of Home Depot, a leading indicator, rallied 3% today. Lots of people have given up on the stock because it’s so tied to housing turnover, something that would get a real boost though, if the president can force institutional investors that own single-family homes to dump them en masse. We own Home Depot for the Charitable Trust proudly, our only housing exposure, and I am beginning to feel pretty darn good about this situation, which has been tough.”
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that sells tools, building materials, and decor. It also provides installation and equipment rental services. During the December 22, 2025, episode, a caller asked whether they should add more, sell, or hold the stock, and Cramer replied:
“Yes, I would buy more. It’s a big position for my Charitable Trust. Why would I buy more? Because we are going to get more rate cuts, particularly because the president wants them, and he’s going to pick someone who’ll forget all this nonsense you hear. They’re going to cut rates and cut rates dramatically, and you have to be in Home Depot for that because it’s the single best way to play a turnaround in housing. It’s the only one housing-related stock that we have in the trust, and I feel very good about it.”
4. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 89
NIKE, Inc. (NYSE:NKE) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer discussed the recent downgrade by a Needham analyst, as he remarked:
“Or take Nike. Oh boy, the stock of Nike. What had it been? [The house of pain]. This thing spiked when they canned the previous CEO and put in an old hand, Elliott Hill. He’s had to work fast with his Win Now initiative that includes returning the company to its roots as a sports-based business. Still, if you take a longer-term view, this stock has been a nightmare, okay? But late last month, three board members, including Hill and Tim Cook, yes, the CEO of Apple, bought a ton of stock, with Cook actually putting almost $3 million to work. Boy, talk about a hand over fistful of confidence.
Today, an analyst from Needham decided to downgrade Nike from Buy to Hold. I’m going to quote because I thought it was kind of outrageous. ‘The turnaround is progressing slower than we expected. We’re concerned about the recent level of sell-in to the North American wholesale channel. China appears highly problematic, and Street numbers for the next 12 to 24 months look too high to us.’ Did the stock get hammered in response to that incredibly negative sentence that I just read? No, it closed up more than 3%. Were Nike’s buyers simply mocking this bearish analyst? Actually, it’s a new year, and there’s a lot of value in Nike. North America has already turned. China is a disaster, but Hill knows it. He has a plan. I want to invest alongside Cook and Hill. I’m not dissuaded by what Needham says, not at all. In fact, I’m cheered. When a stock goes up after such a sharp downgrade, you know, I think it’s been immunized against the negativity. I predict the analysts will come out from their foxholes, from their shelters, and say [buy, buy, buy,] Nike.”
NIKE, Inc. (NYSE:NKE) is an athletic and casual footwear, apparel, equipment, and accessories company that sells its products under brands, including Nike, Jordan, and Converse.
3. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 88
Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer discussed the stock’s unsatisfactory performance last year and recent expectations, as he commented:
“Or how about Costco versus Walmart?… How about Costco?… Well, first, it lost its long-standing CFO, Richard Galanti of more than 38 years. He was the heart and soul of Costco. He knew pricing, knew merchandise, knew the customer like no other CFO and most CEOs. Second, the renewal rates after a steady as she goes upward march finally faltered, growing more slowly, certainly more slowly than the Street was looking for. For that, we were paying more than 50 times earnings early last year? Come on. So, of course, this stock just got clobbered, becoming an almost permanent denizen on the 52-week low list by late last year. While the S&P 500 was up 16%, Costco stock actually declined, 6%. But since the new year began, oh, it’s a different story.
Walmart’s done nothing while Costco’s stock has rallied from $862 to $915, including a monster 3.7% gain today after some good numbers last night. And I don’t think it’s done. Earlier this week, I told you that Larry Williams, the great technician, said Costco is a screaming buy. That number that they got last night, much better than expected monthly sales. I liked every single bit of it. The comparable sales accelerated in December, with digital stepping up versus November. The year-over-year number showed a terrific gain. It was the best beat from the company that I’ve seen in quite a while. I think the estimates are now too low. I think we’re going to see a host of earnings, bumps, and price target increases. Costco, I like it.”
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and provides groceries, fresh food, household goods, electronics, and more. In addition, the company offers various services through pharmacies, gas stations, optical centers, and e-commerce options.
2. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 104
Walmart Inc. (NASDAQ:WMT) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer noted Doug McMillon’s retirement and highlighted that he made the stores “more appealing.” He said:
“Or how about Costco versus Walmart? Well, this is really interesting. See, last year was Walmart’s year. The stock was up over 23% as the market recognized that this was the store of choice for cash-strapped consumers. Walmart even began to pull more customers from the upper middle class because CEO and now retiring sadly, Doug McMillon made the stores more appealing while keeping prices low. Everyone loves low prices. However, Walmart’s price-to-earnings ratio, how we measure whether the stock’s cheap or expensive, it skyrocketed to the 40s. That was incredible.”
Walmart Inc. (NASDAQ:WMT) operates retail stores, warehouse clubs, and online platforms that sell groceries, everyday essentials, home goods, apparel, electronics, and more. Cramer praised the company’s CEO during the December 18, 2025, episode, as he commented:
“Retail was pretty awful except for Walmart, which powered through everything as CEO Doug McMillon moved to keep prices low. His own one-man war against inflation. A war, I think, he may have won before he’s retired.”
1. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 91
Constellation Energy Corporation (NASDAQ:CEG) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer explained why big hyperscalers are “in love with” the company. He stated:
“Let’s go under the hood and figure out the method behind the market’s madness… Constellation Energy, the independent power producer… The big hyperscalers are obsessed with clean energy. That’s why they’re in love with Constellation Energy, CEG, which is the nation’s most visible nuclear-powered utility. It’s as clean as it gets if you want reliable electricity. Constellation’s been loved to the point where the stock is up over 175% over the last 2 years. Stock seems invincible. Sells for 28 times this year’s earnings, which is pretty darn pricey, especially for a utility… So what’s happening this year? Constellation Energy stock has already fallen from $353 to $322. I see no signs of this stock bottoming. To me, it looks dangerously expensive… In short, the value of the two constellations got out of whack.”
Constellation Energy Corporation (NASDAQ:CEG) produces and supplies electricity, natural gas, and sustainable energy solutions through nuclear, wind, solar, natural gas, and hydro assets. Aristotle Atlantic Partners, LLC stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its third quarter 2025 investor letter:
“Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the United States, operating the nation’s largest nuclear fleet alongside natural gas, geothermal, wind, solar and hydro assets. The company was spun off from Exelon in 2022 and serves over 2.5 million customers, generating revenue through a diversified mix of power generation and energy sales across regulated and deregulated power markets. The pending acquisition of Calpine will significantly expand its generation portfolio, combining 24/7 nuclear power with additional dispatchable gas capacity. Constellation is central to the U.S. energy transition and provides reliable, affordable and sustainable power critical to electrification, decarbonization and AI-driven data center growth.
We see Constellation well-positioned as a leading player in the energy sector, with excellent operational performance, strong cash flow generation and significant financial flexibility. The company benefits from favorable legislation like the One Big Beautiful Bill Act, which provides tax credits for nuclear energy and support for clean hydrogen. Additionally, the company is expanding its nuclear fleet at low cost, securing long-term power purchase agreements (PPAs) with major tech companies and enhancing its asset mix through strategic acquisitions. These factors collectively validate nuclear energy as a preferred clean power source for large-scale operations and data centers. The shares of Constellation trade at a modest premium to their historical average. We view this premium as justified by the company’s clean energy profile, long-duration PPAs with hyperscalers, strong cash flow generation and leverage to the ongoing structural shift in U.S. energy demand largely driven by electrification, decarbonization and digital infrastructure investment.”
While we acknowledge the potential of Constellation Energy Corporation (NASDAQ:CEG) 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 CEG and that has 100x upside potential, check out our report about this cheapest AI stock.
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