In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on Squawk on the Street, Jim Cramer discussed fluctuations in stock market futures. Even though futures rose on hopes of a thaw in trade tensions between the US and the EU, Cramer wondered if they had gained too much to make further buying unwise. He remarked:
“Yeah l mean look, we come in and it’s just a radical reversion. Think about where we were Friday. We did feel that the President got very angry, we felt that other than the deal that we’re gonna talk about with Nippon Steel, there really was nothing positive. We started hearing that the Senate’s gonna disagree with the housing bill. Obviously everybody’s concerned about the, about the ten year just going off. Then suddenly we wake up to a possible deal. I mean a deal. That changes everything. We just need one deal to have everyone fall in line. And then you also have, not to be too political about it, David you get Putin as bad guy. That suddenly Europe has a reason to make a deal. Because, listen you sell us arms, you make up more NATO like. We’ll make a deal. I mean everything’s coming together in terms of smoothing out things. It helps that he changes the narrative.”
Further commenting on the trade tensions, he mentioned President Trump’s threat to impose 50% tariffs on the EU. As per Cramer:
“I think that what we’re close to is a serious discussion that they have is serious, not us. I mean we say a lot of things. Our President says a lot of things. And there’s no sign that it’s that kind of impetuous 50%. I think it’s more like, okay, we gotta move on. And we see a possibility. Now, look I don’t know, I mean the President is arbitrary about this stuff. But who, did you think that you’d wake up to see the EU saying, perhaps substantive things?”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on May 27th.
For these stocks, we also mentioned the number of hedge fund investors. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders In Q4 2024: 87
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese eCommerce company whose shares are flat year-to-date. Since it sources products from China and sells them in America, the firm has been caught in the center of trade tensions between the US and China. PDD Holdings Inc. (NASDAQ:PDD) had relied on the Deminimis rule to ship its products in the US. This rule exempted its parcels from tariffs, and once the exemption was lifted, the firm faced significant uncertainty. PDD Holdings Inc. (NASDAQ:PDD)’s shares sank by 19% in the days after its first quarter earnings that saw net profit drop by a whopping 47%. Cramer’s remarks about the firm focused on the firm’s warning that it was facing a growth slowdown and had to invest in order to support its customers and merchants. Here is what he said about PDD Holdings Inc. (NASDAQ:PDD):
“Did you see they said ‘radical change in external policy environment, such as tariffs, has created significant pressure for our merchants, who often like the capability to quickly, and effectively, deal with this.” I think that means, death rattle David. . .well because if they can’t adapt to the new world, this is virtually a trade embargo for their deminimis nonsense that they send over here that I’ve told you about when I ordered.”
11. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders In Q4 2024: 73
CVS Health Corporation (NYSE:CVS) is one of the largest pharmaceutical retailers in America. The firm’s shares have gained 44% year-to-date due to weakness at the firm’s primary rival Walgreens. Cramer’s previous remarks about CVS Health Corporation (NYSE:CVS) have praised the firm’s CEO and his turnaround efforts. The shares gained 4% in May after the firm raised its 2025 profit forecast to a midpoint of $6.10 per share from an earlier $5.87 per share. CVS Health Corporation (NYSE:CVS)’s turnaround efforts which have seen the firm appoint a new CEO and exit its Obamacare direct sales business have contributed to the strong 2025 share price performance. In his recent comments about CVS Health Corporation (NYSE:CVS), Cramer wondered what would happen if the firm automated its pharmacies through robots:
“I mean one of the things that is really meant to be changing here is healthcare. And you don’t want, uh, CVS, for instance, if they were to buy a robot, you don’t want them saying, do remember that scene, It’s a Wonderful Life, where the pharmacist gave them the wrong prescription? You don’t want that. You don’t want It’s a Wonderful Life, to be your life.”
In his previous comments, the CNBC host praised the firm’s management. Here’s what he said:
“Now we’ve got some healthcare, some issues to talk about on Thursday, that’s right, and these are anything but common steady healthcare companies…. There’s CVS, which is under new management, put up some really good numbers, and it’s just, that’s in health insurance, but also it’s core drugstore business, which they’ve closed, all the under performers… As for CVS, the health insurers have taken it on the chin of late. UnitedHealth and Centene both missed expectations. I bet Aetna sticks it.”
