On Tuesday’s episode of Mad Money, host Jim Cramer weighed in on a recent analysis by Goldman Sachs’ David Kostin, which highlighted a group of companies dubbed “buyback aristocrats.”

“Now, you might have heard about dividend aristocrats… Kostin’s buyback aristocrats have reduced their share counts by 1% or more in at least nine of the past 10 years. Given the throttling back of the buyback ratio, these stocks could rise to a premium versus the rest of the market, and Kostin’s buyback aristocrats typically outperform when the economy slows, hey, like we’re seeing right now.”

READ ALSO: Jim Cramer Weighed In on These 9 Stocks and 10 Stocks on Jim Cramer’s Radar.

Cramer made it clear that the logic behind Kostin’s list is not complicated. He commented, “It’s just a question of supply and demand.” He explained that when a company repurchases its own stock, it removes shares from circulation, and that reduction in supply can drive prices higher, all else being equal.

He pointed out that although overall buyback activity has decreased recently, those companies that continue to repurchase aggressively are still being rewarded by investors. Cramer called it “an edge.” He mentioned that it is not foolproof, but called it “an arrow in your stock picking quiver.” He added:

“So, let’s go to the next level. There are some caveats that he gives you. The one big beautiful bill will broadly help increase corporate cash flows, positive. But Kostin’s worried about surging CapEx, meaning companies spending on new plant and equipment. Now, I don’t mind that, but you know what? I do want these buybacks to continue.”

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 9. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Jim Cramer Highlighted 12 Stocks Recently

12. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 109

AppLovin Corporation (NASDAQ:APP) is one of the stocks Jim Cramer highlighted recently. Cramer believes its earnings could “more than double” this year. He commented:

“This stock spent months rallying relentlessly to the point where it exploded higher yesterday and made another new high today. The last quarter was phenomenal. AppLovin’s earnings should be more than double this year. I don’t even want to tell you what I’m thinking about for next year. Though the stock’s far from cheap at roughly 60 times this year’s earnings estimates, it will turn out to be cheap if we do get the numbers that I’m thinking about for next year. Really interesting pattern here.

I’ve been worried that AppLovin might pull back a bit now that it’s finally added to the S&P 500, something that the shareholder base has been predicting for months, but the darn thing just won’t stop. Lang (chartist Bob Lang) points out that we just got this bullish crossover in the MACD. This is one of the most beautiful crossovers I’ve seen… What can I even say about AppLovin? Stock was up 700% last year. It’s now up about 70% year to date. Lang’s betting it will keep rallying without looking back. I think this is a mini Google.”

AppLovin Corporation (NASDAQ:APP) develops a software-driven platform that supports advertisers and publishers with tools for app marketing, monetization, analytics, and connected TV solutions. In addition, the company provides mobile games through its own and partner studios.

11. Oklo Inc. (NYSE:OKLO)

Number of Hedge Fund Holders: 36

Oklo Inc. (NYSE:OKLO) is one of the stocks Jim Cramer highlighted recently. Cramer highlighted the company’s strong chart setup, as he remarked:

“Then there’s one that you know I like and I talk about all the time. That’s Oklo… Take a look at the daily chart here. This is pretty amazing. We’ve got a series of higher highs and higher lows laying the groundwork for a classic uptrend. Even though Oklo’s pulled back from its highs, Lang (chartist Bob Lang) points out that volume trends remain bullish, and the stock… bounced off its 50-day moving average… It’s still down from its high, which is very unusual for a speculative stock. This could be well-positioned even as you probably think, wait a second, didn’t I miss it?

That’s not the way it works. Like the others, the on-balance volume here is solid, and it’s trending higher. Meanwhile, the MACD line, look at this, we got a crossover right here, a bullish crossover where the black line crosses over the red. That’s good. That counts… That’s one of the most reliable positive indicators out there… Basically, Oklo’s just under 74 bucks, and as long as it can get back above its previous high at 85, well, Lang says you got smooth sailing to the triple digits. Triple digits.”

Oklo Inc. (NYSE:OKLO) builds advanced fission power plants to supply clean and cost-effective energy and also advances nuclear fuel recycling to repurpose waste into usable fuel.