Jim Cramer, host of Mad Money, on Wednesday, talked about the kinds of stocks he believes one should buy in the current economy.
“Let’s take a step back for a second and think, think like a portfolio manager when it comes to your own stocks. When you buy stocks, what you want is for the Fed to continue cutting rates. Investors never really like rate hikes, even when the economy needs them, because they’re bad for stock prices. And I expect whoever replaces Jay Powell next year will try to keep the cuts coming. That person will be more of an emissary for the president than a let-the-chips-fall-where-they-may empiricist, like we have with Powell. Long-term, possibly problematic. Short-term, market loves lower rates.”
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Furthermore, Cramer mentioned, “We’re going to get millions of new stock accounts” tied to the Trump Accounts from the “big beautiful budget bill” for newborns. He said he likes the idea and welcomed the flow of fresh money into the market. Cramer called the recent policy direction an early Christmas gift from Jerome Powell, and he advised viewers not to dismiss it.
“The bottom line: Just make sure you don’t get bearish when the time is right to be bullish going into the end of the year. And bears who are grumpy and unhappy, I expect you to come on… our network, and many others, and tell us that the buyers are wrong, that I’m wrong. And even as the buyers are making money and you may be losing fortunes, well, you want to tell us how right you are. Oh, that’s the plight of a bear in what seems to be a never-ending bull market. What can I say? Can’t please everybody.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on December 10. 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 Highlighted 7 Stocks in Light of the Fed Rate Cut
7. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 70
Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer highlighted the company while recommending buying industrials. The Mad Money host commented:
“Finally… You can buy any industrial because the hedge fund playbook says that industrials benefit from lower rates, even if you think it doesn’t matter. The fabulous irony of all this, frankly, is that Powell, in his own press conference, actually came out and said that a quarter point really doesn’t mean that much to any industry. I had to laugh at that one, but that’s not how hedge funds or even mutual funds think about it. They’ll eagerly buy Caterpillar and Cummins, two stocks at their all-time highs, just because they perfectly fit the environment.”
Caterpillar Inc. (NYSE:CAT) provides heavy machinery, engines, turbines, and rail equipment. In addition, the company offers power systems, parts, and support that keep the equipment working. During the October 31 episode, Cramer highlighted the company’s role in data center construction, as he said:
“Caterpillar’s become one of the best performers in the entire market, and I think that move is justified given how so much of their equipment is used to make and maintain data centers. The company holds an analyst meeting Tuesday. I want to know if this move is multi-year in nature. I have to tell you, spoiler alert, I think it is.”
6. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer noted that the company “makes a lot of money,” as he remarked:
“Now, I’d emphasize going after the ones that are already winning for this year. How about this one? I’m thinking of the stock of Palantir. Even when it’s already up so much, it makes a lot of money. It’s not a flier. It just got into the US Navy with a terrific contract helping to build submarines more efficiently… and much less expensively. I believe there’ll be many more Pentagon contracts coming, think surface ships, fighter planes… weapons, munitions. It wouldn’t surprise me if the whole arsenal of freedom goes to Palantir. It’s precisely the kind of stock that works in this market, the ultimate high flier that’s up huge, that you can buy it right now if you’re a money manager and show your investors that you, too, own Palantir.”
Palantir Technologies Inc. (NASDAQ:PLTR) develops data analytics and AI software platforms, including Gotham, Foundry, Apollo, and Palantir Artificial Intelligence Platform, that help organizations integrate, analyze, and act on complex data.
5. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 99
Union Pacific Corporation (NYSE:UNP) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer was bullish on the stock due to the upcoming merger, as he stated, “You can buy Union Pacific and Norfolk Southern because that takeover is a good one.”
Union Pacific Corporation (NYSE:UNP) works in the railroad business as the company transports a variety of goods, including agricultural products, chemicals, construction materials, energy products, and vehicles. During the December 3 episode, Cramer called the merger a “great situation,” as the Mad Money host commented:
“Next group… the transports, which are also in breakout mode. We know that Union Pacific’s doing extraordinarily well, about to merge with Norfolk Southern. Great situation.”
Moreover, Cramer discussed the news of Union Pacific Corporation (NYSE:UNP) buying Norfolk Southern during the July 29 episode. He said:
“The rash of takeovers didn’t for once sour, it didn’t create any buying, and not even Union Pacific buying Norfolk Southern, truly creating a continent-wide railroad colossus, assuming the deal gets approved. Now, that’s much more likely under Trump than it was under Biden. But there are legitimate antitrust concerns. I think they will get the deal done, but not for a long time. Hence why target Norfolk Southern saw its stock drop $8 and 72 cents, although it’s still up nicely from when my colleague David Faber broke the story a few weeks ago, when you could still profit from it.”
4. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 60
FedEx Corporation (NYSE:FDX) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer recommended the stock due to the holiday season, as he remarked:
“You can buy Federal Express because we’re in the holiday season, and Raj Subramaniam is one great CEO.”
FedEx Corporation (NYSE:FDX) provides transportation, shipping, and logistics services, including express and freight delivery, e-commerce solutions, and supply chain management. Cramer called the company stock a “coiled spring” during the December 3 episode, as he commented:
“I think FedEx is a coiled spring. We’ve yet to hear a single disappointing e-commerce story, save Target. Fantastic setup for FedEx, also for J.B. Hunt and ArcBest. I think they’ll have a good run.”
Additionally, it is worth noting that Cramer recommended buying the stock when a caller asked for his advice on it during the November 14 episode. He said:
“You want to buy this stock. I’m going to cut you short here because this is so easy… This is one of my favorite stocks. I wish we owned it for the Charitable Trust… The stock is going, I think, all the way back over $300. It’s having a good quarter. And I mean, can I just say that Raj Subramaniam turns out to be just one dynamite exec who I know is making Fred Smith proud. We miss Fred very much.”
3. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)
Number of Hedge Fund Holders: 38
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer mentioned the stock while recommending transport stocks, as he said:
“Hey, you know what? You can buy the transports. They thrive when rates go down. I think J.B. Hunt can be bought for the truckers. I never recommend them, but I think the long trucking recession’s over.”
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) provides freight, delivery, and logistics solutions across multiple transportation modes. The company operates extensive fleets of tractors and trailers. Parnassus Investments stated the following regarding J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) in its second quarter 2025 investor letter:
“J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), a leading logistics and intermodal transportation provider in the U.S., declined as the freight cycle remained sluggish and guidance fell short of expectations. We continue to monitor the cycle’s progression and believe the company is well-positioned to benefit once freight demand recovers.”
2. 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 highlighted in light of the Fed rate cut. Cramer said that he believes the stock is significantly below where it should be. He commented:
“We just heard from Home Depot, and it wasn’t as strong as we’d like, again, because interest rates are too high. You still have a chance to buy it here. It’s way down, it’s 100 points below where I think it should be. And the company offered an encouraging scenario if the Fed lowered rates when it gave you that update… [at its] investor day yesterday. I’m going to talk about this on our investor day for the club on Friday… It’s going to be why you can buy a stock like Home Depot.”
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 3 episode, Cramer noted that a cut in interest rates could turn things around for the stock, as he remarked:
“Of the disappointers, Home Depot’s the most sensitive to a decline in interest rates. The Fed’s meeting’s next week, so things could turn around real fast for the despot, which is higher than where it reported that bad quarter. That’s why we own it for the Charitable Trust.”
1. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders: 51
Toll Brothers, Inc. (NYSE:TOL) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer mentioned the company’s latest quarter performance during the episode, as he stated:
“Let me tell you the three things that really do matter. One, the Fed is our friend, not our enemy. Two, the bulls aren’t fighting the tape. And three, longer-term rates fell in response to the rate cut. It’s a trifecta that allows the stock market to roar. What do you do in this situation? Well, you buy stocks that do better when rates are lower, even a quarter point lower. That means you buy the home builders and you buy the retailers that are connected to the home builders. You go with the ones that we’ve recently heard from. That means you buy Toll Brothers, which just reported a terrific quarter, but the forecast wasn’t as positive. That means, well, the narrative could change, right?… They worried about a negative future, well, maybe it’s a little more positive.”
Toll Brothers, Inc. (NYSE:TOL) builds luxury homes and communities, including single-family houses, condos, and apartments, often with several amenities.
While we acknowledge the potential of Toll Brothers, Inc. (NYSE:TOL) 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 TOL and that has 100x upside potential, check out our report about this cheapest AI stock.
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