During September 30’s episode of Mad Money, CNBC’s Jim Cramer delved into the previous three months and the market’s events. He identified some positive developments amidst the turbulence in the market.

Cramer highlighted that Dow inched up 17%, the S&P 500 went up 42% while Nasdaq gained 38% during the months. He remarked, “For once, good news was actually good news and interesting.” He went on to say that miracles still happened in the stock market’s third quarter. He pointed out that July, August, and September yielded remarkable returns, even highlighting the typically troublesome month of September, which saw the broader market rising significantly.

Cramer elaborated on the lead-up to the Federal Reserve’s decision to cut rates by 50 basis points. He characterized the economic landscape as having “no landing at all,” explaining that the economy continued to grow, inflation decreased, and unemployment ticked up.He suggested that the central bank laid the groundwork for a significant rate cut, which was the reason that there was no panic on Wall Street after the cut. The former hedge fund manager also praised Federal Reserve Chair Jerome Powell for achieving the challenging feat of a double rate cut without shocking the markets.

Moving on, Cramer talked about how the market’s breadth expanded as well, with many sectors gaining traction beyond the dominant Magnificent Seven tech stocks. He noted that a variety of industries, including banks, utilities, retail, healthcare, housing, and transportation, enjoyed their moment in the spotlight.

As for the upcoming election, he referenced Michael Cembalest of J.P. Morgan Asset Management, who described it as “the most polarized election in 100 years.” Cramer observed that, despite the political drama surrounding the elections, Wall Street remained largely unfazed, even in response to significant events like Vice President Kamala Harris potentially replacing President Biden on the Democratic ticket and the attempted assassination of former President Donald Trump.

Cramer also highlighted a shift in the housing market, pointing out the first signs of relief from formerly soaring inflation figures. He suggested that an increase in available homes could be the breakthrough needed to address this intractable asset class that has resisted price declines.

In terms of international markets, he noted that the Chinese market staged a rally, even in light of dismal economic news, owing some of this movement to government-ordered buybacks and influxes of capital.

Cramer commented on the ongoing speculation about stagflation, particularly concerning oil prices, reminiscent of the oil crisis in 1973. He addressed the ongoing conflict in the Middle East, mentioning that Saudi Arabia had abandoned its unofficial price target of $100 per barrel in favor of increasing production.

While many believe that oil prices could soar at any moment, Cramer expressed skepticism, suggesting that although a spike could still occur due to geopolitical factors, he thinks those fears may be overstated.

Reflecting on the past nine months, he concluded that despite the potential for stagflation, 2024 has surprisingly turned out to be a great year for the stock market, defying expectations.

Our Methodology

For this article, we compiled a list of 12 stocks that Jim Cramer mentioned during his episode of Mad Money on September 30. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Jim Cramer is Talking About These 12 Stocks

12. Redwire Corporation (NYSE:RDW)

Number of Hedge Fund Holders: 8

Redwire Corporation (NYSE:RDW) is a global space infrastructure and innovation company operating in the global space infrastructure sector. It provides essential solutions for both government and commercial clients across the United States, Europe, and internationally.

Cramer recently said, “Everybody wants to be in the space business, and I’ve got to tell you, I don’t.” While Cramer’s bearish, it is worth noting that the company’s stock is up by over 132% year-to-date.

The company’s organizational structure consists of several business units that focus on key areas, including space commercialization, digitally engineered spacecraft, on-orbit servicing, and advanced sensors and components. The company has 16 facilities spanning over 227,000 square feet in the U.S. and Europe.

In September, Redwire (NYSE:RDW) made headlines with the successful completion of its acquisition of Hera Systems, Inc., a company specializing in spacecraft development for national security missions.

By integrating Hera Systems into its operations, the company seeks to expand its capabilities to support specialized national security missions in geostationary orbit (GEO). As per the company, Hera Systems has demonstrated profitable topline growth, reporting $15 million in revenue for the year ending December 31, 2023.

The acquisition propels Redwire (NYSE:RDW) forward, providing it with the capabilities of developing a new class of high-performance spacecraft tailored to meet the evolving demands of national security operations in increasingly contested environments.

Hera is currently contracted to manufacture three satellites for an on-orbit servicing demonstration under a U.S. Space Force contract. As a result of this strategic acquisition, the company has adjusted its full-year 2024 revenue guidance from $300 million to $310 million.

11. Banco Santander, S.A. (NYSE:SAN)

Number of Hedge Fund Holders: 9

Banco Santander, S.A. (NYSE:SAN) is a global financial services provider and offers a wide range of banking solutions. The company runs through several segments, including Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt. Cramer mentioned the company and said “If you want a foreign bank, please go for Banco Santander, that’s a real good one.”

Banco Santander, S.A.’s (NYSE:SAN) services encompass everything from demand and time deposits to mortgages, consumer financing, and various investment products. Additionally, it offers asset management, private banking, and insurance, alongside providing digital payment solutions and online banking services tailored to retail, corporate, and institutional clients.

In the first half of 2024, the company reported an attributable profit of €6.059 billion, which is a 16% increase compared to the same period last year. The growth was attributed to a significant rise in net interest income across all global business sectors and regions, coupled with effective cost management that successfully offset the anticipated rise in provisions. The bank’s focus on improving profitability resulted in a return on tangible equity (RoTE) of 15.9%, and EPS climbed to €0.37, marking a 19% increase.

Moreover, Banco Santander’s (NYSE:SAN) customer base has expanded significantly, with more than 4 million new customers added year-on-year, bringing the total to 168 million. Active customers reached 101 million, an increase of nearly 2 million compared to the previous year.

In light of this strong performance, the company has revised its 2024 targets upward. The bank now anticipates high-single-digit revenue growth for the year, adjusting its previous forecast of mid-single-digit growth, and expects a RoTE exceeding 16%, an improvement from its earlier estimate of just 16%.