On Wednesday, Jim Cramer, the host of Mad Money, discussed several investment themes to be considered if oil prices settle down and tensions tied to war begin to ease.
The war cannot be ring-fenced, no matter what we do. I don’t want to sugarcoat it. We can’t avoid this issue… Without a real exit strategy, we could blow through 20 days’ worth of oil from our strategic reserves and still be stuck in an asymmetrical standoff with the Iranians… I’ll tell you what themes can be bought if oil stabilizes and Iran shows signs of willingness to stop lobbing projectiles on naval traffic. First, you have to like the data center theme. The war’s obscuring it right now, but we just got the best verification of this theme’s strength when Oracle, the data center champ, last night reported a fantastic set of numbers that indicated its buildout is going better than anyone thought.
READ ALSO: Jim Cramer Discussed 8 Stocks Amid the S&P 500 Reshuffle: Vertiv, Paycom, and More, and Jim Cramer Expressed His Thoughts on 14 Stocks: Arm, Costco, and More
Cramer added that Oracle does not need to raise large amounts of additional capital to continue building out that infrastructure. He also noted that the company does not need to sell Cerner, the medical records division Oracle acquired. He also highlighted a second theme: a continuing shortage of memory chips. He then pointed to a third theme centered on discount retailers, which benefit when inflationary pressures push households and shoppers toward cheaper options.
Here’s the bottom line: If Trump channels Kissinger and does something to push Iran towards negotiations, well, we could embrace these three themes sooner than you’d think. Of course, the price to be paid to get there may be way too much. I know I thought it was in 1972, but the gambit worked. It could, I imagine, work once again.
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 March 11. We listed the stocks in the order that Cramer mentioned them.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Jim Cramer Looked at 7 Stocks: Micron, Oracle, and More
7. Mattel, Inc. (NASDAQ:MAT)
Mattel, Inc. (NASDAQ:MAT) is one of the stocks Jim Cramer looked at. Cramer mentioned the stock during the episode and said:
Okay, what needs to happen for the stock of Mattel to turn itself around? About a month ago, the iconic toy maker reported what people thought was a disappointing quarter. Stock plunged roughly 25% the very next day. Management said replenishment orders from retailers in the United States slowed in December, which led both Mattel and its retail partners to clear inventory more aggressively. That put pressure on the gross margins going into the holidays. Now, Mattel’s asking investors to think about 2026 differently. They see this as an investment year where they’ll spend an extra $150 million on organic growth initiatives, I like that, especially their digital games business. I really like that.
Mattel, Inc. (NASDAQ:MAT) creates and sells toys, games, and media content featuring famous brands like Barbie and Hot Wheels. Longleaf Partners Fund stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its fourth quarter 2025 investor letter:
Mattel, Inc. (NASDAQ:MAT) – Children’s toy, media, and consumer products creator Mattel was a contributor for the quarter and the year. The company is in its strongest position in over 10 years, and there are multiple ways to win. Over 80% of Mattel’s value comes from growing power brands like Hot Wheels, Barbie, and UNO. Mattel has a strong balance sheet which allowed material stock repurchases of $600 million in 2025, and we believe additional share repurchase will come at these discounted prices in 2026. Fundamentally, the toy business continues to grow and gross margins remain strong at 50%. Mattel has a promising owned IP (intellectual property) outlook for 2026 with the Masters of the Universe and Matchbox movies, along with two video games, being released.
6. Power Solutions International, Inc. (NASDAQ:PSIX)
Power Solutions International, Inc. (NASDAQ:PSIX) is one of the stocks Jim Cramer looked at. Cramer highlighted one of the main reasons for the stock’s “harsh sell-off,” as he stated:
This is precisely the kind of stock I tell you to look for in How to Make Money in Any Market… After the pullback late last year, the stock made another run starting in 2026 briefly, trading into the triple digits again in mid-February. But since then, the stock had a breakdown encore, taking it down to the point where it’s now trading in the mid-50s. So what the heck on earth happened here?… Well, the biggest chunk of the decline came last Tuesday when Power Solutions International reported, and the stock plunged nearly 29% single session next day, awful. While the quarter represented top and bottom line beat, when you drill down, other major line items like gross profit and EBITDA had year-over-year declines. Now, that was a major departure from last year. I think this is a significant step down, and it is significant in margins in the fourth quarter was the main reason for such a harsh sell-off. But I also think that this dislocation might represent a good opportunity to get into the stock. Yes, into it.
Power Solutions International has been nearly cut in half in less than a month and to me, this looks like a terrific entry point because there’s nothing wrong with the data center thesis… Part of the issue here has to do with some of the quirks of the Power Solutions story. For example, and this bothers people, the company doesn’t hold a regular conference call; they just put out a press release. So while the margin pressure might have been something that they could have explained by management on a conference call, there was no call, and we just had a quote from the CEO on the press release. It was kind of stunning. At the same time, it didn’t help that management declined to issue any formal guidance this year, a big change versus previous quarters. They did offer some commentary on the outlook for 2026, which I thought was broadly positive…
Are we positive on PSIX? Come on, I have to try this. After taking a closer look at Power Solutions and what’s caused this recent pullback, you know what, I actually still think this stock looks real good. Stock’s been overly punished when it was sold off last week, and I’m betting many of the worries here will turn out to be overblown. Plus, with the company expected to earn $5.61 per share this year, Power Solutions International is now selling for right around 10 times this year’s earnings estimate. When you compare that to something like Caterpillar at 31 times, Cummins at 21 times, this looks like a steal. Of course, there’s a reason why PSIX sells for such a discount. They’re a lot less transparent than your typical publicly traded company, and it’s a small-cap operator with major ties to China. But none of these, for me at least, are deal breakers, which is why I’d be a buyer down here. I think data center buildout is here to stay, and there’s growth enough for everyone, including PSIX.
Power Solutions International, Inc. (NASDAQ:PSIX) develops and sells engines and power systems along with custom electrical generation units.
