Jim Cramer, the host of Mad Money, offered an optimistic perspective on the market on Thursday as he challenged the prevailing pessimism among some on Wall Street. He highlighted the diverse range of sectors showing gains.
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Cramer observed that when investors are focused on long-standing winners, like tech stocks, it can be easy to miss when their dominance starts to wane. Cramer expressed his hesitation to part ways with tech given its long-term success but he pointed out something surprising as he reviewed the top-performing sectors.
“But when I scroll through the winning sectors for the year, I am struck by how they represent a wide array of groupings that aren’t tethered to any particular economic worldview.”
Cramer noted that neither the outlook of a recession nor predictions of a major slowdown could explain the growth seen in sectors beyond tech and communication services. He discussed that this year’s leaders are not only unexpected but in some cases, they seem counterintuitive. He described them as “broad,” in the sense that they span a wide range of industries, each responding to different economic conditions. He highlighted that these sectors that are performing well now have been largely overlooked for years, as tech has long dominated the spotlight.
Cramer said that for a long time, market participants had hoped for a rally that would extend beyond the tech sector, and now it seems to be happening. However, he remarked, “except you can’t call it a rally anymore.” He went on to say that a day like Thursday, in his view, was a sign of a healthy market despite the constant narrative of trouble in the economy.
“But the bottom line: It’s tricky to see such a broad mixture of stocks winning here, from ones that can run in a recession to ones that can rally hard in a robust economy. What it tells me is that the market may be far healthier than we think, and this backdrop simply isn’t as bad as many would have you believe.”
Our Methodology
For this article, we compiled a list of 23 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 27. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 Looked At These 23 Stocks Recently
23. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holders: 58
Recognizing the aerospace bull market, Cramer mentioned Howmet Aerospace Inc. (NYSE:HWM) and said:
“Finally, there are the industrials, again, a group that’s prone to failure during a recession. See my point? These are all oddities, right?… Then it’s followed by GE Aerospace and Howmet, which makes fasteners for planes. These are both part of the aerospace bull market, which is still going on. It’s a quiet one that shows no sign of quitting at all.”
Howmet Aerospace Inc. (NYSE:HWM) provides engineered solutions for the aerospace and transportation sectors. It offers airfoils, fastening systems, titanium and aluminum forgings, and forged aluminum wheels. Hardman Johnston Global Equity Strategy stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q4 2024 investor letter:
“From a sector standpoint, the main drivers of the portfolio’s outperformance during the fourth quarter were Industrials and Materials. Within Industrials, Howmet Aerospace Inc. (NYSE:HWM) and Vertiv Holdings Co. were the largest contributors to outperformance. Howmet reported an earnings beat during the quarter with broad-based strength spanning across all key segments. In particular, the company’s Engine Products and Fasteners segment performed well. During the earnings call, management spent significant time describing the emerging new growth driver of industrial gas turbines, which are used in gas power plants, which have become a focus for investors due to accelerating demand from AI data centers. Howmet is the leading supplier to the three major producers of these engines and will benefit from both initial purposes and the long-term maintenance demand.”
22. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 101
GE Aerospace (NYSE:GE) was mentioned by Cramer during Mad Money as he said:
“Finally, there are the industrials, again, a group that’s prone to failure during a recession. See my point? These are all oddities, right?… Then it’s followed by GE Aerospace and Howmet, which makes fasteners for planes. These are both part of the aerospace bull market, which is still going on. It’s a quiet one that shows no sign of quitting at all.”
GE Aerospace (NYSE:GE) focuses on designing engines for commercial and military aircraft, in addition to supplying integrated components, electric power systems, and mechanical systems for the aviation industry. Answering a question about whether the company can take more share from Boeing, Cramer said on March 14:
“Oh man. Okay… I think the answer is they can take a ton. They, and you have to, you have to buy it and buy it like mad because what’s gonna happen is there’s going to be so much servicing of these planes and that’s where they make their biggest money. And don’t forget, you’re getting Larry Culp who’s one of the greatest executives in America.”
21. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 166
Coming to Uber Technologies, Inc. (NYSE:UBER), Cramer stated:
“Finally, there are the industrials, again, a group that’s prone to failure during a recession. See my point? These are all oddities, right? The industrials are led by Uber Technologies, which is much more of a services company than somehow classified in the group.
Uber (NYSE:UBER) develops tech for transportation, delivery, and freight services. The company connects consumers with travel choices and facilitates deliveries from various retailers. It also manages a digital logistics platform for shippers and carriers. Last week, Cramer said, “No, Uber’s a buy. You want to buy Uber right here.”
20. Ventas, Inc. (NYSE:VTR)
Number of Hedge Fund Holders: 43
As REITs are performing well within the real estate group, Cramer commented on Ventas, Inc. (NYSE:VTR) and said:
“The REITs rule in real estate, that’s the seventh best performing group, the real estate group and we have three very different ones, showing the broad nature of this rally in this part, the subset… Then there’s Ventas, a REIT dedicated to senior living, used to have them on all the time. I mean call this a paragon of diversity here.”
Ventas (NYSE:VTR) is a real estate investment trust that caters to the aging population. The company offers senior housing communities, outpatient medical buildings, research centers, and healthcare facilities.
19. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 70
Commenting on American Tower Corporation (NYSE:AMT), Mad Money’s host said:
“The REITs rule in real estate, that’s the seventh best performing group, the real estate group and we have three very different ones, showing the broad nature of this rally in this part, the subset… Then American Tower, which is the REIT that owns cell towers… I mean call this a paragon of diversity here.”
American Tower (NYSE:AMT) is a well-known global REIT. The company is an independent owner, operator, and developer of multi-tenant communications real estate. Meridian Hedged Equity Fund stated the following regarding American Tower Corporation (NYSE:AMT) in its Q4 2024 investor letter:
“American Tower Corporation (NYSE:AMT) is a leading global owner and operator of wireless communications infrastructure, with a portfolio spanning the U.S. and key international markets. We hold American Tower for its exposure to the secular growth in wireless data consumption and its strategic positioning in underpenetrated emerging markets. The company benefits from long-term contracts with investment-grade wireless carriers, providing strong visibility into future cash flows. This quarter, performance was mixed. Revenue met expectations but fell short of consensus. Adjusted EBITDA declined slightly year-over year, impacted by the divestiture of its India business and elevated bad debt expense. However, organic tenant billings growth remained healthy, with U.S. and international markets posting solid growth. While we maintain conviction in American Tower’s ability to benefit from increasing data consumption and 5G network deployments, near-term currency headwinds and regional challenges warrant monitoring.”
18. Welltower Inc. (NYSE:WELL)
Number of Hedge Fund Holders: 44
Discussing how REITs are doing, Cramer highlighted Welltower Inc. (NYSE:WELL) as he said:
“The REITs rule in real estate, that’s the seventh best performing group, the real estate group and we have three very different ones, showing the broad nature of this rally in this part, the subset. First is Welltower, that’s a healthcare infrastructure company…. I mean call this a paragon of diversity here.”
Welltower (NYSE:WELL) is a residential wellness and healthcare infrastructure company. It specializes in Wellness Housing communities for mature renters and older adults.
17. Exelon Corporation (NASDAQ:EXC)
Number of Hedge Fund Holders: 47
Making note of Exelon Corporation (NASDAQ:EXC), Cramer discussed:
“When interest rates go down, we normally look for utilities, but rates are going higher here. Now it could… mean that people want to profit from a slowdown, if not a recession, by buying companies with consistent earnings. So if they’re buying Consolidated Edison… a purveyor of electricity for the New York metro area as well as number two, Exelon, the name of the utility that encompasses Baltimore Gas and Electric…. Well, what can I say, it’s plain as it gets.”
Exelon (NASDAQ:EXC) is engaged in the distribution and transmission of electricity and natural gas and it carries out the regulated retail sale of these energy sources to customers. The company reported its full-year results for 2024 on February 12. It reported adjusted operating earnings of $2.50 per share, up from $2.38 per share in 2023. For 2025, the company provided guidance for adjusted operating earnings between $2.64 and $2.74 per share.
16. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 44
Consolidated Edison, Inc. (NYSE:ED) was mentioned during the episode, and here’s what Mad Money had to say:
“When interest rates go down, we normally look for utilities, but rates are going higher here. Now it could… mean that people want to profit from a slowdown, if not a recession, by buying companies with consistent earnings. So if they’re buying Consolidated Edison… a purveyor of electricity for the New York metro area as well as number two, Exelon, the name of the utility that encompasses Baltimore Gas and Electric…. Well, what can I say, it’s plain as it gets.”
Consolidated Edison (NYSE:ED) provides regulated electric, gas, and steam services, including electricity supply and the operation of transmission lines, substations, and distribution systems. The company also invests in electric and gas transmission projects.
15. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 41
As Cramer observed that investors are betting on simple things, he commented on The Mosaic Company (NYSE:MOS) and said:
“Third is fertilizer company Mosaic. Now it says something when the most complex tech instruments ever are all outta style this year while people bet on the most simple formulas, the most commodity of commodities. Can’t think of anything less glamorous or easier to make than fertilizer.”
Mosaic (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients, animal feed ingredients, and industrial products. It operates mines and production facilities, offering a range of fertilizers and services for agricultural use, including blended nutrients. The company also manages facilities for blending, bagging, and distribution.
14. Steel Dynamics, Inc. (NASDAQ:STLD)
Number of Hedge Fund Holders: 45
Here is what Cramer said about Steel Dynamics, Inc. (NASDAQ:STLD) during the episode:
“Steel Dynamics comes in second within the materials group and I think that’s a winner in the tariff war.”
Steel Dynamics (NASDAQ:STLD) manufactures a variety of steel products and aluminum items, while also offering scrap metal processing, transportation, and steel fabrication services for commercial buildings. On March 18, Cramer, expressing his bullish opinion, said:
“I think Steel Dynamics is going to be a winner under President Trump’s tariffs against the companies that are subsidized by the Japanese and the Chinese and I totally support them on this. And I think you should buy, buy, buy Steel Dynamics.”
13. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 69
Highlighting that gold has “had an amazing run”, Cramer mentioned Newmont Corporation (NYSE:NEM) and commented:
“From the recession resistant to the recession suspect, we go to materials. On top is Newmont Mining because gold’s had an amazing run. Is that fear? Now, I don’t know, matter of fact, uh tariff worries maybe? Precious metals being a good store of value? Hey, you know what, given gold’s astronomical outperformance, a bit of all three?”
Newmont (NYSE:NEM) is engaged in the production and exploration of gold and it also explores other metals such as copper, silver, zinc, and lead. As per TipRanks, on March 28, Jefferies analyst David Hove highlighted that the stock is undervalued compared to its peers and is expected to maintain strong production and cash flow performance.
He pointed out that Newmont (NYSE:NEM) trades at 0.6x P/NAV at spot, a significant discount of around 40% compared to its peer AEM, and expects the valuation gap will narrow as the company meets its guidance and free cash flow expectations, driven by ongoing optimization efforts at its assets. Hove assigned a Buy rating on NEM stock, with a price target of $57.
12. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 55
Talking about food and beverage companies, Cramer mentioned Mondelez International, Inc. (NASDAQ:MDLZ) and stated:
“Two food and beverage companies managed to make the cut, triumphing over the GLP-1 anti-craving drugs, perennial favorite Coca-Cola and Mondelez.”
Mondelez (NASDAQ:MDLZ) produces and markets a range of snacks and beverages like biscuits, chocolates, gum, candies, and other grocery items. Its brand portfolio have many well-known names in cookies, crackers, chocolates, and snack bars. Carillon Tower Advisers stated the following regarding Mondelez International, Inc. (NASDAQ:MDLZ) in its Q4 2024 investor letter:
“Mondelez International, Inc. (NASDAQ:MDLZ) continued trading lower after cocoa prices remained elevated. The company has struggled with higher import costs, and the incoming presidential administration could tighten standards on processed foods, increasing cost pressures.”
11. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
Cramer highlighted that The Coca-Cola Company (NYSE:KO), one of the famous beverage companies, was able to shake off the effects of GLP-1 drugs.
“Two food and beverage companies managed to make the cut, triumphing over the GLP-1 anti-craving drugs, perennial favorite Coca-Cola and Mondelez.”
Coca-Cola (NYSE:KO) is a beverage producer that provides a diverse range of nonalcoholic beverages, such as soft drinks, water, tea, juice, and plant-based alternatives, along with beverage concentrates and syrups for retail distribution. The company stock gained more than 15% over the past year. Furthermore, appearing on Squawk on the Street in February, Cramer remarked, “Coca-Cola has been amazing. Amazing.”
10. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 53
Talking about recession-resistant stocks, here’s what Cramer had to say about Dollar General Corporation (NYSE:DG):
“Dollar General is number three and it’s a stock that historically has done well on a slowdown.”
Dollar General (NYSE:DG) is a discount retailer offering a broad range of products, including everyday essentials, packaged foods, perishables, health and beauty items, pet supplies, seasonal goods, home products, and clothing for all ages. On March 13, Cramer discussed:
“Flip that over, Dollar Gen, there’s really nothing really great and people decide well that’s a good one. But that’s because they’re finally closing some stores that are underperforming… I’m always trying to figure out what’s better than feared versus what’s better. This morning Dollar General reported better than feared numbers. They’re still opening stores like mad. They’re going to close some underperformers. But the reason why I liked this one is because we all know that these stocks have been in a real slide. And a lot of them have been in a real slide because people say Walmart’s been taking it to them. I think this is, well wait a second, maybe that thesis is, is not as pertinent. Maybe wherever they have stores, where there’s no Walmart competition they’re doing a little better. At my Dollar General I go in, and there’s some real bargains and then there’s things that are so much more than a dollar. I get confused. But it’s where no other store is. So it’s, you know it’s kind of like it’s got the market to itself. They opened well, but they choose real estate well they do well. And I felt that they’re putting up willy, nilly. And I think they’re doing much more targeted. I like it.”
9. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 46
On Walgreens Boots Alliance, Inc.’s (NASDAQ:WBA) decision to go private, Cramer commented:
“Walgreens has made a comeback too, but it’s going private. Consider that one done. Do not want to own that. Do not want to buy it, whatever.”
Walgreens (NASDAQ:WBA) operates as a healthcare, pharmacy, and retail business. It provides services including retail drugstores, health and wellness products, pharmacy care, and specialty services. Ariel Investments stated the following regarding Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q4 2024 investor letter:
“Also in the quarter, we re-initiated our position in retail drugstore operator, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) following the wash sale period for tax loss selling. Recent news reports suggest there is potential interest by a PE firm to take WBA private. We believe the strategic value of WBA’s nationwide footprint and future growth opportunities has substantial upside at today’s valuation. We did not exit any positions in the quarter.”
8. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 102
While highlighting that consumer staple stocks are not safe anymore, Cramer noted that Philip Morris International Inc. (NYSE:PM) is the exception.
“Now, the consumer staples, long considered safety stocks, well, let’s just say they, they aren’t all that safe these days because of a host of challenges, everything from GLP-1 drugs weighing down the food business to higher prices for all sorts of commodity inputs.
But there’s a frequent winner here among the consumer staples. It’s one I won’t recommend because it’s got tobacco in it and that’s Philip Morris, the international tobacco company. It’s one of the greatest stocks of all time though.”
Philip Morris (NYSE:PM) offers cigarettes, smoke-free products like heat-not-burn, and vapor items under its brands, IQOS and ZYN. The company also provides consumer accessories and wellness and healthcare products.
7. Intercontinental Exchange, Inc. (NYSE:ICE)
Number of Hedge Fund Holders: 91
Cramer mentioned that he liked Intercontinental Exchange, Inc. (NYSE:ICE) as he said:
“To prove that the theme isn’t just recession, financials are the third best-performing sector and we know this group has a hefty reliance on credit, which sours in a recession.… The third finance name, Intercontinental Exchange (ICE) owns this, the New York Stock Exchange as well as a host of commodity exchanges. I really like that stock. None of these have any real credit risks, one of the reasons why I like them, but their financials nonetheless, and the bank stocks are acting much better than expected even if they’re not at the top of the heap.”
Intercontinental Exchange (NYSE:ICE) provides technology and data services to financial institutions, corporations, and government organizations. It specializes in regulated marketplace technology, fixed-income pricing and analytics, and digital platforms related to mortgages.
6. Arthur J. Gallagher & Co. (NYSE:AJG)
Number of Hedge Fund Holders: 77
Arthur J. Gallagher & Co. (NYSE:AJG) was discussed during the episode as Cramer stated:
“To prove that the theme isn’t just recession, financials are the third best-performing sector and we know this group has a hefty reliance on credit, which sours in a recession. Insurance has been incredibly hot this year with a remarkable pricing factor as you know, well, you know all too well if you own the stocks of Brown & Brown or Arthur J. Gallagher, two storied insurance brokers that top the list of best performers in the group. I never met anybody who owned them though…
None of these have any real credit risks, one of the reasons why I like them, but their financials nonetheless, and the bank stocks are acting much better than expected even if they’re not at the top of the heat.”
Arthur J. Gallagher (NYSE:AJG) provides insurance and reinsurance brokerage, consulting, and third-party claims administration services. The company also offers specialized coverage and risk management solutions to individuals and organizations.
On March 21, TD Cowen increased its price target for Arthur J. Gallagher (NYSE:AJG) to $388 from $377 and kept a Buy rating on the stock. The firm revised its model after an investor meeting and noted that the organic revenue growth for 1Q25 in the Brokerage segment is surpassing the FY25 guidance and the guidance remains unchanged.
5. Brown & Brown, Inc. (NYSE:BRO)
Number of Hedge Fund Holders: 39
As per Cramer, Brown & Brown, Inc. (NYSE:BRO) was one of the two stocks to “top the list of best performers” in the group.
“To prove that the theme isn’t just recession, financials are the third best-performing sector and we know this group has a hefty reliance on credit, which sours in a recession. Insurance has been incredibly hot this year with a remarkable pricing factor as you know, well, you know all too well if you own the stocks of Brown & Brown or Arthur J. Gallagher, two storied insurance brokers that top the list of best performers in the group. I never met anybody who owned them though…
None of these have any real credit risks, one of the reasons why I like them, but their financials nonetheless, and the bank stocks are acting much better than expected even if they’re not at the top of the heat.”
Brown & Brown (NYSE:BRO) provides a wide range of insurance products and services, including property and casualty, employee benefits, and professional liability insurance, along with risk management and claims administration.
4. Cencora, Inc. (NYSE:COR)
Number of Hedge Fund Holders: 58
With regards to Cencora, Inc. (NYSE:COR), Cramer said:
“And then third, there’s Cencora, classic drug middleman, part of a subgroup that always sees to send someone out at the top.”
Cencora (NYSE:COR) delivers pharmaceutical products and healthcare services worldwide, offering a range of services to healthcare providers, including pharmacy management, clinical trial assistance, and specialty logistics. In January, Cramer stated:
“Cencora, Conshohocken… Used to be the old ABC, AmerisourceBergen. I have to tell you, I think that Steve Collis is really, really smart. I met him last year at the JPMorgan Healthcare… their conference. I gotta tell you, I think the stock can go lower because a lot of people don’t like… They don’t like McKesson. I prefer Cardinal to this one, but I did like the acquisition.”
3. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Holders: 68
Commenting on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Cramer said:
“Vertex Pharma comes in second. I don’t give you that enough because they’ve got this terrific new opioid non-habit forming painkiller.”
Vertex (NASDAQ:VRTX) specializes in creating and promoting treatments for cystic fibrosis (CF) and is advancing a portfolio of therapies currently in clinical trials for various other conditions. On March 14, Cramer remarked, “Vertex has got revolutionary anti pain drug.”
On February 10, Vertex (NASDAQ:VRTX) reported a 12% increase in product revenue for 2024, which was $11.02 billion and it was largely driven by the strong performance of its cystic fibrosis treatments, TRIKAFTA/KAFTRIO. For 2025, the company has projected total revenue between $11.75 billion and $12.0 billion.
2. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 74
Noting CVS Health Corporation’s (NYSE:CVS) comeback, Cramer said:
“First is CVS. Now that’s long a laggard. It’s come back with new management as well as the resurgent Aetna health insurance business.”
CVS (NYSE:CVS) offers a range of healthcare services, including insurance, pharmacy management, and pharmaceutical products. The company also provides consulting services to healthcare organizations. Ariel Investments stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q4 2024 investor letter:
“Lastly, American healthcare company, CVS Health Corporation (NYSE:CVS) underperformed in the period. The company preannounced a third-quarter preliminary profit estimate materially below consensus expectations and pulled its 2024 guidance due to continued medical cost pressures. Investor concerns around the recently proposed Pharmacy Benefit Management (PBM) legislation further weighed on shares. Despite these challenges, management reiterated its focus on improving margins and enhancing its positioning in Medicare Advantage (MA). CVS believes the program can remain an attractive business for Aetna and CVS Health over time as it implements a multi-year repricing strategy across plan level benefits. Meanwhile, CVS continues to take actions to drive long-term success including the appointment of longtime company executive David Joyner as President and CEO as well as adding four new board members.”
1. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“Let’s start with the number one performing group and this is a true oddity. Let’s talk about the energy sector.… Number one, top of the heap and I wanna be a little subjective here and dip to the third-best performer in the oil and gas space…
And the third is Chevron, long my favorite, which is up 15% to start this year after some really kind of longer period of underperformance. And some of that success is because of the company’s hefty dividend that yields north of 4%.”
Chevron Corporation (NYSE:CVX) is involved in the exploration, production, transportation, and refining of oil and gas. The company also manufactures renewable fuels and petrochemicals.
While we acknowledge the potential of Chevron Corporation (NYSE:CVX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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