On Monday, Jim Cramer, the host of Mad Money, told viewers that they should not be too surprised by President Donald Trump’s decision to impose steep tariff hikes, a move Trump had promised during his campaign. Cramer emphasized that just because there were numerous announcements coming from the president does not necessarily mean the world was falling apart. Trump had been clear about his intentions, including putting tariffs on countries like Mexico, Canada, and China.
Cramer addressed the widespread panic that gripped many investors when Trump announced the tariffs. The tariffs were steep: 25% on Mexico, 20% on Canada (with an exception for oil, which would be hit with 10%), and 10% on China. Cramer found it surprising that so many people were caught off guard by these moves, given that they were in line with Trump’s campaign promises.
“Yet that’s all I heard last night and this morning where once again we heard that the world was ending with the market looking like it’s about to fall apart only to rebound when we got an amenable statement from the president of Mexico, Claudia Sheinbaum.”
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“Sheinbaum said that she had a good 30-minute conversation with respect and that “It’s about collaboration, coordination without losing sovereignty.” I like that… I know that a month from now, everything could change.”
Cramer further explained that while Mexico does face a $162 billion trade deficit with the U.S., Trump’s focus on halting illegal immigration and combating fentanyl smuggling was still central to his agenda. In Cramer’s view, this initial agreement with Sheinbaum was a victory for Trump, even if it was just a preliminary step. The market, which had been in turmoil before Sheinbaum’s comments, reacted positively to her peace offering. Cramer highlighted that Trump could now claim a win, as the agreement likely involves Mexico purchasing more American goods.
“So here’s the bottom line: Stop panicking when Trump does something you think is crazy, and remember that he promised to do most of this stuff before he was elected, and he still won. Many might say this is a precarious moment. I heard that again and again. I simply say you got what your country voted for, whether you like it or not, really it doesn’t matter. So get used to the turmoil. You don’t have to enjoy it. Remember that in the end, the president sure does.”
Cramer on These 9 Stocks Rallying Despite Tariff Worries
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money on February 3. 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 2024, which was taken from Insider Monkey’s database of 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).
9. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
Number of Hedge Fund Holders: 42
Talking about IDEXX Laboratories, Inc. (NASDAQ:IDXX), Cramer said:
“Less crazy? Healthcare, easy. Many of them report this week and they’re down pretty hard from their highs. What an easy group to buy, safety stocks, if tariffs cause a recession. Medical devices rallied big, IDEXX Labs, the vet supplier, reported an amazing quarter and it roared.”
IDEXX (NASDAQ:IDXX) creates and supplies diagnostic products and services for the veterinary, livestock, poultry, dairy, and water testing industries. The company released its full-year 2024 results on February 3. In 2024, IDEXX (NASDAQ:IDXX) reported a strong performance, with revenue of $3.898 billion, a 6% increase driven by a 7% rise in CAG Diagnostics recurring revenue, which remains a main business driver. The company also reported EPS of $10.67, marking a 6% increase. For 2025, it expects revenue growth of 4% to 7% on a reported basis, with CAG Diagnostics recurring revenue projected to grow 3% to 6% reported. Meanwhile, its 2025 EPS guidance is between $11.74 and $12.24.
8. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 88
Cramer highlighted that Walmart Inc. (NYSE:WMT) stock recently inched upwards despite the fact that it carries vegetables from Mexico.
“How about Costco? They got a big tomato field near me in Mexico, Walmart, they both really rallied, even as they do sell a lot of Mexican vegetables.”
Walmart (NYSE:WMT) is a leading retail brand offering a wide variety of products, such as groceries, health supplies, electronics, clothing, and private-label items. Cramer has been bullish on the company before as he expressed in November 2024:
“Our loyalty to value means that if you wanna buy Dixie paper bowls, Kellogg’s Fruit Loops, Dawn dish soap, and Tide Pods and then have them delivered, we’d much rather pay $48 and 13 cents from Walmart than $62 and 96 cents at Target. Yes, those are actual prices. Actual goods that were bought today and that’s too big a differential. Walmart’s scale and smarts are simply besting Target in the price arena… I am loyal to value and Walmart is offering me value and that’s why Walmart stock could be up 66% for the year and still climbing.”
It is worth noting that Walmart (NYSE:WMT) stock has seen a gain of over 75% over the last year.
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