We recently published a list of Jim Cramer’s Recent Thoughts on These 15 Stocks. In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against other stocks that Jim Cramer discussed recently.
On Monday, Mad Money host Jim Cramer addressed the market’s reaction to the recent U.S. debt downgrade by Moody’s.
“Stories like the US debt downgrade story from Friday, they are classic… Stories that scare people out of very fine stocks that could otherwise make them rich. And sure enough, when Moody’s downgraded the debt of the United States on Friday, the last of the three big rating agencies to do so, the market opened hideously as the get out now crowd took action. They fled. Then the market rebounded.”
READ ALSO: Jim Cramer Put These 12 Stocks Under the Spotlight and 15 Stocks on Jim Cramer’s Radar.
Cramer warned that such panic is not a one-off. He mentioned that there will be many other ‘get out now’ calls issued ahead. He said that the warnings often come from sources who either do not fully grasp the situation or are motivated by less transparent reasons. In his view, some are simply uninformed, while others may be experienced short sellers using fear as a tactic to move markets in their favor.
Even if the issues these fear-driven stories point to do materialize, Cramer believes they are manageable. He called out the overuse of the term “stagflation,” often wielded by bearish commentators to provoke anxiety. He acknowledged how difficult it can be to resist the persuasive nature of such arguments. Still, he encouraged investors to stay the course as he added, “You’ll have to stick with me and we’ll sit through this.”
“Let me give you the bottom line: The crucial thing that we in the media can do, and I say this as someone who talks to more individual veterans than almost anyone in the universe, and certainly more than anyone in the media, is simply cool it with the fear mongering and cut off guests who advocate it. A little history and some constructive thought would go a lot further if your goal is not to inflame, but to inform.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 19. We listed the stocks in ascending order of their hedge fund sentiment 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).
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The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 81
Cramer highlighted The Goldman Sachs Group, Inc. (NYSE:GS) as the way to “play an uptick in IPOs”.
“If you take a step back for a second and consider the theme in the aggregate, it’s a very easy time to play an uptick in IPOs, just buy the investment bank that’s the best under the sun and that’s Goldman Sachs. Now, of the big banks, they’re the most levered to investment banking, and that includes IPOs and underwriters. We’ve owned Goldman Sachs for the Charitable Trust since late last year, primarily because I thought we’d see an uptick in deal activity this year as the Trump administration replaced the Biden administration.
Now, that got temporarily derailed by the president’s tariffs but now that those have mostly been paused or rolled back, and if they don’t rear their ugly head again, I think the IPO revival is back on schedule, and yes, indeed, I did work at Goldman Sachs in the 80s. Now, Goldman stock’s started this year strong, climbing to a new all-time high in the 670s in mid-February, right around the time the broader market started all over.
But as it became clear that the new Trump administration was going to prioritize tariffs over its more pro business policies, that’s a real negative for both IPOs and M&A, this thing pulled back hard, only falling nearly 35% from peak to trough by the time it bottomed at $440 [on] April 7th. Since then, though, Goldman’s been rallying hard in part because of the IPO market bouncing back and also because there’s been a pickup in mergers and acquisitions….
Of course, the stock got hit today after JPMorgan executives lowered expectations for their investment banking business at an investor day event. But… I’m not worried about that. I think you can buy Goldman on the weakness.”
Goldman Sachs (NYSE:GS) is a financial company known for its investment banking expertise. The company provides wealth management and various financial solutions.
Overall, GS ranks 4th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of GS as an investment, our conviction lies in the belief that some 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 GS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
