We recently published a list of Jim Cramer Recently Put These 10 Stocks Under Spotlight. In this article, we are going to take a look at where MP Materials Corp. (NYSE:MP) stands against other stocks that Jim Cramer discussed recently.
On Monday, Jim Cramer, host of Mad Money, shared his thoughts on how the government’s approach to tariffs could play a crucial role in sustaining the stock market rally. Cramer expressed satisfaction with the current direction of policy.
“There’s what happened two weeks ago, two Thursdays ago, more accurately when the stock market official went into correction mode. Until the market broke down like that, I think the president was perfectly willing to hammer anybody just to get his way.”
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“I don’t think he (President Donald Trump) wants to punish good American companies that make things here.”
Cramer explained that he no longer thinks the president wants to harm American companies that manufacture goods domestically. He suggested that the shift in attitude is a relatively new development, and it may signal a more nuanced approach going forward. He noted that with the market’s recovery, it is possible that the conversation around protectionist tariffs will surface once again, but the context might have changed.
Cramer speculated that when the market entered correction mode, President Trump may have been influenced by the pleas from various observers about the damaging effects on stocks of good American companies.
“Here’s the bottom line: At the end of the day, America’s the only country on earth that’s played fair on trade. Everybody else breaks the rules to protect their domestic businesses. That’s hollowed out our industrial heartland. And that dynamic can only change if our government takes a more carrot-and-stick approach. Assuming Trump doesn’t go overboard, that might just be what we’ve got and it means stocks can finally stage a real rally again.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 24. 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).
Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals.
MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 33
MP Materials Corp. (NYSE:MP) was mentioned during the episode, and here’s what Cramer had to say:
“You know I’ve been recommending the stock forever and it’s finally happening. So I’m going to just say, you know what, let’s stick with it. I am not gonna say, hey, after all this time, it’s time to go. Litinsky has done a good job. He’s been sticking with it and I gotta hand it to him. What can I say? He never gave up and good for him.”
MP Materials (NYSE:MP) produces rare earth materials and magnetic precursor products, with operations including the Mountain Pass Rare Earth Mine and Processing facility in California. In 2023, when Cramer was asked about MP during the lightning, he said, “I say, thumbs up, MP Materials.” Since then, MP stock has gone down more than 15%.
Overall, MP ranks 8th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of MP 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 time frame. If you are looking for an AI stock that is more promising than MP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.