On Friday’s episode of Mad Money, Jim Cramer reflected on a significant shift in market sentiment over the past week as he described how the mood turned from cautious to confident.

“We often speak of moments when the stock market tends to do well…. We know that stocks thrive, for instance, when interest rates are going down but there’s another auspicious moment and that’s when the conventional wisdom collectively decides that because of extenuating circumstances, in this case, a welcome break from ever higher tariffs, we’re no longer at risk of a recession in the near future.”

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Cramer pointed out that this kind of collective pivot in sentiment can be just as impactful as a rate cut. He emphasized that in his long career observing markets, moments like these often mark good entry points for investors. He believes that we are currently in one of those moments.

Looking back on what he called a “very bullish” week, Cramer said it will likely be remembered as the period when Wall Street strategists began to back away from recession warnings. He said that the retreat from doomsday predictions helped fuel a strong rally, especially among industrial stocks.

“If hedge funds thought we were about to experience the apocalypse, and many of them did, then they were poorly positioned coming into this week. And when hedge funds are poorly positioned, you get incredibly motivated buyers like the ones we saw all week that help take us all the way…. And they may not be done with all of their buying, at least because we’re suddenly in a very different world with the pessimists having been caught with their pants down. Until they turn optimistic, which might take a little bit, we should remain in good shape.”

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 16. 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).

Jim Cramer Put These 12 Stocks Under the Spotlight

12. Sezzle Inc. (NASDAQ:SEZL)

Number of Hedge Fund Holders: 19

During the lightning round, when a caller asked about Sezzle Inc. (NASDAQ:SEZL), Cramer called it “a little too hot,” as he commented:

“I think, I think Sezzle’s in a crowded space. I know it hit an all-time high. I would actually ring the register on some Sezzle because even though it’s not sizzle, I do think, and I’m looking right now at my chief scientist and research director, Ben Stoto, we both feel that it’s gotten a little too hot. I think that’s fair.”

Sezzle (NASDAQ:SEZL) is a payments technology company that offers installment-based payment options, virtual cards, and subscription services, allowing consumers to split purchases into manageable payments. The company also partners with third-party lenders for long-term financing. When Cramer was asked about the company in an episode in late March, he said:

“Well, I think that there’s a lot of these companies and that’s kind of the problem with when you see so many of the companies in the same sector, we’re going to have to say, no, I don’t like it right here.”

11. Universal Technical Institute, Inc. (NYSE:UTI)

Number of Hedge Fund Holders: 26

During the lightning round, a caller inquired about Universal Technical Institute, Inc. (NYSE:UTI) and shared their thoughts about the stock going “way higher.” Cramer replied:

“Okay, this is what we need in the country. It’s a trade school and I think that it jives very well with where we are in the economy. So I’m going to tell you, I think it can continue to go higher because it fits the thesis of what we expect in an era of AI and the need to be on your game in non-AI jobs.”

Universal Technical Institute (NYSE:UTI) offers education and training programs in fields like transportation, skilled trades, and healthcare. The company provides certificates, diplomas, and degrees through multiple specialized schools and partners with manufacturers for advanced training. Conestoga Capital Advisors stated the following regarding Universal Technical Institute, Inc. (NYSE:UTI) in its Q4 2024 investor letter:

“Universal Technical Institute, Inc. (NYSE:UTI) is a leading workforce education provider of skilled trade and healthcare and education programs. UTI trains over 20,000 students annually. Shares jumped on the election results but generated most of the quarter’s return on the company’s strong fourth quarter results. Revenue grew 15% and beat expectations. EBITDA margins have also risen over the past year. Fiscal year 2025 guidance was nudged higher earlier in 2024, driven by the strong new student enrollment UTI is seeing across its markets.”

10. Archer Aviation Inc. (NYSE:ACHR)

Number of Hedge Fund Holders: 34

A caller inquired about Archer Aviation Inc. (NYSE:ACHR) during the lightning round, Jim Cramer said:

“Oh, that one’s a bridge too far for me to tell you the truth. Electric vertical takeoff, I mean, I’m willing to go with Rocket Lab, but Archer’s just a little bit too far. I mean, someone who’s like 18, 19, 20, 21, you might want to believe in it. I don’t want to have too many of these kinds of stocks on my so-called recommended list.”

Archer Aviation (NYSE:ACHR) develops advanced aircraft, including electric vertical takeoff and landing models, and offers ride services, commercial aircraft, and support solutions like maintenance and repair. In an episode aired in March, here is what Cramer had to say about the company:

“Well, keep looking but do not press the button because in this kind of market, that company is an invitation to your funeral.”

9. Viper Energy, Inc. (NASDAQ:VNOM)

Number of Hedge Fund Holders: 35

A caller during the lightning round commented that Viper Energy, Inc.’s (NASDAQ:VNOM) dividends are “hard to ignore.” Here is what Cramer replied:

“I know, mineral royalty reminds me of Texas Pacific Land Trust. It’s not my cup of tea, but I’ve got to tell you, if you want to get some yield, I see it, but it is down 15%, which, by the way, would take away whatever a 5% yield would give you. Keep that in mind.”

Viper Energy (NASDAQ:VNOM) focuses on owning and acquiring mineral and royalty interests tied to oil and gas production in the Permian Basin. On May 13, Piper Sandler reduced Viper Energy’s (NASDAQ:VNOM) price target to $61 from $62 but maintained an Overweight rating. After Q1 2025 earnings, the firm revised its short-term commodity price outlook, while maintaining its long-term oil forecast stable, and also increased its mid-cycle gas estimate to $3.50 from $3.25.

8. Rocket Lab USA, Inc. (NASDAQ:RKLB)

Number of Hedge Fund Holders: 37

A caller inquired about Rocket Lab USA, Inc. (NASDAQ:RKLB), and Cramer remarked:

“You know what, this Rocket Lab’s initially, I have to tell you because I don’t like companies that lose a lot of money, I was skeptical, but so many companies need to put up rockets. I think it’s actually a decent story, and that’s a spec that I’ve not recommended until just now.”

Rocket Lab (NASDAQ:RKLB) develops and launches rockets, builds spacecraft and components, and provides a range of space systems and mission services. The company supports satellite launches, constellation deployments, and other advanced space missions.

On May 8, Rocket Lab (NASDAQ:RKLB) reported a first-quarter GAAP EPS of -$0.12, in line with expectations. Revenue reached $122.57 million, up 32% from the previous year and $1.2 million above estimates. For the second quarter of 2025, the company guided revenue to be between $130 million and $140 million. GAAP gross margins are expected to fall between 30% and 32%, with non-GAAP gross margins between 34% and 36%.

7. CAVA Group, Inc. (NYSE:CAVA)

Number of Hedge Fund Holders: 47

CAVA Group, Inc. (NYSE:CAVA) was mentioned during the episode, and here’s what Cramer had to say:

“Over the past month or so, the vast majority of stocks have rebounded from their lows. Some truly great names are still way off their highs. Take CAVA Group, the Mediterranean restaurant chain that I’ve been recommending for the past 18 months because I think it’s a tremendous regional to national growth story… CAVA will be going up against some tough comparisons in the future, though I remain in the same place on this one.

I view CAVA as a long-term growth play, or what’s known as a compounder on Wall Street, we like those, which grows and grows steadily over a long period of time. Even after the stock’s big pullback from its highs, this isn’t a value play by any stretch of the imagination as CAVA still sells for north of 150 times earnings. Nobody says it’s cheap. These great growers don’t come cheap. I just think it’s a situation where the scale of the opportunity is much, much larger than CAVA’s current $11 billion market capitalization….

Even if the market rolls over and CAVA pulls back again, then I once again view that as an opportunity to build a position, just like when I told you to buy the stock back at 77 in April. Despite the hand ringing about the economy, I’ve not seen anything to make me believe that CAVA can’t still become the great next story. And I’m talking about yes, when we talk about restaurants, maybe the next Chipotle, as long as the regional and national expansion is on track, and it is, this one should have plenty more upside. Great opportunity here.”

CAVA Group, Inc. (NYSE:CAVA) runs a restaurant chain under the CAVA brand and sells dips, spreads, and dressings in grocery stores. The company also offers digital ordering through its website and mobile app. Near the end of April, Cramer commented that the company could have a big run, as he said:

“I like it here. I like it here for the long term. Why? Because I think the Mediterranean is a kind of food that can be like Chipotle, it can be the previous, you know, just the way Chipotle had a big run. I think Cava can too.”

6. CoStar Group, Inc. (NASDAQ:CSGP)

Number of Hedge Fund Holders: 56

A caller asked for Cramer’s thoughts on CoStar Group, Inc. (NASDAQ:CSGP), and this is what he had to say in response:

“Okay, normally this, and I know these guys, normally it would be good to have the analytics involving commercial real estate, but right now, commercial real estate is not doing well in this country, and we know that. So that’s their core fundamental business, and yet the stock sells at a very high price-to-earnings multiple. It does make money, though, but it’s not for me.”

CoStar Group (NASDAQ:CSGP) offers data, analytics, and online platforms that support real estate research, marketing, and transactions. The company’s tools and marketplaces serve a wide range of users involved in buying, selling, leasing, and managing property and businesses. Baron Technology Fund stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2025 investor letter:

“CoStar Group, Inc. (NASDAQ:CSGP) is the leading provider of information and marketing services to the commercial and residential real estate industry. Shares rose on an increase in the productivity of CoStar’s sales force and signs of a start to the recovery of the commercial real estate market. Mixed results around net new sales following CoStar’s significant investment in residential product Homes.com had pressured shares. We remain encouraged by growth in both traffic and brand awareness for the new product and are optimistic that the build out of a dedicated sales team as well as the potential benefits of changes in Multiple Listing Service practices will improve residential sales momentum. We also believe growth in CoStar’s non-residential business is poised to accelerate. Sales productivity has begun to improve as salespeople return to exclusively selling their core product, and we expect this to be amplified as the sales force expands by 20% or more in 2025. We believe the value of CoStar’s core non-residential business exceeds the share price, implying that investors ascribe negative value to the residential opportunity.”

5. Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders: 78

During the lightning round, a caller asked about Arista Networks Inc (NYSE:ANET). This is what Mad Money’s host had to say:

“Arista Networks had a better quarter this time than the previous quarter. At the same time, I will tell you, here’s what concerns me: I think Cisco did a better job this quarter and is taking some of their business. I’d rather have you go with Cisco, which is a much cheaper stock.”

Arista Networks (NYSE:ANET) develops and sells networking solutions that support data centers, cloud infrastructure, and AI systems. The company’s products include a custom operating system, network software, and support services for a wide range of industries. On May 2, Cramer said the following about Arista (NYSE:ANET):

“Arista Networks is a crucial part of the data centers, and it reports. And last time, the doubters surfaced immediately, claiming that these guys were losing share. I think Arista can put those doubts to rest when it’s, you know, honestly, they can, and that means it’s a buy ahead of the quarter. Never count out CEO Jayshree Ullal. Big mistake. Think about buying Arista.”

4. Fiserv, Inc. (NYSE:FI)

Number of Hedge Fund Holders: 80

When a caller inquired about Fiserv, Inc. (NYSE:FI), Cramer said:

“Yeah, I gotta tell you, this is one where I said I’ve gotta take my time and figure out what the heck is going wrong with Fiserv. This was just a disaster, and I’ve gotta know more because I don’t like what I’m hearing.”

Fiserv (NYSE:FI) delivers technology solutions for payments and financial services, including digital commerce, card processing, fraud protection, and banking software. The company’s products support businesses, financial institutions, and public sector clients through a range of digital and physical payment tools. In March, Mad Money’s host called it “one of the greatest fintechs,” as he said:

“I think they’re one of the greatest fintechs. You know, everyone wanted to go into the really fancy new fintechs. You stick with the one that you have, you are doing really well.”

3. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 144

A caller inquired about Netflix, Inc. (NASDAQ:NFLX), and Cramer said:

“Well, you know what? When you have a stock like Netflix, you gotta do two things. One is you gotta take out your cost basis, which allows you to be able to play with the house’s money. And two is, forget about it, let it run. Once you take out your cost basis, what happens? You can’t lose money, and that’s the way you invest in this country.”

Netflix (NASDAQ:NFLX) offers entertainment content such as TV shows, movies, documentaries, and games, which users can stream on internet-connected devices. The company’s platform features a wide range of genres and languages. In the last week of April, Cramer said that Netflix (NASDAQ:NFLX) “can continue to climb over the long haul.” He commented:

“Last, but certainly not least, is Netflix, the best-performing major stock since the show first went on the air. This had a staggering 82,000% gain. You’d be rich by any stretch of the imagination, no matter almost how little you put in when we started the show. Netflix invented the entire streaming video category. It was back in 2005. They were still doing DVD rental by mail and this was another one that I think was incredibly obvious. Netflix has essentially won versus traditional media at this point, but they’re not standing pat, not at all. Still improving the service as much as possible, which is why I bet this one can continue to climb over the long haul [buy, buy, buy].”

2. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 150

A caller asked what they should do about and in response, Cramer said:

“Okay, we got the first good news in UnitedHealth since all these problems have come about, and that there was a lot of insider buying today. So you have to ask yourself, why would they buy if they felt that they were going to have a big problem with the Justice Department? That made me feel like that maybe the heat’s going to be off of it for a little bit, but I am not happy with UnitedHealth, and I would sell, I would use strength to sell even more. Why? Because we gotta find out about what Justice is going to do, and even the insider buyers may not know what they’re going to do. Justice is what I call a wild card.”

UnitedHealth (NYSE:UNH) provides a wide range of healthcare services, including insurance plans, care delivery, data analytics, consulting, and pharmacy benefit management. The company’s offerings support individuals, employers, healthcare providers, and government programs. Here is what Cramer had to say about UnitedHealth (NYSE:UNH) on May 6:

“Okay, it’s going to be under pressure for some time because a lot of companies really, a lot of big pension funds and mutual fund managers, thought everything was perfect. But I am going to say today at $400, I would indeed start a position. I have been very negative on UnitedHealth from 630 down to this caller right here. I would start a position at 400 bucks. That’s a big change for me.”

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 181

A caller asked if Cramer would reaffirm his rating of Visa Inc. (NYSE:V) from a few months ago, and he replied:

“Absolutely, I think Visa’s sensational. By the way, just so we know, I don’t want to slight Michael Miebach, Visa, and MasterCard are both great. MasterCard’s actually growing a little bit faster, but they are both fabulous companies. We own that one for the Charitable Trust. It made us so much money, we got greedy, we fell, and then all it did was go up further. They’re both terrific stocks.”

Visa (NYSE:V) provides payment processing technology and a variety of card products, along with solutions for fraud prevention, digital payments, and business-to-business transactions. The company supports merchants, financial institutions, and governments with services designed to improve payment security and efficiency. Cramer showed his bullish sentiments toward Visa (NYSE:V) previously as well, as he said in March:

“Watch fintech. Fintech bottoms before actual fin. Fintech is like the best place to be, you know Mastercard is a travel, travel related company. I would watch that. I would watch Visa. Another travel related company. Because those have been part of the cohort. If they can overcome travel and the Affirms of the world can overcome the buy-now-pay-later, you’re gonna see a rally. You will see a rally.”

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