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.”