On Wednesday’s episode of Mad Money, host Jim Cramer addressed the recent pressure facing pharmaceutical stocks and weighed in on whether the group is worth considering again.
“At last, the drug companies are trying to reclaim their old mantle as the safest place to be in a slowdown. Historically, I’ve liked the healthcare sector, but not since Donald Trump was reelected president.”
READ ALSO Jim Cramer Was Focused on These 15 Stocks Recently and Jim Cramer Recently Expressed Thoughts on These 18 Stocks
Nonetheless, Cramer acknowledged that it is an expensive and high-risk endeavor in which most compounds fail before reaching the market. Despite that, he emphasized that if scientific breakthroughs require consumers and investors to accept higher costs, he is willing to support that tradeoff. Cramer questioned whether drug stocks are worth buying after a two-day rally. He suggested that certain names in the space deserve attention.
“We know that classic safety stocks like the consumer packaged goods plays have failed to provide any safety in this environment, even the ones with large dividends. But the drug stocks with good growth, and that’s the key thing, good growth, feel safe again. If you’ve held off on buying this group, I think you should maybe wait for the next pullback and pounce. I just don’t know if we’re going to get one.”
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 October 1. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Put These 15 Stocks Under the Microscope
15. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 115
Danaher Corporation (NYSE:DHR) is one of the stocks Jim Cramer put under the microscope. Cramer discussed it while highlighting the performance of healthcare stocks. He said:
“Some of these healthcare stocks seem played out already to you, perhaps. I mean, Merck was up 7% just today. Charitable holding Danaher also leaped more than 7%. But these stocks have been down so long, they look up to me. I believe they’ve got a lot more upside before they run out of steam. My Charitable Trust owns Danaher, and it has been a huge disappointment. It needs to demonstrate it can capitalize off of all the new drug companies coming public right now, or it will go back to the 180s.”
Danaher Corporation (NYSE:DHR) develops medical, life sciences, biotechnology, and diagnostic products, including bioprocessing technologies, lab equipment, genomic tools, and clinical instruments. Cramer mentioned the stock during the July 24 episode and said:
“Now, we bought this one in early 2022… I expected the business to stabilize and the stock to make a comeback like that. But for one reason after another, Danaher never really found its footing…
When Danaher reported on Tuesday morning, it almost gave me a heart attack because the stock immediately got clobbered. The company actually delivered a pretty good set of numbers, a healthy revenue beat, steady organic growth, and better than expected margins, all leading up to a 16-cent earnings beat off $1.64 basis. I like that…
… Putting aside China, I think there was far more good news than bad news in this quarter. For example, while all three of Danaher’s core segments reported better than expected results, their highest margin biotechnology segment led the way, that had 8% sales growth. That’s 150 basis points of operating margin expansion and operating income of more than 12%. Wow, that’s very good…
… Here’s the bottom line: It’s been very tough to be a bull on Danaher for the past couple of years, and the company’s still not perfect. But I think we’ve finally reached the tipping point here now that the core bioprocessing business is on the rebound. That’s why we’re sticking around for the Charitable Trust and why you have my blessing to pick up some of the stock right here.”
14. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer put under the microscope. Cramer recalled his discussion with the company’s CEO, and commented:
“What else might work? Last Friday on the show, we had Joaquin Duato. He’s the CEO of Johnson & Johnson, and he told a remarkable story about game-changing cancer drugs and medical devices, especially their excellent cardio products. Now, I’ve been worried about the talc lawsuits that they have, but I believe the risk from the asbestos and the baby powder litigation has crested as J&J’s been winning the cases, and it’s planning to keep fighting them one by one. Eventually, I bet the plaintiffs will realize it’s just too costly to keep on taking J&J.”
Johnson & Johnson (NYSE:JNJ) develops pharmaceuticals and medical technologies spanning immunology, oncology, neuroscience, infectious disease, cardiovascular care, and pulmonary hypertension. In addition, the company provides surgical solutions, orthopedics, vision care, and neurovascular products.
13. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer put under the microscope. Cramer highlighted the importance of the company’s GLP-1 drug, as he stated:
“I suggest, for example, that you consider Eli Lilly because of its remarkable GLP-1 diabetes and weight loss drug. Those are the most obvious uses. But when this year is over, I gotta tell you something, I think it could be used for everything from the silent killer of hypertension to dementia, and yes, alcoholism. Lilly’s stock has been stalled because of the drug’s clumsy delivery mechanism.
It’s an injectable that needs to be refrigerated. Not ideal, but Lilly’s testing a one-a-day pill… that could alleviate the principal objections to the life-saving weight loss drug. It will expand the market in a huge way. Unfortunately, both the injectable and apparently the pill take off all body weight, not just fat. Still, a successful pill could take Lilly’s market cap from $781 billion, where it is now, into the trillion-dollar winner circle. That makes it worth buying even up here.”
Eli Lilly and Company (NYSE:LLY) develops and markets pharmaceuticals for diabetes, obesity, oncology, immunology, neuroscience, and gastrointestinal conditions.
12. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders: 64
Atlassian Corporation (NASDAQ:TEAM) is one of the stocks Jim Cramer put under the microscope. A caller asked for an opinion on the stock, noting its sharp decline from a 52-week high of 325 to a low of 150 and expressing interest in buying in. Cramer replied:
“No, see, TEAM is being hurt by the same thing. It’s hurting a lot of this, the other companies in the software business. People feel that they can create their own product that’s just as good as TEAM using artificial intelligence. That’s why I no longer recommend the stock of TEAM.”
Atlassian Corporation (NASDAQ:TEAM) develops collaboration and productivity software that connects teams and streamlines workflows. Its portfolio includes Jira, Confluence, Trello, Loom, Bitbucket, and AI-driven tools like Rovo to improve teamwork and efficiency. Artisan Partners stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its second quarter 2025 investor letter:
“Among our top detractors were Baker Hughes, Argenx and Atlassian Corporation (NASDAQ:TEAM). Atlassian is a leading provider of innovative, customizable team collaboration software tools. The company reported modestly disappointing quarterly results in May, following two prior quarters of solid results, due in part to delays in signing some large enterprise contracts. Other potential headwinds, such as tariff pressure on customers’ software budgets and the potential impact of artificial intelligence (AI) on knowledge worker jobs, also weighed on investors. We have been monitoring these potential headwinds but don’t see any change in Atlassian’s long-term profit cycle, and we remain confident in the potential of several company-specific, multiyear growth drivers. And with the hiring of a new chief revenue officer in late 2024, Atlassian is working to enhance its senior management talent in sales, marketing and R&D. With the stock trading at an attractive valuation, we added modestly to our position.”
11. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 117
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the stocks Jim Cramer put under the microscope. When Cramer was asked about the stock, he commented:
“Oh yeah… they really got hurt by COVID. I gotta tell you, as good as Marc Casper is at Thermo Fisher, I’m still saying that Danaher’s better. They’ve both been in the same junk heap, and they shouldn’t have been. Danaher, I think, has got more going for it right now than Thermo Fisher. I would do DHR. That’s a club name.”
Thermo Fisher Scientific Inc. (NYSE:TMO) provides life sciences solutions, analytical instruments, diagnostics, lab products, and biopharma services. When a caller inquired about the stock in the June 27 episode, Cramer responded:
“This stock is unbelievable. It was a, it’s a great company. Marc Casper does a terrific job, but we own Danaher for the Charitable Trust, and it’s as bad as Thermo Fisher. I am urging you to not buy it till we see a pickup in Chinese orders. I know that seems strange, but this stock has crushed a lot of people. It does seem like it’s bottoming, but I am not going to push it because it’s related to China, and anything related to China is bearish.”
10. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 104
Vertiv Holdings Co (NYSE:VRT) is one of the stocks Jim Cramer put under the microscope. When a caller asked about the stock during the lightning round, Cramer commented:
“Vertiv, I think, is going much higher. I’ve gotta tell you something. I was giving Jeff Marks such a hard time today. I keep saying Vertiv, Vertiv, Vertiv, but it’s moved so much in the times that I’ve been saying it that we haven’t been able to pull the trigger. It happens sometimes. We just can’t go fast enough.”
Vertiv Holdings Co (NYSE:VRT) provides power, thermal management, and digital infrastructure solutions alongside lifecycle and professional services for data centers and critical industries. Cramer discussed the stock during the September 10 episode and said:
“When Jeff Marks and I were going over what we want to take out of our bullpen, what do we want to add to the bullpen? Vertiv. Why? Because when you see those data center numbers like we saw from Oracle, that is a check to Vertiv, and Vertiv does a lot of the private label making of the air conditioner for all these other companies you hear about. That’s the one I think is in the bullpen…”
9. Microvast Holdings, Inc. (NASDAQ:MVST)
Number of Hedge Fund Holders: 11
Microvast Holdings, Inc. (NASDAQ:MVST) is one of the stocks Jim Cramer put under the microscope. A caller asked for Cramer’s take on the company, given its focus on battery technology and production. In response, he said:
“Alright, that’s a great spec for now. We know that there’s a lot of interest in Washington on battery. We’ve seen that. Therefore, it could extend to these guys. I don’t know if it’s the case, but I’d hold onto it.”
Microvast Holdings, Inc. (NASDAQ:MVST) develops and manufactures lithium-ion battery technologies, components, and chemistries for electric vehicles and energy storage. The company announced its 6-month results on August 11, reporting a net loss of $44.3 million, compared to a net loss of $126.4 million during the same period last year. The company generated a revenue of $207.8 million, up 26% year-over-year. For the full-year 2025, Microvast Holdings, Inc.’s (NASDAQ:MVST) management expects 18% to 25% revenue growth year-over-year.
8. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 39
Sunrun Inc. (NASDAQ:RUN) is one of the stocks Jim Cramer put under the microscope. Answering a caller’s query about the stock, Cramer said:
“Yeah, I’ll tell you my problem. There was a piece that came out today. The stock has had such a big move. I’m quite, it’s not a bad stock and it’s not expensive, let’s just say that.”
Sunrun Inc. (NASDAQ:RUN) provides residential solar energy systems, panels, and storage solutions, and also provides services to commercial developers. When a caller inquired about the company’s stock during the April 15 episode, Cramer replied:
“No, no, this president is not, I’m not saying he’s not a fan of solar, I mean, he doesn’t like the way windmills look. I don’t know how he is like on hydro. Maybe he’s how he is on like sticks rubbing against each other… But I’ll tell you that Sunrun is not in that purview. It’s not in that area that’s a sweet spot. How about that? It’s not a sweet spot. I like that. It’s very, it’s very congenial. Yeah, very congenial.”
7. Tencent Music Entertainment Group (NYSE:TME)
Number of Hedge Fund Holders: 31
Tencent Music Entertainment Group (NYSE:TME) is one of the stocks Jim Cramer put under the microscope. During the lightning round, a caller inquired after Cramer’s thoughts on the stock, noting that it has gone down from $26 and change to $23. He replied:
“You know what? Look, that’s, we’ve made a lot of money in that. We’re moving on. We’re going to stick with BABA when it comes to China. That’s about it.”
Tencent Music Entertainment Group (NYSE:TME) provides music streaming, karaoke, long-form audio, and live streaming services through platforms like QQ Music, Kugou, Kuwo, and WeSing. The company also generates revenue from subscriptions, advertising, digital albums, merchandise, concerts, and artist management. It is worth noting that Cramer discussed the company after its IPO in December 2018. He commented:
“The political risk is too great, even as the company has nothing to do with the tariffs… But if you think the trade talks will produce a workable agreement, then this may actually be the Chinese stock that you want to buy.”
6. Fermi Inc. (NASDAQ:FRMI)
Number of Hedge Fund Holders: N/A
Fermi Inc. (NASDAQ:FRMI) is one of the stocks Jim Cramer put under the microscope. Cramer said that it is too early for him to be comfortable recommending the stock. He stated:
“Now, I find that this whole thing is kind of astonishing. See, this is a company that didn’t exist at the beginning of the year. Right now, I think it’s kind of more of a business plan than an actual business… Given the nature of this business, it could be a long, long time before these guys are turning a profit. So the restructure, I found it was quizzical. By the way, in case you hadn’t gathered this by now, there are really no financials to discuss with Fermi at this point. The company hasn’t had any revenue, and it’s incurred a little over $6 million in expenses through its first nine months of existence…
I want to steer clear of this one. Again, this is more of a business plan than a business. I like hope, you know that. To be fair, Fermi seems like a, it’s got a pretty well thought-out plan, and if it all works out over the next decade, then maybe you can justify the stock’s current $19 billion market capitalization. In my view, though, no business plan is worth 19 billion… See, I’m not just ready to take that leap of faith. I think this company’s a long, long way from having a real business that we can assign a legitimate valuation to.
So far, Fermi raised $350 million over the summer and another 600 to 700 million today with the IPO. Unfortunately, if you want to build a nuclear power plant and a big data center campus, that’s nowhere near enough money. So where are they going to get it?
Here’s the bottom line: I generally do not want to root against the data center stocks because I like so many of them. But when something as ill-advised as Fermi can come public with a bang like this, it makes me nervous. This one’s way too early, frankly, and too, let’s say, half-baked for me to feel comfortable recommending it.”
Fermi Inc. (NASDAQ:FRMI) is developing large-scale next-generation electric grids designed to power advanced artificial intelligence. The company’s planned campus will integrate nuclear, natural gas, solar, battery storage, and utility power to deliver highly redundant gigawatt-scale energy.
5. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 53
Peloton Interactive, Inc. (NASDAQ:PTON) is one of the stocks Jim Cramer put under the microscope. A caller inquired about the company’s potential for growth, noting they hold shares purchased at just under $10. Cramer stated:
“I didn’t really care for the report to be honest. I was kind of thinking, now wait a second, wasn’t this something, a quarter that I thought would be breakout? I also think that they’re a little bit too hype oriented for me, so I’m going to say no. And I like subscription businesses, but I’d rather be in a subscription business that is more like say Spotify or a Costco or Amazon.”
Peloton Interactive, Inc. (NASDAQ:PTON) provides connected fitness equipment, including bikes, treadmills, and rowers, along with app-based and membership services. During the lightning round of the June 6 episode, a caller inquired about the stock, and Cramer responded:
“Well, you know, it is a subscription business, and I like subscription businesses. I think that they work, but I don’t think they have the growth. So, therefore, I’m going to say if you want a subscription business, I want you to be in Spotify.”
4. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 81
NIKE, Inc. (NYSE:NKE) is one of the stocks Jim Cramer put under the microscope. Cramer highlighted that the stock is being added to the Charitable Trust portfolio. He said:
“Overall, I thought this quarter was a major step forward, and clearly buyers agreed, because the stock really roared today. Okay, that said, let me throw some cold water on what I’m saying. Turnarounds take a long time. This is really just the beginning… And look, Nike’s definitely still has a lot of room for improvement… Beyond the company’s specific challenges, Nike has to contend with a major industry headwind, and that’s, as you probably guessed, tariffs…
So here’s the bottom line: After last night’s earnings report, I feel a lot more confident in Nike’s ability to turn itself around, which is why we’re adding to our position in this one for the Charitable Trust this very morning. In a very tough environment, Nike’s doing great things to the power of competent leadership. I like that. In short, Elliott Hill is a gamer, a lover of sport, and a person who respects his customers while revering the institution that is Nike. He knows they need to reconnect, and it’ll be hard work. But with him at the helm, I’m betting a $74 stock can go to $100.”
NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic and casual footwear, apparel, equipment, and accessories under brands like Nike, Jordan, and Converse.
3. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders: 52
Jabil Inc. (NYSE:JBL) is one of the stocks Jim Cramer put under the microscope. Cramer called it one of his favorites, as he commented:
“Right now, we’ve got a quiet bull market in what’s called contract manufacturers, although they do far more than that, the companies that provide outsourced manufacturing for all sorts of industries. Take Jabil, one of my favorites, which does manufacturing for everything from healthcare to autos to electronics and equipment that goes into the data center. This company’s been putting up excellent numbers, including last Thursday when Jabil reported a blowout quarter with better-than-expected guidance for the current quarter.
Bizarrely, the stock actually sold off in response. This has been happening quite a few times lately, losing almost 7% of its value in a single session, although since then, it’s recouped about a third of those losses. Now, some of that might be because Jabil’s revenue guidance seemed a little conservative. I think a lot of it’s just profit taking in a traditionally quiet company that’s seen its shares explode higher deservedly over the past year.”
Jabil Inc. (NYSE:JBL) delivers manufacturing, design, and product management services, including electronics design, prototyping, and system assembly. The company supports industries such as healthcare, automotive, cloud, mobility, and packaging with end-to-end production and engineering solutions.
2. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 70
Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the stocks Jim Cramer put under the microscope. A caller asked whether they should buy the dip, hold, or sell shares of the stock. In response, Cramer said:
“Okay, I think, first of all, let’s just discuss, this is Max Levchin’s baby, okay. I’ve had Max on a number of times. I have dealt with him a number of times. He is about as smart as anyone I have ever met, and he’s certainly the smartest in this group. I know there’s a lot of people gunning for him. They think that he can’t possibly continue the progress… He’s a genius. Is he the most fun guy to party with? I don’t know… I wouldn’t know. But I’ll tell you something. Is it a good stock to own? And the answer is absolutely yes.”
Affirm Holdings, Inc. (NASDAQ:AFRM) provides a payment platform that lets consumers split purchases over time through its point-of-sale solutions and mobile app.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer put under the microscope. During the show, a caller asked if it was time for them to sell their position in the stock, and Cramer replied:
“No, no, please. We just went through a huge bout of selling in Micron. I talked to Sanjay Mehrotra. I thought it was an absolutely terrific quarter. I think this stock’s got $200 written all over it. This is just a great buy-and-hold/homework. People keep trading in and out of it. You know what?… They miss all the gains. You haven’t. Stick with it.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage solutions, including DRAM and flash products, under brands like Micron and Crucial. Its technologies serve markets including data centers, mobile devices, PCs, automotive, and consumer electronics. Cramer discussed the company’s latest earnings during the September 24 episode. He commented:
“Last night, Micron reported… But the numbers were good, people. Ignore the trading. No, the numbers were like stellar… Micron only gives guidance for one quarter at a time. That’s been their tradition, but their outlook for the current quarter was excellent…
In short, Micron’s not just riding the data center wave like everybody else. They’re actively innovating and getting products that are ideally suited for the data center to market faster than the competition. And by the way, just so you know, these guys used to be behind a lot of the companies, like in Japan. They’re now ahead of them. And look, as strong as the data center business is, it’s not just the data center. Micron’s other top-end markets are also looking pretty good at this point, even if they’re not putting up the insane numbers…
Bottom line: Coming into Micron’s earnings, I was wondering if the company could report anything that could justify the stock’s incredible run. You know what? That’s exactly what they did. After this Titanic quarter, I think Micron can keep running. I just hope we get more pullbacks like this so that you can buy it on weakness. Yes, the Micron quarter really was that good.”
While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU) as an investment, our conviction lies in the belief that 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 MU 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. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
