On Tuesday, Mad Money host Jim Cramer addressed the stock market’s decline, pointing to recent developments from the White House and the upcoming labor report as sources of investor anxiety. He acknowledged that news from the White House has rattled the markets, which caused a drop in stocks, and provided guidance on how investors should approach such turbulence.
“First: let’s not jump to conclusions based on a single session… Second-best course of action: you just need to sit on your hands and watch. Don’t bite on what’s rallied. You won’t be rewarded as there’s no recession coming.”
READ ALSO: 11 Stocks Jim Cramer Was Focused On and Jim Cramer Shared Insights on These 18 Stocks.
Despite the negative market sentiment, Cramer maintained that holding on to large-cap tech stocks remains a smart strategy and encouraged investors to stay committed to growth names in the tech space. He also pointed to what he called “the cavalry” arriving in the form of lower interest rates and a significant stimulus package. He explained that the legislation is filled with provisions benefiting industry, which in turn creates a positive backdrop for the market.
“Here’s the bottom line: I made a big study of days like today for my book, which comes out at the end of the month, How to Make Money in Any Market. Days like today are the reason why an Apple or a Microsoft, or yes, NVIDIA, haven’t made more people millionaires. Days like today are… dispiriting, they’re painful, and they usually aren’t alone. You have to trust the companies you believe in. Trust the market. That’s the only way to make big money in stocks long term. And it happens every time there’s been a sell-off like today, since 1982, when I first walked down Wall Street on my way to Goldman Sachs.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 2. 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 7 Stocks Under a Microscope
7. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks that Jim Cramer put under a microscope. Discussing Elliott Management’s stake in the stock during the episode, Cramer said:
“If you study Elliott, as I have, you recognize that these guys aren’t gunslingers and they aren’t pirates. They’re thoughtful, intelligent people who do a tremendous amount of work, and they want the stock they invest in to go higher, something that the company CEO should want too. When CEOs discover that smart activists… have taken a stake and want change, I tell them to welcome thoughtful activists, sit down with them, work with them…
PepsiCo has tremendous brands that could be worth a lot more than the company stock is selling… PepsiCo had always supported a premium price-to-earnings multiple to Coca-Cola in part because FritoLay is a remarkable food brand and PepsiCo is a great growth beverage company. But that’s no longer the case, and that’s a real negative turnaround. PepsiCo has assets all over the place, and turning a company into, it’s like an array of cats and dogs that cannot stand…
Frankly, I’m not sure what I would do. I don’t really have a solution for [the] GLP-1 problem… There has to be a core to the business, and I don’t feel there’s a core there anymore. Otherwise, we’d still own PEP for the Charitable Trust like we used to.
I don’t know what will happen here, but I would say that the stock isn’t up enough after today, given the agitation I expect from the smartest activists in the business. I would say, though, that if I were running the company, I’d definitely want to brainstorm with Elliott. PepsiCo can and again will be, if they listen, the premium food and beverage company, but not if it keeps being run the way it’s managed now.”
PepsiCo, Inc. (NASDAQ:PEP) produces and markets a wide range of beverages and convenient foods, including snacks, cereals, dairy, and ready-to-drink products. Its portfolio includes brands like Lay’s, Doritos, Gatorade, Quaker, Mountain Dew, and Pepsi.
6. Signet Jewelers Limited (NYSE:SIG)
Number of Hedge Fund Holders: 36
Signet Jewelers Limited (NYSE:SIG) is one of the stocks that Jim Cramer put under a microscope. Cramer mentioned that he has been “keeping track” of the stock for a long time, as he commented:
“Alright, what managed to rally in spite of today’s overall ugly tape? How about Signet Jewelers, the parent of Kay Jewelers, Zales, and Jared? This morning, Signet reported a healthy revenue beat and an enormous earnings beat, management raising their full-year forecast. We like this. Now, you know, I’ve been keeping track of this one for a long time, often speaking with former CEO Gina Drosos… She stepped down in November.”
Signet Jewelers Limited (NYSE:SIG) is a diamond jewelry retailer that provides a wide range of jewelry through brands like Kay, Zales, Jared, Blue Nile, and James Allen, alongside its diamond sourcing and polishing services. Around a year ago, Cramer mentioned the company in an episode of Mad Money and said:
“Now, it’s a very quiet time for corporate earnings, but not on Thursday. At the open, we hear from Signet Jewelers. Signet is a total hot-button story because we’ve seen a terrific string of quarters—until the last one, which was definitely poorly received. I think CEO Gina Drosos has really turned the company around. She’s been on the show many times, and while there are some hiccups, I believe the stock is relatively inexpensive. That said, Signet is such a wild trader that I’d put it in the category of “not for the squeamish.”
Since the above comment, the stock is down over 26%.
