On Tuesday’s episode of Mad Money, host Jim Cramer broke down the day’s turbulent market activity as he highlighted a shift in investor sentiment.
“This was a day of turmoil because the stocks that have been beaten up endlessly, mainly the foods and the drugs and their fellow travelers in the restaurant space, all rallied while the speculative stocks and anything involving the data center, it’s been so hot, they get blown out of the water.”
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Cramer questioned why the rotation was happening in the first place. He believes that once again, traders are focused on interest rates and are bracing for the possibility of a recession. He noted that the anticipation is driving investors to pile into sectors that tend to perform better during economic downturns, while cashing out of recent winners.
To Cramer, the market is simply going through a phase where the high performers needed to take a breather, and the laggards were finally catching a bid. He pointed out that these kinds of rotations typically drain momentum for about three days, and in his view, Tuesday marked just the beginning of that cycle.
“The bottom line: Okay, listen to me, I say, let the rotation play out. Give it some space. The stocks that are rallying have been down for days, maybe weeks, maybe even in some cases, months. They aren’t going to start going down again until we forget what Stargate was… and we get a couple of earnings reports from the consumer staples that are disappointing. Well, you can certainly count on those… Then, we’ll be back buying all that stuff, including… Palantir… but not until then, so don’t jump the gun.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on July 22. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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 Recently Commented on These 6 Stocks
6. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 91
Lam Research Corporation (NASDAQ:LRCX) is one of the stocks that Jim Cramer recently commented on. During the episode, Cramer recommended against buying the company stock, as he remarked:
“It would be best to accept that the food and drugs can have a couple of days in the sun, can’t they? The old leaders pulled back a little, can’t they? Don’t be in a hurry to buy Lam Research or Applied Materials or KLA… not after we had Texas Instruments on tonight, and I wouldn’t step in front of the falling knives that represent any of the meme stocks…”
Lam Research (NASDAQ:LRCX) develops equipment used in semiconductor manufacturing and provides advanced systems for deposition, etching, and cleaning processes important to integrated circuit production. During a March episode, Cramer said that he “would own the stock.” He commented
“I like Lam very much. Right now, it’s in the crosshairs of a lot of different geopolitical concerns. It’s one of those stocks that I think is deeply involved with the negativity right now. It’s a shame because Tim Archer’s not a negative guy and they are a fabulous company. I would own the stock.”
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 71
PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks that Jim Cramer recently commented on. During the episode, Cramer noted that the company “sold a ton of junk food” despite the rise of GLP-1 weight loss drugs. He remarked:
“PepsiCo’s now up almost 20 points from its low. Why? It’s important to remember that PepsiCo reported a terrific quarter with sugar water, and Frito-Lay, two categories that were supposed to be on life support thanks to the rise of the GLP-1 weight loss drugs; those injections reduce your craving for junk food. PepsiCo sold a ton of junk food.”
PepsiCo (NASDAQ:PEP) produces a wide range of beverages and packaged foods, including snacks, cereals, dairy products, and ready-to-drink offerings, and sparkling water systems. On July 11, Cramer called it a stock “too cheap relative to its growth rate.” He said:
“If you want to know a stock that’s too cheap relative to its growth rate, but nobody talks about it anymore, why don’t you check out the stock of PepsiCo? It trades at a stunningly low 17 times earnings. I mean, what gives? Well, how about GLP-1 drugs? How about RFK Junior at Health and Human Services, who despises junk food even as he seems to embrace junk science? How about the desire to stay healthy? All these have weighed on PepsiCo stock. Of course, don’t forget they own Frito-Lay. Maybe it’s finally overdone. I don’t know it. It’s a tough industry all of a sudden.”
4. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 43
General Mills, Inc. (NYSE:GIS) is one of the stocks that Jim Cramer recently commented on. During the episode, Cramer put the stock in comparison with PepsiCo, as he said:
“I’m not going to go against a market that’s signaling that interest rates are coming down. That’s what today did. And the high fliers have flown too high, while the companies with good dividends have gotten too low. This is just temporary. So what are you supposed to do then? First, know that the rotations are not investible, but at best, they’re tradable. Take Campbell’s or General Mills, both yield almost 5%. Both are good companies, just not as good, maybe not as good as PepsiCo, but they’re in the same league… So if people are craving chips and soda again, maybe they’ll also crave food from General Mills and Campbell’s, neither of which has the calories of Doritos or the chemicals of soda.”
General Mills (NYSE:GIS) develops packaged foods across categories like cereal, snacks, frozen meals, dairy, baking, and pet nutrition. In a June episode, Cramer discussed the company’s earnings. He said:
“Finally, there are the miserable consumer packaged goods plays. Oh my god, they’re so horrible. Today, the once invincible General Mills… put up incredibly weak numbers. The General used to be the most clockwork of the group. Today, the stock slipped over 5%. Amazing. Look, if you listen to management on the conference call, they don’t even sound challenged. It seems like they think it’s business as usual. They chatter on and on about some algorithm that gives them the numbers they want, but they don’t seem to understand that they gotta cut price big time or do some merging in order to make things palatable.”
3. The Campbell’s Company (NASDAQ:CPB)
Number of Hedge Fund Holders: 30
The Campbell’s Company (NASDAQ:CPB) is one of the stocks that Jim Cramer recently commented on. During the episode, Cramer called it a good company as he commented:
“I’m not going to go against a market that’s signaling that interest rates are coming down. That’s what today did. And the high fliers have flown too high, while the companies with good dividends have gotten too low. This is just temporary. So what are you supposed to do then? First, know that the rotations are not investible, but at best, they’re tradable. Take Campbell’s or General Mills, both yield almost 5%. Both are good companies, just not as good, maybe not as good as PepsiCo, but they’re in the same league… So if people are craving chips and soda again, maybe they’ll also crave food from General Mills and Campbell’s, neither of which has the calories of Doritos or the chemicals of soda.”
Campbell’s (NASDAQ:CPB) produces food and beverage products, including soups, sauces, juices, frozen meals, snacks, and bakery items. The company distributes them through retail, foodservice, and e-commerce channels.
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
The Procter & Gamble Company (NYSE:PG) is one of the stocks that Jim Cramer recently commented on. During the episode, Cramer mentioned the stock and said:
“Sometimes you get these days where it feels like the market has returned to some semblance of what you’re used to when things get shaky. I mean, these are the days when… Procter & Gamble has a big run… I think you’d be coming in a little too early at this point in the rotation. My guess is that there’ll be maybe two or even maybe three days where interest rates are lower. This was day one, and you have to wait as the food and drug analysts come out from under the table and start bragging loudly about their flock and about how it’s time to buy. That’s what those guys always do. See, I can see where Procter & Gamble could have another good day, maybe even two, based on the weaker dollar. What analysts could resist a price target boost there?”
Procter & Gamble (NYSE:PG) produces a broad portfolio of well-known branded consumer goods that include personal care, grooming, health, cleaning, and hygiene products. On July 1, Cramer recommended the stock as a consumer packaged goods pick. He remarked:
“You want consumer packaged goods? Well, then that’s easy. You buy Procter & Gamble because the dollar’s been incredibly weak and the company’s the principal beneficiary in the S&P 500 of a weaker dollar. They sell a ton of merchandise, overseas has suddenly gotten a lot more competitive.”
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 91
Johnson & Johnson (NYSE:JNJ) is one of the stocks that Jim Cramer recently commented on. Cramer discussed the stock in light of its latest quarter and analyst sentiment around it. He said:
“Sometimes you get these days where it feels like the market has returned to some semblance of what you’re used to when things get shaky. I mean, these are the days when J&J will reign supreme… My guess is that there’ll be maybe two or even maybe three days where interest rates are lower. This was day one, and you have to wait as the food and drug analysts come out from under the table and start bragging loudly about their flock and about how it’s time to buy. That’s what those guys always do… Which analysts are going to resist going out positive on J&J, which has moved up every day seemingly since the last quarter, maybe since they announced that quarter. Maybe the food analysts can talk up mergers… They’re reasonable presumptions, and they’ll preclude a serious tech rally or a speculative surge. Hear what I said, preclude. It’s still too early to buy the momentum stocks.”
Johnson & Johnson (NYSE:JNJ) develops and sells a wide range of healthcare products, including prescription treatments for major diseases and advanced medical technologies.
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