Jim Cramer, the host of Mad Money, discussed the current economic outlook on Monday as he outlined why he believes the possibility of a recession this year may be less likely. He pointed out that while it is easy to be negative in the current climate, the situation is almost too obviously bad, which makes him hesitant to align with the pessimistic view.
“This morning, Craig Melvin interviewed me on the Today Show, and he correctly asked, are we going into a recession? I stuck my neck out and I said, no. Will the tariffs hurt? Yes. Will prices go higher? Yes. Could there be shortages? Absolutely.”
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Cramer emphasized that the way to understand whether a recession is likely often lies in employment figures. He noted that right now, there are more job openings than there are people to fill them. According to Cramer, the disparity makes it challenging for a recession to take hold in the near future. He recognized that some people would be impacted by corporate cost-cutting measures, often referred to as “mitigation” by CEOs.
“That’s the term CEOs are using when they talk about getting costs down to offset the impact of tariffs. Mitigation efforts usually mean taking supply chain costs out, but they also mean laying people off.”
However, Cramer noted that companies are not rushing to let go of workers because they fear they would not be able to rehire them when business conditions improve. He pointed out that, historically, economies tend to recover, and it is difficult to derail growth when so many jobs are still being created. Cramer expressed confidence that upcoming reports, including the monthly labor data due on Friday, would show a healthy job market, which would further complicate the notion of a recession.
“That will make it very hard once again to slip into a full-blown recession anytime soon, and perhaps in several quarters, we will have a more steady and predictable trade policy. Anything’s possible.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 28. 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 Recently Discussed These 9 Stocks
9. Rubrik, Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 41
A caller inquired about Rubrik, Inc. (NYSE:RBRK), and Cramer said:
“Okay, this is again, it’s another stock, Bipul Sinha came on the show. I thought he told an amazing story, cybersecurity. Do we need to be in a Mag Seven when we can be in a Rubrik?”
Rubrik (NYSE:RBRK) provides data security services for both individuals and organizations. The company’s products and services include protection for enterprise, cloud, and SaaS data, along with tools for identity security, threat detection, and cyber recovery. When Cramer was asked about the company in March, he said:
“They’ve had two great quarters. What can I say? I watch them when they’re on air and man, they are doing, they’re doing very, very well. And you know, I do like cybersecurity.”
8. FirstEnergy Corp. (NYSE:FE)
Number of Hedge Fund Holders: 42
A caller asked Cramer’s thoughts on FirstEnergy Corp. (NYSE:FE), and he said:
“You know, it’s not [a] great energy company. But you know what, it sells at a little bit cheaper than the others, and I think it’s a buy.”
FirstEnergy (NYSE:FE) generates, distributes, and transmits electricity using a mix of energy sources, including coal, nuclear, hydro, wind, and solar. The company manages extensive power lines for delivering electricity to customers. On April 25, Wells Fargo analyst Neil Kalton increased the price target on FE stock to $44 from $41 and maintained an Equal Weight rating. Following a more volatile Q4 update with lowered EPS guidance, the Q1 report was more stable. Wells noted that attention is currently on Ohio, where the base rate case is active and energy policy is moving forward.
7. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 48
A caller expressed that they wish to invest in 3D printing and asked if HP Inc. (NYSE:HPQ) was the way to do it. Cramer replied:
“It will not be the needle mover for HPQ, and I do not like the PC business. So I’m going to have to suggest that you do not buy that stock. If you look at how it’s done, it’s not been a good one.”
HP Inc. (NYSE:HPQ) provides personal computers, printing equipment, and related services. It also delivers solutions in digital access, graphics, and 3D printing. For the second quarter of fiscal 2025, the company expects its non-GAAP diluted net EPS to be between $0.75 and $0.85. Looking at the full fiscal year 2025, the company projects its non-GAAP diluted net EPS to be between $3.45 and $3.75. Additionally, it forecasts generating free cash flow between $3.2 billion and $3.6 billion for the same period.
HP Inc.’s (NYSE:HPQ) outlook considers the effects of higher tariffs on Chinese imports and the steps taken to manage these costs. The company expects that by the end of fiscal 2025, more than 90% of its products sold in North America will be produced outside of China.
6. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 60
A caller asked if it is a good time to add to their position in Lululemon Athletica Inc. (NASDAQ:LULU). Here’s what Cramer had to say:
“Alright, remember, we don’t care where a stock has come from, we care where it’s going. I do believe that at 17 times earnings, this stock is frantically trying to bottom. And I’m actually going to say, I have not said this before, I think if you want to put a small position on LULU, you can do it now.”
Lululemon (NASDAQ:LULU) manufactures, produces, and retails athletic clothing, footwear, and accessories. River Road Asset Management stated the following regarding Lululemon Athletica Inc. (NASDAQ:LULU) in its Q4 2024 investor letter:
“Lululemon Athletica Inc. (NASDAQ:LULU) was our largest new purchase last quarter (Q3) and the holding with the highest contribution to active return in the portfolio during Q4. As the pioneer of the “athleisure” industry, LULU has secured its position as North America’s leading athletic apparel retailer through its innovative technical fabrics and controlled distribution model. With 90% of sales through company-owned channels, LULU maintains exceptional brand integrity and pricing power. We believe this strategy has delivered outstanding results: 24% annual sales growth over the past five years and sustained 40%+ returns on invested capital. The company’s growth trajectory remains compelling, driven by rapid international expansion (~40% compound annual growth rate [CAGR] since 2019) and a thriving men’s business (~30% CAGR since 2019), while its robust balance sheet and disciplined capital allocation reinforce long-term value creation potential.
lululemon’s stock rebounded strongly in Q4 after the company reported robust performance metrics, including record Black Friday e-commerce traffic and the highest operating margin in a decade at 20.5%. While U.S. growth remained flat, the company’s premium positioning and controlled distribution strategy (avoiding broad sales events) drove adjusted gross margins up 40 bps to 58.5%, significantly outperforming guidance. International momentum continues to impress, with China growing 36% and Rest of World up 23%, while the company’s opportunistic capital return program, including $409MM in share repurchases during the quarter, further supported investor confidence in management’s execution and long-term value creation strategy. We trimmed the position as it approached our assessed value.”
5. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 67
A caller inquired about Take-Two Interactive Software, Inc. (NASDAQ:TTWO) during the lightning round, and Cramer commented:
“Okay, Take-Two is going up and has been going up endlessly because Grand Theft Auto, new edition, comes out this year. I’m not going to get in the way of that. This is an example of a kind of stock that I’m saying, why are we constantly focused on Mag Seven when you have a Take-Two Interactive that I think is going much higher?”
Take-Two Interactive (NASDAQ:TTWO) creates and distributes a wide range of video games across genres, including action, sports, and casual titles. The company’s portfolio features well-known franchises and mobile games designed for consoles, PCs, and mobile devices. On January 27, Cramer stated:
“I do want to point out that there’s a great UBS note about Take-Two. It’s in a different world from EA. It’s just on a better plane. It’s got Grand Theft Auto, uh coming out, and I would say that Strauss Zelnick is doing a remarkable job. This is their year. And if you believe in video games, then you don’t want to buy EA, you buy these guys. It’s for real.”
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
A caller asked if it was worth getting into Intel Corporation (NASDAQ:INTC) or if it is dead money. Cramer replied:
“Okay, right now it’s dead money, but Lip-Bu Tan is the real deal. If you wanted to buy some, I’m not going to fight you, but I will tell you that they need to raise money before they can rally. But if you think the stock’s going to be this low two years from now, I think you’re making a mistake. I believe in Lip-Bu Tan. He is [the] real deal.”
Intel (NASDAQ:INTC) develops and manufactures computing technologies that include processors, memory, and AI products. Cramer commented extensively on the company on Squawk on the Street in April, as he said:
[INTC] “I know. And you could talk about Intel, when it comes to that, also OpEx. Intel being a great manufacturer that is in no mood to be able to expand. Wow… I think people should read his [CEO’s] band of brothers speech about who is going to get there. It’s a very King Henry the Vth speeth, Christmas Day. I thought it was very inspirational. But they still have layers upon layers. I mean they’re now saying 17 billion in 25 and 16 billion that’s . . their OpEx, and they’ve cut their OpEx. I think that they have, I cannot believe the bureaucracy, Carl that Intel had, it’s just, it’s sad. I can’t believe how much bureaucracy and how engineers lost their ability to run the best engineering company we had in this country.
… Oh my, such a great speech and I was telling one of my contacts there I said listen I’m ready to go to war for Lip-Bu. You just say, he is gonna save this company… [On whether it was too late to save INTC] No, and this man has so may friends. . .he’s been success with. . maybe the most successful individual investor in hardware in history. Hardware, not enterprise software.
… And he’s so inspirational, in his own quiet way, and he knows so many people, he’s gonna fix this company but he would tell you, don’t count on me yet… I’m telling you, you want to win for this man. . . .He’s Andy Reed, quiet winner. I really like this guy… Well, Gelsinger was messianic, without a cause. . . .See, Pat was about himself. And this man has no ego whatsoever. He is about the team. And I have to tell you that this man is going to save this company and what he’s going to do, is not talk about it. Other than negative until it’s ready.”
3. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 83
Noting that the stock is down from its high, a caller asked if their son should avoid Chipotle Mexican Grill, Inc. (NYSE:CMG) or invest in the stock. In response, Cramer said:
“Great question. I would tell your son this, the stock reported a quarter that people didn’t like, and what happened? The stock went up. What does that tell you? We are finally at terra firma, and that is not one of those companies that’s going to be, it does have some tariff problems, but not many. And what I would emphasize to you about Chipotle, it’s never going to be cheap, but it’s rarely down this long.”
Chipotle (NYSE:CMG) operates restaurants that serve customizable food and beverages. It allows customers to place orders and request delivery through the company’s app or website.
2. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 94
A caller expressed interest in starting a position in Micron Technology, Inc. (NASDAQ:MU), and Cramer remarked:
“Alright, Micron’s just okay. The last couple quarters, not great. I think you’d be doing it at the low end, there’s no doubt about that. But my problem is, I don’t know a catalyst to get it to go higher.”
Micron (NASDAQ:MU) is engaged in the development and manufacturing of memory and storage products. The company offers fast, low-latency semiconductor devices and non-volatile memory technologies. During April 8’s episode of Squawk on the Street, Cramer commented:
“[Talking about the cost of servers going up] Yes, and I think that we’re going to see surcharge, surcharge, surcharge. Micron put a surcharge on this point. They did. And yet their stock’s up. So maybe we’ll say, oh, Micron’s passing it on. Maybe we can pass it on. Micron’s stock didn’t get hurt. [In terms of relocating production] You can go to Korea. You can go to Korea. memory is the first to go because it’s the shortest contracts. They have high bandwidth memory 20% Sanjay Mehrotra. Sanjay is, I think, the most forward-looking about what can happen because he’s in a tug-of-war against Korea. And what happens if the Koreans continue? The White House likes Korea, though. They’re making a deal.”
1. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 101
When a caller asked about Citigroup Inc. (NYSE:C), Cramer stated:
“I want you to buy Citi. It’s not my favorite. You’re absolutely right. I sold Wells, just one more consent decree knocked down. Capital One is my absolute favorite. I think you should buy that aggressively, but I like your idea.”
Citigroup (NYSE:C) is a well-known name in the global financial sector. The company offers a wide range of services, such as cash management, trading, and investment banking. On April 11, Cramer commented, “Citigroup’s gotten so loved that it’s probably going to roar no matter what is said, such is the admiration for CEO Jane Fraser and she certainly earned it.”
Moreover, on April 16, RBC Capital analyst Gerard Cassidy cut Citi’s stock price target from $85 to $78 and kept an Outperform rating after the company’s first-quarter report. Citi posted stronger results than expected, beating both RBC’s forecast and the broader market consensus.
Management expressed confidence in reaching their medium-term goal of a 10% to 11% ROTCE by 2026, compared to 9.1% in Q1. RBC said the lower price target shows a drop in non-interest income, though it was partly balanced by a rise in net interest income.
While we acknowledge the potential of Citigroup Inc. (NYSE:C) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than C but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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