On Tuesday, Jim Cramer, host of Mad Money, discussed the day’s market performance and paid attention to how bank stocks are trading.
“If you ask me, the real rocket fuel, it’s the expansion of what we call the price-to-earnings multiple or what we will pay for the company’s earnings. Right now, people are simply willing to pay more for the banks.”
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Cramer pointed out that many investors do not fully appreciate how central the P/E multiple is to stock pricing. He explained that stock prices can climb even when earnings estimates remain unchanged, simply because the multiple itself increases, a phenomenon known as multiple expansion.
“It can move up a stock, or the multiple can stay the same when the earnings estimates rise, which… gives you a higher stock price too. In the case of the banks, it’s both… Both the earnings are going up, and the price-to-earnings multiple is increasing at the same time.”
Despite this momentum, Cramer expressed concern, saying, “Right now, though, the market’s saying that the Fed doesn’t matter to the bank stocks, which is nuts.” He explained that the Federal Reserve’s decisions still carry significant weight for these institutions. He explained that part of the reason for the apparent disconnect may be the multiple expansion mentioned above.
“The bottom line: I’ve been waiting for years for the banks to get higher price-to-earnings multiples. They’re incredibly important to the broader market. When the banks are winning, it’s a terrific sign for the overall trading. Remember this tomorrow if the averages take a hit from the Fed because once multiple expansion starts, it’s not easy to reverse. We might be okay. These are hard-fought moves, and I bet that they’re just at the beginning.”
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 September 16. 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 Recently Discussed These 9 Stocks
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 43
Bloom Energy Corporation (NYSE:BE) is one of the stocks Jim Cramer recently discussed. Cramer mentioned that he should have recommended the company stock, but he did not. He said:
“Now I’ve always admired Bloom’s technology, but frankly, I never thought much of its stock because the company’s been a chronic money loser. For years, the stock did nothing, and eventually I stopped paying attention to it. That was wrong. And now we’ve got still one more reason why, Oracle. If you want to build as many data centers as Oracle’s planning to, you need turnkey power because we know that electricity’s the biggest gating factor for these behemoths…
In short, after being a severe disappointment for years, Bloom is now one of the great success stories of this remarkable era… How about the stock? Like so many other small-cap that provide key parts and power to the data center, it’s gone ballistic, not just parabolic but ballistic. It’s up roughly 230% year to date, going from 25 to $72… My conclusion was a simple one: I missed it. Therefore, it’s not my cup of tea. All day, though, I’ve been wondering whether that’s actually true. I mean, Bloom’s a $17 billion company now with promising contracts and a pedigree of fantastic technology…
But after this huge move, I worry about recommending Bloom because I don’t want to hurt you. That said, Bloom could be very real. It just happened so fast that I didn’t grasp it, and now the easy money’s obviously already made… Still, tired as it sounds, I think you have to wait for a pullback for Bloom, like the one nuclear’s experiencing right now. And admit, darn it… I should have recommended Bloom Energy to you. I didn’t. My bad.”
Bloom Energy Corporation (NYSE:BE) designs and installs solid-oxide fuel cell systems that convert natural gas, biogas, hydrogen, or fuel blends into electricity without combustion. Additionally, it provides electrolyzers for hydrogen production and serves sectors including utilities, data centers, healthcare, and manufacturing.
8. New Gold Inc. (NYSE:NGD)
Number of Hedge Fund Holders: 31
New Gold Inc. (NYSE:NGD) is one of the stocks Jim Cramer recently discussed. A caller who bought NGD shares around $1.70 a year ago and has seen the price rise to the mid-$6 range asked for Cramer’s thoughts on the stock’s recent performance. In response, he said:
“Look, I have to tell you, if it’s gold, it’s going higher. You know, I’m a believer, I’ve been saying it over and over. Gold’s a great place to be, but my favorite is Agnico Eagle. My second is Newmont Mining.”
New Gold Inc. (NYSE:NGD) is a mining company focused on the development and operation of properties that produce gold, silver, and copper. During a July episode, a caller inquired about the stock during the lightning round, and Cramer replied:
“It’s okay. I mean, why not buy Agnico Eagle? That’s the one I really, really like. They’re doing so well. Let’s go with that, Agnico.”
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