On Monday, Jim Cramer, host of Mad Money, took a closer look at how the S&P 500 performed in January, highlighting both the successes and the setbacks, and commented on the ongoing tariffs activity. Reflecting on the market’s early response to President Trump’s policies in 2025, Cramer noted that while January was generally a good month for stocks, some of the biggest gainers have since experienced significant pullbacks. According to Cramer, it is important to evaluate both the winners and losers as the year progresses.

Furthermore, Cramer mentioned that his family, with substantial business dealings in Mexico, took Trump’s campaign promise of imposing tariffs on the country seriously, while others did not. While the implementation of a 25% tariff has been delayed by a month, Cramer pointed out that its impact remains real. If enacted, the tariff could become a serious barrier to profitability for businesses on both sides of the border.

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What Cramer did not expect, however, was the response from Mexico’s newly elected president, Claudia Sheinbaum. Sheinbaum took a bold step by deploying 10,000 National Guard troops to address illegal immigration and combat the influx of fentanyl into the country. In exchange, she secured a temporary one-month pause on the tariff.

“I think this opens the door for a change in trade policy, the one that’s much more targeted, now, that’s much smarter than the tit-for-tat approach that China adopted, one that could possibly preserve a lot of commerce we have with Mexico, our biggest trading partner.”

Cramer believes that this approach could help preserve the vital trade relationship between the U.S. and Mexico, a relationship worth $807 billion in 2023. Cramer also cautioned that while this adjustment may help avoid an immediate economic downturn, there’s a risk of unintended consequences. If Mexico’s economy does slip into recession due to the tariffs, Cramer warned, the resulting economic strain could trigger a surge in illegal immigration.

“Bottom line, pretty disparate group of winners and losers if you ask me. Very different from 2024. So why don’t we see how things play out for the rest of the year?”

Our Methodology

For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money on February 3. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Jim Cramer Recently Talked About These 11 S&P 500 Stocks

11. Electronic Arts Inc. (NASDAQ:EA)

Number of Hedge Fund Holders: 46

Cramer noted that Electronic Arts Inc. (NASDAQ:EA) was among the worst performers of the S&P 500 and does not foresee the company reporting good news.

“Finally, the fifth worst stock in the S&P 500 in January was Electronic Arts, EA, the video game publisher, with a stock down 16% last month. Now, a simple story. Last month, EA pre-announced shockingly light numbers for its latest quarter thanks primarily to significant underperformance for some of the company’s biggest titles. Their soccer business now looks to be a shambles. Couple of years ago, EA took a gamble by forging forward with its previously lucrative franchise, despite losing the license to use the name of soccer’s top global governing body. That gamble has not paid off… It is tough to see how EA tells a better story.”

Electronic Arts Inc. (NASDAQ:EA) creates, markets, and distributes games and related content across multiple platforms, offering a range of genres, including sports, racing, action, and role-playing, through both owned and licensed brands. In 2023, Cramer was bullish on the stock as he included it among stocks that one could buy during “any bout of weakness.” It is worth noting that since then, the stock has only gained a modest 2.6%.

10. ON Semiconductor Corporation (NASDAQ:ON)

Number of Hedge Fund Holders: 45

ON Semiconductor Corporation (NASDAQ:ON) was mentioned during the recent episode. Here is what Mad Money’s host had to say about the company:

“The fourth worst performer in the S&P last month was ON Semiconductor, that’s down 17%. This chipmaker is a leading supplier for the auto industry and though it doesn’t report until next week, the stock got hit after Texas Instruments reported last Monday and gave a dour outlook for the automotive and industrial end markets. The semiconductor cohort is all over the place. The ones selling into the AI team are still doing pretty well, but anything cyclical like Texas Instruments or ON Semi has, it had a real tough go.”

ON Semiconductor (NASDAQ:ON) offers power and sensing solutions, including semiconductor products for electric vehicles, fast-charging, and sustainable energy, with a focus on various industries such as automotive, industrial, and mobile markets. Over the past 12 months, ON stock has witnessed a decline of over 35% while TXN stock has gained over 13%.

9. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 36

Cramer expressed disappointment regarding Constellation Brands, Inc. (NYSE:STZ) and noted that the company seems to be in denial about its state.

“The third worst name is a tough one for me. It is Constellation Brands, STZ, down 18.2%. As a purveyor of Mexican beer brands, Modelo and Pacifico, this stock was already under pressure after the election and then the bottom fell out after they reported a bad quarter early in the month. Now we spoke to Constellation CEO Bill Newlands that night and came away pretty disappointed with what I felt was a lack of urgency about fixing the company’s problems. It almost feels like they’re in denial. Where do I come down on this one? Well, with the arrival of tariffs this past week, the Charitable Trust sold half its position in Constellation today. Enough. Even with the pause of the Mexican tariffs announced this morning, this position has just become way too hard to own. Liquor is a tough thing to own in this market.”

Constellation Brands, Inc. (NYSE:STZ) is a well-known company in the production, importation, marketing, and sale of beer, wine, and spirits, offering a range of beer brands. Cramer has been bearish on the company for a while now. Recently, he expressed:

“The wine and spirits from Constellation Brands were so challenged, I wish they’d just sold the business a long time ago. Just a very bad miss. Beer’s holding up okay, but not enough to make Wall Street like the stock. Oh man… My Charitable Trust is stuck with it.”

8. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 49

Cramer noted that PG&E Corporation’s (NYSE:PCG) stock decline in January was only due to “guilt by association” and suggested buying the stock.

“But the second biggest decliner is very intriguing. It’s PG&E that’s down 22.4% last month. Now that seems to be just guilt by association. Patti Poppe told us that, she’s the CEO. It doesn’t even operate in Southern California. I think it’s worth buying after last month’s weakness. Yes, it’s dirt cheap. Buy it.”

PG&E (NYSE:PCG) provides electricity and natural gas, generating power from nuclear, hydroelectric, fossil fuel, fuel cell, and solar sources. It also owns and operates extensive transmission and distribution infrastructure for both electricity and natural gas. Cramer has been bullish on the company before as, in September 2024, he said, “That stock is a good one, rate increase or no. Buy PG&E.” However, since then, the stock has seen a decline of over 22%.

7. Edison International (NYSE:EIX)

Number of Hedge Fund Holders: 29

Pivoting to the worst performers of the S&P 500, Cramer mentioned Edison International (NYSE:EIX) and remarked:

“Those are the winners. How about the biggest losers? Alright, two biggest decliners are both California utilities because of the wildfires in Southern California. The biggest loser Edison International was down 32.4% January. This is the parent company of Southern California Edison, which services the areas that were actually impacted by the fires.”

Edison International (NYSE:EIX) generates and distributes electricity across Southern California, serving various sectors, including residential, commercial, industrial, and agricultural. Cramer liked EIX back in 2009 during the previous President Obama administration.

At that time, Cramer suggested that Edison International (NYSE:EIX) could be the type of utility that Obama highlights as a model, with the government potentially willing to offer subsidies to support the business. Since then, EIX stock has gone up more than 83%.

6. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 76

Starbucks Corporation (NASDAQ:SBUX), a part of his trust’s portfolio, was mentioned by Cramer as it was the 6th best S&P 500 performer in January.

“Hey, by the way, let’s have an honorable mention for Charitable Trust holding Starbucks, that was sixth in the S&P 500 last month. It gained 18% primarily because of a big move last Wednesday after the company reported a better-than-feared quarter with positive commentary from new CEO, Brian Niccol, formerly of Chipotle. While the stock moved a lot since Niccol was announced its new CEO last August, I’d still much rather bet with him than bet against him even up here.”

Starbucks (NASDAQ:SBUX) is a prominent global brand known for roasting, marketing, and selling coffee, offering a diverse selection of beverages, coffee beans, and food items at its stores. Cramer recently discussed how the company’s stock dropped to $77 before announcing a leadership change.

With the departure of the previous CEO, Starbucks (NASDAQ:SBUX) brought in Brian Niccol, the executive who had successfully turned around Chipotle during its challenging times. Cramer noted that once Niccol took the helm, the stock surged. While Cramer initially believed that Starbucks might face another downturn, the stock kept rising and never looked back, reaching the high $90s and continuing its upward trajectory. He added:

“In fact, when the company reported this week, the stock powered ever higher to the point where this very big… company is now up over 40% since the last CEO got fired. Why? Didn’t the media focus on how Starbucks missed its numbers? That’s what I heard… Here’s the answer: For Starbucks, the coffee might be good, but Starbucks, the company was really poorly run and Starbucks the stores? Disastrous.”

5. F5, Inc. (NASDAQ:FFIV)

Number of Hedge Fund Holders: 31

Cramer commented that F5, Inc. (NASDAQ:FFIV) deserves the gain it has seen as it has been performing well for decades.

“The fifth biggest gainer, it’s called F5. It has nothing to do with Formula One or anything like that. This was up 18.2% January. This tech company, formerly known as F5 Networks, specializes in application security and delivery solutions. Oh boy, this is the kind of thing that everybody’s crazy about. It’s a story I really should have covered much, much more often because it has been a strong performer literally for decades from when I was a hedge fund manager.

Stock had already been rising steadily through January, but then gapped up last week after the company reported an excellent quarter. Not only did F5 handily beat sales and earnings expectations, but the company also raised its full-year forecast substantially. While the guidance for the current quarter was not as strong, F5 got a pass. The stock’s humming, deserves every point of this move and more.”

F5 (NASDAQ:FFIV) offers cloud-based solutions for application security, delivery, and management, providing services such as web app protection, multi-cloud networking, and application deployment.

In 2013, when asked about the company, Cramer said, “I think they’re great. I reiterate that I think it’s a great stock.” Over the last decade, F5 (NASDAQ:FFIV) stock has gained nearly 165%.

4. GE Aerospace (NYSE:GE)

Number of Hedge Fund Holders: 95

GE Aerospace (NYSE:GE) was mentioned during the episode of Mad Money and here’s what Cramer had to say:

“Third best performer of January was GE Aerospace. Yes, the part they left over after they spun off healthcare and power businesses. Now GE Aerospace finished January up 22%… A true blowout earnings report… delivered on January 23rd. Not only did the company smash expectations for the quarter, management also issued strong earnings and cashflow guidance for 2025.

They raised dividend by 30% and announced a new $7 billion buyback plan. What’s not the like? Geez, another stock with huge gains in recent years, but it’s a huge run, has been supported all the way by steadily improving numbers. So I think it is more staying power. I remain firmly bullish on GE Aerospace under the leadership of this remarkable turnaround artist chairman CEO Larry Culp. I really like him.”

GE Aerospace (NYSE:GE) focuses on creating engines for commercial and military aircraft, along with offering integrated components, electric power systems, and mechanical systems for the aviation industry. Recently, Cramer praised Culp as he commented:

“Next, how about Larry Culp at the old General Electric? This company really stunk up the joint for so long, we almost had to believe GE was merely a practical joke played on the market. Larry Culp didn’t think it was all that funny though. He raised some cash by selling some good stuff because he knew every turnaround has to start with a balance sheet. Without a good balance sheet, the turn would be stillborn. Then he split the company into three separate businesses, GE HealthCare, GE Vernova, and GE Aerospace.”

Since its split in April 2024, GE Aerospace (NYSE:GE) stock has gained nearly 50%.

3. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 63

Cramer was surprised to see that CVS Health Corporation (NYSE:CVS) took the second spot on the list of best performers of the S&P 500 in January and mentioned that there was no straightforward catalyst for its gain.

“Then there’s CVS Health in second… the second-best S&P 500 stock in January is frankly pretty shocking. It’s CVS Health, up 25.8% last month. Now CVS and chief rival Walgreens have both been spiraling in the post-pandemic year. Last year was no exception, CVS in particular. They fired CEO Karen Lynch and its stock finished 2024 down more than 43%. So maybe you could argue it was due for a bounce but the odd thing about CVS’s January rally is the fact that there really is no clear catalyst for it. Now there was plenty of news involving Walgreens last month, very little but good.

But it looks like CVS mostly rallied in response to an announcement from the Centers for Medicare and Medicaid Services, which said early last month, the payments from the government to Medicare Advantage plans are expected to increase by over 4% from 2025 to 2026. But I’m gonna need to see more legitimate good news from CVS before I believe… The company reports next Wednesday. Let’s see what they have to say before chasing the January rally.”

CVS Health (NYSE:CVS) provides healthcare services, including insurance, pharmacy management, and pharmacy products, to various customers, and also offers consulting to healthcare facilities.

Patient Capital Management stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q4 2024 investor letter:

“CVS Health Corporation (NYSE:CVS) struggled throughout the year following a number of disappointments related to their Medicare Advantage business. While this had a negative impact on the near-term financials, the issues are well understood, and changes are already being made for the 2025 program. We see a clear pathway to improving margins throughout 2025 in all areas of the business. Furthermore, the company has upgraded their management team promoting David Joyner to CEO and hiring former UnitedHealth Group executive Steven Nelson to run the managed care business. On a longer-term basis, we continue to think CVS has an attractive combination of assets owning a healthcare benefits business (Aetna), a pharmacy-benefits manager (Caremark), an in-home evaluation business (Signify Health) and in-home primary care business (Oak Street Health) supporting the industry transition to a value-based care model. As the company works to implement the turnaround, the company has an attractive dividend yield of 5.8%.”

2. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 97

Cramer noted that Vistra Corp. (NYSE:VST), an electricity retailer and power generation company, was the fourth-best performer in the S&P 500 in January. Highlighting that the company is a nuclear play, he said:

“When you look at Constellation and Vistra, look, these nuclear stocks have had explosive multi-year moves as the data center build-out has created this electricity shortage around the whole country and nuclear remains the preferred power source for any company that cares about climate change.”

Cramer highlighted the recent major data center announcements from Microsoft, Meta, Oracle, SoftBank, and OpenAI. Last month, the three companies revealed plans for Stargate, which is a $500 billion AI infrastructure initiative. Cramer noted that this news caused stocks like Vistra (NYSE:VST) to surge, as investors reacted positively to the prospects of AI-driven demand for energy. However, Cramer pointed out that the market now faces uncertainty due to DeepSeek, with Wall Street questioning whether these tech giants have overextended their spending on AI hardware. He added:

“Both Constellation and Vistra got obliterated in response, although they’ve now rebounded pretty substantially from the lows. And again, they still finished January up big. I’ve seen some analysis suggest that DeepSeek has been downplaying its real cost but until we get more clarity, I don’t wanna stick my neck out for nuclear stocks because these only work when the data center story is ironclad.

Now I do know that Scott Strazik from GE Vernova, which builds nuclear power plants, is getting more bullish about the near-term possibility of orders but even under the best of circumstances, these things take years to construct.”

1. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 78

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider involved in producing and distributing electricity from a variety of sources, such as nuclear, wind, solar, natural gas, and hydroelectric power. Cramer started the list of the best performers of the S&P 500 in January with the company and discussed:

“When you look at the five best performers in the S&P 500, let’s see, what do you get? Constellation Energy is first and Vistra is fourth. Those are both nuclear power plays… When you look at Constellation and Vistra, look, these nuclear stocks have had explosive multi-year moves as the data center build-out has created this electricity shortage around the whole country and nuclear remains the preferred power source for any company that cares about climate change.

Now we got some huge data center announcements from Microsoft [and] Meta last month, then Oracle, SoftBank, and OpenAI teamed up to form something called Stargate with a $500 billion AI infrastructure plan that was announced at the White House on President Trump’s first full day in office. In response, stocks like Constellation and Vistra soared, but then DeepSeek happened and Wall Street’s now trying to figure out if the Tech Titans have been spending way too much money on AI hardware.”

Cramer noted that the company was severely impacted in response, however, it still finished January strong. Cramer noted that nuclear stocks like Constellation Energy (NASDAQ:CEG) typically perform well only when there is clear demand, like in data centers. He also mentioned that while Scott Strazik, CEO of GE Vernova, has become more optimistic about receiving new nuclear plant orders, these projects take years to complete, making short-term gains unlikely.

While we acknowledge the potential of Constellation Energy Corporation (NASDAQ:CEG) 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 timeframe. If you are looking for an AI stock that is more promising than CEG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.