Jim Cramer Says Big Tech Is Back and Deep Dives Into These 8 Stocks

3. Oddity Tech Ltd. (NASDAQ:ODD)

Number of Hedge Fund Holders: 21

Oddity Tech Ltd. (NASDAQ:ODD) was highlighted as one of the few consumer companies to deliver a blowout quarter this earnings season despite tariff concerns. Cramer praised its revenue growth, gross margin resilience, and use of AI, but warned investors not to chase the stock after its massive rally. Here’s what his analysis:

“For those of you who don’t remember, Oddity is this direct-to-consumer co cosmetics company. It’s based in Israel, and I’ve liked it for a while now. But until this week, the stock hadn’t really given us a reason to get excited. Since late 2023, it’s basically been stuck in the 40s. Nothing much to write home about.

But on Tuesday night, Oddity reported a fabulous beat and raise quarter. Something we haven’t seen that often this earning season because everyone’s so worried about tariffs. In response, the stock shot up 30% yesterday, surging to a new all-time high. If you didn’t know any better, you would have thought that maybe caught a takeover bit. Yeah, the quarter was just that good. […]

What got people excited here was the new full year forecast. They’re talking about 22 to 23% revenue growth. And they said their outlook incorporates their view of tariff and trade related headwinds. And that view is pretty darn bullish. […]

Wow. That’s what we want to hear. And that’s why Oddity expects its gross margin to only take a 50 to 100 basis point hit from tariffs. So many others are so much higher. In fact, they see this as an incredible opportunity to take market share from their competitors who have much more exposure to Chinese manufacturing. […]

I believe him [the CEO Oran Holtzman] because tariffs aside, this is a very strong business. As Oddity explains it, they’ve been investing for years in anticipation of a big shift in beauty spending towards online channels. That’s now playing out and this company’s a big winner.

Normally people prefer to buy the stuff in a store so they can see how it looks. But Oddity’s been able to recreate that experience online with generative AI technology that can show you how the makeup will look on your face and it is such a huge hit. […]

Now, after the stock spectacular run yesterday, it’s obviously gotten a lot more expensive. It now sells for just over 33 times the new consensus earnings estimate for 2025. Just statingthe obvious: you’re chasing a bit if you’re buying it up here. Ideally, if you want to get into this one, at least in the way that we think about it here on Mad Money, I think you should wait for a market-wide pullback that knocks the stock down a bit from these elevated levels.

But the bottom line, oddity stock caught fire yesterday because it reported a strong quarter, raised forecast and then gave you a total all clear on the tariff situation. That means the stock’s safe to own in this environment. Although again, if you don’t own already, maybe you wait for a bit of a sell-off, a pullback to pull the trigger. In such a volatile market, I bet you get a better chance.”

Oddity Tech Ltd. (NASDAQ:ODD) is an Israeli digital beauty and wellness platform known for its data-driven, AI-powered product development and virtual try-on tech, which helps it dominate online cosmetics retail through brands like Il Makiage and SpoiledChild.