We recently compiled a list of the Jim Cramer Recently Talked About These 11 S&P 500 Stocks. In this article, we are going to take a look at where Constellation Energy Corporation (NASDAQ:CEG) stands against the other stocks Jim Cramer recently talked about.
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.
READ ALSO Jim Cramer Recently Looked Into These 8 Stocks and Jim Cramer’s Game Plan: 15 Stocks in Focus
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).
A close up of a wind turbine producing electricity as the sun sets.
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.
Overall CEG ranks 1st on our list of the S&P 500 stocks Jim Cramer recently talked about. While we acknowledge the potential of 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.
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