In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on how industrial stocks were performing well while broader markets struggled due to tariff uncertainty and legislative troubles in Congress. “And by the way, the industrials. It looks like the industrial companies were able to do things to mitigate, Cramer said. He added to “not forget” that mega home improvement retailers were able to tamp down on price increases.
Commenting on President Trump’s bill, Cramer pointed out: “Well I think that the tax break, except for the ultra-rich, is not as good in many ways as if interest rates were to go down.”
He continued:
“Yeah look I mean we’re churning until we get the bill, I think that’s fine. We’re working off the overbought. I think everyday you come in you’re a little down, you know like 4 o clock this morning oh my god it’s so ugly, drenched in red, nothing happened. . . .but there’s just a propensity right now to say listen, the ten year’s going, the rate’s going higher, let’s just continue to sell stocks. David, it’s indiscriminate. It’s indiscriminate. It really doesn’t matter how companies do in yesterday or a day like today.”
However, while he believes that the bill does provide tax breaks for the wealthy, Cramer also not only attributed market uncertainty to the legislation but also commented on its ability to induce growth. He remarked:
“By the way, I would say garden variety retreat based on the fact that we have no idea what’s really going to happen with this bill. And therefore we do worry, that perhaps as we always do, that it’s very inflationary. I think it’s very pro growth. I think it’s very very pro growth.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on May 21st.
For these stocks, we also mentioned the number of hedge fund investors. 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).”
12. Canada Goose Holdings Inc. (NYSE:GOOS)
Number of Hedge Fund Holders In Q4 2024: 14
Canada Goose Holdings Inc. (NYSE:GOOS) is a Canadian retailer that sells high-end apparel. Its shares have gained 18.5% year-to-date primarily due to a 32% jump in May. Canada Goose Holdings Inc. (NYSE:GOOS)’s stock soared after the firm’s fiscal fourth-quarter revenue and earnings beat analyst estimates by a wide margin. During the quarter, the firm reported C$0.33 in adjusted earnings to top analyst estimates of C$0.23 and C$384 million in revenue to beat C$356.4 million in estimates. The stock caught Cramer’s attention as its shares rose. Here’s what he said:
“That’s good. They’ve been, terrific. Dani Reiss’s a terrific guy. That’s been a very tough one to won.”
The recent appearance wasn’t the first time Cramer mentioned Canada Goose Holdings Inc. (NYSE:GOOS) in his show. Last year in May, after a strong earnings report, the CNBC TV host advised viewers against buying the shares. Since then, Canada Goose Holdings Inc. (NYSE:GOOS)’s stock has lost 5.9% despite the major gains earlier this month. Here’s what Cramer had said in May 2024:
“I’m going to tell you — I’m going to put my trading hat on. When I see a company report that kind of number — that good — and it doesn’t go up, I say ‘ain’t nothing going to get this thing going. Let’s stay away.”
11. The Gap, Inc. (NYSE:GAP)
Number of Hedge Fund Holders In Q4 2024: 39
The Gap, Inc. (NYSE:GAP) is one of the most frequently discussed retail stocks by Cramer. The firm’s shares have gained 20.5% year-to-date as they have benefited from the successful results of the firm’s ongoing turnaround strategy. Through its new strategy, The Gap, Inc. (NYSE:GAP) aims to lower its operating costs by reducing the number of brands in its portfolio and business inefficiencies. In his previous comments about the firm, Cramer has remarked that the firm isn’t as reliant on China for its goods as others. Here are his recent thoughts about The Gap, Inc. (NYSE:GAP):
“But the one that is the star is GAP. Richard Dickson, people are finally realizing he’s doing great work. The stock went down to 19 during the last selloff. . . the stock went to 19, it’s now up to 28, it’s back to where it was. But that also ruins it a little because it’s going up. . .again we’re just in the law of this bill. And I’m just not going to say that you can buy stocks when we’re in the law.”
The Gap, Inc. (NYSE:GAP) is a frequent feature of Cramer’s morning show. He has commented on the firm’s turnaround strategy several times. He has also mentioned the firm’s China exposure. Here’s what he said after The Gap, Inc. (NYSE:GAP)’s fourth-quarter earnings report:
“How about the trade war though? Won’t President Trump’s volatile trade policy crush The Gap like it’s crushing everybody else in the business? Look, this company gets less than 10% of their products from China with less than 1% coming from Canada and Mexico. On the cost side, they’re fine. The only worry is that the trade war wrecks consumer confidence and crushes the entire economy, which does seem like a possibility at this point. But as I said repeatedly, I think the Federal Reserve will start cutting rates at that point in order to prevent a recession.
When I asked Dickson about the concerns surrounding the health of consumer, he emphasized that what Gap’s been doing to reinvigorate their brands is resonating with customers and their ability to gain market share in declining industry makes him feel pretty confident about the future of the business. I think he’s probably right. Even if the company gets hit with some near-term turbulence, I like it.”
