On Thursday’s episode of Mad Money, host Jim Cramer took time to explain his approach to buying the stock of a high-quality retail franchise during periods of weakness.
“Growth does come… in many forms, and one of them is in retail. I have my stable retailers that I know are well-managed companies that can deliver in any environment, not immediately, though.”
READ ALSO: Jim Cramer Shed Light on These 10 Stocks Recently and Jim Cramer Answered Questions About These 10 Stocks Recently.
Cramer outlined a six-part framework that he uses when deciding whether to invest in a growth retailer in weakness. His first question was: “Do you personally shop there?” He explained that it makes no sense to invest in a retailer you would not visit yourself. The second factor he considers is the company’s balance sheet. Furthermore, his third point focused on the leadership team. He explained that he looks for management that refuses to stand still and wait for conditions to improve. The fourth element in his framework involves interest rates. He explained that he is wary of companies that depend on Federal Reserve decisions to thrive.
Cramer said he prefers businesses that would welcome lower interest rates but do not require them to succeed. He noted that investors should target companies that are built to earn in any rate environment, and then enjoy the added benefit when cuts do happen. Next, he talked about scale. He said that he looks for companies with such a dominant presence that suppliers are the ones seeking shelf space, not the other way around. His final point was about the stock itself. He asked, “Is the stock good enough that you don’t have to trade it?”
“And the bottom line: When the Fed does start cutting, your slow-growing retailer stock gets turbocharged as all the so-called smart money comes flying in.”
Our Methodology
For this article, we compiled a list of 14 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 4. 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 Shared Insights on These 14 Stocks
14. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the stocks Jim Cramer shared insights on. During the episode, Cramer discussed the company’s earnings and the market sentiment toward the company. He said:
“To me, there are four main components that I look for when a company reports: Did it beat sales and earnings projections for the quarter? And did it then raise sales and earnings projections for the future quarter? Salesforce handily beat the projections made about this just-reported quarter. So far, so good. But their cash flow came in a little weaker than Wall Street expected. While their guidance for the current quarter was solid, there were individual lines in that guidance that were again softer than what the analysts anticipated.
I figured Wall Street would maybe look past those negatives, given the huge number Salesforce is putting up overall. But that’s not what happened. Instead, we were inundated with stories about how Salesforce gave weak performance… Salesforce’s stock closed at $244… Keep in mind, most companies are not using AI in any way yet that’s visibly making any money, but Salesforce is serving up customers who are thrilled about Agentforce and how well it’s worked for them. I think we’ll hear a bunch of them when we go out to Dreamforce… next month. I bet it’ll be impactful. Those points did not matter one bit, though, to the sellers…
Some of the real bears believe that Salesforce could be so efficient that its clients will slim down themselves using some of their own AI too and then let go of some of the Salesforce using workers. I think the analysis is incorrect. The bears seem to forget that Agentforce uses a different business model, a consumption model, not a per-user model, and the company can make a ton of money.
The bears don’t care, though… What would change their minds? If Salesforce were to report huge earnings and then guide up well above what Wall Street’s looking for. That would change the narrative, but that hasn’t happened yet. Will it? That’s the $230 billion question, with $230 billion being Salesforce’s current market capitalization. Ultimately, this company will either start crushing the numbers or its stock will be crushed. Why? Because like it or not, that’s how Wall Street works.”
Salesforce, Inc. (NYSE:CRM) delivers CRM technology and cloud-based solutions that unify customer interactions, data, and workflows, while integrating AI-driven analytics, automation, and productivity tools.
13. Madison Square Garden Sports Corp. (NYSE:MSGS)
Number of Hedge Fund Holders: 50
Madison Square Garden Sports Corp. (NYSE:MSGS) is one of the stocks Jim Cramer shared insights on. During the lightning round, whether it was time to take profits in the stock, and Cramer replied:
“Oh, it’s not my, it’s not one of my favorites. It doesn’t have the kind of growth, you have some nice gains. I don’t know. Why don’t you take half and then see what happens?”
Madison Square Garden Sports Corp. (NYSE:MSGS) is a professional sports company that owns the New York Knicks, the New York Rangers, and other affiliated development league teams, and operates a dedicated training center. The company reported its fiscal full-year earnings on August 12, generating revenues of $1.04 billion, which was up 1% year-over-year. It reported an operating income of $14.8 million and adjusted operating income of $38.2 million.
12. Gartner, Inc. (NYSE:IT)
Number of Hedge Fund Holders: 45
Gartner, Inc. (NYSE:IT) is one of the stocks Jim Cramer shared insights on. Answering a caller’s question about the stock, Cramer said:
“Okay, I have always loved this stock, but you know what? That last quarter… [left] a lot to be desired, and it has made me feel that you have to wait for one, you have to wait to see the next one because… Could it really just be one bad quarter? That was a nasty one. So I’m going to have to say, let’s wait and see.”
Gartner, Inc. (NYSE:IT) is a research and advisory company that provides subscription-based insights, expert access, consulting services, and executive conferences. The company helps organizations with strategy, digital transformation, and IT optimization. Baron Asset Fund stated the following regarding Gartner, Inc. (NYSE:IT) in its second quarter 2025 investor letter:
“Modest declines from the Fund’s sizable positions in Gartner, Inc. (NYSE:IT) and Roper Technologies, Inc. also contributed to relative weakness in the sector. Syndicated research provider Gartner was negatively impacted by reductions in government spending in its public sector business. We estimate U.S. federal exposure accounts for about 5% of Gartner’s total research contract value, with about half from the Department of Defense and intelligence organizations, and half from civilian agencies. While federal budget scrutiny remains high, we believe Gartner’s services deliver significant value to users, including the potential for hard dollar savings. Its private sector business appears well positioned for sustained growth, and management is adept at exercising cost controls to support margins and free cash flow generation. The company’s balance sheet is in excellent shape, and we expect management to take advantage of this drawdown through aggressive share repurchases.”
11. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Number of Hedge Fund Holders: 43
Viking Therapeutics, Inc. (NASDAQ:VKTX) is one of the stocks Jim Cramer shared insights on. When a caller asked about the company during the lightning round, Cramer commented:
“No, no, no. We have Eli Lilly. Why do we have to settle? Let’s, don’t, don’t go for the raggedy rest. Let’s go for the best.”
Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on therapies for metabolic and endocrine disorders. The company’s pipeline includes VK2809 for non-alcoholic steatohepatitis, along with candidates for diabetes, hip fracture recovery, obesity, and rare genetic conditions. When a caller asked about the stock in a January episode, Cramer responded:
“Okay, people, people think that even if Lily’s stock can’t go up, why would we want Viking Therapeutics? And a lot of people were in it for a takeover. So far it doesn’t look like that’s materializing, so they’re giving up and they are selling it. I prefer Eli Lilly.”
Since the above comment, Viking Therapeutics, Inc. (NASDAQ:VKTX) stock has declined by nearly 23%. The stock dropped over 40% between August 18 and 19 after the trial data of its oral anti-obesity drug showed that 20% of the patients dropped out due to negative effects.
10. Richtech Robotics Inc. (NASDAQ:RR)
Number of Hedge Fund Holders: 5
Richtech Robotics Inc. (NASDAQ:RR) is one of the stocks Jim Cramer shared insights on. During the lightning round, a caller asked for Cramer’s thoughts on the stock, and he remarked:
“Okay, here’s what you do with a stock like that: you buy it, but you recognize that it’s your spec. You’re allowed to have one real spec when you say you do a six or five-stock portfolio… And accept the fact that you could lose everything.”
Richtech Robotics Inc. (NASDAQ:RR) designs and sells robotic solutions for service industry automation, including delivery, cleaning, and food and beverage systems. Its portfolio features robots like Matradee, Medbot, Titan, and Skylark, along with a self-owned cafe brand and related support services. On August 27, Freedom Brooker downgraded Richtech Robotics Inc. (NASDAQ:RR) to Sell from Buy while maintaining a price target of $2.50. The firm said the recent stock rally is ahead of the company’s fundamentals and expects a possible pullback as momentum slows.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 78
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer shared insights on. A caller asked whether the stock’s recent pullback presents a buying opportunity. Cramer replied:
“Oh yeah. I mean, Alex Karp, he’s a scholar and gentleman, a sweet guy. I just like him. I want to put him on my fantasy team. That’s how much… I like him… But you know what? Palantir, I still think it’s going to $200.”
Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms that integrate, analyze, and manage complex data to support intelligence, security, and enterprise operations. Cramer mentioned the company in an August episode and said:
“These skeptics want to understand crypto, but they can’t get their arms around it. They don’t get how there’s a consultant company that’s won over both the government and the private sector by saving them fortunes, like Palantir. This stock, more than any other, any quantum or nuclear, biotech is the one that truly rankles them. To me, that’s the most irrational view of all, not about Palantir, but about the view that they have. Palantir’s a talented company with a messianic leader who knows how to win big contracts. It’s just, it’s very hard… to value the stock. If you use traditional metrics like earnings per share, the valuation looks insane. But if you use the Rule of 40, the way we do on this show to judge enterprise software stocks, you can understand why this thing won’t stop running. It’s incredibly cheap. Palantir, rational? Let’s just say there’s no method to its madness.”
8. Hinge Health, Inc. (NYSE:HNGE)
Number of Hedge Fund Holders: 47
Hinge Health, Inc. (NYSE:HNGE) is one of the stocks Jim Cramer shared insights on. Cramer mentioned the stock while discussing this year’s IPOs and commented:
“We’ve had a lot of phenomenal IPOs this year, stocks that have exploded higher, stocks like Hinge Health, which is a digital physical therapy platform. You get it via your phone rather than in person. Not long ago, after this one came public in May, I told you it was worth buying. At the time, the stock was trading at 44. Now, it’s at 55 and change, in large part because Hinge reported a stellar first quarter right out of the gate, a little over a month ago.”
Hinge Health, Inc. (NYSE:HNGE) develops digital health software focused on musculoskeletal care, covering injury recovery, chronic pain management, and post-surgical rehabilitation. Cramer suggested buying the stock in a July episode, as he said:
“… After the quiet period ended mid-June, and Hinge received universally positive coverage from the analysts, the stock then took off again, climbing as high as $52 and change on the last day of June before pulling back to the mid-40s as of today. So I like that nice pullback from the top…
… So the story sounds pretty good, right? Numbers are great, and now the only thing left to determine is how much should we pay for the stock. The 13 analysts that have stuck Buy ratings on Hinge have assigned price targets ranging from $41 to $52… So on an absolute basis, the stock seems a little pricey, trading 87 times this year’s numbers, 60 times next year’s numbers.
However, I don’t think that’s a crazy multiple to pay for a stock in this stage of its development now, when it’s got such rapid growth. With Hinge’s earnings per share expected to grow by 45% next year, the stock has a price to earnings to growth ratio of 1.33 based on these numbers, which is actually far from expensive. In fact, using 2026 numbers, the S&P 500 currently has a 1.5 price to earnings to growth ratio. You could argue that, at least on this metric, Hinge is trading at a discount to the market.
Bottom line: I think Hinge Health looks like another good option for investors like MNTN, Mountain. But unlike the high-flying CoreWeave or the Circle Internet, you know what? You get my blessing right now, right here to buy tomorrow morning. Yeah, I feel that good about it. As we peruse these mid-sized IPOs from the past several weeks, we’re finding some real nice up-and-coming companies with stocks that haven’t run too much, and I think some of them, like Hinge and Mountain, represent really good options for growth-oriented investors like you.”
7. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the stocks Jim Cramer shared insights on. During the episode, Cramer discussed the company’s decision to acquire CyberArk. He stated:
“Let’s talk about Palo Alto Networks’ wild ride. This cybersecurity kingpin is a long-time holding for the Charitable Trust, and it has been a huge winner for the CNBC Investing Club. But late July, the stock got clobbered… about its $25 billion plan to acquire CyberArk, another heavy hitter that’s all about protecting so-called administrator accounts, the top target for hackers. Wall Street was worried that this deal was a colossal overpay meant to cover up some sort of slowdown in the core business. Uh-uh, that isn’t what we thought. We have always loved CyberArk, so I didn’t get… negativity. But when Palo Alto reported its most recent quarter in mid-August, well, the company shot the lights out. The stock jumped 9%. I think it can keep climbing…”
Palo Alto Networks, Inc. (NASDAQ:PANW) delivers cybersecurity solutions spanning cloud security, network protection, and AI-driven threat defense.
6. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 63
International Business Machines Corporation (NYSE:IBM) is one of the stocks Jim Cramer shared insights on. Cramer discussed how the stock is faring after its last earnings report. He remarked:
“What do we make of the recent rollercoaster action in IBM? Going into the most recent quarter in late July, this stock was up 50% over the past 12 months. Finally, it felt like the legacy tech colossus had gotten a new lease on life thanks to its popular AI-related solutions. But when IBM reported a month and a half ago, even though the headline numbers came in better than expected, Wall Street was concerned by their slowing software growth. Management was adamant that this came from the mainframe side, which should improve later in the cycle, but that wasn’t enough to prevent the stock from plunging 7.6% in a single session. Since then, the stock has struggled to find its footing.”
International Business Machines Corporation (NYSE:IBM) provides integrated technology and consulting solutions, including hybrid cloud, AI platforms, and infrastructure services.
5. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 105
Walmart Inc. (NYSE:WMT) is one of the stocks Jim Cramer shared insights on. A caller inquired about the long-term impact of rising inflation and potential tariffs on consumer staples on the stock. In response, Cramer said:
“Okay, I am so glad you asked me this because people have Walmart wrong. They’re a very forthcoming company. They say, listen, we’re going to have some problems… They’re very, they’re very honest. They’re terrific, and what they’ve done is make, it’s actually end up scaring people out of their stock. It does have a high price-to-earnings multiple. I do prefer Costco. I do hope Costco has a just okay month, so you can buy that cheaper tomorrow. But Walmart’s fine. It’s a fine stock.”
Walmart Inc. (NYSE:WMT) operates retail and wholesale stores, membership clubs, and eCommerce platforms under its own brands and regional sites. The company’s product range includes groceries, consumables, health and wellness, home goods, apparel, electronics, financial services, and digital payment solutions.
4. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders: 60
The Trade Desk, Inc. (NASDAQ:TTD) is one of the stocks Jim Cramer shared insights on. During the episode, a caller asked if the stock is a buy at its current valuation, and Cramer replied:
“Look, it’s down 55%. I like Jeff, but they’ve got Amazon as a competitor. And you know, Amazon is one of my absolute favorite companies, and I don’t want to go against Amazon. Can you make some money? Yeah, but there are other ways to make money that are easier and better.”
The Trade Desk, Inc. (NASDAQ:TTD) provides a cloud-based platform that enables clients to plan, manage, and measure digital advertising campaigns across formats such as video, display, audio, and social. When a caller asked about the stock in a May episode, Cramer replied:
“You made the right move. Now let me tell you something. They had a self-inflicted issue. In other words, they had a problem, they made a mistake… It was like they were doing a new software that didn’t work initially, and the stock just got crushed. It went all the way down from like $120, down to $60. But I will tell you, it actually went down to $42 at one point in April, that I think all the problems are fixed, and all the things you said that are good, they’re happening. I like your call, I think you’re right. I would actually buy more.”
3. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders: 36
Macy’s, Inc. (NYSE:M) is one of the stocks Jim Cramer shared insights on. Cramer mentioned the company during the episode and said:
“If you listened to Tony Spring last night, the CEO who’s turning Macy’s around, he seemed most proud of how he’d been able to improve the balance sheet… at what was a very cyclical retailer. And you know, when you’re in a cyclical business like retailing, you can’t afford to have a weak balance sheet.”
Macy’s, Inc. (NYSE:M) is an omni-channel retailer and it provides apparel, accessories, cosmetics, home goods, and other merchandise under the Macy’s, Bloomingdale’s, and Bluemercury brands. On September 3, Cramer discussed the company’s earnings, as he commented:
“Oh, here’s a great story. Look at this incredible move in the stock of Macy’s, up over 20% today in the wake of a tremendous quarter. Despite a tough environment for retail, this company, which also owns Bloomingdale’s [and] Bluemercury, reported a stellar set of numbers this morning. Macy’s posted a stunning 22-cent earnings beat off a 19-cent basis, higher than expected revenue, and the best same-store sales numbers in 12 quarters. Even better, management raised their full-year forecast for sales and earnings. I’ve been saying there is a turnaround brewing here, and boy, did we get proof of it today.”
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 91
Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer shared insights on. During the episode, Cramer highlighted the reason his Charitable Trust owns the stock. He commented:
“There’s a reason, by the way, that the trust also owns Costco. We shop there constantly. We have four different Costcos where I live, and I always visit one if I see one. I do that because it’s a core position, but… also because my wife and I just can’t stay away from the place. I’ve never been worried. Richard Galanti, the former CFO, put the fear of God into all of Costco’s suppliers to ensure they kept prices low. The Costco cart’s one of the best bargains on earth.”
Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses providing branded and private-label products across groceries, appliances, apparel, electronics, and household goods. The company also offers services such as pharmacies, fuel stations, optical centers, food courts, and e-commerce platforms. In the last week of August, Cramer suggested buying the company’s stock. He said:
“I want you to buy more Costco here. I was actually going back and forth on Costco, what’s the right level? It is under 50 times earnings right now. I feel very good about buying some Costco, almost actually picked some up for the Charitable Trust. But I’ll tell you the truth, it’s so far above my basis that I don’t want to tempt fate. I think you got a winner in Costco right here, right now. Remember, they can pass on the price of beef because they are about the membership, not about the price of beef.”
1. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 93
The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer shared insights on. Cramer explained why the Charitable Trust kept adding to Home Depot shares, as he remarked:
“One year ago today, we bought the stock of Home Depot for the Charitable Trust. We were looking for a rate cut… We got that rate cut, but it didn’t do what it was supposed to… starting a huge descent for the stock of Home Depot. But did we sell? No, we did the opposite, and we told you to do so too. We bought more and more and told club members at last, this is your chance to get big in the stock of Home Depot, which you don’t usually get to do… Home Depot is one of the better ones… The job market’s weak enough that we’re going to get that rate cut, and it will be meaningful, and that’s exactly the moment when I think Home Depot is really going to spike… Home Depot stock traded down to the 330s at its post-Liberation Day lows after we bought it a year ago… Home Depot has a solid 2.23% dividend yield. You can own it and let that dividend compound over time.”
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that provides building materials, décor, lawn and garden products, and maintenance supplies. In addition, the company offers installation services, tool rentals, and online platforms for consumers, contractors, and professional tradespeople.
While we acknowledge the potential of The Home Depot, Inc. (NYSE:HD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HD and that has 100x upside potential, check out our report about this cheapest AI stock.
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