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 discussed the trade deficit, interest rates, and apprehensions about the US budget deficit. He commented on the divide in thinking between older and younger people. While younger people prefer Bitcoin due to ballooning deficits, older people are more relaxed. According to the CNBC host:
“I think that older people just kind of laugh at this. And just say, I’ve been through this. They’re not going to make any changes in Congress. So it’s gonna be one-off. It’ll be down. Then some people say to me, hey listen, this is going to be the Achilles Heel for the President. If they don’t get this, if rates keep going, then we’re gonna get into a whole new thing about inflation. Look rates should [be] higher, judging on the deficit. But again what you said, is where are they gonna go?”
However, Cramer’s also disappointed in the Trump administration’s efforts to reduce the deficit. While Elon Musk is adamant that his DOGE department has reduced spending, Cramer thinks otherwise as he remarked: “I just thought that we were going to have the budget cut because of DOGE. It’s obviously didn’t work.”
Another bit of financial news that rocked markets recently was Moody’s decision to cut America’s credit rating from a perfect AAA to AA+. Cramer wasn’t surprised as he remarked:
“I mean, I look at it as someone who just says, how could they not try to cut this deficit? How could they continue to be part of the problem. So I understand the downgrade, but I also understand the notion that if the Republican Party is no longer the party of fiscal responsibility, who is? Who is responsible?”
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 19th.
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. Discover Financial Services (NYSE:DFS)
Number of Hedge Fund Holders In Q4 2024: 91
Discover Financial Services (NYSE:DFS) is an American digital bank whose shares have gained 14.8% year-to-date. Over the year, the stock is up by 61% due to the firm being acquired by Capital One. Cramer has commented on the deal multiple times, and he is quite optimistic about it. In his previous remarks, he termed the deal as “totally disruptive.” This time around, he explained the potential disruption in detail:
“I think, I think that Richard Fairbank, the genius who runs Capital One, could very well use the Discover network to go against Mastercard, Visa, and American Express cause it has a lower [inaudible]. How do you like that? They have a hundred and twenty million cards! They have a hundred and twenty million cards! Why couldn’t they have their own network? Why couldn’t they just tell the retailers look this is what we’re going to use from now on and we’re gonna save you a lot of money.”
11. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders In Q4 2024: 91
The Charles Schwab Corporation (NYSE:SCHW) is one of the biggest banks in America. Its shares are up by a strong 20% year-to-date on the back of strong gains since late April which saw the stock gain 17%. Ahead of the jump, The Charles Schwab Corporation (NYSE:SCHW)’s shares sank by 12% earlier in the month during the tariff selloff. In his earlier remarks, Cramer appreciated the firm’s financial report. Here are his latest thoughts:
“[On US downgrade and impacts on regional banking] I remember when Schwab had that. . .how about the greatest single buying opportunity for Schwab. These things roll over. Bank of America had it, people didn’t like Bank of America.”