On Wednesday’s episode of Mad Money, host Jim Cramer discussed why the market is highly favorable for active investors.
“Right now, it is a wild chase, a mad dash so to speak, to make money wherever it can be found, IPOs, mergers and acquisitions, giant upside surprises. When the gangs don’t see bounty in one part of the market, they swing to another like lightning.”
READ ALSO: 15 Stocks Jim Cramer Commented On and Jim Cramer Recently Discussed 12 Stocks.
He pointed to the reaction surrounding CoreWeave as a clear example. He noted that when sentiment turned negative on that company, many investors took it as a broader signal to exit artificial intelligence plays altogether. He mentioned that it triggered a shift back into more traditional software companies, ones that have seen significant losses.
Cramer also highlighted how certain macroeconomic data points are influencing these rapid movements. On Wednesday, mortgage applications saw a rise, which he linked to a drop in interest rates the previous week. He said that it lit a spark under housing-related stocks. It was another example, in his words, of “roving money” jumping from one opportunity to the next.
“The bottom line: Yes, the good times are rolling. It’s not the end of the world. It’s just the end of the staid world of just nothing but index buying by people who don’t want you to make money. We’re back to the old world where people like me want you to make money, and we will get you there, okay? That’s what we’re going to do. It’s not a gangster’s paradise. It’s a buyer’s paradise. Get used to it because it very well may be here to stay.”
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 August 13. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 1,000 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 Shed Light on These 14 Stocks
14. Texas Roadhouse, Inc. (NASDAQ:TXRH)
Number of Hedge Fund Holders: 47
Texas Roadhouse, Inc. (NASDAQ:TXRH) is one of the stocks Jim Cramer shed light on. Cramer showed bullish sentiment for the company in the longer term, as he remarked:
“Recently, for instance, Texas Roadhouse gave you a +5.8% same-store sales number, very strong revenues too, but they missed the earnings numbers, and that’s because they chose not to take price even as the cost of beef skyrocketed. The decision to keep their dinners at $11 was costly, but Texas Roadhouse sensed it was the wrong time to raise price, and they were right. The stock dropped 12 points. We sold some of the stock for the Charitable Trust in the spring, very high, before the earnings report, and we bought some of those shares back on Friday after the price collapsed because I think they did the right thing. We will buy the rest if the stock trades lower. They read the room correctly, and I think they’ll benefit from that longer term.”
Texas Roadhouse, Inc. (NASDAQ:TXRH) operates and franchises casual dining restaurants under brands including Texas Roadhouse, Bubba’s 33, and Jaggers. The company provides a variety of food and beverages.
13. Sweetgreen, Inc. (NYSE:SG)
Number of Hedge Fund Holders: 27
Sweetgreen, Inc. (NYSE:SG) is one of the stocks Jim Cramer shed light on. Cramer highlighted that the company’s restaurant meals are costly. He said:
“Here’s something you never hear from the restaurant companies that are losing customers, even though it’s the truth: our meals cost too much. Unfortunately, that’s exactly what’s going on with two formerly red-hot restaurant chains, Sweetgreen and CAVA… Last week… the salad chain announced that its same-store sales had fallen by 7.6%. Wall Street was looking for a 5.5% decline. Sweetgreen lost 20 cents per share. The analysts were only looking for an 11-cent hit.
… To me, it’s pretty clear what’s going on. CAVA and Sweetgreen have to lower their prices or give us a couple of much lower-priced dishes if they want to turn things around. For now, they’re pricing themselves out of this American market. I get why they’re reluctant to cut prices. What business wants to lower margins?… The problem is, unlike McDonald’s, they’re either maybe too proud or too obtuse, I don’t know, to realize that the consumer’s gotten serious about avoiding high-priced foods, including theirs, even though the food is fresh and good.”
Sweetgreen, Inc. (NYSE:SG) operates fast-food restaurants that serve healthy food and drinks, with ordering also available online or through its app.
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