On Tuesday, Jim Cramer, host of Mad Money, broke down the day’s market movements as he pointed to rising bond yields as the main force behind a series of notable shifts in stock performance.
“Every day around here, we have a referendum on stocks, and you can’t let it get you down because tomorrow’s vote can always be different from today’s… Why is it like this?… Well, the answer is a mischievous one.”
READ ALSO Jim Cramer’s Recent Thoughts on These 15 Stocks and Jim Cramer Put These 12 Stocks Under the Spotlight
Cramer offered a broader perspective and explained that on most days, individual stocks respond either to the movements of other stocks or to the overall direction of the market. He said that the market, in turn, often takes its cues from the bond market, which he described as its “much larger sibling.”
On Tuesday, he noted that the bond market heavily influenced stock prices. He highlighted that every downward movement in bond prices, which translates to higher interest rates, was met with negative reactions from the stock market. According to Cramer, such a relationship meant that rising rates handed the advantage to the market bears and tipped the scales in their favor during daily trading.
“So here’s the bottom line: The good news is that rates can also go up and not just down by the time we get a budget deal. The bad news is that rates are threatening to break out to the upside. And if they can’t stay calm, if they jump to a new, higher level while Congress works on the budget bill, we’re liable to have more days like today, where you need a plethora of positive themes for any given stock to break free from the gravitational pull of these darn miserable Treasurys.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 20. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 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 Talked About These 10 Stocks Recently
10. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 76
Noting that the stock seems to be “dead money”, a caller inquired about Zoetis Inc. (NYSE:ZTS) during the lightning round. In response, Cramer stated:
“It does seem to be dead money. It does seem to, but I still like, look, I’ve gotta tell you, it is dead money. I’m not going to change my view right here on the fly. I don’t see much happening in the veterinary or livestock market at this very moment that’s going to help them.”
Zoetis (NYSE:ZTS) develops and markets a wide range of animal health products, including medicines, vaccines, diagnostics, and genetic tests. Polen Capital stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q4 2024 investor letter:
“Zoetis Inc. (NYSE:ZTS) and Adobe were also notable absolute detractors. Zoetis has been posting excellent growth on the back of its pain and dermatology franchises for quite some time, and its core companion animal business has been firing on all cylinders. Despite this, the stock has come under pressure due to concerns about the growth prospects of Librela, its biologic drug for pain in dogs (as well as Solensia, the sister drug for cats). There has been some concern about the side effects of these drugs, but the data disclosed thus far shows a very low level of adverse events, with drugs that prove highly effective in treating pain. We expect strong growth from these and other drugs currently marketed by Zoetis, with more to come from its prolific pipeline. We used the recent weakness to add to our position.”
9. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 41
In response to a caller’s question about The Mosaic Company (NYSE:MOS), Cramer remarked:
“This weekend, when I was at Total Wine & More up there in Norwalk, I was shocked. Someone came to me and said, what do you think about Mosaic? I said, well, you know what, I think it’s just, it’s killer. It’s killer. But it is hype, it is just like a parabolic move. If I come in now, I think I am too late…. I’m going to have to say, [don’t buy, don’t buy] because it’s just up too much. It’s up too much. I’m sorry.”
Mosaic (NYSE:MOS) manufactures and sells concentrated phosphate and potash fertilizers, animal feed ingredients, and industrial products. The company operates mines and production plants, providing various fertilizers and agricultural services, including nutrient blending. It also handles blending, bagging, and distribution at its facilities.
White Brook Capital Partners stated the following regarding The Mosaic Company (NYSE:MOS) in its Q4 2024 investor letter:
“The Mosaic Company (NYSE:MOS) had a tough 2024 as well, but is strong so far in 2025. Mosaic sells two commodities globally and has a retail distribution network in Brazil. Of the two commodities, Phosphate is historically strong and looks to at least hold that strength in 2025 with demand far exceeding supply and new use cases in high capacity batteries taking increasing amounts of phosphate out of the fertilizer supply base. Potash on the other hand is well supplied and subject to international politics. In typical Biden administration policy weirdness – Belarus, Russia, and Canada are the largest exporters of potash globally – as a result of Belarus’ support of Russia in the Ukraine War, Belarus’ potash is sanctioned by the United States. Russian potash isn’t, and it has flooded the United States and the world as Russia seeks to pay for its war. Adding a wrinkle, Canadian potash, which supplies much of the United States’ needs, but competes at the next lowest price, in this case Russian potash – is likely to be tariffed by the Trump administration. Even more interestingly, Mosaic, is a Florida headquartered company with the largest US Phosphate mine, but it supplies potash out of Canada. We will see how the next few months affect Mosaic, it could be beneficial.
The Company’s Brazilian distribution arm’s contribution to the consolidated company suffered from the poor foreign exchange rate of BRL to USD, but continues to grow its market share.
While this investment is long in the tooth for White Brook, the stock is extremely cheap, produces very significant free cash flow, has a healthy balance sheet and now that the new CEO is almost a year in his new role, I expect value creation for the equity to be imminent or for the position to exit the portfolio.”
8. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 29
When a caller asked about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), Cramer said, “ZIM Integrated, no, I don’t like that and that dividend is a sucker’s play. I don’t want you in that stock.”
ZIM Integrated Shipping (NYSE:ZIM) provides container transport and logistics solutions for a range of customers. Moreover, the company offers a tracking service for temperature-sensitive cargo. The company reported its financial results for the first quarter of 2025 on May 19.
Net income for the quarter reached $296 million, a sharp increase from $92 million in the same period in 2024. Diluted EPS rose to $2.45, compared to $0.75 in the first quarter of the previous year. Lastly, ZIM Integrated Shipping (NYSE:ZIM) reported that the adjusted EBITDA came in at $779 million, which was an 82% increase year-over-year.
7. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 53
Referring to Cramer’s comments to stop trading the stock back in December 2024, a caller inquired about Dollar General Corporation (NYSE:DG). Cramer replied:
“Yeah, well, I said that because I happen to have a very good Dollar General and I’ve been following, I go there, I like it. It’s in Pennsylvania… It’s a terrific store and I just said I’ve been going there and going there and going there. Each time, it’s better and better and better, and the numbers look good. Todd Vasos is back doing a good job, and at 102 and I did mention this stock earlier, it’s got the zeitgeist. It’s the right stock for the right time. I agree with you…”
Dollar General (NYSE:DG) is a discount retailer that sells a broad selection of items such as groceries, packaged foods, fresh products, health and beauty goods, pet items, seasonal merchandise, household supplies, and clothing for all age groups.
6. Builders FirstSource, Inc. (NYSE:BLDR)
Number of Hedge Fund Holders: 59
Builders FirstSource, Inc. (NYSE:BLDR) was mentioned during the episode, and here’s what Mad Money’s host had to say:
“Hey, by the way, while we’re talking about building materials, can we not forget about Builders FirstSource, which is a major consolidator in what used to be a highly fragmented industry? This stock’s been a huge long-term performer, but it’s peaked early last year, and the stock has been tumbling ever since because it’s tied not too directly to a not-so-hot housing market, and that’s because of interest rates. Unlike the rest of the market, Builders FirstSource didn’t recover much in April. Then, when the company reported on May 1st, the stock went lower still because management lowered their full-year forecast.
They’re just not feeling good about single-family housing market. I don’t blame them. It’s not, it’s stagnant. With things looking so bleak for Builders FirstSource, it caught my attention last week, though, when the company disclosed that its Chairman, Paul Levy, had bought a staggering 500,000 shares in the open market for an aggregate purchase price of $55.5 million. That’s about $111 per share.
I gotta tell you, I love to see insider buying, especially when the stock’s been doing badly and the insider’s committing a significant amount of money. Levy’s the founder of JLL Partners, that’s a private equity firm that established Builders FirstSource in the late 90s. So he is been there from the get-go. He knows the business as well as anyone could, and he just increased his stake in the company by 43%.
Now I always tell you that executives sell their stock for all sorts of reasons… but they only buy their own stock in the open market for one reason: because they think it’s going to go higher. So that’s certainly an encouraging thing to see from Mr. Levy at Builders FirstSource. Consider me intrigued.”
Builders FirstSource (NYSE:BLDR) produces and distributes building materials, custom components, and construction services for residential projects. Additionally, the company provides design software and professional installation solutions tailored to industry needs.
5. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 88
Discussing the impact of high bond yields on the housing market, Cramer commented on The Home Depot, Inc. (NYSE:HD) as he said:
“This morning, we got results from Home Depot, which, full disclosure, is an important holding in my Charitable Trust. Even though the quarter was far from perfect and the stock in the afternoon gave up some very big gains from the morning, I thought it was strong in the places that matter… We stuck with Home Depot, though, in part because when I spoke to CEO Ted Decker in mid-March, he was very confident about his ability to mitigate whatever tariffs might come our way…
So the core business is mostly fine, but it’s not, let’s say, beautiful. Still, I’m feeling more confident about Home Depot after these results. So now I’m going to tell you why. Even though again… It’s going to look like I’m on the wrong side of the trade for a moment, but hear me out… There’s what we call the cadence, the way the quarter unfolds from month to month…
The stock pulled back further after the open, and that was probably because we got that spike in interest rates after President Trump indicated that he’s not particularly interested in reigning in the deficit. He just wants some big tax cuts that roiled the whole market… I think it’s worth buying on the weakness, though, because I think it would’ve been up if it weren’t for the fact that President Trump made those comments…
It’s probably too early to start pounding the table in this group, especially since they got clobbered today based on the action in the bond market. But all in all, when we get this budget deficit thing done, when we get a deal, I think you’re going to have to start thinking about buying Home Depot. And I know I’m willing to stick with it…”
Home Depot (NYSE:HD) is a home improvement retailer that sells building materials, home décor, garden products, and maintenance supplies. The company also offers installation services and rents out tools and equipment.
4. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 33
A caller mentioned that they think that The Wendy’s Company (NASDAQ:WEN) has a good dividend and is attractive. When they asked about Cramer’s thoughts on it, he replied:
“Well, I’m going to go against you because they cut it, okay? And you know what? Once you, once a dividend gets cut, I don’t then go seeking to see if they’re going to… you hope that things are fine now. I didn’t like, that last quarter was not so good, you know. Look, everybody knows that my wife loves Wendy’s. She loves Wendy’s, but that’s not enough to buy the stock, alright?”
Wendy’s (NASDAQ:WEN) runs and franchises fast-food restaurants that focus on hamburgers. The company is also involved in real estate development and handles property leasing. On March 31, when Cramer was asked about the company, he remarked:
“Okay, and when I see that dividend, that’s almost 7%, that is what I call a red flag. You can’t really have a dividend that high apart from…. unless you’re a utility company. I don’t trust Wendy’s. Eat the Baconator, don’t own the stock.”
3. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 43
Pointing out the pin action on the stock, a caller asked about Arm Holdings plc (NASDAQ:ARM). In response, Cramer said:
“Look, I think that the pin action on Arm, look, we got Arm out there. AMD’s starting to feel a little better. We know NVIDIA’s there, but I’m going to give you a little curveball here. I think that Broadcom, which went down really hard, is the one that I think can go up. It was up today. At one point, I was thinking about maybe I had to do a little kaching kaching, but Jeff, Jeff Marks, my partner, I think he, I think he feels otherwise. I’m going to go with him.”
Arm Holdings (NASDAQ:ARM) creates and licenses processor technology and related tools that companies use to build electronic products. The company is involved in developing microprocessors, graphics units, system components, software, and design tools.
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Cramer pointed out that Tesla, Inc. (NASDAQ:TSLA) stock would have gone up if “we had a more benign backdrop of bonds”.
“Or take the stock of Tesla, which you know I like here. Today, my colleague David Faber interviewed Elon Musk…. Musk reminded us that his machines will soon be on the road driving autonomously, 1 million of them, and the numbers have gotten better for the traditional business. Now, the latter, it can be verified. The former sounds a little bit like the hubris talking. Still, that kind of thing can allow Tesla to buck the bond market.
Now, unfortunately, at the very moment, the bonds are so in charge that Tesla stock could only go up while David was asking Musk positive questions about the business. The stock would go down when David talked about Musk’s government work and the impact it might have on car sales. Still, it managed to finish the session up a buck and change. I guess that’s a victory. But yeah, I think it would’ve been up quite a bit if we had a more benign backdrop of bonds.”
Tesla (NASDAQ:TSLA) designs, builds, and sells electric cars and energy products. The company provides vehicle sales, financing plans, solar systems, energy storage, and other related services to a wide range of customers.
1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 111
Cramer highlighted that GE Vernova Inc. (NYSE:GEV) has various secular trends going for it, as he said:
“We’re going to talk about the stock of GE Vernova. That’s the power division that was spun off from the old General Electric that so many of you like. Right now, we’ve got several huge themes occurring at once. We know that we have a gigantic number of data centers being put up in the country, correct? Now they require tremendous amount of electricity. They’re big drainers. Our most abundant source of power comes from burning of natural gas. We got more natural gas than any other country.
GE Vernova makes the turbines. Those are huge machines, up to 700,000 pounds, that burn the natural gas, which then generates electricity. Now there’s the theme for you, but that’s not all. Today, the Tennessee Valley Authority, remember them, announced that it’s going to submit a construction permit for a small modular nuclear reactor, again because we need more power for the data centers. Who makes those? GE Vernova. And we know that the Empire offshore wind project off the coast of New York just got re-greenlighted by the Trump administration. According to a 2022 press release, GE Vernova will be responsible for designing and building the high-voltage electrical system connected to this. It’s a huge multi-year project that will be fantastic for, yes, GE Vernova.
Oh, and if you are a country with a trade surplus with the US, the best way to get it down and then you lose the ire of the president, get away or get rid of the wrath, well, it’s always been to buy a Boeing plane, but I don’t think that works as much anymore. You know what you gotta do? You gotta buy a turbine from GE Vernova. It takes a lot to buck the bond voters. But GE Vernova has not one, not two, not three, but four secular trends going for it. That’s what you need. That’s belt, suspenders, and suspenders and then belt again.”
GE Vernova (NYSE:GEV) is an energy company that provides equipment and support for producing, moving, and storing electricity around the world.
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