On Monday, Jim Cramer, host of Mad Money, shared valuable insights from his years of experience as an investor. He stressed the importance of saving consistently, regardless of any excuses. According to Cramer, starting early is ideal, but even if that is not possible, it is still essential to set aside money for the future.
READ ALSO: 21 Stocks on Jim Cramer’s Radar and Jim Cramer’s Thoughts on These 13 Stocks.
He advised that even if someone cannot afford to build a large stock portfolio, it is still worthwhile to invest in as little as possible. One way to do this, he suggested, is by contributing to an index fund or a major mutual fund with whatever money is available.
“If you don’t have enough money or the time to own a stock portfolio, you can only own one or two stocks, send the money in, as little money as you can, to an index fund, to one of these big mutual funds.”
Cramer also noted that if one is planning to pick individual stocks and dealing with real money, they should open an actual investment account. He compared investing to swinging at a pitch; if you know what you’re doing, it can be profitable, but if you do not, the risks are much higher. He warned against treating investing like a gamble or chasing after excitement, as this can lead to poor decisions. Instead, he emphasized the importance of discipline in investing and urged investors not to let their losses accumulate over time.
“So here’s the bottom line: You want to get started, go small, invest what you know, research intensely, just research, research, research… It’s as simple as a keystroke and the information’s free, including up-to-the-minute financials, analyst presentations, brokerage research, and of course, the conference calls that I tell you are a must if you want to actually know what you’re doing. Simple? No. Lucrative? You bet it is.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 2. We listed the stocks in ascending order of their hedge fund sentiment 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 7 Stocks Recently
7. Bank OZK (NASDAQ:OZK)
Number of Hedge Fund Holders: 37
When a caller inquired about Bank OZK (NASDAQ:OZK) , Cramer said:
“Well, I’ll tell you, Ozark Bank, I mean, look at this, it’s not a high-quality bank. Now you’re a member of the club. You know, I think Capital One, COF, when it finishes this merger with Discover is going to be, which is going to be done in two weeks, that is the red-hot stock that I think can go much higher. As I said several times today on Twitter, it’s the one I really like.”
Bank OZK (NASDAQ:OZK) is a state-chartered bank that offers a wide range of financial services, including various deposit accounts, lending options, and trust and treasury services for both individuals and businesses. On April 21, Stephens analyst Matt Olney cut the price target on Bank OZK to $54 from $59 and maintained an Equal Weight rating.
The firm believes details about RESG appraisals should help build investor confidence in the bank’s credit view and noted the new outlook includes a slight upward adjustment to EPS and pre-provision net revenue.
6. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 42
A caller asked for Cramer’s opinion on Applied Digital Corporation (NASDAQ:APLD), and in response, he remarked:
“I know the company, and it’s the kind of thing, we have so many of these digital infrastructure plays. I actually just prefer if you’re going to go there, just go buy Salesforce. I’m not kidding. Go buy CRM, I would feel better that way.”
Applied Digital (NASDAQ:APLD) builds and runs digital infrastructure. The company provides cloud services and high-performance computing for areas like AI, machine learning, and cryptocurrency mining. Over the past year, APLD stock went up more than 56%. Moreover, when Cramer was asked about the company back in April, he remarked:
“No, it’s losing money and I got enough problems with companies that are winning and making money. I can’t go for the losers. I am sorry.”
5. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 47
A caller asked if Phillips 66 (NYSE:PSX) was a good investment, and Cramer replied:
“Alright, let’s just view it as an investment situation. It’s got a 4.4% yield. We’re running short of refiners. I think that the stock has been overly punished. It’s been going down as if it’s an oil stock. It is not an oil stock, it’s a refiner, and I would be a buyer of PSX, and I’ve been waiting to say that for some time, but it’s down enough that I think it’s time.”
Phillips 66 (NYSE:PSX) is an energy company engaged in manufacturing and logistics. The company handles the transport, storage, refining, and marketing of petroleum products and is also involved in producing and selling chemicals. On May 2, Goldman Sachs increased its price target on PSX to $127 from $124 and maintained a Neutral rating.
The analyst mentioned that the firm sees better risk-reward following the recent drop in the stock, but is still watching refining performance and remains cautious about the company’s progress toward its 2027 mid-cycle EBITDA goal.
4. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 66
A caller asked why Abbott Laboratories’ (NYSE:ABT) forward PE was higher than its current and trailing PE. Here’s what Cramer had to say in response:
“Okay, their forward PE shows that there’s going to be a, pretty much of an earnings explosion. And I think a lot of that’s going to be coming from Libre, which is their diabetes, they have the best diabetes device. It’s cheaper than everybody’s.
By the way, I think pound for pound, it’s better than Dexcom, and Dexcom stock was up very big today. Also, remember, Robert Ford runs Abbott, and he runs it incredibly well. And I also think they’re going to settle these lawsuits or win the lawsuits that have really kept the lid on the stock, and that’s going to happen in 2025.”
Abbott Laboratories (NYSE:ABT) is a healthcare company that focuses on the research, development, manufacturing, and marketing of various medical products.
3. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 80
A caller asked about Applied Materials, Inc. (NASDAQ:AMAT) during the lightning round, and Cramer stated:
“Applied Materials, I think, is an excellent company, but I have to tell you, I like Lam Research more, and that’s the one I would go for.”
Applied Materials (NASDAQ:AMAT) supplies equipment, software, and services used in the production of semiconductors, displays, and related technologies for a range of electronic and consumer devices. On April 22, Barclays analyst Tom O’Malley cut the price target on Applied Materials to $160 from $190 and maintained an Equal Weight rating. The firm updated its semiconductor and semiconductor capital equipment models to account for tariffs and the ongoing trade war ahead of Q1 earnings. It lowered target multiples for China and consumer risks.
2. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 105
A caller asked what Cramer thinks of Marvell Technology, Inc. (NASDAQ:MRVL), and he said:
“It’s, you know, its stock is the same price as it was before it got into AI. This is ridiculous. It’s below right around where Matt Murphy, the CEO, bought stock back, bought it personally. I would buy the stock of Marvell, and I’d buy it on Monday.”
Marvell (NASDAQ:MRVL) is a semiconductor company that specializes in data infrastructure. The company’s chips are built to handle the needs of modern data centers. On April 11, commenting on the stock’s decline, Cramer said:
“It’s unbelievable. And Matt Murphy is so fabulous. He bought a lot of stock actually higher. They are doing everything right, but you know what? They are up against some very good competition, and people feel that there’s always going to be some Taiwanese company that’s going to come in… It is now getting no credit for anything it’s done in the data center. I think. Marvell Tech is a buy.”
1. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 105
A caller inquired about what is happening with Oracle Corporation (NYSE:ORCL) and asked why it was stuck. In response, Cramer said:
“Well, last quarter was not good. Last quarter was not good, okay, but I think the stock started to show you something today. I think it showed you that if you get a better tape and a better tech tape, you’re going to make some money in Oracle. I urge you to hold on. Would I be a buyer? Yes.”
Oracle (NYSE:ORCL) is a tech company that provides various IT products and services meant to help businesses manage and run their operations. Aristotle Atlantic Partners, LLC stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2025 investor letter:
“Oracle Corporation (NYSE:ORCL) provides products and services that address enterprise information technology (IT) environments. The company’s products and services include enterprise applications and infrastructure offerings that are delivered worldwide through a variety of flexible and interoperable IT deployment models. The company operates in three segments: Cloud and License, Hardware and Services.
We believe Oracle’s cloud infrastructure product, OCI 2.0, will continue to demonstrate strong revenue growth over several quarters. Additionally, we see the rapid growth of artificial intelligence (AI) computing needs as being a differentiated growth driver for Oracle. We believe that Oracle will continue to drive positive outcomes for the Cerner business through a better margin structure, as well as top-line sales synergies.”
While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ORCL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
