On Monday, Jim Cramer, host of Mad Money, shared his views on why the Magnificent Seven can continue to perform well, even after several years of substantial gains.
“Their best days are behind them. Those may be the six most damaging words to your portfolio, and hardly a day goes by when they don’t hinder you from making money, especially when we’re talking about the Magnificent Seven. So many people trade these great stocks rather than owning them.”
READ ALSO: Jim Cramer Shared Insights on These 12 Stocks and Jim Cramer Put These 7 Stocks Under the Microscope.
Cramer questioned why, for over a decade, many insisted the best was already over for these companies, despite their continued growth. He emphasized that too many people treat these stocks as short-term trades instead of long-term holdings. Talking about the Magnificent Seven stocks, he described their balance sheets as having “essentially all the money in the world,” which he said gives them a unique advantage: the ability to fund innovation without restriction. He mentioned that this kind of liquidity allows them to outcompete rivals, acquire new businesses when necessary, and even withstand regulatory challenges.
He pointed out that even when government agencies take action against them, those efforts often fall short. Cramer pointed to scale as another defining advantage. He said that these companies operate across massive global networks and continue to grow, extending into new areas with relative ease. Another factor that he said sets the Magnificent Seven apart is their capacity for constant reinvention.
“The bottom line: Magnificent Seven are heroes, and I’m not going to tell you to sell heroes unless something changes that makes them feel a lot less heroic. That hasn’t happened, though. They’ve still got great management. They still are overflowing with cash, and their scale is so enormous that no one can stand against them. What’s not to like?”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 15. 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 Weighed In on These 11 Stocks
11. Jacobs Solutions Inc. (NYSE:J)
Number of Hedge Fund Holders: 35
Jacobs Solutions Inc. (NYSE:J) is one of the stocks Jim Cramer weighed in on. Cramer called the company a winner of the AI data center boom. He commented:
“One thing I love about the AI data center boom is that it just keeps creating winners in unexpected places. Take Jacobs Solutions. It’s the engineering construction firm that went through a complicated merger breakup deal last year that was very successful, but is now cleaning up, thanks in large part to its data center exposure, which has become a major growth driver for the company.”
Jacobs Solutions Inc. (NYSE:J) provides consulting, design, engineering, and infrastructure delivery services, including project and construction management and facility operations. L1 Capital stated the following regarding Jacobs Solutions Inc. (NYSE:J) in its second quarter 2025 investor letter:
“Jacobs Solutions Inc. (NYSE:J) (Jacobs) was founded in 1947 by Joseph Jacobs as a one-man chemical engineering consulting business. Over the next nearly 80 years the business has grown through international expansion and strategic acquisitions to become one of the largest engineering design firms globally with over 45,000 employees.
Management and their capital allocation decisions are central tenets to how we assess Quality businesses. Many management teams are focused on growth. Fewer management teams are willing to divest their way to greatness. Over the past decade, initially under the leadership of Steve Demetriou and subsequently by current Chairman and CEO Bob Pragada, Jacobs has undergone a drastic strategic shift in business profile, pivoting from its historically more cyclical and lower margin businesses…” (Click here to read the full text)
10. e.l.f. Beauty, Inc. (NYSE:ELF)
Number of Hedge Fund Holders: 43
e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer weighed in on. Noting its recent surge in value, a caller inquired about the stock but voiced concern about potential risks related to China and asked whether it is too late to buy in. In response, Cramer said:
“I would not worry about the China scare because it’s what I call baked into the stock. What I would worry about is the parabolic move we had today. I mean, ELF is up nine. I think we have to wait till it comes down. I’m thrilled you’re in the club, but I know if I were in the club right now and we owned ELF, I would say trim, don’t buy. That’s just a parabolic move, and that signals that it’s up too much.”
e.l.f. Beauty, Inc. (NYSE:ELF) develops and markets cosmetics and skincare products under brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare.
Hedge Fund Resource Center