In this article, we will look at Jim Cramer’s stock calls and the truth about strong consumer spending despite the Iran conflict. On Monday, the host of Mad Money talked about how consumer spending is holding up even as tensions rise amid the conflict with Iran.
It all starts with retail. That’s how everything works in this country. We see the strengths and weaknesses of the consumer at the register, and we make judgments because our country’s economy is based on service, not manufacturing. And all I can say is so far so good. No recession yet in sight, at least not here. We may be traumatized by the events in the Middle East, but so far, they haven’t impacted consumer spending. The consumer apparently remains confident, paying up, defying the toxic political environment in the country. I keep thinking she’ll hit a wall as the price of gasoline goes higher, but maybe not, given that cars are a lot more fuel efficient than they were the last time we had an oil shock. And gasoline seems cheap. It hasn’t been hit by the inflation stick like so many other commodities.
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Talking about travel, Cramer said that it mystifies him. He pointed out that airlines continue to perform well, even as issues with the TSA raise questions about why travelers would feel comfortable heading to airports. He added that companies like Airbnb and Marriott International are showing strength, while Booking Holdings has lagged behind, which he called “highly unusual.” He also noted that cruise operators are currently doing well, although there are already signs that some trips scheduled for next year are being canceled, which he said is not surprising given that the ongoing war is disrupting ocean travel routes.
Every day we hear that the consumer’s teetering. You hear it. I hear it. We hear that healthcare costs are going up, that energy’s up 32%, that car loans are stressed, but the retailers show it’s not true. Maybe it’s bigger tax refunds, maybe it’s low unemployment. Either way, it’s contrary to what you can expect and what I think the media’s reporting. And if President Trump can really deliver an end to the war, you can rest assured this group is to buy. I just don’t know if the Revolutionary Guard will cooperate. From what they’re saying, it seems a little unlikely.
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 23. We listed the stocks in the order that Cramer mentioned them.
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Jim Cramer’s 10 Stock Calls and the Truth About Strong Consumer Spending Despite the Iran Conflict
10. Dollar Tree, Inc. (NASDAQ:DLTR)
Dollar Tree, Inc. (NASDAQ:DLTR) made our Mad Money recap, as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer showed bullish sentiment toward the stock despite it being off its “game,” as he said:
The dollar stores, Dollar General, and Dollar Tree, they seem off their game right now. I wouldn’t bet against them, though. They always seem to pull a bull out of a hat.
Dollar Tree, Inc. (NASDAQ:DLTR) sells everyday essentials, household items, toys, and seasonal products at low prices. The company focuses on providing affordable food, personal care, home goods, and holiday merchandise. Cramer mentioned the stock during the March 19 episode and said:
This whole group has rallied like crazy since the post-Liberation Day lows last April. Initially, everyone thought these companies would be crushed by the tariffs because they relied heavily on cheap imports, but then most of these tariffs got rolled back, allowing the dollar stores to rebound. Lately, though, the dollar stores have pulled back hard. Dollar General’s down nearly 15% since it reported last Thursday morning. Dollar Tree had already started coming off its highs in January and February. When it reported Monday, the stock rallied 6.4%, but since then, it’s given back all of its post-quarter gains. Both Dollar General and Dollar Tree reported solid results, but… somewhat disappointing guidance.
9. The Home Depot, Inc. (NYSE:HD)
The Home Depot, Inc. (NYSE:HD) made our Mad Money recap, as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer explained why the Charitable Trust is holding on to the stock, as he remarked:
The only miss is the home-related stores and… dollar emporiums. The housing-related retail stocks are simply unable to move up because they’re tied to home sales, and the housing market’s frozen. Until interest rates come down, I don’t expect anything to bail out the stocks of Home Depot, RH, or Best Buy, for that matter. That said, if the war really winds down, and Fed Chief-in-waiting Kevin Warsh genuinely tries to cut interest rates, they could be winners. That’s why we hold on to Home Depot for the Charitable Trust.
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that sells tools, building materials, and decor. It also provides installation and equipment rental services. A caller asked for Cramer’s thoughts on the stock during the March 4 episode, and he responded:
Home Depot, big position for my Charitable Trust. It’s been problematic, but we have it on because rates are going to get cut, and you have to own the stock when rates get cut.
8. Walmart Inc. (NASDAQ:WMT)
Walmart Inc. (NASDAQ:WMT) made our Mad Money recap, as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer mentioned the stock during the episode and commented:
There are bargains to be had all over retail, and they just don’t look like it. Walmart, okay, its stock’s up 8% year to date. Costco, up 12% year to date. Both have high price-to-earnings multiples. I get that, but they’d do well if you think that we’re headed toward a slowdown because of oil prices.
Walmart Inc. (NASDAQ:WMT) operates retail stores, warehouse clubs, and online platforms that sell groceries, everyday essentials, home goods, apparel, electronics, and more. Cramer discussed the stock during the January 8 episode and said:
Or how about Costco versus Walmart? Well, this is really interesting. See, last year was Walmart’s year. The stock was up over 23% as the market recognized that this was the store of choice for cash-strapped consumers. Walmart even began to pull more customers from the upper middle class because CEO and now retiring sadly, Doug McMillon made the stores more appealing while keeping prices low. Everyone loves low prices. However, Walmart’s price-to-earnings ratio, how we measure whether the stock’s cheap or expensive, it skyrocketed to the 40s. That was incredible.
7. Target Corporation (NYSE:TGT)
Target Corporation (NYSE:TGT) made our Mad Money recap, as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer highlighted the company’s performance as he said:
Target has been a standout. I was concerned that it might give up the ghost since the war with Iran started, but the stock’s really hung in there. It’s up nearly 18% for the year. A nice beginning for new CEO Michael Fiddelke.
Target Corporation (NYSE:TGT) is a retailer that sells clothing, beauty items, groceries, electronics, home goods, and everyday essentials. Cramer showed positive sentiment toward the new management during the March 4 episode, as he stated:
Yesterday, we got a much better than expected quarter from Target, which had been struggling for years, but it’s now under new management… Overnight, every analyst that covers the company seemed to be raising their price targets, and two different firms upgraded the stock… So, have I become a believer in Target under new management? Honestly, yes, I am a believer. I couldn’t leave her if I tried, at least for now. The new management team will have to deliver on the promises that it made yesterday, and I’ll need to see some same-store sales turn positive, along with continued margin improvement and legitimate earnings growth, before fully buying in.
But it’s tough not to be encouraged by what we heard yesterday. Target was already improving before the management handover, and now the new regime has a bunch of plans to keep that going. The most important thing in my opinion is that the new management team seems to have a very good grasp of what the company’s been doing wrong, and they’re not afraid to admit those mistakes… This is a fresh start here.
The first step, as they say, is acceptance, and Target’s now well beyond that first step, moving on to the point where they’re rectifying the most pressing problems. Again, the proof will be in the pudding. These guys still need to deliver. Better numbers will have to follow this period of better vibes and big plans. But with Target currently selling for still just 15 times its midpoint of its new earnings forecast, while Walmart trades at nearly 44 times and Costco trades at almost 50 times, well, the bottom line is, Target stock, it could still here be considered a steal. It’s just way too cheap if the company can maintain a sustained recovery under new CEO, Michael Fiddelke. And you know what? I think he’s worth betting on.
We recently covered the stock while discussing the top-performing consumer staple stocks in February. You can read more about it here.
6. Five Below, Inc. (NASDAQ:FIVE)
Five Below, Inc. (NASDAQ:FIVE) made our Mad Money recap as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer was bullish on the stock, as he said:
Five Below, the uber-discretionary play, has triumphed over all the other inexpensive shops. I had it on last week. I think it’s staying strong.
Five Below, Inc. (NASDAQ:FIVE) sells a wide range of low-priced essentials, decor, tech accessories, toys, crafts, snacks, and seasonal items. During the March 19 episode, Cramer noted that he believes that the stock has “got more room to run.” The Mad Money host commented:
Last night, we got an incredible set of numbers from Five Below. The discount retailer’s made a monster move over the past 12 months, and the stock shot up more than 10% today. You just can’t keep a good stock down, can you? This spectacular quarter almost came out of nowhere… There was some concern, real concern, that Five Below might blow up. Instead, Five Below shot the lights out. How’d they do it? Okay, keep in mind that Five Below has been roaring in large part because the company’s under new management. When the old CEO stepped down in July of ‘24, he was not doing that good a job, frankly. The company was having an identity crisis, making a push to sell product that costs more than $5 while pursuing an aggressive growth plan.
After a period with an interim CEO, Five Below brought in Winnie Park from Forever 21 of all places… to take the reins in December of 2024. And Park is a miracle worker. She transformed the company, reshuffled management, expanded Five Below’s target demographic to include younger children. At the same time, she’s embraced social media and made it a top priority to quickly capitalize on new trends, which is the way it started out. That was the roots of Five Below. Now, this is part of a huge strategy shift, though… These moves have paid off as the stock caught fire last year. It is still on fire now. When Five Below reported last night, expectations were high, and they still managed to beat the stuffing out of the estimates.
… Put it all together, and you can see why Five Below pulled away from the dollar stores this quarter. The company has delivered several incredibly strong quarters in a row at this point. And through its guidance, it’s indicating that it should keep going higher. I know it seems odd, but I think it will. The bottom line: At the end of the day, this turnaround’s all about management. Under the leadership of Winnie Park, Five Below has become a company that knows its target customer and is serving that customer incredibly well. Stock has already more than tripled over the last 12 months, and even after today’s magnificent move, you know what? I think it’s got more room to run.
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