In this article, we will look at Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. The host of CNBC’s Mad Money said Tuesday that investors may want to increase exposure to sectors that have fallen out of favor if money starts moving away from the market’s biggest technology winners.
There’s something quizzical here… Marvell and Arm are emblematic of this market’s even more… nature of narrowness. If it’s not in the data center or connected to artificial intelligence and connected to NVIDIA, then Wall Street’s just not interested at all… I do want to take advantage of the fact that the market could, it could turn on a segment that is voracious and needy for money, like the data center’s becoming. The cost is getting too high, people, even as Jensen Huang does say that the more you buy his chips, the more you make. And you know I believe that, but it’s not yet self-evident.
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Cramer highlighted several beaten-down stocks that he believes could perform well if enthusiasm for the AI trade begins to fade. He said the list is important, noting that technology stocks could face pressure because roughly $500 billion may need to be raised in a relatively short period to fund data-center expansion. He added that if more companies follow Alphabet’s lead and issue stock, the resulting supply could weigh on the entire technology group. He said that in such a case, investors may be glad to own non-technology names such as the stocks he mentioned. Cramer also explained that these companies are less likely to be used as sources of cash for investors looking to fund purchases of the latest AI-related opportunities.
Bottom line: You’re foregoing some risks, but more important, these are the stocks that will start going higher if tech retreats and we have to start thinking like that. You’ll wish you had some when the time comes, and the momentum tech stocks run out of momentum.
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on June 2. We listed the stocks in the order that Cramer mentioned them.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Jim Cramer’s 15 Stock Calls, Including Salesforce and Cisco, and Possible Opportunities
15. Salesforce, Inc. (NYSE:CRM)
Salesforce, Inc. (NYSE:CRM) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer discussed the stock’s price movement, as he stated:
Marc has made great strides in creating an agentic AI product that might be the best in the category. He’s got the Slack system, very popular. I know I like it. For the record, I actually like the quarter too, but Salesforce’s growth isn’t supposed to reaccelerate until the second half of the year. In the interim, the company’s buying back massive amounts of stock, 25 billion already, another 25 billion to go. Real sign of conviction, speaks louder than words to me. Last week, after Salesforce reported the very good set of numbers with a not-so-hot forecast for the current quarter, lots of longtime shareholders decided to throw in the towel.
Boy, there was a lot of negativity, but we stuck with it for the Trust. The next morning, after we interviewed Marc the night before about the quarter, the stock was down $4 in pre-market trading. It was hanging at $173. Carl Quintanilla asked me on air what I’d do with it. I paused for a second, reluctant to say it, but finally said I’d buy it. Salesforce at 13 times earnings, too many doubters, too many short sellers. I remember when people loved this one at 26 times earnings. Now, they hate it at 13 times earnings. That’s crazy. The stock had gone out at $177 the night before.
Soon after I called the bottom, the stock opened lower and hit $171. Then it shot up to $181 just after 10… that morning. Oh, but then it fell back to $176, and it closed there. It was hanging by a thread. I figured it was only a matter of time, maybe another day before Salesforce took out that $173 level that I said I’d buy it at, and I’d be… beaten by the enterprise software stick, but it didn’t happen. Instead, we got a real shock; buyers swarmed out of nowhere… If we had sold at $176 for the Charitable Trust, we would’ve been total morons. Sellers threw in the towel simply because they couldn’t take it anymore. Bad reason to do anything. But now we know there is a level where it’s finally become more dangerous to sell than it is to buy, and that could be the real bottom.
Salesforce, Inc. (NYSE:CRM) provides CRM-focused tools that help businesses manage customer interactions, use AI agents, analyze data, collaborate, and run marketing, commerce, and field service operations.
14. Energy Transfer LP (NYSE:ET)
Energy Transfer LP (NYSE:ET) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. A caller sought Cramer’s opinion on the stock. In response, he stated:
Energy Transfer is a terrific situation. I like it very much. I think it is inexpensive and it’s got a good dividend.
Energy Transfer LP (NYSE:ET) operates natural gas, natural gas liquids, and crude oil pipelines and facilities. The company provides transportation, storage, processing, and marketing services. A caller asked about the stock during the March 12 episode, and Cramer replied:
That is the kind of stock that you want to own in this environment. You’re going to make money, you’ve got a great yield. Even though it’s up in [an] almost parabolic move, I would buy some more if it came down.
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