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.
13. Zoetis Inc. (NYSE:ZTS)
Zoetis Inc. (NYSE:ZTS) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. When a caller inquired about the stock during the lightning round, Cramer said:
Zoetis, now, there’s something not well there. It’s the first time I’m going to say this, but I actually do prefer Elanco. I think Elanco and Jeff Simmons have really come on very strong. That would be the one in animal health that I’d like you to be in.
Zoetis Inc. (NYSE:ZTS) develops and sells medicines, vaccines, and diagnostic tools for both pets and livestock. It is worth noting that Cramer called it a “quality” company during the May 11 episode, as he commented:
Zoetis, okay, here’s a classic 1999er. The uber-consistent animal health company is experiencing something that’s pretty hard to believe: an endless series of declines after one weak quarter. That’s very much, I’d say, March of 2000, end of the month. Punished, punished, and punished some more with the stock down 7.4% today, not to mention down 39% for the year. This is a quality company.
12. Cisco Systems, Inc. (NASDAQ:CSCO)
Cisco Systems, Inc. (NASDAQ:CSCO) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer highlighted the stock’s performance during the episode, as he remarked:
All sorts of old-fashioned respected tech stocks have caught fire here thanks to this AI data center boom. Take Cisco, the networking and security giant. Here’s a stock that’s up 66% for the year, by the way, do you know that’s the best performing stock in the Dow Jones Average, on surging data center demand, something we heard all about when the company reported a magnificent quarter last month. Today, Cisco rallied another 5.5% as we learned more about their newly unveiled AI cybersecurity platform, Cisco Cloud Control, a unified platform built for humans and AI agents to defend critical information technology infrastructure.
Cisco Systems, Inc. (NASDAQ:CSCO) creates networking, security, and collaboration tools that help organizations stay connected and protected. Cramer discussed the stock during the May 14 episode, as he said:
It took away from the extraordinary performance of Chuck Robbins at Cisco, showed an incredible acceleration, both sales and earnings. Cisco was the largest company in the world at the peak of 2000. It was selling to all the big customers at the time, the companies that were building out the internet with massive amounts of fiber. A lot of it never got lit. A lot of the customers didn’t have enough money to pay. Again, investors lost fortunes with Cisco back then. This time, Cisco deserved the run. Today’s 13% rally was completely justified and then some. It wasn’t a mania. It wasn’t fanciful.
11. Signet Jewelers Limited (NYSE:SIG)
Signet Jewelers Limited (NYSE:SIG) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer discussed the company’s earnings, as he commented:
This morning, Signet Jewelers reported a surprisingly strong quarter. The retailer you know as Kay Jewelers, Zales, Jared, bunch of digital brands including Blue Nile, delivered an 18-cent earnings beat off a $1.38 basis with inline revenue and slightly better than expected same store sales growth. Even better, Signet gave solid guidance for the current quarter, raised its full-year forecast across the board. Not many retailers have done that.
That’s why the stock jumped 3.75% today. Of course, this thing’s been a real wild trader over the years. Signet rallied from $45 at its lows in March of last year to $110 at its highs in October. Then the stock pulled back all the way to $71 a few weeks ago. But despite widespread worries about the consumer discretionary space, it’s now rebounded to $88.
Signet Jewelers Limited (NYSE:SIG) is a diamond retailer that sells jewelry through a variety of store brands, mall-based kiosks, and online platforms. The company’s main brands include Kay, Zales, Jared, Peoples, Banter by Piercing Pagoda, Diamonds Direct, and Blue Nile.
10. Netflix, Inc. (NASDAQ:NFLX)
Netflix, Inc. (NASDAQ:NFLX) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. During the episode, a caller asked what was holding the stock back, and Cramer replied:
Okay, so here’s what’s amazing… You and I are thinking alike. I saw it today at $83, and I said to myself, alright, I gotta do a piece about how this stock got down to $83. It shouldn’t be, it shouldn’t be down 11%. You are on to something. I am going to do it. I can’t just say, yeah, I agree with you, because obviously that’s not rigorous. But I think you’re on to something, and I’m going to follow up on it, and we’re going to get down to the bottom of it.
Netflix, Inc. (NASDAQ:NFLX) provides streaming entertainment, including TV series, films, documentaries, and games. During the May 5 episode, a caller asked if the stock was a buy. The Mad Money host responded:
Well, okay, it’s not a buy, buy, buy, because we’re still, it’s a quizzical moment for Netflix because they went and they did that ill-fated attempt to be able to get Warner Brothers Discovery, and because of that, people feel that they must need that property. We have to wait one more quarter, and then I think people will realize, no, they just did it. It would’ve been a good idea. Let’s move on.
9. The Kraft Heinz Company (NASDAQ:KHC)
The Kraft Heinz Company (NASDAQ:KHC) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer showed faith in the company’s CEO, as he remarked:
Finally, alright, I’m going to put my neck in there, I want to take on the risk of owning Kraft Heinz with CEO Steve Cahillane, the miracle worker who made you a huge amount of money with Kellogg in that breakup at a time when the rest of the industry was falling apart. Steve came on the show not that long ago and laid out a vision that could turbocharge old, lost brands. I hope he can pull it off and save the dividend. Currently yields 6.85%. Now, this is faith-based investing, though, as I have faith in Steve after what he did with the arguably more difficult Kellogg. But I don’t have all that much faith in Kraft or Heinz after previous management gutted the company.
The Kraft Heinz Company (NASDAQ:KHC) produces food and beverage products, including condiments, dairy, meals, meats, beverages, and snacks.
8. Yum! Brands, Inc. (NYSE:YUM)
Yum! Brands, Inc. (NYSE:YUM) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer discussed the possible sale of the company’s pizza business, as he said:
Got two fast food companies that are down on their luck that we all know, McDonald’s and Yum! Brands… As for Yum, yesterday we started hearing chatter that they’re in talks to sell the ne’er-do-well Pizza Hut business to an outfit called LongRange Capital. I thought this one would explode higher on the news because the remaining KFC and Taco Bell are two amazing performers. I think the love affair with tech though, is taking the stock down to well below where it should be. A Yum free of Pizza Hut is a Yum that’s going to trade much higher.
Yum! Brands, Inc. (NYSE:YUM) develops and franchises several quick-service restaurants, including well-known brands such as KFC, Taco Bell, and Pizza Hut. A caller inquired about the stock during the March 27 episode, and Cramer replied:
I think that Yum has come down to a very attractive price, $153 down from $169, 23 times earnings, excellent growth, asset light model. And right now, what’s going on in the worldwide economy does not really impact a company that offers a nice value meal.
7. McDonald’s Corporation (NYSE:MCD)
McDonald’s Corporation (NYSE:MCD) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer mentioned the company during the episode and said:
Got two fast food companies that are down on their luck that we all know, McDonald’s and Yum! Brands. The former missed the quarter, something that’s very rare. I don’t think that’s going to happen again.
McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants that provide burgers, chicken sandwiches, fries, beverages, and desserts. During the May 11 episode, a caller asked if the stock is a buy, sell, or hold, and Cramer responded:
Okay, McDonald’s is very tough because it’s breaking down here. It sells at 21 times earnings. The quarter was just okay, 2.7% yield. I want to buy this on a yield basis. If it gets to 3%, I do want to buy it, but remember, we just had QSR on, Burger King, and Burger King’s winning now. QSR I think is the better, whoa, the better company than McDonald’s, Pat Doyle, executive chair.
6. Kimberly-Clark Corporation (NASDAQ:KMB)
Kimberly-Clark Corporation (NASDAQ:KMB) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer called it an “odd one,” as he commented:
We need some staples. I’ve got an odd one. How about a stock I haven’t talked about at all? How about Kimberly-Clark? Here’s a premier Kleenex paper towel, toilet paper, diaper company, world-class set of brands, right now sells for just 13 times earnings, 5.25% safe yield. I like Kimberly-Clark because it’s merging with Kenvue, J&J’s former consumer products division, which didn’t get much love as the company was determined to move into faster growth pharma. It will be run by the terrific Michael Hsu, who has synergies galore that he can exploit. Deal closes in the second half. I’m not worried about RFK Junior’s aversion to Tylenol. To me, like the talc suits filed against J&J, the issue has become litigation noise, gives you an extra bargain.
Kimberly-Clark Corporation (NASDAQ:KMB) manufactures personal care products and provides items such as diapers, wipes, feminine and incontinence care products, and household paper goods.
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Click to continue reading and see Jim Cramer’s 5 Stock Calls, Including Alphabet and Eli Lilly, and Possible Opportunities.
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