Jim Cramer, host of Mad Money, shared his outlook on the developments expected this week and focused on the upcoming nonfarm payroll report and corporate earnings.
“Sometimes you have to just take a breath and ask why things seem so momentous. Notice I said seem, because there’s nothing on next week’s game plan that should have us all that worried. Yet here I am at this wall, and I feel like I’m staring down the barrel of a gun, the gun being Friday’s nonfarm payroll report.”
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Cramer explained that a strong jobs report would likely eliminate any chance of a short-term interest rate cut by the Federal Reserve. He said that in that case, not only would rate cuts be off the table, but longer-term yields could climb as well. On the other hand, even if the report shows weak job growth, he warned that the Fed might still hold off on easing rates, given the inflationary pressures linked to tariffs.
Cramer noted that he is hoping for a “Goldilocks report”. He stressed that we need a labor report showing neither job growth nor wage growth. According to him, it is the one setup that might not damage market sentiment. He acknowledged how strange it might sound to cheer for stagnation in employment numbers, but added that if that exact figure comes in, the market could stage a powerful rebound, potentially recovering recent losses and even extending the strength it showed throughout May. He emphasized the ideal outcome, ”No job growth and no wage growth,” and joked, “That’s something to root for, ain’t it?”
“Because the bottom line is: This ain’t baseball, it’s your money. Stay long but no fence swinging, please. It’s too momentous for that.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 30. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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’s Game Plan: 9 Stocks in Focus
9. lululemon athletica inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 48
lululemon athletica inc. (NASDAQ:LULU) was part of Cramer’s game plan, and he commented:
“lululemon, there you go, ton of business in China, and as a matter of fact, it’s actually been a real bright spot. We did a piece earlier in the week that said that this could be a bottom for the stock, and I think it’s just too cheap. I’m sticking by that judgment.”
lululemon athletica (NASDAQ:LULU) creates and sells athletic clothing, footwear, and accessories for men and women. The company’s products are made for activities such as yoga, running, and training. On May 28, Cramer said:
“[The stock] sold off some more after Liberation Day because Lulu has a huge manufacturing presence in Vietnam, which was set to be hit with a 46% tariff…. Once those reciprocal tariffs got delayed, Lulu was able to mount a comeback. But can this rebound continue? I’m cautiously optimistic. I’m going to tell you why. First, I’m still hopeful that the tariffs on Vietnam won’t end up being anywhere near that 46% level that was announced on Liberation Day…
Second, I also believe that the consumer’s doing better than most of Wall Street seems to assume, in keeping with that much stronger-than-expected consumer sentiment number we just got yesterday. Even when consumer sentiment looked terrible, actually consumer spending never really took a hit, though…. The company has a strategic plan in place, which is focused on product innovation, the guest experience, and the market expansion. They’re very rigorous about this. They’ve been doing this for a couple of years. It’s been paying off…
Unlike the setup for the previous quarter where expectations were sky high after Lulu had raised its outlook just a couple weeks before the quarter ended, expectations feel very low right now. Oh, I like this setup…
I think it should be bought, given that expectations for the company are now lower than at any point dating back to mid-2024, which was a great time by the way to buy LULU. This is reflected in the company’s forward price-to-earnings ratio, which currently stands at just 21 times earnings. That’s nearly a 50% discount to the stock’s average valuation over the past five years. Good timing.
So the bottom line: lululemon is a beaten-down retail that I think can continue making a comeback. We’ll see what happens next week, but for the time being, I am inclined to take a chance here. Maybe do it with call options, deep in the money. Why not? The expectations for lululemon are so low that the risk-reward seems pretty skewed to the upside.”
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Expressing optimism for Broadcom Inc.’s (NASDAQ:AVGO) upcoming quarterly report, Cramer commented:
“After the close, we get results from Broadcom, the trillion-dollar tech company that no one seems to have ever heard of. I think it’s having a bang-up quarter. We’re telling club members that it could be reporting an excellent quarter because if its software is getting great margins, that could help us.”
Broadcom (NASDAQ:AVGO) designs and provides semiconductor products such as custom chips, connectivity parts, and system-on-chips used in networking, broadband, and mobile technology. Furthermore, the company provides components for data storage, wireless systems, and industrial applications. On May 23, when asked about the company, Cramer remarked:
“Broadcom is good, my friend. It’s one of my biggest positions for my Charitable Trust. This stock has been a horse, and I gotta tell you, as far as I’m concerned [buy, buy, buy] even up here, because it’s in the data center and it’s taking names and taking share.”
