In this article, we will be looking at Jim Cramer’s recession-proof stock picks.
The recent political gridlock in the U.S. is making investors nervous about the impact this would have on their investments. Treasury Secretary Scott Bessent has already turned the market’s attention towards the possibility of the government shutdown shaving points off GDP growth. Scott believes that the shutdown could undercut one of the few steady bright spots in an otherwise fragile recovery.
Private payrolls slipped by 32,000 in September, and layoffs have been reaching their record high since 2020, when the world was taken over by the pandemic lockdown. Through these figures, the labor market is ringing alarm bells that cannot be ignored. The uncertainty has also reached the Federal Reserve’s doorstep. CNBC reported that markets are now pricing in a 100% probability of a rate cut in October. Meanwhile, the expectation of another rate cut before the end of the year is growing. Though investors may benefit from short-term relief through lower rate cuts, they are very much exposed to the rising downside risks.
So, how to protect portfolios when the policy environment looks increasingly unstable? This is where the host of CNBC’s Mad Money and a veteran market commentator, Jim Cramer, recession-proof picks comes into play. Based on his strategy to focus more on stocks that can weather economic storms, we have brought to you a few top picks you could add to bring stability to your portfolio amid uncertain economic conditions.
Our Methodology
We have compiled our list of Jim Cramer’s recession-proof stock picks by following a few criteria. Primarily, we have included only those stocks that have gained a mention from Jim Cramer. For ranking the stocks, we have used the number of hedge funds as of the second quarter of 2025. We gathered this data from the Insider Monkey database. All the data used in the article was taken from financial databases and analyst reports, with all information updated as of October 5, 2025.
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).
12. Realty Income Corporation (NYSE:O)
No. of Hedge Funds: 27
Realty Income Corporation (NYSE:O) takes a spot among Jim Cramer’s recession-proof stock picks. Jim Cramer prefers Realty Income Corporation (NYSE:O) over Gladstone Land while the former announces $800 million notes issuance.
On August 6, 2025, Realty Income Corporation (NYSE:O) reported a revenue of $1.41 billion for the second quarter ended June 2025. The figure suggests a 5.3% increase compared to the same quarter previous year. The revenue beat the consensus estimate by 1.04% while it fell behind the EPS estimate by -0.94%, reaching $1.05. On September 25, 2025, the company entered a purchase agreement with several underwriters. The agreement allows for the issue and sale of $800 million in aggregate principal amount of notes, split between 3.950% Notes due 2029 and 4.500% Notes due 2033. Following the decision, the stock’s weekly performance has seen a slight uptick of 0.13%.
In a lightning round, played earlier this year, on March 19, 2025, Jim Cramer responded to a caller’s stock question using the following statement.
“I’m going to see your Gladstone Land and raise you with Realty Income.”
With Cramer emphasizing the importance of Realty Income Corporation (NYSE:O) in the REITs market, the stock is also backed by 27 hedge funds signaling confidence in its income-generating potential.
Founded in 1969 and headquartered in California, Realty Income Corporation (NYSE:O) is a major REIT, known for its prompt monthly dividend payments. The company owns and leases a diversified portfolio of over 15,000 single-tenant commercial properties under long-term net lease agreements.
11. ONEOK, Inc. (NYSE:OKE)
No. of Hedge Funds: 44
ONEOK, Inc. (NYSE:OKE) holds a rank in the list of Jim Cramer’s recession-proof stock picks. Cramer assigns a Buy rating to the stock amid the completion of a $3 billion public offering.
On August 12, 2025, ONEOK, Inc. (NYSE:OKE) announced the completion of its $3 billion public offering. The company intends to use the proceeds to meet its outstanding commercial paper obligations and senior notes due in September 2025. Following the completion, the stock receives mixed opinions. Bank of America, for instance, lowered the stock’s price target from $109 to $100 while maintaining a Buy rating on the stock.
The stock’s monthly performance also saw a decline of -1.33%. However, Jim Cramer remains confident in the stock and assigns a Buy when addressing a caller’s question in the lightning round.
“Absolutely. Walter Hulse, CFO there is doing an amazing job. So is Pierce Norton. I think that’s a buy. I can’t believe it’s this low.”
Insider Monkey database noted 44 hedge funds holding ownership stakes in ONEOK, Inc. (NYSE:OKE), signaling strong institutional interest.
Founded as the Oklahoma Natural Gas Company in 1906, ONEOK, Inc. (NYSE:OKE) currently runs its operations from Oklahoma. Leader in North American energy infrastructure, the company operates an extensive network of pipelines and assets for NGLs, refined products, and crude oil.
10. Sempra (NYSE:SRE)
No. of Hedge Funds: 47
Sempra (NYSE:SRE) makes it into our list of Jim Cramer’s recession-proof stock picks. One of Jim Cramer’s favorites from earlier this year, the company has announced a final investment decision for Port Arthur LNG Phase 2 and the sale of 45% equity interest in Sempra Infrastructure.
On September 22, 2025, Sempra (NYSE:SRE) announced reaching the final investment decision for Port Arthur LNG Phase 2. It involved adding two trains and a capacity of 13 million tons per annum (Mtpa). With Sempra Infrastructure holding a 50.1% majority share, the estimated capital expenditure stands at $14 billion ($12 billion plus $2 billion shared).
At the same time, the company also reported agreeing to sell 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR (KKR), with the Canada Pension Plan Investment Board. The transaction, valued at approximately $10 billion, is anticipated to improve the company’s equity.
Though Cramer thinks the yield is comparatively low, he backed the stock with a Buy earlier this year.
“I think Sempra is such a buy, I don’t even care that it only yields 3%. I think that, you know, like this is Jeff Martin, he’s bankable, bankable, bankable. I want you to own the stock.”
The company stands tall in our list by commending institutional trust from 47 hedge funds, noted by Insider Monkey as stakeholders in Sempra (NYSE:SRE).
Sempra (NYSE:SRE) is a North American energy infrastructure holding company, formed in 1998. This California-based company is focused on regulated utilities and large-scale infrastructure projects such as electric and natural gas delivery.
9. American Electric Power Company, Inc. (NASDAQ:AEP)
No. of Hedge Funds: 53
American Electric Power Company, Inc. (NASDAQ:AEP) made its way into our list of Jim Cramer’s recession-proof stock picks. Amid lowered price targets and issuance of $2 billion in debentures, Jim Cramer is not backing down on the stock.
On August 29, 2025, the West Virginia Public Service Commission (PSC) approved the securitization of $2.4 billion in costs and removed $1.9 billion from the rate base. Following this interim order, Jefferies lowered the price target on American Electric Power Company, Inc. (NASDAQ:AEP) from $120 to $116. Later, on September 25, 2025, Morgan Stanley also lowered the price target on the stock from $117 to $115.
Amid these price target changes, the company, on September 23, 2025, announced the issuance of $1.1 billion in Series C Debentures and $900 million in Series D Debentures. Both debentures, with a combined value of $2 billion, are due in 2056, and with this move, the company secures long-term funding for its expansion.
In the Lightning Round on CNBC, on September 27, 2025, Jim Cramer backed the stock with the following response to one of the callers.
“I’m not backing down on American Electric”
53 hedge funds hold ownership stakes in American Electric Power Company, Inc. (NASDAQ:AEP), signaling strong institutional confidence and making the stock a wise choice for investors seeking recession-proof stocks backed with expert advice.
American Electric Power Company, Inc. (NASDAQ:AEP), founded in 1906, is one of the largest electric utilities in the U.S. The Ohio-based company generates, transmits, and distributes power to 5.6 million customers in 11 states.
8. BlackRock, Inc. (NYSE:BLK)
No. of Hedge Funds: 58
BlackRock, Inc. (NYSE:BLK) is a significant contender in Jim Cramer’s recession-proof stock picks. The stock captures Cramer’s attention amid a price target boost and GIP’s negotiation to take over Aligned Data Centers for $40 billion.
On September 29, 2025, the company’s price target was boosted from $1,200 to $1,350 by Citi. The analyst also reiterated the Buy rating on the stock, indicating the stock’s future growth in value.
BlackRock, Inc. (NYSE:BLK) takes up second place in CNBC’s list of Jim Cramer’s top 10 things to watch in the stock market. The primary reason for the entry was the company’s negotiation to acquire Aligned Data Centers for approximately $40 billion, through Global Infrastructure Partners. The acquisition, upon its execution, will strengthen the company’s position in the AI market.
In addition to being Jim Cramer’s choice, BlackRock, Inc. (NYSE:BLK) makes an entry into our list with a strong institutional interest shown by 58 currently invested in the stock.
One of the world’s largest asset managers, BlackRock, Inc. (NYSE:BLK) provides a comprehensive range of investment, advisory, and risk management solutions, including iShares ETFs and the Aladdin technology platform. The company was founded in 1988 and governs its operations from its headquarters in New York.
7. The PNC Financial Services Group, Inc. (NYSE:PNC)
No. of Hedge Funds: 66
The PNC Financial Services Group, Inc. (NYSE:PNC) holds a spot in our list of Jim Cramer’s recession-proof stock picks. Following the acquisition of Colorado-based FirstBank, the company’s price target is elevated and is named in Jim Cramer’s top 10 things to watch in the stock market
The PNC Financial Services Group, Inc. (NYSE:PNC) was also listed in Jim Cramer’s top 10 things to watch in the stock market, by CNBC, on September 10, 2025, owing to the company’s acquisition of Colorado-based FirstBank for $4.1 billion and its subsequent increase in price target by Piper Sandler thereafter. Later, on October 3, 2025, Wells Fargo significantly raised the stock’s price target from $230 to $240, signaling strong confidence in its growth potential.
Aside from being part of Mad Money host’s pick, the company is strongly backed by institutional support, with 66 hedge funds holding ownership interest in The PNC Financial Services Group, Inc. (NYSE:PNC).
The diversified financial services institution, The PNC Financial Services Group, Inc. (NYSE:PNC) offers retail and business banking, and asset management across the U.S. Tracing its roots back to 1845 in Pittsburgh, the company is currently operating as a large-cap with a market capitalization of approximately $80 billion, from its headquarters in Pennsylvania.
6. AbbVie Inc. (NYSE:ABBV)
No. of Hedge Funds: 89
AbbVie Inc. (NYSE:ABBV) secures a position on our list of Jim Cramer’s recession-proof stock picks. Cramer calls the stock his ‘absolute favorite,’ and it is followed by updates on the completion of two key studies.
At the beginning of this month, AbbVie Inc. (NYSE:ABBV) announced the completion of a key study on ABBV-101’s food interaction and a Phase 2 study of Budigalimab and/or ABBV-382 on HIV. Following the update from the company, the stock’s weekly performance has seen an uptick of 3.05%, while the monthly performance indicates a gain of 8.19%. Additionally, Bank of America upgraded the stock’s price target $220 to $251 while maintaining a Neutral rating.
When speaking of the stock in his Mad Money episode, Jim Cramer made the following statement.
“Or how about one of my absolute favorites right here too, AbbVie. Now here’s a drug company with no patent cliff in sight whatsoever. Got tremendous franchises in neurology, oncology, immunology, and medical aesthetics, among others. “
With 89 hedge funds invested in AbbVie Inc. (NYSE:ABBV), the company earns the confidence of the investors and maintains a positive outlook.
AbbVie Inc. (NYSE:ABBV) is a global research-based biopharmaceutical company focused on discovering, developing, and marketing advanced therapies to treat complex diseases. The company covers areas like immunology, oncology, and neuroscience. This Illinois-based firm was formed as a spin-off from Abbott Laboratories in 2013.
5. The Home Depot, Inc. (NYSE:HD)
No. of Hedge Funds: 93
The Home Depot, Inc. (NYSE:HD) ranks among our list of Jim Cramer’s recession-proof stock picks. Jim Cramer sees a possible growth in the stock value as well as the housing market, following the Fed rate cuts.
Immigration and Customs Enforcement (ICE) raids on The Home Depot, Inc. (NYSE:HD)’s parking lots for illegal immigrants have sparked quite a controversy, contributing to a -3.10% decline in share price over the past month. The decline alongside the ICE raid controversy resulted in mixed opinions among the analysts. TD Cowen and J.P. Morgan, for instance, maintained their Buy rating on the stock, while Oppenheimer has reiterated a Hold rating.
Jim Cramer leans toward the stock as he points out that the Fed rate cuts before the end of the year will eventually favor housing.
“This is my favorite chart in the entire book. It’s a reverse head and shoulders. I do believe this stock is going to go to $500”
With the Insider Monkey database noting 93 hedge funds invested in The Home Depot, Inc. (NYSE:HD), the stock also benefits from strong institutional confidence.
The Home Depot, Inc. (NYSE:HD) is among the world’s largest home improvement retailers. Founded in 1978, the company sells tools, construction products, appliances, and services. Its customer base includes both do-it-yourself customers and professional contractors across North America. The company’s headquarters is in Georgia.
4. Citigroup Inc. (NYSE:C)
No. of Hedge Funds: 102
Citigroup Inc. (NYSE:C) earns a rank among our list of Jim Cramer’s recession-proof stock picks. Jim Cramer acknowledges the stock’s growth potential amid the Banamex sales announcement and consensus Buy rating from analysts.
On September 4, 2025, Citigroup Inc. (NYSE:C) announced the sale of a 25% equity stake in Grupo Financiero Banamex, S.A. de C.V. CHPAF Holdings S.A.P.I de C.V., owned by Fernando Chico Pardo and his family, purchases the equity from the company in a transaction valued at approximately $2.3 billion.
Among the 25 analysts, followed by CNN, Citigroup Inc. (NYSE:C) gained a consensus Buy rating with the stock’s average anticipated to grow by 9.47% in one year. According to Jim Cramer, the stock will potentially achieve a growth of 28% next year. Further addressing the stock, Cramer has made the following statement.
“And even though the stock’s had a huge run, it remains the cheapest of the big banks. That’s why that disparity, it’s going to close to the upside.”
Citigroup Inc. (NYSE:C) is heavily backed by institutional investors, with 102 hedge funds invested in the stock as of the second quarter of 2025.
New York-based company, Citigroup Inc. (NYSE:C), is a multinational investment bank and financial services corporation formed in 1998 through a merger of Citicorp and Travelers Group. The company offers a broad range of consumer, corporate, and investment banking services.
3. GE Vernova Inc. (NYSE:GEV)
No. of Hedge Funds: 106
GE Vernova Inc. (NYSE:GEV) makes an entry into our list of Jim Cramer’s recession-proof stock picks. Despite the lowered analyst rating and price target, Jim Cramer remains confident in the stock.
The company’s brand name took a hit when its wind turbine blade at Iberdrola’s Flyers Creek wind farm in Australia bent in half. The damage to the 3.8MW turbine that began in late June due to a storm worsened in late September 2025. The blade was removed from service, prompting a statewide safety review of wind turbines. On October 1, 2025, following the incident, RBC Capital downgraded the stock from Outperform to Sector Perform and lowered the price target massively from $631 to $601.
However, according to Jim Cramer, the demand for power is rising in tandem with the increasing number of AI data centers. Hence, pointing out GE Vernova Inc. (NYSE:GEV), he made the following comment.
“I like how they are positioned.”
GE Vernova Inc. (NYSE:GEV) further thrives as a recession-proof stock pick with strong institutional support, as reflected in the 106 hedge funds invested in the stock.
GE Vernova Inc. (NYSE:GEV) is a global energy company focused on electrification and decarbonization. The company was officially spun off from General Electric on April 2, 2024. Based in Massachusetts, the company focuses on multiple energy businesses, including Power, Wind, and Electrification.
2. Bank of America Corporation (NYSE:BAC)
No. of Hedge Funds: 115
Bank of America Corporation (NYSE:BAC) gains an entry into our list of Jim Cramer’s recession-proof stock picks. Addressing the stock in one of his episodes, Jim Cramer says, “Don’t wait”.
On September 23, 2025, Bank of America Corporation (NYSE:BAC), alongside other major banks including Citi and Goldman Sachs, backed a $136 million funding round for Fnality. The London-based fintech, Fnality, lets banks engage in transactions through a digital cash asset backed with funds at the Bank of England. On October 1, 2025, RBC Capital reiterated a Buy rating on the stock while maintaining a modest price target of $56. The stock’s closing price, as of October 3, 2025, stands at $50.64. It is worth noting that over the month, Bank of America Corporation (NYSE:BAC) has climbed by 1.16%.
When addressing the stock in one of his episodes in July 2025, Jim Cramer made the following remark.
“One day, Berkshire will finish selling, and when that happens, you’ll be paying a much higher price-to-earnings multiple for this fine bag. My advice: Don’t wait for them to finish. There’ll be a good quarter.”
Bank of America Corporation (NYSE:BAC) is also supported by notable institutional confidence, with a massive 115 hedge funds invested in the stock as of the second quarter of 2025.
Founded in 1998, Bank of America Corporation (NYSE:BAC) is a leading American multinational investment bank and financial services holding company, operating from its headquarters in North Carolina. The company offers a full range of banking, investing, asset management, and other financial and risk management products and services.
1. NVIDIA Corporation (NASDAQ:NVDA)
No. of Hedge Funds: 235
NVIDIA Corporation (NASDAQ:NVDA) earns a spot among our list of Jim Cramer’s recession-proof stock picks. Cramer expresses confidence in the next generation of chips as the company announces a partnership with OpenAI.
On September 22, 2025, NVIDIA Corporation (NASDAQ:NVDA) announced a strategic collaboration with OpenAI. As per the agreement between the two companies, NVIDIA Corporation (NASDAQ:NVDA) will invest close to $100 billion in OpenAI. Part of the plan involves OpenAI deploying a gigawatt of Nvidia’s next-generation Vera Rubin chips. The first gigawatt is expected to be ready in late 2026.
Cramer believes that generative AI has not yet reached its full potential, and the next generation of NVIDIA Corporation (NASDAQ:NVDA)’s chips will play a vital role in supporting the ChatGPT maker and similar other AI companies in reaching a step further towards their high capabilities. With this sentiment, Cramer made the following statement.
“I think the market that Nvidia dominates is the biggest in the world.”
Our Insider Monkey database noted 235 hedge funds with ownership stakes in NVIDIA Corporation (NASDAQ:NVDA), reflecting strong institutional confidence in the stock.
Operating from California, NVIDIA Corporation (NASDAQ:NVDA) is the world leader in accelerated computing, designing GPUs and software platforms like CUDA that power AI, high-performance computing, data centers, and professional visualization. The company was founded in 1993.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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