We recently published a list of 9 Stocks Jim Cramer Talked About. In this article, we are going to take a look at where Seagate Technology Holdings plc (NASDAQ:STX) stands against other stocks that Jim Cramer talked about.
Jim Cramer, the host of Mad Money, reflected on the uncertainty surrounding the year 2025, focusing on several macroeconomic questions that are top of mind for him. One of the important questions Cramer was the future movement of the 10-year Treasury yield.
Specifically, he wondered whether it would drop to 4%, climb to 5%, or simply stay where it is. According to Cramer, this is the most important question currently facing the market. He pointed out that ever since the Federal Reserve began cutting short-term rates in September 2024, an unusual dynamic has taken place.
From the moment the first rate cut occurred, long-term interest rates began to rise sharply, a trend Cramer found highly unconventional. Cramer posed the crucial question: will the yield continue to rise toward that 5% mark, or will it begin to fall again?
“As far as stocks are concerned, I think they’ll do well if the yield on the 10-year peaks out and go slower, even if it basically sits here between 4.5% and 4.6%, the market should do fine. However, if long rates keep climbing with the 10-year reaching 5%, well, it could be truly miserable for the stock market at least short term.”
READ ALSO: Jim Cramer Talked About These 11 Stocks Recently and 7 Stocks on Jim Cramer’s Radar
Another critical issue Cramer pondered was the state of the labor market. Despite signs of economic softening in recent months, unemployment remains exceptionally low, which is contributing to a strong overall labor market. According to Cramer, this is the reason many are hopeful for a “soft landing” after the Federal Reserve’s aggressive rate hikes in 2022 and 2023.
“So can the labor market stay strong this year? Right now, I’m betting it can. Remember the labor market was great during the first three years of the original Trump administration. We had 3.5% unemployment right before COVID hit and everything fell apart. Plus, if Trump pushes through mass deportations… it could cause a major labor shortage. If anything, we probably should be worrying about whether the labor market will get too tight, causing severe wage inflation.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during episodes of Mad Money aired on January 3rd and January 6th. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician configuring a network-attached storage drive.
Seagate Technology Holdings plc (NASDAQ:STX)
Number of Hedge Fund Holders: 46
When a caller asked Cramer about Seagate Technology Holdings plc (NASDAQ:STX), he said:
“You know what, this stock, I have to tell you, it has never ever done well in the time that I’ve watched it and it’s always been cheap. I’m calling it a value trap. If you like Seagate, I say that you will love Broadcom.”
Seagate (NASDAQ:STX) provides data storage solutions, including hard drives, solid-state drives, and external storage for various applications like enterprise and gaming. Back in 2022, when Cramer was asked about the company, he commented:
“I don’t want you to buy any more, because it’s just not a high-quality enough stock during this period in the cycle. … It’s not for this market.”
Overall, STX ranks 3rd on our list of stocks that Jim Cramer talked about. While we acknowledge the potential of STX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
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