On Friday, Jim Cramer, the host of Mad Money, spoke about the traps investors encounter when they are just starting out.
“Every day at 9:30 AM, I’m listening to my partner Carl Quintanilla announce the names of the companies that are coming public on that particular day. It is often one of the worst parts of my entire job here because it’s when I hear the names of some companies that simply shouldn’t be owned by you, by individuals. These are often trading vehicles created to quickly cash in on some trend from Bitcoin derivatives to quantum computing, to all sorts of pie in the sky equities where if history’s any guide, you will end up making nothing.”
READ ALSO: Jim Cramer Discussed These 16 Stocks Recently and Jim Cramer’s Latest Comments on These 17 Stocks.
Cramer admitted that the situation drives him crazy because he feels powerless to stop a wave of IPOs that can hurt regular investors. He acknowledged that he might sound extremely cynical, but he pointed out that after spending two years writing How to Make Money in Any Market and speaking to thousands of individuals in different settings, he has seen firsthand that these are not the people who typically call into his show.
“Wall Street often makes instruments that seem like they’re helpful to individuals, but in reality, they’re nothing more than naked attempts to rip you off. Days like today are a nice reprieve and excellent opportunities to high-grade your portfolio into better stocks. Instead… though, the people who own the QuantumScapes and the Rigettis and the Bitdeers, they look at their beaten down portfolio and often decide… to give up on the… entire asset class. So wrong. That’s why so many people end up missing out on the chance to make big money in the stock market because nobody told them this is a caveat emptor business.”
Our Methodology
For this article, we compiled a list of 17 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on November 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer’s Thoughts on These 17 Stocks
17. USA Rare Earth, Inc. (NASDAQ:USAR)
Number of Hedge Fund Holders: 13
USA Rare Earth, Inc. (NASDAQ:USAR) is one of the stocks Jim Cramer expressed his thoughts on. Inquiring about the stock, a caller mentioned that they think that the year of “American exceptionalism” might not be over. In response, Cramer said:
“Well, I’m not going to make any exceptions… the year of magical investing ended, and I can’t make any exceptions, so I’m sorry.”
USA Rare Earth, Inc. (NASDAQ:USAR) supplies rare earth elements and other critical minerals, including neodymium, dysprosium, terbium, gallium, beryllium, and lithium. A caller asked for Cramer’s thoughts on the stock during the October 30 episode and he replied:
“I’m going to say that you have to stay away for now. I mean, one of the things that you needed was that kind of mojo that came from the shortage. If we work out a longer-term deal with rare earth, it’s not, it’s not going to rebound very well for USA Rare Earth, which is losing a fortune.”
16. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is one of the stocks Jim Cramer expressed his thoughts on. When a caller mentioned that they have been wondering about the stock, Cramer commented, “Oh, don’t wonder, buy. I mean, that thing is… that’s just the sweet spot that we want to be in.”
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. When a caller inquired about the company’s stock during the October 29 episode, Cramer called it an “excellent company.” He said:
“I like Energy Transfer very much. I’ve gotta tell you, Enterprise Product Partners is the one I do recommend in How to Make Money in Any Market… Energy Transfer is an excellent company.”
Moreover, when a caller asked about the stock during the September 5 episode, Cramer called it “sensational,” as he remarked:
“It’s a premier natural gas play, pipeline. I think it’s sensational. I didn’t think that they were taking out too much debt. That’s not the case… You got it right.”
15. Carpenter Technology Corporation (NYSE:CRS)
Number of Hedge Fund Holders: 78
Carpenter Technology Corporation (NYSE:CRS) is one of the stocks Jim Cramer expressed his thoughts on. During the lightning round, when a caller asked about the stock, Cramer remarked:
“No, it’s too late. It’s one of my favorites. It’s a great steel company. It’s moved up, moved up, moved up, moved up. Go buy Nucor, hasn’t moved up as much… okay. I remember growing up and being very proud that that company was right near me.”
Carpenter Technology Corporation (NYSE:CRS) distributes specialty metals, including titanium alloys, stainless steels, alloy steels, tool steels, and metal powders, along with engineered metal parts. The company’s products are used in aerospace, defense, medical, transportation, energy, industrial, and consumer markets. TimesSquare Capital Management stated the following regarding Carpenter Technology Corporation (NYSE:CRS) in its second quarter 2025 investor letter:
“New to the strategy was Carpenter Technology Corporation (NYSE:CRS), which manufactures engineered metals primarily for aerospace, with some for medical devices and other specialty markets. Carpenter is part of a duopoly that supplies high-performance alloys for jet engine combustion chambers, though with overall higher margins—thanks to its other business lines—and a stronger balance sheet than its competitor. In addition, most of Carpenter’s revenues were tied to spot-market prices, rather than fixed long-term agreements, which allow for more advantageous pricing strategies in response to short-term changes in supply or demand.”
14. Cerence Inc. (NASDAQ:CRNC)
Number of Hedge Fund Holders: 16
Cerence Inc. (NASDAQ:CRNC) is one of the stocks Jim Cramer expressed his thoughts on. A caller asked for Cramer’s opinion on the stock during the lightning round, and he replied:
“Okay, this is… enterprise software. I’m not touching it. I’m not touching it. I’m giving it the hand. I’m giving it the hand.”
Cerence Inc. (NASDAQ:CRNC) develops AI-powered virtual assistants and conversational AI solutions for the mobility market. The company provides speech recognition, natural language understanding, text-to-speech, and edge and cloud-connected software components. Cramer discussed the stock during the August 12 episode and said:
“When research director, Ben Stoto, and I played around with the company’s website, wow, Cerence could respond, interact, and unlike Alexa, handle interruptions with a plum… Now here’s what really matters: Cerence is just a $472 million company… Brian’s a big-time CEO at a small-time company. He ran Intel, and then after that, ran CDK Global. He then sold CDK to Brookfield, a private equity firm, for 30% premium versus where the stock was trading before they made the bid.
I know Brian’s cleaning up Cerence AI like he cleaned up CDK. He has no desire to sell. He wants to build, and I think he will because his voice technology’s superior to anything I’ve seen. To me, this is the kind of situation where you could win either way. The market’s red hot. You don’t want to buy something that’s already had a great deal of a run, but at one point, Cerence, the stock, traded at more than 10 times what it sells for right now. And while it had much better profitability back then, I think the current version has got more upside.”
13. Centrus Energy Corp. (NYSE:LEU)
Number of Hedge Fund Holders: 27
Centrus Energy Corp. (NYSE:LEU) is one of the stocks Jim Cramer expressed his thoughts on. When a caller mentioned that they feel that they have not invested enough in the stock, Cramer commented:
“Coming in here up 275%. I cannot countenance a buy anymore, I’m sorry. That’s just the way it has to be. I know I might limit your upside, but I’m trying to keep your downside lower. That’s my job.”
Centrus Energy Corp. (NYSE:LEU) supplies nuclear fuel, including low-enriched and enriched uranium products. In addition, it provides technical, manufacturing, and engineering services for nuclear power operations. During the lightning round of October 30, when a caller inquired about the stock, Cramer called it a “good company,” as he commented:
“Oh, look, that, it’s a good company. I mean, look, it did have that nice pullback, which is what I wanted to see because it was just parabolic. I think you’re fine in it. It’s not, look, after what I saw with American Electric Power, it’s not crazy expensive.”
12. SharkNinja, Inc. (NYSE:SN)
Number of Hedge Fund Holders: 65
SharkNinja, Inc. (NYSE:SN) is one of the stocks Jim Cramer expressed his thoughts on. Answering a caller’s query about the stock, Cramer said:
“You need the Supreme Court to rule against the tariffs, and then you got $120 stock. Otherwise, no. I do like their stuff though.”
SharkNinja, Inc. (NYSE:SN) sells consumer appliances, including vacuums, floorcare products, cooking and beverage appliances, food prep devices, beauty appliances, and home environment products. Parnassus Investments stated the following regarding SharkNinja, Inc. (NYSE:SN) in its second quarter 2025 investor letter:
“We also invested in SharkNinja, Inc. (NYSE:SN), a global household products company that has been a consistent innovator across several categories including cleaning, cooking and beauty. We think the company has a long runway for growth driven by share gains in existing categories, expansion into new categories and international growth. SharkNinja has consistently designed innovative products across several consumer categories including cleaning, cooking, food preparation and beauty. We think the company has a long runway for growth driven by share gains in its existing categories, expansion into new categories and international growth.”
11. Nextpower Inc. (NASDAQ:NXT)
Number of Hedge Fund Holders: 50
Nextpower Inc. (NASDAQ:NXT) is one of the stocks Jim Cramer expressed his thoughts on. During the lightning round, when a caller inquired about the stock, Cramer commented:
“Dan Shugar is the real deal. I think it’s a terrific stock. You notice they changed the name to Nextpower. I would be a buyer of the stock. I let go of the stock. I made a profit. I should have stayed. It was my bad. A lot of times I kick myself over this one and Alphabet, two that I sold too early. You’ve got a winner.”
Nextpower Inc. (NASDAQ:NXT) provides solar tracker technologies and energy management solutions, including terrain-adaptive trackers, automated stowing systems, and monitoring tools to optimize solar power production. Moreover, it offers foundation systems and installation equipment to support solar project development and operation. When a caller asked about the stock during the October 31 episode, Cramer replied:
“Oh man, you know we made… money in Nextracker for the Charitable Trust, but then we didn’t think that Shug had it in him to have a double. This company is a tremendous company… Still only sells at 24 times earnings. Parabolic move. I’d like to have it cool off a little bit, but wow, congratulations to Dan Shugar, who really just did it.”
10. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 133
Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the stocks Jim Cramer expressed his thoughts on. An investing club member inquired if the firm has lost its magic post-Warren Buffett or does it present an attractive diversified investment opportunity given that the firm is “sitting on all that cash”. Cramer replied:
“First of all, forget the cash business. It’s not a hedge yet. It’s just that they just don’t know what to do with the cash… I mean, you know, sometimes cash is not… there’s not a lot to buy, I think is what they’re saying, and they’re waiting for things to come down in value.
I don’t think that’s wrong. But as far as, is it different without Buffett? Of course it is. You were buying Warren Buffett. Now you’re buying people who’ve been taught by Buffett. Could be good, but it’s not Buffett. To me, that means cut the position back. That’s plain old and simple. I don’t want to, you know… I could say, hey listen, the next guy’s going to be as good as Buffett. Well, how can I do that? That… would be disingenuous. That’s not the way we play it in Cramerica.”
Berkshire Hathaway Inc. (NYSE:BRK-B) is a conglomerate that operates a diverse range of businesses, including insurance, freight rail, utilities, manufacturing, retail, and consumer products. The company also provides construction materials, aerospace and industrial components, energy services, and financial and logistics solutions.
9. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 106
GE Vernova Inc. (NYSE:GEV) is one of the stocks Jim Cramer expressed his thoughts on. Given that the stock is off its 52-week high, an investing club member asked if it is time to buy more. Cramer stated:
“And the answer is yes. GE Vernova is the way to be able to make it so natural gas is actually turned into the fuel that the data centers want. Now I will tell you, they should be putting up factories and making turbines like mad. They are not doing that. I want them to do that, but I don’t run the company. If I did, I would put a lot of money in. Historically, when they’ve done that, they… did it at the top and it’s hurt them. This is a five-year thing that’s happening, and I want to be involved in it.”
GE Vernova Inc. (NYSE:GEV) provides products and services for generating, converting, storing, and managing electricity, including gas, nuclear, hydro, and wind technologies. Additionally, the company offers grid solutions, power conversion, solar and storage systems, and electrification software.
8. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 79
Airbnb, Inc. (NASDAQ:ABNB) is one of the stocks Jim Cramer expressed his thoughts on. An investing member asked Cramer’s recommendation regarding the stock, and here’s what he had to say:
“Well, in How to Make Money in Any Market, I say that Airbnb is dramatically undervalued. I think that because it’s so much cheaper than a hotel room. I do think that the story’s gotta be told better, including by the CEO who’s not telling the story as well as I could. I know that sounds like hubris, but it really is the truth.”
Airbnb, Inc. (NASDAQ:ABNB) operates an online platform that connects hosts with guests to book accommodations and experiences. During the October 17 episode, Cramer said that he liked the company when a caller asked if they should buy, sell, or hold the stock. He commented:
“Oh, I like Airbnb. It’s chronically being denigrated because people don’t feel that the app does well. Therefore, I think it is time to put your money where your mouth is, Airbnb.”
7. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer expressed his thoughts on. An investing club member inquired if there are better stocks out there, and if they should come back to the stock later. Cramer replied:
“No, I think that Meta is what Alphabet was about a year ago. I totally believe in what Mark Zuckerberg is doing. He did say he is going to spend a lot of money, but… I would do the exact same thing because that way, I don’t have Sam Altman coming after me from OpenAI. He has got a moat and he’s defending it, and I think he’s a brilliant business person. I like him very much.”
Meta Platforms, Inc. (NASDAQ:META) develops social media, messaging, and communication products, including Facebook, Instagram, Messenger, Threads, and WhatsApp. Additionally, the company creates virtual, augmented, and mixed reality hardware and software. During the November 11 episode, Cramer discussed the stock in detail, as he stated:
“Lang wants to go bargain hunting, looking for stocks that have been pounded… Right now, he likes two out of these three… He likes Meta Platforms… Starbucks… and International Exchange… All three of these stocks have experienced sharp pullbacks and their charts aren’t exactly pretty here yet, but Lang still likes what he sees… Let’s start with Meta… which got killed after it reported a great quarter because of its capital expenditure guidance… Just look at this daily chart… Meta stock collapsed a couple of weeks ago… and it’s been moving lower ever since. Not good.
Lang points out that it’s now fallen below its 200-day moving average. Really bad, typically right? Meta has been hit hard to the point where it’s now filling in the gap from a big rally in May. Alright, that’s important… If it fills in the gap, the stock would go all the way back down to $591. But if it gets to that level, Lang says you should back up the truck. Again, not a pretty chart… Then there’s the on-balance volume line down at the bottom… In Meta’s case, the on-balance volume has fallen through the floor. It’s back down to Liberation Day levels, which is really rather amazing. But check out the relative strength index…
Right now, Meta is in extremely oversold territory… Lang thinks the stock’s already started to find its footing. On Friday, Meta plunged from 618 down to 601 at its intraday lows before rebounding crazily all the way back to 621. When the stock got eviscerated, this time, buyers stepped in, and it bounced right back. That’s why Lang thinks Meta has room to run past 700 by the end of the year. I will say that this was the only chart that, to me, made me feel like that there was any hope to it and we are long Meta for the Charitable Trust.”
6. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 84
The Coca-Cola Company (NYSE:KO) is one of the stocks Jim Cramer expressed his thoughts on. Noting that they would like to invest in stocks that provide good dividends, an investing club member asked Cramer for his top three picks from the portfolio. In response, he said:
“Okay, we don’t have a lot of really good dividend stocks in part that’s because I am more growth oriented, and the yields I’m getting are not that great right now because stocks have moved up a lot. So, but I would tell you that away from that, the ones that I’ve been looking at are Kimberly, Procter & Gamble, and Coca-Cola, okay? Those are the three. I’m not going to recommend Bristol-Myers because Bristol-Myers has become a serial disappointer.”
The Coca-Cola Company (NYSE:KO) produces and sells beverages, including soft drinks, water, juices, coffee, tea, sports drinks, and plant-based beverages. The company’s major brands include Coca-Cola, Fanta, Sprite, Dasani, dogadan, Maaza, Minute Maid, and Simply.
5. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 45
Novo Nordisk A/S (NYSE:NVO) is one of the stocks Jim Cramer expressed his thoughts on. A caller asked, as a long-time holder of substantial NVO shares that have significantly declined in value, if it is too late to exit the position. In response, Mad Money’s host said:
“You gotta, okay, you gotta let it come back a little. It’s been so beaten up. The new guy, give the new guy a little chance, so they can get it to the mid-50s. But then you know what, [sell, sell, sell] because there’s really only one king in that space and that’s Eli Lilly.”
Novo Nordisk A/S (NYSE:NVO) researches, manufactures, and distributes pharmaceutical products for diabetes, obesity, cardiovascular conditions, rare blood and endocrine disorders, and hormone therapies. The company also provides insulin and growth hormone delivery devices and smart solutions for diabetes management. During the August 14 episode, a caller asked whether the stock should be invested in after the dip and Cramer responded:
“They’re very poorly run. I don’t know this new CEO, but they are incredibly poorly run, and I’m not going to bet that they suddenly are going to change stripes… They take my breath away about how bad, how poorly they are.”
4. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 159
UnitedHealth Group Incorporated (NYSE:UNH) is one of the stocks Jim Cramer expressed his thoughts on. A caller asked for Cramer’s opinion of the stock, and he replied:
“I’m a buyer. What happened in UnitedHealth, where they did some, where there was some chicanery, seems to be the, the authorities don’t seem to be looking at that. UnitedHealth has got a lot of good things going for it. This may not be the year that it turns around, but I do think next year it will. I’ve looked at it hard. Now, my favorite, by the way, is CVS… because they’ve got another model, front of the store that is real good too.”
UnitedHealth Group Incorporated (NYSE:UNH) provides health care services, insurance plans, pharmacy care, and data-driven solutions. During the September 18 episode, Cramer said that he would buy the stock with calls and not buy common stock. He commented:
“Okay, so UNH, when I read that they are throwing their weight around in Washington and spending a lot of time with the, in the executive offices and really spending a, really making a point of touching bases with all the people who might be able to rub up against some of the people who are trying to hurt them, like maybe prosecutors, it makes me feel that UNH is bottomed. And I did think that they would be, they could have the death sentence of being investigated for Medicare fraud. It does seem like that might be off the table. I don’t, do I want to go buy it here? I would, if I bought it, I would buy with calls. I would not buy with common stock.”
3. BillionToOne, Inc. (NASDAQ:BLLN)
Number of Hedge Fund Holders: N/A
BillionToOne, Inc. (NASDAQ:BLLN) is one of the stocks Jim Cramer expressed his thoughts on. Cramer noted that he is a “big fan” of the industry the company is a part of, as he stated:
“Where do I come down on this thing? Honestly, I really like it. BillionToOne is playing in an industry that I’m a big fan of, diagnostics, and it has a fantastic story within that space, which feels like it’s still in the early innings. I wish Danaher would buy them. That’s a Charitable Trust name that’s just languished here. Their growth is excellent and even possibly accelerating. At the same time, they’ve just started turning a profit. Look to get even more profitable going forward.
Still, how much do we pay for it? Well, the stock came public at 60 bucks. It’s now at $90, where it’s valued at… roughly $4 billion depending on your estimates for this year’s revenue. That means BillionToOne’s trading… between 10 to 15 times this year’s sales estimate. Okay, pretty rich, but given the sky-high growth rate and the newfound profitability, you know, I don’t think it’s all that unreasonable. Frankly, if you like this story, you got my blessing to put on a small position right here on Monday. That said, we’re in a pretty precarious moment for high-risk stocks as evidenced by the more than $30 pullback that BillionToOne’s already experienced from its first day’s highs. If this volatility continues, I think the stock will come down even more. But you know what? This is the kind of stock that gets cheaper as it goes lower, so I’d be thrilled to see it come down. That just means you can get a better buy price.
All that said, this BillionToOne IPO is what we call a sliver deal. They sold 4.55 million shares, which is only about 10% of the total share count. That’s near-term positive because it artificially depresses the amount of supply. But after that lockup on insider selling expires in May, you’re going to have to expect that there’s a chance this thing could really sell off hard. Here’s the bottom line: I am a big fan of BillionToOne and I love what they’re trying to do, but I think you gotta expect some turbulence in the share price, and that’s why I’m recommending putting a small position here on Monday and then gradually buying more into any weakness. If that doesn’t happen any soon, I think you’re going to get your chance when the lockup expires in six months. Be patient with this one. If you take your time, I’ll bet you get a great entry point. Memo to Danaher: take a look at these guys.”
BillionToOne, Inc. (NASDAQ:BLLN) develops precision molecular diagnostics using a platform that counts DNA molecules to improve disease detection. The company’s tests include non-invasive prenatal screening and liquid biopsies for detecting and monitoring cancer mutations.
2. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 67
FedEx Corporation (NYSE:FDX) is one of the stocks Jim Cramer expressed his thoughts on. Inquiring about the stock, a caller called the stock “undervalued” and noted an increase of 60 points since April. In response, Cramer said:
“You want to buy this stock. I’m going to cut you short here because this is so easy… This is one of my favorite stocks. I wish we owned it for the Charitable Trust… The stock is going, I think, all the way back over $300. It’s having a good quarter. And I mean, can I just say that Raj Subramaniam turns out to be just one dynamite exec who I know is making Fred Smith proud. We miss Fred very much.”
FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and logistics services, including express and freight shipping, ground delivery, and supply chain management. During the September 19 episode, Cramer showed optimism toward the stock, as he remarked:
“… Subramaniam said that because they’d already handled this with China, they were in a much better position to help shippers in the rest of the world now that the exemption’s totally gone. It seems like they’ve worked some great partnerships about this stuff. At the same time, FedEx is clearly winning market share, and they’re not doing it simply by cutting prices. I think they’re doing it with better service…
Put it all together and you get what we got last night, a much better-than-expected set of numbers from FedEx that led to a very nice rally in the stock. And I’ve gotta tell you, I thought it should have even been higher. So the question is, can it continue? Honestly, I think it really can. While I want to stay a little cautious, given everything that’s going on with tariffs and a murky economic backdrop, I think FedEx has been able to do a fantastic job navigating its way through this tricky environment, keeping customers happy and taking a lot of market share while also cutting costs.
That makes me feel a lot more confident about this one. Doesn’t hurt that stock’s super cheap, trading at less than 13 times the midpoint of their full-year earnings forecast. Remember, average stock in this market sells at 25 times earnings. And when all is said and done, I wonder if that forecast ends up looking super conservative in retrospect. FedEx also pays a respectable 2.5% dividend yield, and unlike UPS… [whose] yield is more than three times that level, I have no worries that FedEx is going to have to cut it. This dividend is safe. The bottom line: Even in a tough environment, FedEx managed to blow away the numbers last night, and look at how they pulled it off. I gotta tell you, I am cautiously optimistic that this one is not done and is going higher, maybe much higher.”
1. Deckers Outdoor Corporation (NYSE:DECK)
Number of Hedge Fund Holders: 59
Deckers Outdoor Corporation (NYSE:DECK) is one of the stocks Jim Cramer expressed his thoughts on. Answering a caller’s query, who was calling on behalf of their grandmother, about the stock during the episode, Cramer said:
“I want her to take at least, I want her to take at least half the profits. That quarter was bad, and I’m beginning to wonder what the heck is going on there. Stock’s down 60%. Otherwise, if it weren’t down this much, I’d sell, tell you to sell it all. I have to believe it can bounce. But holy cow, that wasn’t just a bad quarter, and the last two quarters have been bad.”
Deckers Outdoor Corporation (NYSE:DECK) sells footwear, apparel, and accessories for casual and high-performance use under brands such as UGG, HOKA, Teva, Koolaburra, and AHNU. During the July 28 episode, Cramer said that he thinks the company’s stock has “got more upside.” He commented:
“… When the company reported last week, it delivered an excellent set of numbers, and the stock shot up more than 11% in a single session last Friday. So, we have to ask ourselves, has Deckers turned itself around, or is it too soon to circle back to this one, as the stock’s nearly 4% decline today would suggest? Okay, first, you need to understand is that going into the quarter, expectations were incredibly low. That’s what happens when a stock gets cut in half. And once the expectations get low enough, it’s easy for them to be beat…
Clearly, Deckers had a much better-than-expected quarter, but it takes more than one thing to turn things around here… Management didn’t shy away from acknowledging the mistakes that had been plaguing the company in recent quarters and what they needed to do to fix those problems. They talked about doing a better job of managing product life cycles, so they’re launching new products when the new products are wanted, ideally aligning with key shopping periods…
… So where do I stand on Deckers now? Last time I talked about this one, I said the stock looked cheap at 17 times earnings, even with the Vietnam overhang. Now, there’s no more overhang, and they just reported a tremendous quarter, yet the stock only trades at just under 18 times this year’s earnings estimates. You’re practically getting the quarter and the lower tariffs from Vietnam for free. As for the nearly 4% decline today, we think it was related to an upgrade of Nike from… JPMorgan retail analyst Matt Boss who said that the leading footwear and apparel company was poised to make a major recovery.
That may be the case, but we’re not convinced that it’s going to be at the expense of Deckers and the HOKA brand, at least based on what the quarter just reported. Bottom line: Deckers saw its stock collapse earlier this year because everyone thought that HOKA had run outta steam, but HOKA just delivered almost 20% growth for the latest quarter. So call me a believer. I think this one has got more upside.”
While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) as an investment, our conviction lies in the belief that 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 DECK and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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