On Thursday, Jim Cramer, host of Mad Money, discussed the recent rally in the market, which followed several days of significant losses. He attributed the rebound to a combination of strong earnings reports and the White House’s measured approach.
“If you know how to bowl, you made a killing today because we had some of the best pin action off earnings that I’ve seen in ages. It was pure joy as we watched one lead pin after another slash and slam the sticks behind it. Kaboom. Strike after strike after strike. Throw in total radio silence from the White House on anything business-related, and you end up with a nice powerful rally.”
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Cramer acknowledged that several factors contribute to a rally of such a magnitude, including an initial sense of despair that can act as a catalyst. He recalled that just the previous Monday, the White House had reached a new low point when President Donald Trump publicly criticized Jerome Powell, the chairman of the Federal Reserve, someone who commands widespread respect on Wall Street. He added:
“So when the president did the unthinkable, at least for him, and he backed off, saying he had no plans to fire Powell, he gave us the fuel we needed for a spectacular rally.”
In addition, Cramer pointed out that some positive news came from an unexpected source, corporate earnings. Cramer enthused that the earnings stood in stark contrast to the pessimism surrounding the economy, especially from the usual bear-leaning hedge fund managers, who had been predicting a recession. He noted that these individuals had warned that companies would soon show signs of significant trouble when their earnings reports came in. Instead, the opposite occurred, with many companies exceeding expectations, adding to the rally.
“Here’s the bottom line: When the White House is dignified or at least silent at the same time that the PRC goes all WWE, while our Jimmy Stewart of the Fed chief gets back to being unsoiled, well then, ladies and gentlemen, that’s a bowler’s bull market. Beware of flying pins, everybody, because the balls are rolling fast and furious, and I don’t see anything that could be left standing.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 24. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 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 Thoughts on These 7 Stocks
7. Brookfield Asset Management Ltd. (NYSE:BAM)
Number of Hedge Fund Holders: 21
When a caller inquired about Brookfield Asset Management Ltd. (NYSE:BAM) during the episode, here’s what Mad Money’s host had to say:
“Man, those guys are real good. You know the reason why its yield is only 3 is because the stock’s actually not come in like so many of the others in the business. I like the stock.”
Brookfield Asset Management (NYSE:BAM) is an alternative asset manager focused on real estate, infrastructure, renewable energy, private equity, credit, and insurance solutions across a range of industries and services. Madison Investments stated the following regarding Brookfield Asset Management Ltd. (NYSE:BAM) in its Q4 2024 investor letter:
“The top five contributors for the quarter were Liberty Formula One, Arista Networks, Copart, Brookfield Asset Management, and Lithia Motors. Shares in Brookfield Asset Management Ltd. (NYSE:BAM) advanced nicely as the firm continues to raise funds at a robust clip, showing that despite some slowdown in the overall appetite for alternative investment asset classes, the proven winners can still attract their share of allocations.”
6. Harley-Davidson, Inc. (NYSE:HOG)
Number of Hedge Fund Holders: 23
A caller asked if they should hold onto Harley-Davidson, Inc. (NYSE:HOG) or cut their losses, and in response, Cramer remarked:
“No, don’t do it here. It sells at seven times earnings, 3% yield. Look… it doesn’t have the sales that I really like, but I think you can bounce from here.”
Harley-Davidson (NYSE:HOG) designs and sells both traditional and electric motorcycles, parts, and gear, while also offering financing, insurance, and branded credit products. On April 17, Citi reduced its price target on HOG to $23 from $28 and maintained a Neutral rating on the stock. The analyst noted that leisure stocks have been sold off “indiscriminately” following President Trump’s “Liberation Day” tariff announcement. It has resulted in some sectors, like cruise lines and theme parks, becoming oversold, while others, such as powersports, might not fully reflect the current risk environment.
In a research note, the analyst mentioned that the firm lowered its estimates for the entire leisure sector to account for expected tariff impacts and a potential slowdown in consumer spending. Citi’s tariff outlook suggests that companies will bear the full impact of the tariffs in the second half of 2025. However, companies could reduce this by 50% in fiscal 2026 through a combination of policy changes, mitigation strategies, and exclusions, with an additional 25% reduction expected in fiscal 2027.
5. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 36
Inquiring about Realty Income Corporation (NYSE:O), a caller asked if it was too early to get back into real estate investment trusts (REITs). Here’s what Cramer had to say in response:
“No, absolutely not. I went over that quarter with a fine-tooth comb. I know the stock dropped down to the low 50s when they reported. I felt that there was an overreaction. I actually like the quarter, and I am still a buyer. Don’t forget, you get monthly dividend checks when you buy letter O, which is one of the reasons why I stand by it so, so much.”
Realty Income (NYSE:O) is a real estate investment trust that pays dividends each month. It focuses on net lease properties in different sectors. When Cramer was asked about the company earlier in April, he commented:
“Oh, Realty Income is absolutely right. Now, I know the last quarter, there were a couple of releases that people didn’t like. I looked into them, I felt very confident about it. You do get a monthly dividend there, and I think that letter O should be bought into this weakness.”
4. OneMain Holdings, Inc. (NYSE:OMF)
Number of Hedge Fund Holders: 40
When Cramer was asked about OneMain Holdings, Inc. (NYSE:OMF) during the lightning round, he replied:
“Too risky, too risky. I want you to get out of that right now, and tomorrow I want you to go by Capital One… which I tell you, it’s got much better risk controls and it’s going to have a nice buyback, and I think it’s going to 200. I told that to the club members.”
OneMain Holdings (NYSE:OMF) is a financial services company that provides personal loans, credit cards, auto financing, insurance products, and other financial protection plans. On April 8, JPMorgan cut its price target on OMF to $46 from $58 but maintained an Overweight rating.
The firm adjusted its 2025 year-end targets due to weaker sentiment and greater financial risk in the sector. Additionally, the analyst pointed to possible inflation from trade policies and growing pressure on financial markets. JPMorgan also sees a higher chance of recession and labor market strain, which it believes could hurt unsecured consumer credit.
3. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 87
When a caller asked about Reddit, Inc. (NYSE:RDDT) during the episode, Cramer said:
“Well… Oh man, Reddit. I think Reddit is a very good stock. It came down way too much because there were, it was a short squeeze, and then it evaporated. But I think management, Huff’s (CEO Steve Huffman) doing a great job. I would be a buyer.”
Reddit, Inc. (NYSE:RDDT) operates a popular platform where people post content, join conversations, and interact within topic-based communities. On March 14, Cramer stated:
“Just like with Cava, Reddit hasn’t done anything wrong. Last month, they reported a terrific quarter, revenue growth accelerated all the way to 71%. The problem here is that this is exactly the kind of stock that people dump whenever we get hit with the market-wide meltdown. It’s almost programmed. The only scenario in which I’d get more bearish on Reddit’s fundamentals would be if the current period of macro uncertainty turns into an outright recession, because a recession would really hurt their advertising business.
In a recession, anything that depends on ads does get crushed but I don’t think we’re headed for a recession, which means Reddit’s pretty darn enticing now that the stock’s practically being cut in half.
… Plus, based on the way that Reddit’s been beating the estimates, I wouldn’t be surprised if the stock ultimately proves to be much cheaper than it looks right now. If only because the future of earnings are likely to come in higher than expected. Again, as long as there’s no recession, as long as this thing continues to be able to spread and grow, not just from this nation, I should say all over the world, Reddit’s a winner, and I think it is going to be very big internationally.”
2. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) was mentioned during the episode, and here’s what Cramer had to say:
“Okay, your stock’s down 10. Now admittedly, it’s up 10 from where it was just a couple of days ago, but I tell you, if I wanted to buy the stock, I’d put a little on here and then wait for… someone to talk about tariffs, let it come down and then do some buying for the rest of it.”
Walmart (NYSE:WMT) is a retail business that sells many types of products, including groceries, health supplies, electronics, clothing, and items under its own brand. On April 4, appearing on Squawk on the Street, Cramer said:
“Walmart pulls its operating income guidance for the current quarter. […] People thought they were going to guide down. I heard many people tell me last night, boy, are you ready for Walmart’s big guide down? […]
[after listening to the company’s CEO giving a positive outlook] It’s rather extraordinary to have a level of confidence from the largest retailer. And Doug McMillan should be applauded.
[talking about how the largest retailers have pricing power] And they have power. They have pricing power. And they can make the Japanese, look, the Chinese right now, here’s what they’re saying: we can’t go up against Walmart; we can’t!”
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
A caller asked for Cramer’s thoughts on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and he replied:
“Taiwan Semiconductor is so low. I have to tell you… Look, I have tremendous conviction that it’s very difficult to politically… say that we will protect Taiwan Semi. I will say this, that is one of the greatest manufacturers in the world, and anybody who thinks that Taiwan Semi should be this low, this cheap is just not a believer in AI, and I am a believer in AI. There we go.”
Taiwan Semiconductor (NYSE:TSM) is a major player in the semiconductor industry. The company handles manufacturing, packaging, testing, and selling of integrated circuits and various semiconductor products. Middle Coast Investing stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2025 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the company we own with the most obvious geopolitical risk, and we cut our position in half. I know that if Taiwan-China flares up the damage will extend much wider, but TSM would seem to be the first domino there. And it’s not as if Taiwan is having an easy time of it with the current U.S. administration.”
While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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 timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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