We recently published a list of Jim Cramer Looked At These 11 Stocks Recently. In this article, we are going to take a look at where United Parcel Service, Inc.’s (NYSE:UPS) stands against other stocks that Jim Cramer looked at recently.
On Wednesday, Jim Cramer, the host of Mad Money, shared his thoughts on the volatile trading day, pointing out that President Donald Trump’s actions are reshaping how investors assess stocks. Cramer highlighted that before Trump came into the office, his method of evaluating a stock was looking at its price, earnings, revenues, and gross margins.
“Now, though, I start with a simple question: Can President Trump hurt the stock? Can he damage it with an offhanded comment? Can he crush it in anger? And most important, does the price-to-earnings multiple make sense in this new world in light of the president’s love of tariffs and total hostility to the way this country’s been running the past, not to mention many of our country’s friends?”
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Cramer specifically pointed to the automotive industry as a significant example of how Trump’s approach to trade has shifted the dynamics of the market. He recalled how the North American Free Trade Agreement (NAFTA) was originally created, partly to protect the U.S. auto industry from the influx of low-cost imports from countries like Japan and South Korea.
“Without NAFTA, auto companies couldn’t compete against the flood of imports from Japan and South Korea, which only have a 2.5% tariff on them. The tariffs President Trump slapped on American companies that import products from Mexico or Canada, 10 times that.”
Cramer also acknowledged that the recent pause in tariffs for the auto industry caused a brief surge in market activity, which led to some unpredictability in stock movements. However, he noted that if automakers are forced to either pay the hefty tariffs or shift their production to the U.S., replacing inexpensive labor in Mexico with higher-cost union labor, their earnings could face a sharp decline. Cramer speculated that such a scenario could result in a significant cut in earnings, though he hoped the impact would not be as severe.
“Here’s the bottom line: This market is fiercely trying to revalue stocks because of the president’s comments. And we do it day after day after day because he’s always making so much news. So it’s been doing a poor job and that’s created a ton of opportunities for you to both buy and sell and I say you take them right away.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 5. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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).
A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.
United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 59
A caller mentioned that they liked United Parcel Service, Inc.’s (NYSE:UPS) cost management strategies and asked if the stock could go higher. Cramer replied:
“I think that I question their strategy and I certainly, I do not question the strategy of another stock that’s down a lot, which is FedEx. That’s the one I’d be buying and that’s Raj Subramaniam is doing a remarkable job. FDX stock’s up today. I think it’s the beginning of a big move. UPS, challenged.”
United Parcel Service (NYSE:UPS) is a major logistics and package delivery company and provides a variety of services including transportation, distribution, contract logistics, ocean and air freight, customs brokerage, and insurance. The company released its full-year 2024 consolidated results on January 30.
United Parcel Service (NYSE:UPS) reported a total revenue of $91.1 billion for the year, with an operating profit of $8.5 billion and an operating margin of 9.3%. The company also saw diluted EPS reach $6.75. Cash flow from operations amounted to $10.1 billion, while the non-GAAP adjusted free cash flow was reported at $6.3 billion.
Overall, UPS ranks 8th on our list of stocks that Jim Cramer looked at recently. While we acknowledge the potential of UPS 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 UPS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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