We recently published a list of Jim Cramer Recently Put These 10 Stocks Under Spotlight. In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against other stocks that Jim Cramer discussed recently.

On Monday, Jim Cramer, host of Mad Money, shared his thoughts on how the government’s approach to tariffs could play a crucial role in sustaining the stock market rally. Cramer expressed satisfaction with the current direction of policy.

“There’s what happened two weeks ago, two Thursdays ago, more accurately when the stock market official went into correction mode. Until the market broke down like that, I think the president was perfectly willing to hammer anybody just to get his way.”

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“I don’t think he (President Donald Trump) wants to punish good American companies that make things here.”

Cramer explained that he no longer thinks the president wants to harm American companies that manufacture goods domestically. He suggested that the shift in attitude is a relatively new development, and it may signal a more nuanced approach going forward. He noted that with the market’s recovery, it is possible that the conversation around protectionist tariffs will surface once again, but the context might have changed.

Cramer speculated that when the market entered correction mode, President Trump may have been influenced by the pleas from various observers about the damaging effects on stocks of good American companies.

“Here’s the bottom line: At the end of the day, America’s the only country on earth that’s played fair on trade. Everybody else breaks the rules to protect their domestic businesses. That’s hollowed out our industrial heartland. And that dynamic can only change if our government takes a more carrot-and-stick approach. Assuming Trump doesn’t go overboard, that might just be what we’ve got and it means stocks can finally stage a real rally again.”

Our Methodology

For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 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).

The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 81

Mentioning that the stock is up quite a bit, a caller asked if they should sell The Goldman Sachs Group, Inc. (NYSE:GS) and take profits or do nothing. Here’s what Cramer said in response:

“Goldman Sachs sell? I want you to buy more Goldman Sachs. We’re about to have a wave of mergers you wouldn’t believe and a new wave of IPOs and people don’t seem to realize it. I seem to be the only person who realizes it. You want to buy more Goldman right now, like the club.”

Goldman Sachs (NYSE:GS) is a financial services company known for its proficiency in investment banking, wealth management, and various other financial offerings. Almost 2 weeks ago, Cramer extensively commented on the company as he said:

“The plummeting stock market means fewer IPOs, which is another big source of business for Goldman. So that’s why the stock’s come down 22% in the past few weeks… I think much of the risk may already been baked, not all of it, baked into the stock price. When Goldman peaked last month, it was trading at 14.5 times this year’s earning estimates.  Now it’s trading at roughly 11.5 times this year’s estimate although the estimate’s probably come down.

Why stick with Goldman in the face of this newfound uncertainty? That’s an excellent question. Here’s my answer because I think it’s too soon to give up on merger mania… Meanwhile, some of the softer economic data has caused long-term interest rates to come down and that should be a boon to Goldman’s debt underwriting while also encouraging more mergers because many of these deals are paid for with borrowed money. Finally, I think Goldman’s best-in-class sales and trading operation… could be in a position to make a killing and miss all this volatility that we’ve seen over the past few weeks…

Look, if I’m right about that and I’m pretty confident about the thesis because these Goldman professionals are the best at what they do, then that strength could offset some of the softer performance from the traditional investment banking side. So for all these reasons, I’m still comfortable with Goldman Sachs, but I do think the stock could go lower because the market’s awful. Alright, but I like to buy low. I like to sell high.”

Overall, GS ranks 5th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of GS 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 GS 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.