Jim Cramer talks being selective in this market
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer explains how to stay selective in a fast-moving market, favoring quality names that have pulled back rather than chasing stocks already up sharply. He highlights JPMorgan's earnings risk, CrowdStrike, Microsoft, Nvidia, Broadcom, Procter & Gamble, AeroVironment, and Celsius, while warning that Venezuelan oil supply could hurt crude prices. He also takes calls on AeroVironment and Celsius and teases upcoming IPO and oil-sector segments.
- Cramer says investors should be selective and avoid buying near highs after big runs.
- He sees JPMorgan as cheap but wants to wait for Jamie Dimon's cautious earnings commentary to buy.
- He recommends buying CrowdStrike after its sharp pullback and Microsoft on AI-spending weakness.
- He says Nvidia and Broadcom are down too much and remain long-term recommendations.
- He likes Procter & Gamble as an unloved dividend compounder and suggests scaling in.
- He discusses AeroVironment as a defense-budget winner and Celsius as having more upside.
- He warns Venezuelan oil production could crush crude prices.
- He teases upcoming segments on 2025 IPOs and oil-market experts.
Ideas
Venezuela supply could crush crude prices
Cramer warned that buying an oil producer after Venezuela appeared to be under U.S. control was a mistake because investors were chasing near the high. More importantly, he said if Venezuela dramatically boosts production over the next 18 months, crude prices will be slaughtered, creating a bearish supply setup for crude.
Wait for Dimon caution before buying JPMorgan
JPMorgan is a cheap, tremendous franchise, but Cramer is worried into earnings because CEO Jamie Dimon is cautious and likely to highlight potential landmines. He advises waiting for the reaction to Dimon's cautious commentary to create a better entry point, and if no pullback comes, pass.
Buy CrowdStrike on rare pullback
CrowdStrike has fallen almost 100 points from its November highs even though Nvidia's Jensen Huang called it the secure foundation of the AI/enterprise-computing revolution. Cramer says quality cybersecurity leaders rarely get this far from highs, so he told his co-host to pounce and buy around $464; the stock closed just under $479.
Buy Microsoft on AI-spending selloff
Microsoft is doing very well but the stock has been punished since its latest quarter because management wants to spend a fortune on AI. Cramer says it is rare to buy Microsoft around $485 after it traded at $555 last summer, making the selloff a buying opportunity.
Nvidia and Broadcom weakness is buyable
Cramer says Nvidia and Broadcom are down too much and remain far from their highs, and he has consistently recommended both to Club members. That makes the weakness a continued long opportunity rather than a new revelation.
Scale into Procter & Gamble for compounding
Procter & Gamble is a tremendous but unloved company whose stock has tumbled from $180 in March to $138, now yielding 3%. Cramer is not calling the bottom, but likes the new CEO's chance to shake things up and the already-preannounced bad quarter; he recommends scaling into the position at lower prices and higher yields for long-term compounding.
Defense budget boost favors AeroVironment
Cramer said AeroVironment is a terrific company and highlighted that President Trump wants to increase the defense budget dramatically, after which the stock jumped from $318 at the close to $335. The defense-spending catalyst supports a bullish view.
Celsius could add ten points
Cramer thought Needham's $70 price target was a little aggressive, but he believes Celsius could add ten points because the company is doing quite well and just closed an acquisition. That supports a constructive view from around $50.
