Mad Money w/ Jim Cramer – Episode Summary (March 27, 2025)

Hosted by CNBC's Jim Cramer, this episode of "Mad Money" delves deep into the current state of the stock market, analyzing sector performances, spotlighting standout companies, and engaging with callers during the popular Lightning Round segment. Jim provides insightful commentary aimed at helping investors navigate the complexities of Wall Street.

Market Overview

Jim Cramer opens the episode by addressing the recent downturn in the tech sector, noting significant declines across major indices. He expresses reluctance to abandon the tech sector despite its recent struggles, emphasizing its historical resilience and long-term potential.

“Sometimes you get used to certain stocks being winners for so long that you aren't even aware when their triumphant status possibly runs its course.”
— Jim Cramer [01:03]

He highlights the broader market's unexpected strength, suggesting that the market might be healthier than perceived despite ongoing challenges.

Top Performing Sectors

1. Energy Sector

The energy sector emerges as the top performer of the year, defying expectations amid presidential commitments to lower oil prices. Jim discusses the performance of key players:

“Chevron, among my favorites, is up 15% to start this year after a long period of underperformance, aided by its hefty dividend yielding over 4%.”
— Jim Cramer [03:00]

He attributes the success to strong demand for natural gas and robust performance in the liquefied natural gas (LNG) export market.

2. Health Care

Health care secures the second spot, benefiting from its defensive nature during economic slowdowns. Jim points out the shift away from pharmaceuticals towards services within the sector.

“Health care has gotten much more away from drugs. Service, service can't get tariffs.”
— Jim Cramer [04:10]

Key performers include CVS and Vertex Pharmaceuticals, the latter credited for its innovative non-habit-forming painkiller.

3. Financials

Financials rank third, with insurance companies leading the charge thanks to effective pricing strategies.

“Insurance has been incredibly hot this year with a remarkable pricing factor.”
— Jim Cramer [05:00]

Jim highlights companies like Brown & Brown and Arthur J. Gallagher for their strong performance without significant credit risks.

4. Consumer Staples

Traditionally viewed as safe stocks, consumer staples face challenges but still offer opportunities. Walgreens shows a resurgence, while Dollar General remains a consistent performer.

“Walgreens has made a comeback too. But it's going private, consider that one done.”
— Jim Cramer [06:30]

5. Materials

Materials, particularly mining companies like Newmont and Steel Dynamics, perform well against the backdrop of rising gold prices and strong demand for steel in tariff-driven markets.

“Steel Dynamics comes in second within the materials group and I think that's a winner in the tariff force.”
— Jim Cramer [07:00]

6. Utilities

Utilities see varied performance with companies like Consolidated Edison and Exxon showing resilience despite rising interest rates.

“It could mean that people want to profit from a slowdown by buying companies with consistent earnings.”
— Jim Cramer [08:20]

7. Real Estate (REITs)

REITs top the real estate sector, showcasing diversity with players like Welltower, American Tower, and Ventas REIT leading different sub-segments.

“The real estate group is the seventh best performing, showing a paragon of diversity.”
— Jim Cramer [09:00]

8. Industrials

Industrials, often vulnerable in recessions, exhibit unique performance with companies like Uber Technologies leading the charge.

“Industrials are prone to failure during a recession, but Uber Technologies is an exception, showcasing robust growth.”
— Jim Cramer [09:30]

In-Depth Stock Analysis

GE Aerospace

Jim offers a comprehensive analysis of GE Aerospace, praising its stellar quarterly performance and strategic initiatives.

“GE Aerospace raises its dividend by 30% and announced a $7 billion buyback. This quarter was just incredible.”
— Jim Cramer [10:15]

He highlights the company's strong backlog, significant contract wins, and effective supply chain management as key factors driving its success.

Uber Technologies

Uber stands out as a top performer, with its stock surging despite a previously poor quarter. Jim credits management's effective strategies and partnerships in the autonomous driving space.

“Uber is uniquely positioned to capture the one trillion dollar plus autonomous driving opportunity in the US.”
— Jim Cramer [25:00]

He discusses the impact of activist investor Bill Ackman's stake and Uber's innovative approaches in ride-sharing and freight segments.

Aspen Aerogels

Aspen Aerogels is presented as a high-risk, high-reward opportunity. Despite significant stock declines, Jim sees potential in the company's exposure to the oil and gas sector and its strategic positioning in electric vehicle materials.

“Aspen Aerogels is flirting with its 2023 lows, but it’s a great entry point for those comfortable with high risk.”
— Jim Cramer [33:00]

Other Mentioned Stocks

Jim briefly touches upon other companies like Cleveland Cliffs and RTX Corp., providing insights into their market positions and future outlooks.

Caller Interactions: Lightning Round

During the Lightning Round, Jim engages with multiple callers, providing buy, sell, or hold recommendations on various stocks. Notable interactions include:

• Frank from New York
  Discusses FedEx amidst market volatility. Jim remains cautiously optimistic, suggesting holding the position without aggressive buying.

  “If they start getting more sales, that thing could explode higher.”
  — Jim Cramer [10:00]

• Bob from Arizona
  Inquires about the Paramount and Skydance merger. Jim advises that there's limited upside and suggests focusing on stocks with growth potential.

  “There’s not going to be any more upside to speak of.”
  — Jim Cramer [29:22]

• Robert from New York
  Praises a leading fintech company. Jim acknowledges the strong team and steady performance despite not being his personal recommendation.

  “It sells at 21 times earnings. It’s a very, very good company and I'm glad I recommended it.”
  — Jim Cramer [30:22]

Jim emphasizes cautious optimism, often recommending buying on dips or holding strong positions without aggressive strategies.

Insights on Auto Tariffs

In the concluding segment, Jim addresses the impact of new auto tariffs on the economy, expressing support for the administration's move towards protectionism.

“I favor the 25% tariff on automobile imports. It’s about time we recognize the loss of good factory jobs.”
— Jim Cramer [44:18]

He argues that while tariffs may raise car prices, they are necessary to bring manufacturing jobs back to the U.S. and rectify trade imbalances.

“We sacrificed millions of jobs in the Rust Belt so that the entire country gets cheaper goods, which is a mistake.”
— Jim Cramer [44:50]

Jim emphasizes the importance of balancing economic benefits with the social impact of trade policies, advocating for measures that prioritize domestic employment.

Conclusion

Jim Cramer wraps up the episode by reiterating the market's resilience and the importance of focusing on sectors and stocks that demonstrate strength amidst volatility. He encourages investors to remain vigilant and adaptable, emphasizing that despite current challenges, opportunities abound for those who navigate the market wisely.

“The market may be in choppy waters, but there are plenty of names that have managed to rally. It’s about circling the wagons around stocks that are holding up.”
— Jim Cramer [43:53]

Notable Quotes with Timestamps:

• “Sometimes you get used to certain stocks being winners for so long that you aren't even aware when their triumphant status possibly runs its course.” — Jim Cramer [01:03]

• “Chevron, among my favorites, is up 15% to start this year after a long period of underperformance, aided by its hefty dividend yielding over 4%.” — Jim Cramer [03:00]

• “Health care has gotten much more away from drugs. Service, service can't get tariffs.” — Jim Cramer [04:10]

• “Insurance has been incredibly hot this year with a remarkable pricing factor.” — Jim Cramer [05:00]

• “Walgreens has made a comeback too. But it's going private, consider that one done.” — Jim Cramer [06:30]

• “Steel Dynamics comes in second within the materials group and I think that's a winner in the tariff force.” — Jim Cramer [07:00]

• “It could mean that people want to profit from a slowdown by buying companies with consistent earnings.” — Jim Cramer [08:20]

• “The real estate group is the seventh best performing, showing a paragon of diversity.” — Jim Cramer [09:00]

• “Industrials are prone to failure during a recession, but Uber Technologies is an exception, showcasing robust growth.” — Jim Cramer [09:30]

• “GE Aerospace raises its dividend by 30% and announced a $7 billion buyback. This quarter was just incredible.” — Jim Cramer [10:15]

• “Uber is uniquely positioned to capture the one trillion dollar plus autonomous driving opportunity in the US.” — Jim Cramer [25:00]

• “Aspen Aerogels is flirting with its 2023 lows, but it’s a great entry point for those comfortable with high risk.” — Jim Cramer [33:00]

• “I favor the 25% tariff on automobile imports. It’s about time we recognize the loss of good factory jobs.” — Jim Cramer [44:18]

• “We sacrificed millions of jobs in the Rust Belt so that the entire country gets cheaper goods, which is a mistake.” — Jim Cramer [44:50]

Final Thoughts

This episode of "Mad Money" offers a comprehensive analysis of current market trends, sector performances, and specific stock insights, all aimed at empowering investors to make informed decisions. Jim Cramer's blend of in-depth research, market expertise, and interactive segments with callers provides a valuable resource for both seasoned investors and those new to the stock market.