We recently published a list of Jim Cramer Commented On These 6 Stocks Recently. In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY)) stands against other stocks that Jim Cramer commented discussed recently.

On Thursday, Jim Cramer, the host of Mad Money, discussed the recent turbulence in the stock market, pointing to the lack of clarity from the White House as a major contributor to the decline.

“President Trump has put himself in the awkward position of predicting pain and he’s delivering it to owners of stocks in a way that doesn’t have to happen.”

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He emphasized that the current environment is defined by extreme uncertainty, which is impacting the market and business sentiment. Cramer’s first point centered around the lack of clarity, which he described as one of the biggest challenges facing the market. He warned that business activity would slow down, and hiring in the U.S. could be severely impacted unless clearer signals from the White House are provided.

Cramer predicted that the non-farm payroll report coming tomorrow would likely show weak numbers, marking the beginning of a series of disappointing economic reports. He pointed out that while most businesses oppose the tariffs, what truly worries them is the unpredictability of future actions from the administration.

Moving to his second point, Cramer highlighted the president’s continued threats to impose more tariffs. He stated that the uncertain timeline of these tariff hikes is creating significant anxiety in the business community. Cramer’s third point addressed the widespread caution in corporate earnings forecasts.

He explained that nearly every company reporting earnings during this period has been adopting a cautious outlook, even if their financial performance is strong. This cautious tone, according to Cramer, is largely driven by the fear and uncertainty surrounding the administration’s economic policies. Moving on to the fourth point, Cramer said:

“If we want the consumer who has enough money to keep spending, we need to maintain some degree of wealth effect. It’s not a subsidy, it’s capitalism. I think the consumer’s baffled by the president’s tariff policy.”

In his fifth point, Cramer warned that, in the current climate, saving might not be enough to sustain the economy. He emphasized that no one wants to be caught off guard, and the current environment is ideal for short sellers. Cramer pointed out that in such a volatile and uncertain market, companies are reluctant to go public, as they fear that the negative sentiment could hurt their valuation.

Finally, Cramer addressed the upcoming employment report. He stated that if the report shows a rise in layoffs, investors should not panic about federal job cuts, as this is part of the president’s strategy. However, Cramer stressed that such reports sap confidence and any business hiring in this environment risks “feels like a dope”. He concluded that if stock prices continue to fall, businesses will be reluctant to hire due to a lack of confidence in the market’s stability.

“Here’s the bottom line: I’m saying that the shareholders of great companies shouldn’t have to play the fool and people need to know it’s still worth investing… Wall Street hates uncertainty and until we get some clarity from this administration, it’s going to be tough to advise people to buy anything, even the best companies, because pessimism is the only path investors seem to know.”

Our Methodology

For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 6. 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).

An array of pharmaceutical pills with the company's logo on the bottle.

Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 115

Noting Eli Lilly and Company (NYSE:LLY) stock gains, a caller asked if they should cash in or hold on. Here’s what Cramer said in reply:

“You don’t sell Lilly. Lilly’s got the solution that may be good for everything from Alzheimer’s to heart disease, to kidney failure to liver problems, and right now weight and diabetes and that… GLP -1… David Ricks is a visionary. We stay long that stock.”

Eli Lilly and Company (NYSE:LLY) specializes in the research, development, and commercialization of a broad spectrum of pharmaceutical products, including those for diabetes, cancer, autoimmune diseases, pain relief, and migraines. Polen Capital stated the following regarding the company in its Q4 2024 investor letter:

“We also added to our positions in Oracle, Zoetis, and Eli Lilly and Company (NYSE:LLY). Eli Lilly has come under pressure from a series of headlines that we believe are non-issues, and we took advantage of the price decline to add to our position. In its most recent earnings report, the company’s GLP-1 revenue growth was slightly below expectations even though the absolute level of growth was excellent. Secondly, the appointment of RFK Jr. as head of the U.S. Department of Health and Human Services in the upcoming Trump administration has also weighed on sentiment given Kennedy’s vocal criticism of GLP-1s and drug pricing in general. We do not see any potential policy change that would likely reduce the overall demand for GLP-1 drugs nor a significant reduction in the revenue growth potential of Eli Lilly.”

Overall, LLY ranks 1st on our list of stocks that Jim Cramer commented discussed recently. While we acknowledge the potential of LLY 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 LLY 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.