Jim Cramer: Verizon (VZ) Offers Stability – “Good Yield” and “Very Little Cyclicality”

Insider Monkey
17 Apr

We recently published a list of Jim Cramer is Bullish on These 10 Stocks. In this article, we are going to take a look at where Verizon Communications Inc. (NYSE:VZ) stands against other stocks that Jim Cramer discusses.

On Friday, Mad Money host, Jim Cramer, shared his perspective on how investors might approach the stock market given the current economic uncertainty.

“You gotta make a list and decide what you can live with and what’s simply too dicey to buy. That my good friends, is how you have to think about stocks right now if you’re willing to be a slave to this crazy market in order to try to pocket what you can during this difficult period.”

READ ALSO: Jim Cramer’s Game Plan: 15 Stocks to Watch and Jim Cramer Discussed These 12 Stocks.

Cramer emphasized that before making any trading decision unless the plan is to hold it long-term and ride out near-term turbulence, investors should run what he described as a “gauntlet” of significant considerations. The first question he raised is whether the company in question does business in any foreign country. While it is common for investors to be cautious about China these days, Cramer pointed out that any nation could suddenly draw the ire of the U.S. president.

“Now, it’s one thing to be worried about China, but it’s another to recognize that any country could at any time find itself on the president’s bad side. And once they get on his bad side, any American company doing real business there, finished.”

Cramer stressed the importance of avoiding companies that rely on international operations or resources. The second point on his checklist involved evaluating whether a company is cyclical, essentially, if it is vulnerable to swings in the broader economy. Highlighting the scale of the current trade friction, Cramer pointed out that the United States is effectively embargoing $439 billion worth of goods from China. He noted that it is likely to push inflation to levels not seen in a very long time. He added:

“It’s hard to disagree with that assessment and I say that as someone who generally supports a trade crackdown on the Chinese government.”

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 April 11. 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).

Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 74

In this turbulent environment, Cramer said that there are a few stocks investors can own and he mentioned Verizon Communications Inc. (NYSE:VZ) among them.

“So what made this list so far? Right now there’s peace among the phone companies. The big price war seems to be a thing of the past. That means you can own both Verizon and AT&T. Both have good yields. Both are reporting better-than-expected earnings. They’re worth owning because their businesses have very little cyclicality. So that’s the paradigm, okay?”

Verizon Communications Inc. (NYSE:VZ) provides communication, technology, and entertainment services to individual customers, companies, and government organizations. Its offerings include wireless plans, internet access, and traditional phone services. During March 11’s episode of Squawk on the Street, Cramer remarked:

[On Q1 guidance and recent results] “Well they had a decent quarter last time. So I think that’s interesting. I think that it’s probably an over reaction because people don’t like that dividend versus where bonds are. But interest rates yesterday were terrific for the market but no one really wanted to care. Because people say well that’s just flight to safety. I don’t give a. . .I’m sorry, darn, you know what’s going on… “Verizon’s not. Verizon was more competitive last quarter.” So that’s one to watch.”

Overall, VZ ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of VZ 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VZ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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