Opinions
Jim Cramer - Mad Money A Comment -- General Comments From an Expert A Commentary COMMENT Jul 16, 2025
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It is a very crowded trade, but for very good reason. As we go through the show, we'll see that things are within 5-10% of price targets. This means that it's probably a good time, maybe not to sell, but to sell some calls against a name and make some money -- certainly against the Mag 7 (which account for over 40% of the market cap of the S&P 500).
Still some pockets worth looking at. One area he really likes (and there seems to be movement toward it) is Edge AI. There's been a trend to Edge computing, getting closer to the devices out there. And you can do it these days with the computational power of the chips. It touches everything from smartphones to iPads to factory floors. Pretty well every generative AI stock out there has a considerable business in Edge AI.
They're not Blackwell state-of-the-art, but the next best thing. A year ago, they were the cat's meow. It's why NVDA popped up another 4% yesterday. Gives more legs to the whole AI revolution going on out there, with China being such a large market.
He was surprised, but pleasantly, as he's pretty overweight in the AI ecosystem.
Top Performers in June:
The best performer of June was Propel Holdings Inc (PRL) whose stock price was up 19.4% on the month, up 2.9% year-to-date, and up 48.5% over the past year.
PRL is an innovative fintech company operating through three main brands, MoneyKey and CreditFresh in the US, and Fora in Canada. It reported strong earnings in early May, which helped to improve its momentum, and since then, it has carried this positive momentum into June. The name was heavily sold off during the April Tariff turmoil decline, and since the market recovered, PRL has continued its climb higher. It trades at an 11X forward earnings, it has a 1.9% dividend yield, and with a strong growth profile, we feel this name can move higher in the coming year(s).
The second-best performer of June was Galaxy Digital Inc (GLXY), whose stock price was up 17.4% on the month, up 19.3% year-to-date, and up 74.7% over the past year.
It operates across a few main segments: global markets (trading, lending, derivatives), asset management (venture investing, passive ETFs, etc.), digital infrastructure (data centres for blockchain and AI). It has now completed its uplisting on the NASDAQ exchange, and in June, it closed its first external venture fund at more than $175 million. This fund aims to back early-stage blockchain and digital asset startups. The crypto market has been moving higher in general, and this has helped to improve its price action. Lastly, it has established a strong partnership with CRWV and this has helped to drive growth and diversify its operations.
The third best performer of June was Magellan Aerospace Corp (MAL) whose stock price was up 14.4% on the month, up 91.7% year-to-date, and up 140.9% over the past year.
MAL is a small ($1.0 billion market cap) aerospace name that pays a decent yield of 0.5%. It has a diversified customer base and long-term contracts, serving customers like Boeing, Airbus, and Lockheed Martin. In late May, TD Securities upgraded MAL and raised its price target, which helped its price action into June. It also announced a dividend increase and it gained momentum from the rising global military and defense-related spending. Given its forward expected earnings growth rates, its valuation of 17X forward earnings seems fairly attractive to us.
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Premium contentYes. Since April, the breadth of stocks performing well has been slowly improving. More importantly, markets around the world (not just the US stock market) are doing this. The US stock market is about the weakest of the major markets, as the USD has been weakening.
Great to see participation in a broad base of sectors. Most of the leadership is in economically sensitive sectors, which belies the idea that we might have some kind of recession. In general, there's lots of liquidity in the market. Central banks around the world, aside from the US, have been loosening. It's not a market where you want to fight the tape.
There was this moment where you thought maybe, just maybe, some spending might get cut. Of course this "big, beautiful bill" comes along and all of that goes out the window. Clear that governments are going to continue to have populist policies and the bond market's telling you it doesn't love that. But ultimately, that's stimulus in the economy, and it makes its way to the stock market.
If there are going to be more dollars out there, people have to be able to protect their purchasing power. Companies that have had an ability to raise dividends, or generate lots of cash, are able to put their prices up tomorrow if inflation is up today. And those are the ones that are winning. So his team is focused in those areas.
When a sector's in transition, it doesn't happen all at once. You get a lot of yanking back and forth. Copper's a higher-volatility sector. Significant breakout in the price of copper. Over a period of years, we're going to see earnings and multiples double and many dividends double.
Obvious way to play copper is with a US copper company like FCX. He also owns HBM.
The secular bull market cycle that started in the US in 2013 has some legs. Now that we have global markets engaged, it may well be that global markets outperform the US over the next decade. But still room for multiple expansion.
Baby boom drove 1980-2000. Generation X will push this market move probably into the early 2030s, with cyclical interruptions. Still room to go.
He'd disagree. We've only just gone through a generational shift in interest rates. 2020 saw generational lows in rates, the last one being 1951. Long-term higher rate cycle is great for financials. The XLF (the financials ETF in the US) didn't make a new high from 2008-2022, and that started a new bull market.
So our Canadian banks dodged the 2008 bullet, and they're in good shape. Performing well, and he'd be in no hurry to sell.
Rumours of Trump about to fire Powell sent markets tumbling and interest rates rising. Then, Trump denied the firing, and market rallied. The market said that Trump is wrong about firing Powell. While Powell made mistakes in the pass, raising them in late 2018 and calling inflation transitory post-Covid, there's no reason for him to cut rates. Trump would be smart to leave Powell alone. Firing him would rock the stock market and raise long-term interest rates.