During a session on CNBC's “Mad Money Lightning Round,” Jim Cramer outlined his latest views on several prominent stocks spanning the industrial, banking, and technology sectors. His investment advice demonstrated a clear preference for certain banking and industrial companies, while urging caution with enterprise software stocks.
Banking Sector Recommendations
Cramer described Banco Santander, S.A. (NYSE:SAN) as a "terrific" stock worthy of investor attention. This recommendation came amid recent developments involving Banco Santander's Polish subsidiary, where the bank sold a 49% stake to Erste Group on January 9. Despite this news, Banco Santander's shares declined 0.9%, closing at $12.11 on Thursday, reflecting some market volatility despite Cramer's positive stance.
In addition, Cramer commented on Origin Bancorp, Inc. (NYSE:OBK), signaling strong confidence by labeling it a "winner". He suggested investors should maintain their positions in the stock and consider adding shares if the price experiences a pullback. Origin Bancorp is poised to release its fourth-quarter and full-year 2025 financial results after market close on Wednesday, January 28. Following Cramer's remarks, Origin Bancorp's shares advanced 1.2% to settle at $40.48.
Regarding Royal Gold, Inc. (NASDAQ:RGLD), Cramer recommended a strategy of taking some profits, advising investors to "take a little of the table tomorrow" to lock-in gains. This advice aligns with the company's announcement on November 18 about increasing its annual dividend from $1.80 per share to $1.90 per share. Royal Gold's shares rose 2% to $259.15 on Thursday.
Industrial and Consumer Sector Picks
Cramer expressed a positive outlook on Cava Group (NYSE:CAVA), calling it a buy. The company recently appointed Doug Thompson as Chief Operating Officer, effective March 2. His endorsement corresponded with a 2% increase in Cava's shares, which closed at $72.00.
Enterprise Software Sector Outlook
Notably, Cramer advised investors to steer clear of enterprise software stocks, specifically mentioning Autodesk, Inc. (NASDAQ:ADSK) and Datadog, Inc. (NASDAQ:DDOG). On Autodesk, he remarked that it is an "enterprise software" company that investors tend to avoid. Despite this, Autodesk shares experienced a modest 0.4% gain, closing at $262.26. Supporting this sector's valuation, BTIG analyst Nick Altmann had initiated coverage on Autodesk with a Buy rating and set a price target of $365 on December 17.
Datadog, meanwhile, faced downward pressure amid conflicting analyst perspectives. Barclays analyst Raimo Lenschow lowered Datadog's price target from $215 to $195, and Keybanc analyst Eric Heath further reduced it from $230 to $170. Consistent with this, Datadog shares dropped 1.3% to close at $120.86 during the session. Cramer's advice paralleled these sentiments by recommending investors avoid such enterprise software stocks.
Market Price Actions Summary
- Banco Santander: Closed down 0.9% at $12.11
- Datadog: Fell 1.3% to $120.86
- Origin Bancorp: Increased 1.2% to $40.48
- Royal Gold: Rose 2% to $259.15
- Cava Group: Gained 2% to $72.00
- Autodesk: Slight increase of 0.4% to $262.26
Investor Considerations and Timing
Cramer's recommendations provide investors with strategic perspectives during a period where earnings announcements and corporate changes could impact stock trajectories. Origin Bancorp's upcoming earnings report scheduled for January 28 is a critical milestone, and Cramer's bullish stance suggests potential confidence in the results. Meanwhile, Royal Gold's dividend increase could appeal to income-focused investors, although his counsel to take some profits indicates a cautiously optimistic view.
Conversely, the enterprise software sector appears less favorable in Cramer's assessment, primarily due to mixed analyst outlooks and price target reductions. Investors are thereby advised to exercise caution, especially with companies like Datadog and Autodesk, which face market headwinds despite solid individual analyst ratings in some cases.
In summary, the market currently presents opportunities in select banking and consumer-facing industrial stocks, whereas enterprise software shares pose elevated risk and uncertainty. Cramer's insights underscore the importance of discerning sector dynamics and individual stock fundamentals when making investment decisions in the current environment.