McKesson seen as top pick in Cramer's latest stock call round

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McKesson top pick in Cramer call

Highlights

Jim Cramer calls McKesson a winner and expects the stock to move much higher due to its profitability and fit in the current rate environment.
Cramer recommends Medtronic at 15 times earnings, describing it as attractive at current levels compared to less profitable peers such as MiniMed.
Cramer advises against unprofitable stocks like X-Energy and Cipher Digital and suggests waiting for a 10% pullback before considering Vishay Precision Group due to valuation concerns.

Stock picks reflect profit and valuation focus

As reported by CNBC, "Mad Money" host Jim Cramer uses his latest lightning round to give rapid-fire views on a group of stocks, with a clear preference for companies that are profitable and reasonably valued.

Cramer says X-Energy is losing too much money and does not meet his standard in the current rate environment. He adds that since interest rates started rising, he does not recommend companies that lose money.

He calls McKesson a winner and says the stock is going much higher. He also says it is exactly the kind of name investors buy in the current environment.

On Vishay Precision Group, Cramer says the shares are valued too high right now. He says he would wait for the stock to pull back by about 10% before buying.

For Medtronic, he says he would buy the company instead of MiniMed and points to its valuation at 15 times earnings. He says the stock is attractive at current levels.

Cramer is also negative on Cipher Digital, saying investors cannot own the stock because it is losing a large amount of money. He says the decline in the shares reflects that weakness.

Rate backdrop shapes market stance

Cramer's comments underscore how the higher-rate backdrop continues to influence stock recommendations, especially in sectors where investors are weighing earnings stability against speculative growth.

The contrast in his calls is sharp, with support for healthcare and distribution names such as McKesson and Medtronic, and a more cautious stance toward unprofitable companies including X-Energy and Cipher Digital. His remarks also suggest valuation discipline remains important even for companies he does not reject outright, as shown by his view on Vishay Precision Group.

Our earlier coverage of AI financing stress explained how hotter inflation and the prospect of further Fed tightening triggered a broad risk pullback, pressuring both stocks and corporate bonds tied to the AI buildout. We highlighted that rising yields and widening credit spreads were raising doubts about the sustainability of heavily leveraged funding models and increasing the risk of a negative feedback loop across AI-linked assets.

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