We recently published a list of Was Jim Cramer Right About These 23 Stocks? In this article, we are going to take a look at where Williams-Sonoma Inc. (NYSE:WSM) stands against other stocks that Jim Cramer discussed 12 months ago.
In the most recent Mad Money episode, Jim Cramer shared his thoughts on the current state of the market, especially about AI stocks. He noted that despite the enthusiasm surrounding AI, investors are no longer willing to pay high prices for stocks tied to this technology. Cramer explained that on days like Tuesday, people in the market are feeling what he referred to as “painful shrinkage.”
“In this business, shrinkage means paying less for the same earnings that you were willing to pay up for only just a week or two ago.”
He pointed out that this phenomenon is commonly known as price-to-earnings multiple compression, a widespread trend across the market. Cramer asked why this is happening, especially when it seems like nothing has changed with the companies themselves. He explained:
“Look, when everyone’s terrified that a piano’s about to fall on their heads, they don’t want to get hit by the baby grand and right now they don’t want to own the falling stocks either. So they sell but they can’t get a good price anymore because too many people want out for the same reasons. They think that stocks are overpriced versus when we consider what could lay ahead.”
Cramer further elaborated that there is a strong sense of apprehension in the market right now, with investors bracing for potential economic challenges. Despite good news that may come out about companies or the economy, people are reluctant to hold onto stocks because they are anticipating weakness down the road.
He said that even though they cannot see it clearly, the ongoing concerns about the economy and the administration’s messaging about necessary economic adjustments create a climate of fear. As Cramer put it, “If the administration keeps talking about how we’re transitioning, how the economy needs to make some painful adjustments, then any big rally that we had Friday and yesterday will become magnets for sellers.”
“Here’s the bottom line: This latest round of multiple compression came on a day of wonderment about artificial intelligence, and even with Jensen’s fabulous speech, multiple compression was just much more powerful. You know what? It’s going to stay that way until we get through this environment, either because the White House backs off, or because stocks come down to the point where we simply get used to it.”
Methodology
For this article, we compiled a list of 23 stocks that were discussed by Jim Cramer during the episode of Mad Money on March 26, 2024. We then calculated their performance from March 26th, 2024, market close to March 18th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Please note that this article mentions Jim Cramer’s previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out.
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).
Was Jim Cramer Right About Williams-Sonoma Inc. (WSM)?
An interior of a modern home with a wide selection of cookware, tools and cutlery on display.
Williams-Sonoma Inc. (NYSE:WSM) is a high-end home furnishings and kitchenware retailer. Cramer was impressed with Williams-Sonoma Inc. (NYSE:WSM) back then for proving naysayers wrong with strong margins and execution.
“CEO Laura Alber has this chain firing on all cylinders […] The combination of great merchandising and a fantastic e-commerce first strategy allowed Alber to crush the naysayer analysts.”
Williams-Sonoma Inc. (NYSE:WSM) has edged down by 1.96% since being discussed.
On December 19, Cramer discussed that Williams-Sonoma, Inc. (NYSE:WSM) is one of the companies offering value at a price and has great numbers as well.
“Darden joins three other premium value businesses, Williams-Sonoma, Ralph Lauren, and Lululemon. All had great numbers, also goods that cost a lot of money yet in each case, consumers recognize that their product is worth every penny. That’s why I call it premium value or value at a price. If you’re willing to pay up for quality, but you’re still somewhat cost-conscious, they got you covered.”
Overall, WSM ranks 2nd on our list of stocks that Jim Cramer discussed 12 months ago. While we acknowledge the potential of WSM 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 WSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
