We recently published a list of Jim Cramer Recently Discussed These 9 Stocks. In this article, we are going to take a look at where Lululemon Athletica Inc. (NASDAQ:LULU) stands against other stocks that Jim Cramer discussed recently.

Jim Cramer, the host of Mad Money, discussed the current economic outlook on Monday as he outlined why he believes the possibility of a recession this year may be less likely. He pointed out that while it is easy to be negative in the current climate, the situation is almost too obviously bad, which makes him hesitant to align with the pessimistic view.

“This morning, Craig Melvin interviewed me on the Today Show, and he correctly asked, are we going into a recession? I stuck my neck out and I said, no. Will the tariffs hurt? Yes. Will prices go higher? Yes. Could there be shortages? Absolutely.”

READ ALSO Jim Cramer Commented on These 8 Stocks Recently and Jim Cramer’s Game Plan for This Week: 16 Stocks in Focus

Cramer emphasized that the way to understand whether a recession is likely often lies in employment figures. He noted that right now, there are more job openings than there are people to fill them. According to Cramer, the disparity makes it challenging for a recession to take hold in the near future. He recognized that some people would be impacted by corporate cost-cutting measures, often referred to as “mitigation” by CEOs.

“That’s the term CEOs are using when they talk about getting costs down to offset the impact of tariffs. Mitigation efforts usually mean taking supply chain costs out, but they also mean laying people off.”

However, Cramer noted that companies are not rushing to let go of workers because they fear they would not be able to rehire them when business conditions improve. He pointed out that, historically, economies tend to recover, and it is difficult to derail growth when so many jobs are still being created. Cramer expressed confidence that upcoming reports, including the monthly labor data due on Friday, would show a healthy job market, which would further complicate the notion of a recession.

“That will make it very hard once again to slip into a full-blown recession anytime soon, and perhaps in several quarters, we will have a more steady and predictable trade policy. Anything’s possible.”

Our Methodology

For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 28. We listed the stocks in ascending order of their hedge fund sentiment 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).

A store employee in an athletic apparel store restocking merchandise.

Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 60

A caller asked if it is a good time to add to their position in Lululemon Athletica Inc. (NASDAQ:LULU). Here’s what Cramer had to say:

“Alright, remember, we don’t care where a stock has come from, we care where it’s going. I do believe that at 17 times earnings, this stock is frantically trying to bottom. And I’m actually going to say, I have not said this before, I think if you want to put a small position on LULU, you can do it now.”

Lululemon (NASDAQ:LULU) manufactures, produces, and retails athletic clothing, footwear, and accessories. River Road Asset Management stated the following regarding Lululemon Athletica Inc. (NASDAQ:LULU) in its Q4 2024 investor letter:

“Lululemon Athletica Inc. (NASDAQ:LULU) was our largest new purchase last quarter (Q3) and the holding with the highest contribution to active return in the portfolio during Q4. As the pioneer of the “athleisure” industry, LULU has secured its position as North America’s leading athletic apparel retailer through its innovative technical fabrics and controlled distribution model. With 90% of sales through company-owned channels, LULU maintains exceptional brand integrity and pricing power. We believe this strategy has delivered outstanding results: 24% annual sales growth over the past five years and sustained 40%+ returns on invested capital. The company’s growth trajectory remains compelling, driven by rapid international expansion (~40% compound annual growth rate [CAGR] since 2019) and a thriving men’s business (~30% CAGR since 2019), while its robust balance sheet and disciplined capital allocation reinforce long-term value creation potential.

lululemon’s stock rebounded strongly in Q4 after the company reported robust performance metrics, including record Black Friday e-commerce traffic and the highest operating margin in a decade at 20.5%. While U.S. growth remained flat, the company’s premium positioning and controlled distribution strategy (avoiding broad sales events) drove adjusted gross margins up 40 bps to 58.5%, significantly outperforming guidance. International momentum continues to impress, with China growing 36% and Rest of World up 23%, while the company’s opportunistic capital return program, including $409MM in share repurchases during the quarter, further supported investor confidence in management’s execution and long-term value creation strategy. We trimmed the position as it approached our assessed value.”

Overall, LULU ranks 6th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of LULU 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 timeframe. 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 LULU 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.