Jim Cramer Says ABM Industries (ABM) Is ‘Trump-Proof' and Simply a Stock to Like

Yahoo

05-04-2025

We recently published a list of . In this article, we are going to take a look at where ABM Industries Incorporated (NYSE:ABM) stands against other stocks that are on Jim Cramer's radar.
On Thursday, Jim Cramer, the host of Mad Money, addressed the growing concerns surrounding the current tariff policies. He questioned the effectiveness of these tariffs as he asked:
'What's the deal with these heavy-handed tariffs? Look, I've never been a dogmatic free trader. I believe in fair trade, a pretty fierce belief just so you know and we can only get that by lowering the boom on our trading partners who rip us off as a matter of policy.'
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Cramer explained that while he has always supported the idea of tariffs in principle, especially when they are part of a well-thought-out strategy, he expressed frustration over how the new trade regime is being executed. He said he was taken aback by how poorly the administration was rolling out these changes, which he felt lacked a clear and coherent plan. Cramer then pointed out what James Surowiecki, the author of The Wisdom of Crowds, said about how the White House is calculating tariffs.
'The White House simply took our trade deficit with each country and then divided it by that country's exports to America. Then they cut that number in half to determine the tariff rate we'd be slapping on the country in question.'
Cramer noted that just hours later, an unnamed official from the White House confirmed this and described it as 'the sum of all unfair trade practices, the sum of all cheating.' Cramer called it ill-advised. Later in the day, President Trump made a statement suggesting that he might be open to reducing tariffs if presented with 'phenomenal' offers. However, Cramer raised an important question: 'Who determines what those offers are, and what do they even mean?' He admitted that he had no clear answer to that question.
'Here's the bottom line: I wish I could get behind this new tariff regime because I've never been a free trader ever. But the White House doesn't seem to understand what it's trying to do and the not-really-reciprocal tariffs we got yesterday could do tremendous damage to the US economy, of course including the stock market, without changing the bad behavior of our trading partners. To me, this has become a lose-lose, which is very tough to accept because I wanted tariffs to change things, not to wreck things.'
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 3. 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 ().
A side view of a large commercial aircraft taking off from a modern airport runway.
Number of Hedge Fund Holders: 14
A caller asked Cramer's thoughts on ABM Industries Incorporated (NYSE:ABM) and he commented:
'I like that stock… Do you know… that no one in the 20 years of this show has ever asked me about a stock that I just like plain and simple? You've got a good one. It's a janitorial as you alluded to, lighting, parking, security. This is the kind of company that Trump cannot hurt. He can wake up and say, how do I destroy ABM? And he can't. It's Trump proof.'
ABM Industries (NYSE:ABM) provides a wide range of integrated services, including janitorial, engineering, parking, and vehicle maintenance. The company posted its first-quarter fiscal 2025 results on March 12. It generated $2.1 billion in revenue, which was a 2.2% increase compared to the same period last year. It was driven by a 1.6% rise in organic growth and additional revenue from acquisitions.
ABM Industries (NYSE:ABM) net income for the quarter was $43.6 million, or $0.69 per diluted share, slightly lower than the previous year's net income of $44.7 million, or $0.70 per diluted share. Adjusted EBITDA for the period was reported to be $120.6 million, with an adjusted EBITDA margin of 5.9%.
Overall, ABM ranks 10th on our list of stocks that are on Jim Cramer's radar. While we acknowledge the potential of ABM 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. 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 ABM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.