Jim Cramer is watched by hundreds of thousands of investors every day, and many of them consider him their only source of information. He believes Wells Fargo (NYSE:WFC) and AutoZone (NYSE:AZO) are “incredibly inexpensive” at the moment, and it’s worth looking into why. His picks have historically been hit or miss if you consider all his bearish and bullish positions. This year in particular has been quite good for his picks, as he has refused to back down on the AI rally being a bubble.
He remains bullish on the mega-cap tech stocks, doing impressively well on stocks like Palantir (NASDAQ:PLTR) and Nvidia (NASDAQ:NVDA). The tone did soften recently, with Cramer asking investors to look outside of tech for market winners. He believes the rally can become more broad-based as investors focus more on value.
Here are two that fit the bill.
Wells Fargo (WFC)
Wells Fargo has done immensely well in the past two years and has more than doubled in price. WFC stock has shown no sign of plateauing, and this is one pick that remains quite under-the-radar despite doing so well. Cramer is doubling down and thinks the stock is still undervalued.
On Mad Money‘s September 9 show this year, Cramer was discussing Apple (NASDAQ:AAPL) and Wells Fargo.
He said, “I want to pound the table on right here and right now, Wells Fargo and Apple.” He added, “Wells has bought back $5.5 billion of its stock so far this quarter. That’s the most the bank has bought back in a single quarter all year… That is a huge sign of confidence from CFO Mike Santomassimo, who said that he’s seeing green shoots now that the Fed has removed the asset cap penalty on Wells. I’d be a buyer if we didn’t already own so much of it from my charitable trust.”
He then said, “It’s worth braving today’s decline. Don’t forget… the incredibly inexpensive Wells Fargo. Buy, Buy, Buy!”
The stock is up 6.8% since that Mad Money episode.
WFC stock trades at 14 times earnings and a little bit over 12 times forward earnings. It’s easy to see why Cramer is so bullish here once you consider that the 3-year average share buyback ratio is 5.4% annually. This is better than 97.5% of companies in the banking industry. Wells Fargo also comes with a 2% dividend yield, with a 3-year dividend growth rate of 35.7% annually.
In short, Cramer likes cash cows, and WFC is one of the best ones to go for.
AutoZone (AZO)
On the same day, Cramer discussed AutoZone, saying the company had a “legendary buyback”.
“I checked out the share over the last decade, and it’s astounding. Ten years ago, it had roughly 31 million shares. Now, it’s less than 17 million shares. That’s what happens when you’re repurchasing at a clip of 6% every year. I like it,” Cramer added.
He also pointed out that the auto parts chain does very well in a slowdown. “Because more people want to fix up their old car, save some money rather than have to go buy a new one.”
His thesis is quite on point, considering the average age of civilian vehicles in the U.S. has hit 12.8 years in 2025. To add insult to injury, the catalog of truly “cheap” cars is getting smaller and smaller. Consumers are shelling out $50,080 on average for a new car as of September. That’s a record high.
AZO stock is down exactly 10% from that buy recommendation, but this stock has been on a terrific long-term uptrend. The stock is up 234.1% over the past five years and can keep outperforming due to the state of the auto market.