We recently published a list of Top 10 Stocks to Watch as Investors Brace for Potential Recession. In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against other top stocks to watch as investors brace for potential recession.
President Donald Trump’s new reciprocal tariff announcement is hammering stock markets around the world as countries face a new reality and trade dynamics. The rising volatility has increased recession risks. Goldman Sachs recently said that it sees a 35% chance of a recession in the next 12 months, up from 20% previously. The bank also cut its 2025 GDP forecast to just 1% and raised its year-end unemployment rate outlook by 0.3 percentage points to 4.5%.
China and key European countries are beginning to respond to the latest tariffs and will likely impose retaliatory tariffs on US products, causing a further downturn in consumer sentiment. Kara Reynolds, an economist at American University, told ABC News that a pullback in spending from consumers and businesses due to these uncertainties can tip the US into a recession.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks currently on Wall Street’s radar. With each stock, we have mentioned the number of hedge fund investors. 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 close-up view of a computer motherboard with integrated semiconductor chips.
Number of Hedge Fund Investors: 107
Jim Cramer in a program on CNBC said ahead of Micron Technology, Inc. (NASDAQ:MU) latest earnings that the company has been conservative in its guidance and warned investors to wait for a pullback that was likely to come on earnings.
“Micron, they report tonight. Sanjay Mehrotra. has, in the last three quarters, been saying a lot of very positive things about the previous quarter, and then he’s been very cautious. I have to imagine that in a world with tariffs, he’s going to be cautious again. So, if you’re trading it, if you’re stupid enough to be trading it, what I would tell you is do not take what the first number is, that’s not going to matter. It’s what he says in the guidance because if he says, “Well, tariffs and we’re worried,” you’re going to wish you didn’t pay 105.”
