Jim Cramer highlights two stocks set to continue outperforming in 2025

Famed investor Jim Cramer expects two outperformers: Wells Fargo and TJX Companies to have a strong 2025.

Both stocks are on track to closing this year with a well over 30% gain. Still, the Mad Money host is convinced that neither of them are out of juice just yet.

Here’s why Cramer expects WFC and TJX to have another stellar year.

Wells Fargo & Co (NYSE: WFC)

Jim Cramer expects next year to be a “much better” one for Wells Fargo as the regulatory environment is broadly expected to turn more lenient under Donald Trump as the President of the United States.

He’s bullish because the new government may even choose to remove the $1.95 trillion asset cap that has weighed on WFC for years.

“The idea that this foolishness by regulators can continue in 2025 is pretty unfathomable. While Wells Fargo has done a lot despite a cap on its activities, it’s inconceivable that lifting the restriction won’t matter to the stock,” he told members of his Investing Club today.

A more accommodative regulatory stance under the Trump administration could lead to increased mergers and acquisitions as well, which could serve as another meaningful tailwind for WFC.

Additionally, Wells Fargo could benefit as the US Federal Reserve continues to lower interest rates, thereby stimulating borrowing, according to Jim Cramer.

Wells Fargo stock currently pays a healthy dividend yield of 2.27% that makes up for another good reason to have it in your portfolio. Wall Street currently has a consensus “overweight” rating on WFC shares.

TJX Companies Inc (NYSE: TJX)

Jim Cramer expects TJX to see a strong 2025 because it could emerge as a beneficiary of the potential increase in tariffs as Donald Trump takes office in January.

Trump’s trade tariffs could lead to higher prices at traditional retailers, making consumers shift to off-price names like TJ Maxx for affordability. This could result in a solid footfall and higher sales for Framingham headquartered chain of discount department stores, he argued.

The Mad Money host also cited operational acumen and expertise in inventory management as reasons why TJX stock price could rally further in 2025.

TJX Companies increased its stake in two off-price retailers, one in Mexico and another in the Middle East this year. That could help unlock further upside in its share price as well.

The New York listed firm handily topped Street estimates in its latest reported quarter, signalling its “values and treasure hunt shopping experience are appealing to a wide range of customers.”

Much like WFC, shares of this off-price retailer also pay a dividend yield of 1.24% at writing that makes them all the more attractive for income investors. Wall Street currently sees a 10% upside in TJX stock to $134 on average.