Jim Cramer explains how better management can change a stock’s fate

CNBC’s Jim Cramer on Thursday said Wall Street doesn’t focus enough on impressive leaders in the enterprise, and suggested that new CEOs can change a company’s valuation in spite of negative macro trends.

“Not all publicly traded companies are hostages to forces beyond their control,” he said. “Sometimes when you bring in a great new CEO…they can turn around the whole business, giving their investors spectacular gains.”

Cramer acknowledged that right now, the market is honed in on the tech sector. Nonetheless, it’s worthwhile to consider how CEOs outside of tech have been able to pull off turnarounds some doubted were possible, he said in a review of several executives who managed to earn back investors’ trust.

Brinker International‘s CEO Kevin Hochman, for example, caught Cramer’s attention when the former KFC executive took the helm. The CEO was able to improve its most popular franchise, Chili’s, with a simplified menu, a better value proposition and advertising strategy. Since Hochman started at Brinker, shares have soared, Cramer added. He also pointed to another food and beverage name, Starbucks, whose stock has jumped since Brian Niccol took over as CEO. Cramer noted that Niccol lead a successful turnaround at Chipotle and it seems he can do the same for Starbucks.

Cramer also mentioned Larry Culp, who he said managed to transform the old General Electric by splitting it into three businesses, GE Aerospace, GE Healthcare and GE Vernova. Cramer added that he thinks GE Vernova in particular is gaining momentum among investors. VF Corp‘s Bracken Darrell was also able to right the ship at the clothing company, Cramer continued. Darrell’s sale of popular brands raised cash that enabled VF Corp to report a great quarter, he added.

“In some—not all situations, but some—that is all that matters if you want to make huge amounts of money,” he said. “The transcendence of the enterprise thanks to the leadership of a great CEO.”

Brinker International, Starbucks, GE Healthcare, GE Aerospace, GE Vernova and VF Corp did not immediately respond to request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of GE Healthcare and Starbucks.