Cramer suggests Trump is upending the way investors evaluate stocks newsthirst.

CNBC’s Jim Cramer reflected on Wednesday’s uneven day of trading, suggesting that President Donald Trump is changing the way investors view stocks, and how their valuations might not always be accurate.

“This market is furiously trying to revalue stocks because of the president’s comments, and we do it day after day after day because he’s always making so much news,” Cramer said. “So, it’s been doing a poor job, and that’s created a ton of opportunities for you to both buy and sell.”

There are currently two kinds of stocks on the market, Cramer explained. There are those that are in Trump’s crosshairs and those that are not. To evaluate stocks, Cramer usually considers earnings, revenues, gross margins, and he reviews conference calls and analyst notes. Now, however, Cramer begins his assessments by considering whether Trump can hurt the stock, and whether its price-to-earnings multiple makes sense in a new environment where the president favors tariffs and disrupts traditional norms with U.S. allies.

For example, Blackrock is cheap, given that the company’s infrastructure investments align with Trump’s goal of “reclaiming” the Panama Canal, Cramer said. Meanwhile, he continued, Intel seems expensive because the company benefited from federal funding under former President Joe Biden via the CHIPS act. Under Trump, it’s unclear whether the semiconductor outfit will receive the money it needs, Cramer said.

The market has been right about the auto sector, according to Cramer. Previously, he thought Ford and General Motors seemed cheap, with low price-to-earnings multiples. Trump’s efforts to raise tariffs by 25% on imports from Mexico and Canada make it clear why these stocks are inexpensive, he said. Trump has given automakers a month exemption on the tariffs, but if they end up having to pay higher taxes or shell out for more expensive domestic production, Cramer said their earnings could take a hit.

“While the president thinks these tariffs are a great way to create jobs in America, they’re going to put our automakers at a severe disadvantage to Nissan, Toyota, Mazda, Subaru, and Honda, along with Kia and Hyundai,” he said. “A 25% tariff on imports from Mexico is basically a subsidy for those companies.”

The White House did not immediately respond to request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Blackrock.