Stock Opinions by Jim Cramer - Mad Money

COMMENT

Discipline trumps conviction: start trimming 20% up, but buy some bacr or let it run.

Unknown
BUY
NVIDIA Corporation

Its forward PE always looks expensive, then when you look back it so far it trumps those estimates, so it looks cheap compared to that PE. It's been this way since 2012. Incredible.

computer software / processing
DON'T BUY

It went public in 20129, then soared during the pandemic, but tanked 90% from its peak. At that time, anything internet was beloved like the internet bubble of 2000.

Technology
DON'T BUY
QuantumScape

It went public in Nov. 2020, a time when anything EVs rallied. This jumped 50% when it IPO'd. Hype. Then, shortsellers called it a scam. The company hasn't made money or profits. No revenues. By late 2022, shares were obliterated along with many EV shares of this era like Lordstown Motors.

INDUSTRIAL PRODUCTS
COMMENT
S&P index funds

It takes time to build consensus in the market, but often that is baked into the price of stock(s). He's a big fan of index funds that track the S&P. It's perfect for retirements funds. It's hard to be an investor in  individual stocks; it's real work. You can gradually contribute with every paycheque over time. If you believe the economy will grow over time, you can park your money in an index fund.

Unknown
COMMENT

The efficient markets theory is bogus. No, at any given moment, stock prices do NOT reflect all the relevant information out there. There are mistakes, mis-values and irrationality. But you can take advantage of these mistakes.

Unknown
COMMENT
He doesn't believe the efficient market theory

When there's a widely held consensus on a stock, assume it's already being discounted or reflected in the market, like investors fearing bad earnings season ahead so Wall Street already considers that as a reality.

Unknown
COMMENT
When to take profits and reinvest elsewhere?

When the fundamentals have changed, like missing a couple quarters. A third quarter can beat, and he kicks himself when that happens. But be disciplined.

Unknown
WATCH
Lennar Corp.

They report Monday. Housing the linchpin of the economy and prices keep climbing. We need to hear if they will build more homes or keep the supply so tight that housing prices won't come down. The buildings are limiting supply to keep gross margins up and prices up, but it's terrible to fight inflation. Housing stocks have hung up because we have a housing shortage, but how long can this last when we see pushback on the prices of other items like dining out, apparel and airline tickets, all of which have risen dramatically in the last 5 years.

REAL ESTATE
WATCH
KB Home

They report Tuesday. Housing the linchpin of the economy and prices keep climbing. We need to hear if they will build more homes or keep the supply so tight that housing prices won't come down. The buildings are limiting supply to keep gross margins up and prices up, but it's terrible to fight inflation. Housing stocks have hung up because we have a housing shortage, but how long can this last when we see pushback on the prices of other items like dining out, apparel and airline tickets, all of which have risen dramatically in the last 5 years.

contractors
BUY
Citigroup Inc.

On Tuesday, they will hold an analyst day devoted to their services business, the most consistent yet least promoted part of the bank. He thinks this meeting will move the stock.

banks
DON'T BUY
Accenture Ltd.

They report Thursday. Shares have fallen the past quarter, which is a shame since they should be at the forefront of AI integration into the enterprise. But they're in a tailspin, after cutting their revenue forecast.

other services
DON'T BUY
Kroger Co.

Is up 10% this year. They should forget taking over Albertsons since the FTC doesn't like the deal, and move on.

food stores
DON'T BUY
Darden Restaurants

They report Thursday. Analysts have been downgrading it and shares are down from their peak. It can go lower if they report their price hikes are hurting business.

food services
DON'T BUY
Zoetis Inc

Shares are declining because they now face competition. It's no longer a one-horse race.

Consumer Products
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