Stock Opinions by Jim Cramer - Mad Money

DON'T BUY
ARM Holdings PLC

The markets are frothy. This has jumped 30% in one week. Sure, they delivered a terrific quarter, but give me a break. Those buying ARM now at these levels have no discipline. The bulls are running way too hard, even though it's a good company.

INDUSTRIAL PRODUCTS
BUY ON WEAKNESS
NVIDIA Corporation

Own it, don't trade it. The current rally is unsustainable. Don't trust this parabolic move. Yes, he likes this stock and considers it an essential holding. It reports Feb. 21 and shares could fall is that report is disappointing, but then again who want a stock that disappoints?

computer software / processing
DON'T BUY
Diamondback Energy

Shares jumped 9.38% on news that they will buy Endeavor for $26 billion. Other oil mergers didn't move the buying company's stock anything like this, so today's rally was a result of animal spirts gone wild in the market.

0
DON'T BUY
Airbnb

It rallied 4.2% on a day with no news. He questions if things have gone too far (in this current market rally)

Technology
DON'T BUY

Share rose 3.2% on a simple upgrade from hold to buy. That's overdone and he's suspicious of today's rally. A sign of market frothiness.

misc industrial products
BUY
Darden Restaurants

Trades at 18x PE and pays a 3% dividend yield. True, it's in a crowded space, but DRI makes money.

food services
BUY
Nextracker

One of the most successful IPOs last year and has generally climbed since its debut. They make solar tracker systems so that solar panels rotate to follow the sun and maximize power generation. NXT enjoy a duopoly in its sector. The Inflation Reduction Act is a tailwind. As the renewable sector has struggled, NXT keeps reporting good earnings and raising its guidance. When NXT bottomed in mid-January, it was a buying opportunity. Then, it announced a monster 38% revenue growth and boosted full-year guidance. Enjoying a ton of demand. Their US business grew 70% YOY; energy demand is forecast to grow in coming years as legacy power generation facilities retire. Trades at a cheap 19x 2025 PE. 

Technology
WATCH

A digital infrastructure play, serving small/medium companies. Shares have more than doubled from November's trough. They forecast 20% revenue growth YOY this year; has been profitable since it went public in 2022. It's odd that shares struggled last year even as they reported good numbers. The problem was that in Q2-2023 they reported that they had made accounting mistakes in its Q1 report. Share plummeted 25% in a single session. Two weeks after that, the company announced it would replace its CEO, and shares sold off more. The company's Q3 report last November saw a strong rebound that's continued since then. That accounting issue is a red flag, so he wants to some more quarters before deciding on this stock. Also, peers will improve their products to compete with DOCN.

Technology
BUY
Trane Technologies

Recently reported a strong quarter. The company says it's riding the de-carbonization wave, energy efficiency, and digital transformation. Shares have jumped since that quarter.

INDUSTRIAL PRODUCTS
BUY
Vertiv Holdings

Great chairman. If it had been in the S&P, this would have been the best performer of that index. 

Technology
BUY

Likes the CEO and shares are not expensive, PE-wise.

transportation equip & components
DON'T BUY
C3.ai, Inc.

Though he likes the CEO, he can't endorse any company that doesn't make money.

Technology
DON'T BUY
Planet Fitness

Gym memberships are flat YOY in this sector. He speculates that the weight-loss drug craze is a/the reason. Shares of this are weak, down from its peak, down 6% so far this year. Also, PLNT tried to raise prices, then had to roll back.

misc consumer products
DON'T BUY

Gym memberships are flat YOY in this sector. He speculates that the weight-loss drug craze is a/the reason. Shares of this are weak, down from its peak, down 13% so far this year. 

Consumer Products
WEAK BUY
Lockheed Martin

The stock has been a dog, BUT pays a 3% dividend and run by a decent CEO.

Transportation
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