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Stock Opinions by Jim Cramer - Mad Money

STRONG BUY
It surged 11.5% today on a fabulous quarter. This is headed to $2,000 and sooner than you think. Earnings beat. Smart energies who used the best digital ordering system to survive and thrive during Covid. Same goes with drive-thrus. They learned to use technology during Covid. They opened 56 locations in the last quarter, including 45 that exploit tech and drive-thru technology. Digital sales jumped 10.5% in the quarter and now makes up nearly 50% of overall quarterly sales.
food services
WATCH
It's a terrific business, though the stock slipped after yesterday's earnings. They're buying back shares, but he doesn't care--he'd rather see more sign-ups. Nor does he care about them entering mobile games at no extra charge. It lacks growth to remain in FAAANG. He wants the Netflix of old. He wants to see their production slate to decide.
Unknown
DON'T BUY
The meme traders miss the point of AMC's success. Rather, its CEO has kept AMC alive by selling the memers stock at inflated prices that will outlast the pandemic. He isn't interested in stocks like AMC. Rather he wants companies with strong sales and earnings.
entertainment services
BUY
He greatly admires the CEO. Definitely hold or buy.
INDUSTRIAL PRODUCTS
BUY
Their targeted cancer vaccines will dwarf their revenues from even Covid. These are really smart guys and they're making tons of money.
Pharma & Healthcare
HOLD
Going into earnings, don't buy any more. That said, the stock has come down enough and won't anymore.
Financial Services
BUY
Doximity is a new SPAC, a cloud-based social network for MDs offering cloud-based tools that let doctors perform everyday tasks. It's also the ideal platform for advertisers to pitch drugs to doctors. Share have been wild over the past four weeks, but is up 12% this week so far. Buy on pullback. Likes it for being the dominant platform for doctors, connecting over 80% of the nation's docs. It boasts high revenue growth at 78%, and profitability over years as margins expand going forward. They launched a telemedicine growth during last year's lockdown, so that will likely tail off. Net revenue retention rate was up 153% last year. Fabulous fundamentals. But overall, he fears the SPAC scene will collapse from too many of them and of low quality, and that could drag DOX down. Also, DOX's valuation is higher than peers, but that's compensated by a stronger growth profile. When they IPO'd, they offered only 13% of shares to the public, so beware of the end of the lock-up period--buy then. If now, buy a small position.
Healthcare
COMMENT
Pullbacks based on technical analysis by Carolyn Baroden Technical analyst Carolyn Baroden months ago called our current volatility. She measures past swings in a stock market and analyses them. One big finding: the S&P pulls back pretty hard, but it lasts only three trading days, like in June, two in May and one in January this year. She thinks the market is in good shape, as long as the SP holds above 4,233.
Unknown
BUY
Based on technical analysis by Carolyn Baroden studying short-term pullbacks and quick recoveries, Amazon should hit bottom this week. Meanwhile, shares are holding above its key floor of support at $3,490. As long as Amazon doesn't plunge below this floor, Amazon should hit next resistance at $3,847.
specialty stores
DON'T BUY

Long-term view MU is no longer in a boom-bust cycle like it was in the 1990s. That said, a better long-term buy in chips is AMD as they close their deal with Xilinx.

computer software / processing
BUY

They closed their Slack takeover today. They're challenging Microsoft for enterprise software supremacy. The Slack deal means that CRM will no longer by weighed down by arbitrage guys; there's a whole industry of arbitrage which short the buyer in these situations and he thinks that's why CRM stock has been flat since the Slack deal was announced last December. He thinks CRM stock is heading higher.

computer software / processing
DON'T BUY

Doesn't like their business model. There are better stocks in this space to buy, like UnitedHealth.

Healthcare
BUY
They're making a comeback. Perhaps part of this is due to the crackdown by the Chinese government against NOK's competitors, but at $5.80 this is a buy.
Telecommunications
RISKY BUY
It's a long-term spec. The CEO means well. Liquid natural gas stocks will succeed over time.
Energy
COMMENT
If their report screws up in the first week of August, after what's happened they MUST put up good numbers.
electrical / electronic
DON'T BUY
This stock is a series of broken dreams. He doesn't believe in the CEO.
Technology
BUY

The airlines are ready for take-off, as reflected in this earnings season and being international flights pick up. Meanwhile, they see no degradation from the new Covid variants. UAL just reported strong numbers and he expects the entire sector to follow suit. The industry will end the year very profitable. United, Delta and American have all reported improving financials and bookings. The airlines were saved by Washington when Congress allocated them $54 billion during the lockdown in 2020.

Transportation
COMMENT

Too much speculation and not enough stablity in the face of Covid uncertainty, which explains today's meltdown. This was the end of euphoria. The spec stocks, which attracted young investors, were hardest hit. Those specs include SPACs (638 this far so far, which is insane), IPOs and the Reddit/meme stocks, such as Corsair. Throw in the cryptos, though he likes and own Bitcoin, but likes it more at lower levels. Crude oil was also speculative.

Unknown
DON'T BUY
Not enough drivers, which we just don't have now. Otherwise, he likes the story.
Technology
BUY
It's a textbook turnaround story and a cheap stock. All the banks were up a lot this year. They delivered good numbers, and yet still sold during last week's earnings reports. An investment bank enjoying a booming IPO and M&A businesses, even as their trading business fell off in recent months. Wells shares are up 45% YTD. They reported a massive earnings and sales beat, boosted by a one-off $1.6 billion reserve release. WF actually missed net interest income and reported lower loan balances YOY. Their efficiency ratio came in at 66%. The CEO is just getting started on cutting costs. Last week, WF says it will buy back a lot more shares. Buy, especially at $43.
banks
DON'T BUY
Raw costs are too high. Don't touch it until those costs come down.
misc consumer products
COMMENT
Merely okay, neither great nor bad. Some of their businesses perform, others don't.
electrical / electronic
DON'T BUY
The CEO is strong, but the restaurant business will take a header here which is the bad news. Pass.
wholesale distributors
BUY
Reported a blow-out quarter last week and rallied a bit last week. CEO is making MS more stable with stable earnings. That's why he bought Etrade and Eaton Vance. Their wealth management and investment management business saw $250 billion in inflows in the first half of 2021. It's the most expensive bank stock for good reason. It's as risk-free as you can get. He bought on today's sell-off.
investment companies / funds
BUY
Their headline numbers were jaw-dropping last week, earning $15/share and beating the expected $10. Much of that came from gains in equity investments. Nearly every business of their beats, even fixed income and currency trading. Profit and revenue beat last week. Their investment banking division has its best quarter in the previous quarter, and its second-best in the most recent quarter. So it looks like GS peaked in the first three months this year, though he isn't convinced. It trades cheaply, trading under 7x earnings.
investment companies / funds
DON'T BUY

Another turnaround story, but not convincing like Wells Fargo is. Without a big reserve release, Citi's report last week would have disappointed. It has trouble controlling its expenses; they raised their expense forecast. Citi is up only 11% YTD.

banks
COMMENT

Delivered another strong quarter. Their main strength came from their episodic businesses while asset management weren't as strong. That's why shares rolled over last week. It plunged today, but he'd still prefer MS or Wells Fargo.

Financial Services
COMMENT
They reported a big earnings beat driven by a huge reserve release. Sales disappointed though. Its most important business, consumer & business lending missed too, as did the global markets division. BAC is the most sensitive to interest rates, so the collapse in bond yields makes it difficult for them. This is one to buy, if you believe the Fed will raise interest rates.
banks
COMMENT
It merged with a Louisiana bank and rallied, peaking in early June. But since then all the financials have been hammered due to falling interest rates and Delta variant cases. They rported last Friday and the headline numbers were strong, but the banks face a challenging envirnoment.
banks
BUY on WEAKNESS
It's been a nightmare, but should stop falling soon. Enter at $14.
Technology
BUY
It was a SPAC late last year when it surged to $20, but then SPACs rolled over since then, and this dropped last week to $8. Today, it rebounded 5% with the stay-at-home rally. BARK serves dogs through monthly subscription offerings, including a personalized meal deliveries and wellness products.
Consumer Products
RISKY BUY

They make home security hardware, using an app to control your security service. Yes, Apple has stuff, but Arlo's stuff is solid. In recent years, they're pushing hard into services, including for business clients. Arlo is down 23% YTD. It was spun off from Netgear in 2019 and soon tanked from strong competition, dour outlook and other factors. One big risk was one shareholder owning the lion's share. Pivoting to services last year was a good move, though and now boast a 50% conversion rate to pick up customers (from a trial basis). Losses are shrinking and their quarterly reports are certainly improving. Strong Q1 results, though they were a victim of the spring rotation play. Though margins have improved, it's still losing money. But at $6/share now, this is ridiculously cheap. Carries no debt and trading at 1.2x sales. Could be a takeover target.

INDUSTRIAL PRODUCTS
BUY
The online dating king, and he predicts 2021 will give 1967's the Summer of Love a run for its money as we leave lockdowns behind. He expects great numbers from them in three weeks. He's long liked this. Last year, Match got slashed in half during lockdowns around the world. It reacted by introducing Virtual Dates online which performed well. This spring, the stock fell out of fashion, but has come back in the past four week. It's very well run. It saw 12% subscriber growth in 2020 despite Covid. Saw 23% revenue growth YOY as of last May's report, 12% subscriber growth and 38% operating income growth. They also bought a South Korean video channel, Hyper Connect, that will enhance their revenues and worldwide reach in Asia.
0
BUY

Rising oil prices are a concern, but what really worries him is the lawsuit that Norwegian Cruise Line filed (against Florida to cease FLA's ban on vaccine passports). With the Delta variant coming, he'd buy NCLH over other cruise lines, like Carnival.

0
COMMENT
People miss the forest for the trees, in this case today the U.S. bank stocks which mostly surprised. The banks tell us about the economy: Americans are incredibly rich. Covid transformed this nation from spenders to savers, with consumers now boasting the best balance sheets in history. Consumer spending can truly ramp up going forward.
Unknown
BUY

Bank of America reports there's an 8% increase in travel vs. 2019 (not 2020 during Covid). This trend will benefit American Airlines and Delta (his favourite airline), especially when international travel returns. True, shares have run up, but he feels there's still plenty of runway left.

0
BUY

Bank of America reports there's an 8% increase in travel vs. 2019 (not 2020 during Covid). This trend will benefit American Airlines and Delta (his favourite airline), especially when international travel returns. True, shares have run up, but he feels there's still plenty of runway left.

Transportation
BUY on WEAKNESS
It's a play on travel especially oversears and dining out. This will benefit from pent-up spending. Wait till it reports next week Friday, so there's time to buy on a dip before that. Is down only slightly from highs.
investment companies / funds
BUY
Will benefit from reopening, because people want to dress up when they go up. The young like Poshmark, which sells second-hand clothes. Great financials and scores in ESG (reduces landfill). POSH also plays into new consumer thriftiness. The stock has fallen from $104 to $38
Consumer Products
BUY on WEAKNESS
Yesterday he was stunned when Apple said they would enter the business of buy now, pay later that AFRM shares went down. AFRM is a great company run by a smart CEO. He'd buy at $56.
Technology
COMMENT

Futures were negative this morning, but Monday's markets were a bonanza, hitting record highs. Why? The futures are worthless as a weathervane. However, the downward tug of the futures can offer a buying opportunity if you're savvy. See Disney, AmEx, Goldman Sachs and JPM comments today as examples.

Unknown
BUY on WEAKNESS
Black Widow's $80 million opening weekend (both cinema box office and home revenues) boosted Disney stock today. However, the negative futures for the wider market pressured Disney prices at the start which in turn offered a juicy buying opportunity.
entertainment services
BUY on WEAKNESS
Negative futures this morning pushed the stock down $2, but snapped back sharply on recent upgrades. This is one example of taking advantage of the futures which are otherwise useless.
investment companies / funds
BUY on WEAKNESS
About to report earnings. Was down $4 this morning, then bounced $12. It was down because of negative market futures. An example of using futures to buy on dips.
investment companies / funds
BUY on WEAKNESS

Like GS this morning, JPM shares fell down at the start of today's session because of negative market futures, then rebounded sharply. In this case, futures are a gift, offering a sweet buying opportunity.

Financial Services
BUY on WEAKNESS
Last week when Biden bashed consolidation in industries like the rails, you had to hold your nose and NSC on the dip. Since then, NSC is up 8%. He expects Biden to bash business in the future, though congressional gridlock in Washington will mute Biden's actions.
Transportation & Environmental Services
BUY
He always hears that the stock keeps going up and investors can't enter. Forget that and start buying. The CEO is great.
clothing
HOLD
Hold it. He likes it. Some people point to their bad head-and-shoulders chart pattern, though that doesn't deter him. Their mobile homes have been sold out for a while. He owns one.
household goods
PARTIAL BUY

Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. One of his three favourite solar stocks is First Solar. FS makes its own panels and proprietary technology. They're sold out for 2021 and nearly for 2022. They have an excellent balance and trades at 21x earnings. You can buy a partial position write now or buy on dips.

other mines
BUY

Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. Solar panels need an inverter to work. Micro-inverters are new technology and Enphase is the leader in micros. This is a great long-term growth story and one of his top three solar energy picks.

Energy
PARTIAL BUY

Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. A few years ago they made acquisitions to store solar power energy. Stock looks pricey now, but the stock has quadrupled over 16 months. Buy a small position now. A great way to play solar energy.

0
COMMENT

A cloud company that does database management, beloved by app developers. It's soared 10x since its IPO less than four years ago, including a 173% run in 2020. This (and cloud stocks) peaked earlier this year at $428 in February then plunged to $238 in its May lows. Since then, it's roared back to $390 and now $350 today. It's volatile. At the end of June, it lost some momentum with a secondary offering. The stock is down 2% YTD. It's growing 32% annually, but is pricey at 30x this year's PE estimates. (Snowflake is at 70s, though.) He's conflicted.

Technology
RISKY BUY
he likes diagnostics and cancer treatments, so therefore likes this too. A spec buy.
biotechnology
DON'T BUY

The weed space is too crowded. He likes Grow Generation.

0
RISKY BUY
Detects early skin cancer, so this is a spec buy. We need to beat that cancer.
Healthcare
COMMENT
It isn't "live free and die" but "live like a moron and die like a moron" if you don't get your Covid vaccination. Getting it is a no-brainer, so why are some Americans avoiding it? They see a conspiracy or a violation of their personal freedom or don't see the effectiveness. His daughter caught Covid and was sick and miserable for a long time. He knew elderly who caught it and died. What gives? We're at the start of earnings season and could see the impact of absenteeism from those who didn't get jabbed.
Unknown
COMMENT
Stocks have been flying blind without looking at earnings. All the indices made new record highs today. Use sell-offs, though, as opportunities to buy. Next week, banks kick off earnings seasons. Rates go up, the banks make more money and vice versa. The banks are a microcosm of the recent stock market. After a flat Q2, the banks can resume their climb.
Unknown
DON'T BUY
They report Tuesday. They should give us great numbers, but will have to explain will trading and lending aren't as strong as they should be. Shares are too high now.
Financial Services
BUY on WEAKNESS
They report Tuesday. They'll deliver great numbers, but will need to explain why raw costs, especially freight, keep going up. Shares trade too high, so buy only if share pullback after earnings.
food processing
COMMENT
They report Tuesday. Goldman relies on trading profits though corporate financial revenues should be strong. Shares jumped over 3% today.
investment companies / funds
COMMENT
They report Wednesday. next week. It's a turnaround story. If the CEO tells a good story about the turn, then the stock could make new highs this year.
banks
BUY
They report next week. If you believe the economy gets stronger and rates will rise rapidly, buy this.
banks
DON'T BUY
They report next week. He's unsure of their earnings quality. They have a new CEO. It's a cheap stock, but he wouldn't buy it.
banks
COMMENT
They report next week. How is the Delta variant impacting Delta? Will business travellers come back? That's hard to read.
Transportation
COMMENT

https://www.reuters.com/business/energy/exclusive-blackrock-backs-three-director-nominees-challenging-exxons-board-2021-05-25/ They report next week, and he wants to hear them clarify their position on Engine No.1,. a hedge fund, and Exxon. As a huge ETF company, Blackrock owns tons of shares of everything, so their position in Engine/Exxon could have major implications to all companies.

Financial Services
BUY
They report Thursday. They could tell if microchip prices have peaked. He is concerned in the background about China-Taiwan political relations and whether China would get its hands on this company which produces a lot of computer chips for America. He thinks TSM has more room to grow.
electrical / electronic
BUY
They report Thursday. Healthcare so far is avoiding Biden's anti-trust efforts. The stock is over $400, but it's still viable. He foolishly sold his shares earlier.
medical services
COMMENT
They report Thursday. They reported a great quarter last time. However, many cyclicals have peaked. Aluminum goes into everything, and the rising cost has squeezed gross margins of a lot of the buyers.
non-base metal mining
COMMENT

They report Friday. KSU may comment on Washington trying to block the deal with a Canadian rail (CN), and he wouldn't be surprised if this block happens.

Transportation
BUY
Has surged from the $30s to the $150s in the past year. They are diversifying away from phones to the internet of things (i.e. touch screens, fingerprint sensors). He recommended this pre-Covid, and it's since soared 80%. A great 5G play, too.
computer software / processing
BUY

Could be better than Coinbase to play cryptos. This is a good one. It's better than buying cryptos themselves.

Technology
BUY
A Montreal fintech company that has now listed on the Nasdaq. It soared to the $80s last February then fell to $55ish by mid-May as tech fell out of favour. But now they're back in fashion, so LSPD has soared to $85. Its recent quarter saw 127% revenue growth from subscriptions but also through lots of acquisitions.
Technology
DON'T BUY
They're in a niche, speculative business. Pass.
biotechnology
RISKY BUY
A great spec stock and play on infrastructure as well as Mexico. He's a believer in Mexico. They make cement.
cement / concrete