Today, Jim Cramer - Mad Money and Mike Philbrick commented about whether ETHX.B-T, FEQT-T, HUTL-T, GLCC-T, ZSP-T, BRK.B-N, ZUE-T, ZUB-T, HPYT-T, EYLD-BATS, HURA-T, QETH.UN-T, ZWB-T, ZPR-T, XUT-T, ZWU-T, LIFE-T, TIPS, ENCC-T, ZRR-T, LULU-Q, ON-Q, LUMN-N, LYB-N, XOM-N, APLD-Q, BLK-N, MODG-N, NKE-N, ZGN-N, DEO-N, BF.B-N, HD-N, DOW-N, F-N, AVGO-Q, ADBE-Q, M-N, GME-N, OLLI-Q, AZO-N, AI-N, TOL-N, MDB-Q, ORCL-N are stocks to buy or sell.
They've missed five-straight quarters, but the most recent one beat cleanly top and bottom. Organic sales grew 3%, instead of an expected decline, for instance. Also, they shaved their full-year capital expenditures outlook, also positive. Successful brands: Woodford Reserve, Diplomatico Rum and Jack Daniels. Struggling are both tequila brands, though (too much competition in the U.S.). Overall, a good report and shares popped after the report.
They're transitioning from high-end menswear to diversified apparel, like LVMH, which is why they bought Tom Ford and Thom Browne. Also, are moving big into footwear. But their execution has been uneven. Last year, they grew, but not this year at all. First 9 months of 2024, organic sales were -4%, including Thom Browne -27%. Though Asia Pacific boasts the most sales, but is that due to a soft Chinese economy or a larger structural problem. He doesn't know. Consensus sales are flat. Sales, he thinks, will bottom this year then rebound a modest 3-4% in 2025, then 5% in 2026, with high-double digit earnings growth in the next two years. He likes their strategic plan and suits, but he's not a complete believer. Has doubts.
Still sells at 20x PE. Estimates keep going down, because of China--stocks that have any association with China tend to hurt. That said, if this stock reaches a 7% dividend yield, you must buy.