Today, Jim Cramer - Mad Money and Stockchase Insights commented about whether EQB-T, LNR-T, TFII-T, LYB-N, HOOD-Q, DHR-N, DOW-N, SG-Q, AZO-N, ORLY-Q, RH-N, CAT-N, BLK-N, WFC-N, MS-N, JPM-N, KMX-N, STZ-N, DAL-N, WBA-Q, LEVI-N are stocks to buy or sell.
Used cars should do well after all these tariffs, which will make new cars more expensive and used ones (and repairs on existing cars) more attractive. Has a great record outperforming the S&P, a beautiful chart. Their last quarter was mixed, though fine to him. ORLY had a big same-store sales beat and smaller total revenue beat. Earnings were a little light, and the full-year forecast disappointed, but they always lowball guidance. Despite the huge sell-off this week, this stock is still up for the year.
Used cars should do well after all these tariffs, which will make new cars more expensive and used ones (and repairs on existing cars) more attractive. They last reported strong same-store sales growth and an earnings miss. They have hundreds of stores in Mexico and Brazil, so currency fluctuations hurt them. The core American business is solid, though. The CEO is optimistic about this year. Is still up 15% this year. Yes, Trump has slapped 25% tariffs on foreign car parts, but Americans will pay up for those because they must use their cars--a necessary expense. Buys back a lot of shares.
Tariffs have plunged the tariffs by over 2000 points. How can we focus on the long term when the short term is a horror show? Tariffs are incoherent, enormous, not reciprocal--and needless. It's like Trump wanted to be as dramatic as possible, like a TV show, not like he's running a country. But the stock market doesn't want Trump or a TV show. We want a president that can get things done and not throw us into a recession. He should be worried about a crash or recession which looks very possible. Mr. President, don't cause a crash--it will be your legacy.
We would not see a rush, but we would be OK buying a partial position (1/5th or so) into any further weakness. It may take a while for things to recover. We think over three years it will be higher, but the short term outlook is much harder to call.
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LNR is in the same boat (same car?) as Magna. It is also very cheap though. It has some European business ($2.8B) which insulates it a bit from the US trade war. The balance sheet is fine and it will get through this crisis, but we would not expect much from it this year.
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Friday kicks off bank earnings season, a sector that has been crushed, because Wall Street expects a downturn in the economy. They recently closed a deal at a good price, but there's no other good news. Capital markets have only gotten worse due to tariffs.