Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Jim Cramer - Mad Money and Stockchase Insights commented about whether SOY-T, CLS-T, ARE-T, NVDA-Q, PEP-Q, IBM-N, RMD-N, ULTA-Q, CVX-N, XOM-N, AMZN-Q, AAPL-Q, MCD-N, CVS-N, LLY-N, MSFT-Q, META-Q, CAT-N, SBUX-Q, KO-N, GM-N, NUE-N are stocks to buy or sell.
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It sank 6.6% right after earnings. The market got it wrong--this is a buy opportunity. After a lost decade, they returned to growth a few years ago. They spun off their legacy business and doubled-down on their Red Hat division, essential for AI. Rallied 34% last year, and held up even when AI corrected. YOY revenue was +2%, software +7%, consulting -2% and infrastructure -6%. Bountiful cash flow, though. Also, the reiterated full-year guidance. The quarter and business are good.
The DeepSeek threat is overblown; we're not seeing mass cancellation of orders at Nvidia, but even an increase--chips are sold out for the year. Alphabet just praised its relationship with NVDA. And yet, NVDA hasn't recovered from January's DeepSeek news. He trimmed his holding, but still owns a lot of shares. However, the White House has made NVDA a political football. Shares should not have fallen in the first place.
ARE seems to have a never-ending stream of issues that hurts its ability to attract investors. Legacy issues are causing losses. It has noted that 2026 will be better. But....it is quite a small company, momentum is weak, and it is still at 21X earnings. We do not think it is the type of stock to own in the current market environment and we would be comfortable sitting on the sidelines here for a while.
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CLS did raise guidance a little bit, but the stock declined about 4% after the news release. Analysts had expected more of a material raise in guidance. Still, the quarter was good, and the stock is cheap at 19X earnings. We would be comfortable on the buy side here still.
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We think investors can wait. With a highly leveraged balance sheet, very weak momentum, economic concerns and a history of mixed results and losses, we do not think it is the type of stock to own in the current market environment, especially at 24X earnings.
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Questions to ask during tariff threats: How is the customer concentration?
Suppose you have found a company that sustains little impact from tariffs, survived the last recession relatively unscathed, has no debt, and pays a solid dividend and has a low payout ratio. Are you safe? Well maybe, but now you need to worry about other companies. In a recession, many companies experience sharp slowdowns. Some will not survive. If your “secure” company has 65 per cent of its business with another company, now you also need to worry about that other company. Companies with high levels of customer concentration are always riskier but in a recession that concentration risk becomes even more acute. Ideally, you want to own a company with no customer accounting for more than 10 per cent of its business.
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They report Friday. He doubts they will report anything positive because of the low price of oil.