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CNBC's Jim Cramer backs Wall Street's upgrade of PepsiCo but warns that weight loss drug risks could have a lasting impact on the beverage and snacks giant. Shares of PepsiCo rose 4% in Monday morning trading on a bullish call from Morgan Stanley. Morgan Stanley analysts did address GLP-1s in Monday research note, saying the long-term risk is real but manageable. They added this risk "seems more than priced in" to the valuation of PepsiCo stock. Novo Nordisk is the maker of Ozempic for diabetes and Wegovy for weight loss.
Persons: CNBC's Jim Cramer, Wall, Morgan Stanley, Cramer, he's, Eli Lilly Organizations: PepsiCo, Novo Nordisk, Trust, CNBC, Club
Estee Lauder shares declined Thursday after CEO Fabrizio Freda offered an underwhelming outlook on China at a retail conference earlier in the day. Freda, who has been CEO for 14 years, said China remains an important growth segment for Estee Lauder, and the trend of more consumption there is not changing. While management is confident that performance will improve going forward, we still see Estee Lauder as a "show me" story. In the second half of fiscal 2024, Estee Lauder said it's positioned for stronger profitability versus the first half. Pedestrians walk past the American multinational skincare, and beauty products brand, Estée Lauder (Estee Lauder) logo seen in Hong Kong.
Persons: Estee Lauder, Fabrizio Freda, Freda —, Freda, it's, Jim Cramer's, Jim Cramer, Jim, Estée Lauder, Budrul Organizations: UBS Global Consumer, Retail Conference, UBS, Management, CNBC, Lightrocket, Getty Locations: China, New York City, U.S, Asia, American, Hong Kong
Over the past month, a notable shift in performance has occurred among the 11 sectors of the S & P 500 . Understanding the S & P 500 sectors The 11 sectors of the S & P 500 represent the various industries powering the U.S. economy. For example, last year, the market-cap-weighted S & P 500 gained 24.2% while the equal-weighted index advanced only 11.6% in 2023. .SPXEW .SPX 1M mountain The equal-weighted S & P 500 over the past month compared with the S & P 500. Encouragingly, overall earnings estimates for the S & P 500 also have gone up recently.
Persons: , It's, Wells, Linde, Russell, Labor Department —, Genuity, Canaccord, Encouragingly, Eaton, Jim Cramer's, Jim Cramer, Jim, Victor J Organizations: Big Tech, Financial, Coterra Energy, DuPont, Tech, Communication Services, Apple, Microsoft, Nvidia, Club, Tesla, Linde, Wolfe Research, Labor Department, Fed, RBC Capital Markets, RBC, Bank of America, Eaton, CNBC, Visitors, New York Stock Exchange, Blue, Bloomberg, Getty Locations: Tuesday's, U.S
During Trump's trade war, Chinese consumers turned away from some U.S. goods and services in protest. SBUX 1Y mountain Starbucks 1 year Shares of Starbucks rose 1% on Monday as investors, perhaps, shrugged off China trade war worries. Such a scenario could fuel skepticism — already a worry among investors — about Starbucks' appeal to a broad swath of Chinese consumers. "I fear they're too expensive for China," Jim Cramer recently said, referring to Starbucks. As the coffee market matures in China, Starbucks believes the industry will undergo a more defined tiered competition dynamic, which would expand opportunities as a high-end brand.
Persons: Donald Trump, Joe Biden, Kevin Johnson, we're, shrugged, Jim Cramer, Jeff Marks, Peter Saleh, wouldn't, Saleh, Trump, Biden, Jim Cramer's, Jim, Alex Tai Organizations: CNBC, Democratic, Starbucks, U.S, Club, Getty Locations: China, U.S, Washington, Beijing, Trump, India
Ford on Monday reported a continued surge in monthly hybrid sales, the latest indication that its strategic shift from money-losing and demand-softening electric vehicles is paying off. Shares of Ford were trading as much as 4% higher on Monday after a strong February sales report. F YTD mountain Ford stock year to date performance. Hybrids are "going to be a breakout for Ford," Jim Cramer said Monday. Ford Blue, which includes ICE and hybrid vehicles, delivered a $7.5 billion EBIT profit.
Persons: Ford, Jim Cramer, Jim, Jim Farley, Jim Cramer's, Charly Triballeau Organizations: Ford, Ford Pro, CNBC, AFP, Getty Locations: U.S, Inwood , New York
Jim thinks Google has lost focus as it struggles to shake off the narrative that it's lagging in the AI race. With all these things lining up against Google, Jim has been becoming increasingly wary of the stock. Even though Alphabet stock keeps getting dinged for AI misses, Bernstein analysts "don't subscribe to the generative AI risk to Google Search" for now. At the Club, we believe Google's AI chatbot Gemini could be competitive in attracting users, but the advertising opportunity may not be the same. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: Jim Cramer, Sundar Pichai, Pichai, Jim, Google, Bard, Gemini —, , Axel Springer, they're, Bernstein, playbook, Meta, haven't, Jim Cramer's Organizations: Google, Apple, Microsoft, Nvidia, Tesla, The Club, Politico, U.S, Club, NFL, YouTube, National Football League, Management, Sunday, Meta, Walmart, CNBC, Future Publishing, Getty Locations: U.S
CNBC's Jim Cramer said Macy's turnaround plan could reinvigorate growth at the historic department store chain. Shares of Macy's rallied 5% on Tuesday after topping earnings estimates for its fourth quarter and full year 2023. The company also announced a multi-pronged strategy that includes prioritizing top-line growth, accelerating its position in the luxury market, and simplifying its operations. Spring called for the closure of up to 150 underperforming Macy's locations while accelerating the growth of Bloomingdale's, its higher-end brand that tends to deliver better same-store sales, and beauty store chain Bluemercury. "Among Macy's Bloomingdale's and Bluemercury … it would make it a more upscale company and people like that," Cramer said.
Persons: CNBC's Jim Cramer, Cramer, Tony Spring, Jeff Gennette, Macy's Organizations: Macy's Locations: Bloomingdale's
Forget Tesla , the real competition in electric vehicles is low-cost Chinese automakers. Farley wants to be prepared even if the U.S. government were to step in to curtail Chinese automakers' access. Outlook Ford investors shouldn't be concerned in the short term since Chinese EV competitors won't enter the market overnight. To that end, a group of lawmakers has urged the White House to boost tariffs on Chinese vehicles and figure out a way to be "prepared to address the coming wave" of Chinese vehicles by way of U.S. other trading partners. The cost of production will become more efficient, resulting in a more competitive and hopefully profitable Ford EV product.
Persons: Forget Tesla, Jim Farley, BYD, Ford, Farley, , Warren, Berkshire Hathaway, Morgan Stanley, I've, Tom Narayan, Stellantis, Narayan, Tesla, Jim Cramer, Jim, It's, RBC's Narayan, Ford's Farley, Wolfe, Jeff Windau, Edward Jones, shouldn't, Biden, Windau, doesn't bode, Jim Cramer's, Charly Triballeau Organizations: Nikkei, Wolfe Research, Ford, RBC Capital Markets, U.S, EV, Detroit, General Motors, Chrysler, Ford Blue, Ford Pro, Ford Model, CNBC, ICE, Ferrari, North, Outlook, Bloomberg, Ford EV, American EV, AFP, Getty Locations: U.S, Mexico, China, Europe, Indonesia, Hungary, Thailand, Inwood , New York
CNBC's Jim Cramer believes Salesforce will benefit from artificial intelligence-fueled momentum when the enterprise software giant reports earnings after the closing bell on Wednesday. Salesforce is "a big user of AI," Cramer said Monday. The company leverages generative AI by analyzing customer data to make predictions about their future behavior. Salesforce, which nearly doubled in 2023, has added another 14% so far this year. The company is one of 32 holdings in Cramer's Charitable Trust , the portfolio used by the CNBC Investing Club.
Persons: CNBC's Jim Cramer, Salesforce, Cramer, Einstein, Stifel Organizations: Nvidia, UBS, Trust, CNBC, Club Locations: Salesforce
As a Disney shareholder for the Club, Jim Cramer has decided to support activist investor Nelson Peltz's fight for seats on the board of the entertainment and theme parks giant. It means he's going to vote to put the Trian Partners founder Peltz and former Disney CFO Jay Rasulo on the Disney board. Jim believes Peltz and Rasulo will hold Disney's board and management accountable for making changes to fix the business and turn around the company's underperforming stock. "It is ridiculous to me that Netflix has crushed Disney," Jim said. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: Jim Cramer, Nelson Peltz's, Jim, Peltz, Jay Rasulo, Ike Perlmutter, Perlmutter, Mondelez, Kraft Heinz, Bob Iger, Iger, Nelson Peltz, Hugh Johnston, Jim —, Jim Cramer's Organizations: Club, Trian Partners, Disney, Marvel Entertainment, Marvel, Netflix, Procter & Gamble, CNBC Locations: New York City, PepisCo
McDonald's use of artificial intelligence in drive-thru lanes is a sign adoption of the technology is growing across the U.S., CNBC's Jim Cramer said Friday. "Rest assured, we're all over the AI opportunity at McDonald's," the company's statement said, according to Cramer. McDonald's is one of many companies experimenting with AI, Cramer said. Nvidia — a stock in Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club — stands to gain as more companies embrace AI, Cramer explained. Cramer's Trust also owns Microsoft and Apple.
Persons: CNBC's Jim Cramer, Cramer, Jim Cramer's Organizations: Nvidia, McDonald's, IBM, Google, Trust, CNBC, Microsoft, Apple, Cramer's, Club Locations: U.S, America
Just weeks after Amazon cut hundreds of jobs across its Prime Video and MGM Studios divisions, the advertisements officially arrived on Prime Video on Jan. 29. This gives Amazon first-hand customer data from Prime members it can leverage for advertisers who want to show ads during Prime Video shows. "While still early days, streaming TV advertising continues to grow quickly," Jassy said on the fourth-quarter earnings call. Additionally, the potential audience for Prime Video is huge – the company has said it has more than 200 million Prime subscribers. Prime Video keeps putting out new movies and shows like the popular "Lord of the Rings", "Reacher", "Mr. & Mrs. Smith", and "Citadel".
Persons: There's, Andy Jassy, , Jassy, Brian Olsavsky, Cowen, TD Cowen, Canaves, Smith, Peacock, Jim Cramer's, Jim Cramer, Jim Organizations: MGM Studios, Netflix, Disney, Amazon, Amazon Web Services, Walmart, Kroger, Insider Intelligence, Prime, Paramount Global, Walmart –, TV, U.S, Intelligence, National Football League, Football, Nielsen, QR, NFL, Comcast, Miami Dolphins, Kansas City Chiefs, Chiefs, San Francisco 49ers, Super, Paramount, CNBC
There are "major companies and verticals that have not even considered the H100" yet, he added, referring to Nvidia's AI must-have GPU. A few weeks ago, we combed through the latest earnings reports from Google-parent Alphabet, Microsoft, Meta Platforms and Amazon to see how their AI spending plans are benefitting Nvidia. After Wednesday evening's killer quarterly release, Nvidia talked about how it is helping the businesses of fellow Club names Google, Microsoft, Meta and Amazon. Alphabet continues to heavily invest in AI applications to improve the performance of its services including Google DeepMind, Google Services, Gemini, and Google Cloud. "Nvidia DGX Cloud will expand its list of partners to include Amazon's AWS, joining Microsoft Azure, Google Cloud and Oracle Cloud.
Persons: Jim Cramer, Jim, Jensen Huang, Colette Kress, Kress, Mark Zuckerberg, we've, Gemma, Satya Nadella, Copilot, Jim Cramer's, Omar Marques Organizations: Nvidia, Google, Microsoft, Meta, Companies, Nvidia H100s, Google Services, Gemini, Management, Amazon's AWS, Oracle, NVIDIA, Amazon Web Services, CNBC, Getty
CNBC's Jim Cramer said Wednesday he believes Wendy's may have a tough year ahead after the franchise reported weaker-than-expected quarterly results last week. Still, management said they're optimistic about 2024 revenue growth supported by lower commodity costs and incremental investments in its breakfast menu. However, Cramer said the stock's 5.55% annual dividend yield is "raising eyebrows" as investors may question whether the quarterly payout can be sustained, given the difficult macroeconomic environment. Wendy's share prices have dropped more than 7.5% year to date. JPMorgan downgraded Wendy's to neutral from overweight (hold from buy) while cutting its price target to $19 per share from $22.
Persons: CNBC's Jim Cramer, Wendy's, Cramer, WEN, McDonald's Organizations: JPMorgan Locations: North America
CNBC's Jim Cramer said Tuesaday he sees a Wall Street analyst downgrade of heavy equipment maker Caterpillar as a "ring the register call." CAT 1Y mountain CAT stock performance. Caterpillar, whose shares were up roughly 26% over a three-month period, reported "an amazing quarter," Cramer said. "When you downgrade Caterpillar, you're downgrading the king." But Cramer booked profits and exited the stock in January due to profitability concerns down the road.
Persons: CNBC's Jim Cramer, Tuesaday, Evercore, Ingersoll Rand, TimkenSteel, Cramer Organizations: Caterpillar, Evercore ISI, Trust, CNBC
Ford CEO Jim Farley discussed a range of topics Thursday from hybrid and electric vehicles to how the automaker is dealing with international competitors. Ford Pro "If you're looking for the future of the automotive industry stop looking at FDS [full self-driving] and Tesla , look at Ford Pro," Farley said. The transformation of Pro, Farley said, has been a notable success for the company. "We always had a super successful Pro business … but there was no focus on it." Despite the success of Pro, Ford continues to lose money in its Model e business, which hosts its fleet of electric vehicles.
Persons: Jim Farley, Farley, Ford, Li Auto, Warren Buffett's Berkshire, BYD, Jim Cramer's, Jim Cramer, Jim Organizations: Wolfe Research, Club, Ford, Ford Pro, Warren Buffett's Berkshire Hathaway, CNBC Locations: U.S, Europe, EVs, China, Warren Buffett's, Berkshire, breakeven
The PEG ratio, another valuation tool, starts with the price-to-earnings ratio and divides the P/E by estimated earnings growth. A good PEG ratio is 1 or lower. There is a major consideration when analyzing five-year valuation average comparisons: interest rates. The company's P/E ratio of 21.5 times is about 20% cheaper than peers and below its historical average of 29.6. Honeywell Price-to-earnings ratio (P/E): 19.4 P/E vs. peers: 10% cheaper P/E-to-growth ratio (PEG): 2.3 We like how Honeywell 's stock is valued post-earnings .
Persons: Bard, it's, Pacifico, Jim Cramer, Disney Price, Nelson Peltz, Jim, Peltz, Bob Iger, Honeywell Price, Nvidia Price, Nvidia's, Salesforce Price, we're, Wells Fargo, Charlie Scharf, Wynn, WYNN, Jim Cramer's, NVDA, New York Stock Exchange Michael Nagle Organizations: Apple, Microsoft, Meta, Nvidia, Google, Gemini, Amazon, Services, Constellation Brands, Modelo, Beer, Constellation, . Management, Disney, Management, Honeywell, Aerospace, Productivity Solutions, Starbucks, Wells, Silicon Valley Bank, Wynn Resorts EV, Wynn Resorts, Boston, WYNN, CNBC, New York Stock Exchange, Bloomberg, Getty Locations: FactSet, Corona, China, Israel, Wells Fargo Price, Wells Fargo, Silicon, Macao, Las Vegas
BMO Capital Markets increased its Costco price target to $770 per share from $700 and kept its buy-equivalent outperform rating on the stock. After last week's release of solid January sales, Costco got a slew of price target raises. COST YTD mountain COST stock price year to date. Costco shares are high in price and also expensive on a valuation basis. Costco stock caught a series of analyst price target increases following last week's strong sales report for the retail month of January.
Persons: Rich Galanti, Gary Millerchip, Galanti, Costco's, Jim Cramer's, Jim Cramer, Jim Organizations: Costco, BMO Capital Markets, BMO, Walmart, Target, Analysts, Gold, UBS, CNBC, Kroger Locations: U.S, Canada, Mexico, North America, United States, South America, China, Shanghai
GE's Verona Nuclear Fuel business said Wednesday it received approval from the U.S. Nuclear Regulatory Commission to manufacture, ship, and analyze the performance of higher enrichment fuel. GE YTD mountain GE stock performance year to date. "[General Electric] just keeps going higher," Cramer said Wednesday. While that's mainly due to demand for its aircraft engines, Cramer added that investors "love any way to be able to make nuclear fuel work." GEHC shares have gained 7% year to date compared to an S & P 500 gain of 4.5% in 2024.
Persons: CNBC's Jim Cramer, Cramer, GEHC Organizations: Verona Nuclear, U.S . Nuclear Regulatory Commission, GE, GE Healthcare, CNBC, GE Aerospace, Club Locations: Verona, GEHC
CNBC's Jim Cramer said Tuesday that Shopify investors are searching for clues after the company's financial outlook fell short of expectations, tanking shares despite a positive quarter. Shopify reported fourth-quarter earnings before the opening bell, delivering strong year-over-year revenue growth and healthy profitability. But it was management's lower-than-expected margin guidance for the fiscal 2024 first quarter that weighed on shareholder confidence and sent the stock 10% lower in Tuesday trading. But he added that management's guidance was "quizzical" given the company's solid financial results for the quarter and after its strong run last year. SHOP 1Y mountain Shopify 1 year Cramer will speak with Shopify President Harley Finkelstein on "Mad Money" on Tuesday evening to drill down on the quarterly results and the guide.
Persons: CNBC's Jim Cramer, tanking, Shopify, Cramer, Harley Finkelstein
Expedia shares sank 19% on Friday after the company saw softness in air travel bookings and its CEO resigned. While delivering an earnings-per-share beat and in-line revenue in the fourth quarter, bookings fell short, "largely driven by a reduction in average ticket prices" for air travel, management said during its post-earnings conference call. Investors also received the unexpected news that Expedia CEO Peter Kern will be stepping down after four years at the helm. While Expedia stock didn't look good, Cramer acknowledged that management led by Kern "has done a great job" in bringing the company out of Covid when nobody was traveling. EXPE 5Y mountain Expedia 5 years Expedia said it sees "some softness in prices across categories" in 2024, and it expects "growth rates across the world to decelerate."
Persons: CNBC's Jim Cramer, Peter Kern, Kern, Ariane Gorin, Cramer, Expedia Organizations: Microsoft, CNBC Locations: Covid
CNBC's Jim Cramer sees Ralph Lauren as the name is apparel to own, given the strength of the company's timeless brand. Shares of Ralph Lauren rallied 14% after the premium apparel, accessories, and fragrance company delivered an upbeat quarter before the opening bell Thursday. "Don't just take this pop" in Ralph Lauren, Cramer said Thursday. It's not a one-and-done quarter for Ralph Lauren, Cramer said. Cramer said Ralph Lauren CEO Patrice Louvet has figured out how to keep consumers interested despite the global macro challenges that have weighed on consumers.
Persons: CNBC's Jim Cramer, Ralph Lauren, Cramer, It's, Estee Lauder, Patrice Louvet Organizations: CNBC, Club Locations: Asia, China
CNBC's Jim Cramer sees a turnaround brewing for cybersecurity firm Fortinet . Shares of Fortinet rose 3.5% after the company reported beats on fourth-quarter earnings and revenue. This was a relief after Fortinet dropped outlook bombs in November and August, which had dragged down the whole group back then. Shares of Palo Alto Networks rallied 6.5% Wednesday to another all-time high, while other competitors including Okta and Zscaler were higher as well. Palo Alto Networks is a holding in Cramer's Charitable Portfolio Trust, which is used as the portfolio for the CNBC Investing Club .
Persons: CNBC's Jim Cramer, Fortinet, billings, Cramer, Jim Organizations: Palo Alto Networks, Trust, CNBC, Club, Microsoft Locations: Palo, Russian
Coupled with a knockout fourth quarter, the Club stock soared more than 20% on Friday — adding a single-session record $205 billion in market value. In addition to dividends, companies also use cash to buy back their stocks. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
Persons: Goldman Sachs, Meta, Goldman, Jim Cramer's, they've, Jim Cramer, Jim Organizations: Club, Meta, Amazon, Jim Cramer's Charitable Trust, CNBC, Trust, Apple, Microsoft, Nvidia
Jim Cramer said this deal is Novo's way to "get more product" and addresses the "tremendous shortage" of these high-demand drugs. Shares of Eli Lilly , a stock in the CNBC Investing Club 's portfolio, were also up more than 4% ahead of Tuesday's earnings. Snap – The social media firm laid off 10% of its workforce ahead of Tuesday's earnings. Jim pointed out that Club name Starbucks (SBUX) has also been experiencing the same thing. Jim said buy McDonald's stock on weakness.
Persons: Jim Cramer, Eli Lilly, Lilly, Cramer, Cigna –, Cantor Fitzgerald, Jim Organizations: Nordisk, Catalent, CNBC, Microsoft, RBC Capital, Humana, Starbucks, Mattel –, JPMorgan, Vision, Apple Locations: Danish, Israel
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