“The bull is dead, long live the bull,” Jim Kramer shouted to his Mad Money viewers on Thursday. The stock market is spinning, he said, and you need to turn around with it, whether you want it or not.
The lesson of this stock exchange is simple. If the Federal Reserve aggressively raises rates, there are two things. First, everything that worked will no longer work. Second, everything that didn’t work came to life.
Example, Amazon (AMZN) – Get Report Amazon.com, Inc, a technical manager who has fallen 5% year-over-year, despite the fact that he still publishes outstanding earnings. You can learn a lot about stocks by looking at what happens after it reports. If the numbers are big but investors just don’t care, that’s a problem for a 1.6 trillion company.
Compare that to stocks like Eli Lilly (LLY) – Get a report from Eli Lilly and company or Conagra Brands (CAG) – Get Report Conagra Brands, Inc or Church & Dwight (CHD) – Get the report Church & Dwight Co., Inc. These are all titles protected from recession, and the market is eating them up, even if the revenue is not so impressive.
There were only two technological names that, according to Kramer, worthy of attention, Alphabet (GOOGL) – Get a Class A Alphabet Inc report and Purpose (FB) – Get Class A Report Meta Platforms Inc. He said companies depend on Google in good times and bad, and as for Meta, no one knows how to copy the best features from everyone like Facebook.
So while you may still want to stick to the former hot names of technology, do yourself a favor and buy Target (TGT) – Get a report on the target corporationwhich today grew by 5.6%, which proves once again why it is an important retailer.
Executive Decision: Best Buy
In his first segment of “Executive Decision,” Kramer met with Corey Barry, CEO of Best Buy (ДБЯ) – Get the report Best Buy Co., Incelectronics retailers with stocks that are only 10 times the profit.
Barry said the goal of Best Buy is to enrich the lives of its customers with technology. It’s not just a slogan, she added. Every Best Buy partner wants to help their customers achieve things through technology.
Best Buy has low staff turnover, and Barry credits with competitive pay, comprehensive benefits and career paths for each employee. “Your work should matter,” she said.
Asked about further growth, Barry explained that the pandemic had created some persistent consumer behavior. People spend more time at home. They broadcast more content, play more games and cook a lot more at home.
The future of work is hybrid, Barry added. This means that you need not only to set up at home and in the office, but also to work together, and they need to be constantly updated with new technologies as they come.
Barry has advertised a new Best Buy “Total Tech” membership that provides technical support for all gadgets in your home, and adds benefits to those purchased at Best Buy, for just $ 199 a year.
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Best Buy is also aimed at the medical technology industry. With so many connected devices from fitness trackers to hearing aids to blood pressure monitors and home ECGs people need help so their loved ones can live at home as long as possible.
How is your golf game?
The Masters Golf Tournament kicks off this week in Augusta, Georgia, and the world is buzzing about golf again. But if the cost of metals, plastics and resin is rising and the number of rounds of golf is rising, is it worth owning Acushnet Holdings (GOLF) – Get the report of Acushnet Holdings Corp or Callaway Golf (ELY) – Get Callaway Golf Company report?
Cramer said Acushnet was a great company, but when it last reported, it saw losses greater than expected. And while the company kept its forecasts, it also warned of additional headwinds ahead. Despite this, Kramer said he is still tuned to Acushnet because of the strength of brands such as Titleist and FootJoy.
Callaway is a complicated story. The company used to be simple, Kramer said, but after making several acquisitions, including Top Golf, a golfing experience, now the story of Callaway is much harder to understand and it is not suitable for this market. Shares of Callaway are trading at a profit of 34 times.
Executive decision: Conagra
In his second segment, The Executive Decision, Kramer also spoke with Sean Connolly, President and CEO of Conagra Brands (CAG) – Get Report Conagra Brands, Inc.
Although inflation was much higher than expected, Conali said Conagra’s fundamentals remain strong and innovation in its brands is echoing among consumers. Especially young consumers spend more time at home and they see value in cooking at home. That is why Conagra dishes and snacks are in such great demand.
As for inflation, Channel acknowledged that inflation is not only higher than initially forecast, but also higher than he has ever seen. “All we can do is respond,” he said, hoping there would be some relief in the future.
The zipper is round
In the Lightning Round, Kramer was only bullish on Hertz Global Holdings (HTZ) – Get Report Hertz Global Holdings Inc. He was a bear at AC Moore Arts & Crafts (ACMR) – Get Class A Report ACM Research, Inc and UiPath (THE WAY) – Get a Class A report by UiPath Inc.
Buffett’s love for HP
In his segment “No Huddle Offense” Kramer expressed an opinion on the 11% stake in Warren Buffett in HP (HPQ) – Get Report HP Inc. He said, looking back that it was easy to see why Buffett fell in love with HP. The company generates a lot of money, pays big dividends and buys back its own shares. Most of all, HP represents value, trading just eight times as much.
Kramer honestly admitted that he became a bear on HP, following in the footsteps of analysts who believed that after remote workers equipped their home offices, demand will fall. But as we’ve heard before from Best Buy, consumers are always switching to the latest technology.
Buffett is right, Kramer concluded, HP is a great investment.
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