American Eagle Outfitters: It experienced a 6% surge in shares following its announcement of better-than-expected quarterly results and a detailed three-year profitable growth strategy.
Market commentator Jim Cramer noted, “They’ve gotten it together,” expressing satisfaction with the retailer’s comeback, albeit slightly delayed. Previously holding American Eagle in Cramer’s Charitable Trust portfolio, the CNBC Investing Club has since shifted focus to TJX Companies.
Kroger: The company witnessed an 8% increase in shares after reporting robust fourth-quarter earnings, surpassing market expectations. Cramer questioned the necessity of prolonged battles with the Federal Trade Commission over Albertsons, pointing to Kroger’s impressive quarterly performance.
Notably, the FTC recently filed a lawsuit to impede Kroger’s acquisition of competitor Albertsons. The Investing Club maintains a stake in Costco.
Jefferies: The analysts initiated coverage on Rivian Automotive with a buy rating and a $16-per-share price target. Cramer highlighted Rivian’s substantial Georgia plant and speculated on the company’s financial capacity to fund its construction. Ford Motor represents the sole auto stock in the Club’s portfolio.
Sherwin-Williams: They have received an upgrade from UBS to a buy rating, prompting a more than 2% rise in shares. UBS cited a positive outlook for the U.S. residential market, contributing to the optimism. Cramer also praised Sherwin-Williams’ recent dividend increase, further buoying investor sentiment.
Micron Technology: It saw a 2% surge in shares after Stifel upgraded the memory chipmaker’s stock from hold to buy. Analysts anticipate a tightening supply of DRAM, which is expected to drive Micron’s margin recovery.
Cramer emphasized the importance of recognizing inventory trends, noting the recent drop in Micron’s inventory levels. He advised against waiting for inventory depletion before considering investments in historically cyclical stocks like Micron.
