Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday May 9.
Apple (AAPL), Starbucks (SBUX), Chipotle Mexican Grill (CMG), Ross Stores (ROST), Allergan (AGN), Celgene (CELG), Lululemon (LULU). Other stocks mentioned: Fossil (FOSL), Bed Bath and Beyond (BBBY), Macy's (M)
Cramer discussed 7 growth stocks with strong long-term stories to buy on days when stocks get pummeled on negative news from Europe:
1. Apple (AAPL) has sold off from its high of $630 to $570 even after reporting a record quarter. The stock has been hit on worries that service providers won't want to subsidize Apple's handsets, but these companies have indicated they are willing to pay up for Apple's products.
2. Starbucks (SBUX) is the ultimate comeback story and should perform well, even while Europe is ailing; "Don't second guess Starbucks."
3. In spite of reporting the best quarter in the restaurant sector, Chipotle Mexican Grill (CMG) has shed 40 points. Cramer would buy the stock for its new concepts and falling raw costs.
4. Ross Stores (ROST) is only 3 points off of its 52 week high, but should benefit from having no exposure to Europe and lower gas prices.
5. Allergan (AGN) has come down, but not enough to buy. The company has a great long-term story with the success of Botox for multiple uses.
6. Celgene (CELG) has had a significant pullback after a quarter which had analysts troubled over apparently slower sales. Cramer says that, after looking carefully at the conference call, the issues are temporary and the stock has many positive catalysts to propel it upward.
Cramer took some calls:
Bed Bath and Beyond (BBBY) is "smoking" and has made smart acquisitions; "This is one of the most consistent retailers in the world."
Macy's (M) was punished for a sluggish April. Cramer thinks the stock is a buy at $35 or $36.
CEO Interview: James Hagedorn, Scotts Miracle-Gro (SMG)
Scotts Miracle-Gro (SMG) dropped 9 points after it delivered a mixed quarter with a 9 cent earnings beat and revenues that rose just 3%. The unseasonably warm weather affected sales, and CEO James Hagedorn said that analysts' expectations were inflated. He pointed out that units are up 8%, with a million more units sold for lawn fertilizer. Hagedorn says he expects strength for the company, but gaming the weather is "not for the faint of the heart...we are not chasing quarters." He added, "Only on Wall Street is it my fault that other people get ahead of themselves...we did all of the things we said we were going to do."
CEO Interview: Mark Papa, EOG Resources (EOG)
Falling crude has hurt oil stocks, but Cramer would use the decline to look for the best in the sector. EOG Resources (EOG) is "the only real growth stock in the entire oil business." The company has some of the best assets in the Bakken and the Eagle Ford, and has moved aggressively from low priced natural gas to oil and liquids, which make up 84% of its revenues. The company has set up a terminal in Louisiana where it can fetch a higher price than West Texas Intermediate. EOG reported a 3 cent earnings beat on revenues that rose an incredible 47.9%, with 49% growth in oil production and a rise in its growth predictions for liquids from 30% to 33%. CEO Mark Papa predicts that oil will remain high, at $105 or above, and is not optimistic about natural gas prices. Cramer is bullish on EOG.
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