Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, September 14.
The coming week will be dominated by trade and tariff talks and that could mean volatility in the markets. Cramer advised keeping money on the sidelines to do some buying on weakness. "You need to realize the president doesn't want China to talk. He wants China to cave. You should never believe we're going to make a deal with the Chinese unless you're hearing it from an outspoken protectionist like Peter Navarro, the president's top trade advisor," said Cramer. With that he discussed the game plan for the week.
Cramer is not looking forward to FedEx's earnings as the companies are spending a lot to boost capacity in the age of e-commerce. "Last time the company reported, its stock fell from $264 to $226 over a dreadful couple of weeks," he added.
Cramer is not eager about Oracle either as they stopped sharing specifics of their cloud platform revenues which meant investors figured out that the company is losing market share to rivals. "It's hard for me to believe that they'll disappoint this time. The problem is the upside - how much is it going to go up on a pretty good quarter? Not clear," he added.
The auto parts retailer was not doing great till the last quarter. Cramer thinks that the hurricane might damage a lot of cars which would need to be replaced. This could result in a rise in business for AutoZone. Even without the hurricane, the company's inventory has been short suggesting that business is strong.
General Mills is rising with the rest of the group but it needs a stronger growth catalyst. "I'm concerned about commodity costs and the crowded market for high-end pet food after they paid a fortune for Blue Buffalo," added Cramer.
Earnings: Red Hat, Herman Miller (NASDAQ:MLHR)
Red Hat is a cloud king and Cramer was hoping to see good numbers especially after the last quarter which disappointed investors. "These trends are so strong that I bet CEO Jim Whitehurst will deliver some stronger numbers," said Cramer.
The furniture maker Herman Miller could report good numbers too based on the small business optimism.
Cramer expects good numbers from Darden. He was happy to see that his recommendation after the last quarter to buy the stock at $84 has yielded good results as the stock trades at $119. It's still worth buying as it's a good domestic chain.
Thor Industries reported a slew of good quarters and has been trading sideways since then. "You can bet they'll have a good quarter, but I actually sweat the small stuff here, namely the rising cost of steel and aluminum because of tariffs," added Cramer.
Cramer expects good numbers from Micron but he is worried about the outlook. If they guide down, then the stock goes lower. There is a huge short position in the stock and it has become a battleground.
Cramer is looking forward to the manufacturing PMI on Friday. If the number is strong, it will push the 10-year treasury yield above 3%.
Bottom line: "If you're going to buy any of the stocks I just said I like going into earnings, you need to leave some room to buy more afterwards just in case they keep going down," concluded Cramer.
CEO interview - Boot Barn (NYSE:BOOT)
After seeing some tough years, the stock of Boot Barn has risen 250% in the last 12 months. The company's last quarter was great where sales showed momentum. Cramer interviewed CEO Jim Conroy to find out what lies ahead.
Conroy said that Boot Barn has 233 locations and they are playing in a $20B market. They have lots of room to increase their store count as 85% of their sales are at full price. "It's been hidden in plain sight for decades, and we now have the opportunity to just continue to expand across the country," he added.
While the online selling has competition, their physical stores are the key for growth. "Amazon's an incredible competitor. But our stores business is much bigger and much more vibrant than the online business. And for us, I think when people want to buy a $300 Western boot, they want to make sure it fits, so they come to the store and they want that expertise, they want the authority of a lifestyle brand," added Conroy.
He called Boot Bran a family store that sells everything from boots, hats and belts to jeans and jackets for both men and women.
Wingstop is a growth company that just got analyst downgrades. The stock is up 82% in 2018 but Cramer thinks it has more room to run. The restaurant chain has 1,000 locations with 100 of them overseas. They added 135 stores in the last year, which means it's not only a domestic growth story but it's an international growth story.
They should not trade on PE, but on total addressable market. Their last quarter showed high same-store sales growth and the company gave good guidance. In the February quarter, their guidance was conservative and hence the stock sold off but the growth of the company is still intact.
Cramer thinks this is not a stock which should be sold off on growth. At a PE of 67, the stock still looks attractive if the company continues to report high same-store sales growth.
CEO interview - Broadridge Financial Solutions (NYSE:BR)
Broadridge Financial Solutions' stock is up 27% in the last six months and the company has appointed Tim Gokey as the new CEO. Cramer interviewed him and the outgoing CEO Rich Daly to hear about the company's roadmap.
Daly said that Gokey's transition is good and it has been a key part of their plan. "Tim's the real deal. We got this right. He joined us, he led the turnaround of our capital markets and solutions segment, and he's checked the box every step along the way," added Daly.
The part of Gokey's 10-year plan is to chase the big opportunities in extending the franchise in governance. They want to help the global capital markets clients, simplify and improve their technology infrastructure and help wealth management firms address the challenges that they're going to have as things evolve.
Daly is also bullish on the long-term future of blockchain technology. "Think of it as being like the internet on steroids with security. We will lead in those activities. We've invested over $150M into blockchain so far. We've rolled out, under Tim's leadership, proxy in the U.S., proxy around the globe, and on top of that, it's digital as well, because we want to get your listeners, the retail investors we both care so much about, the ability to give them the information they want in a digital format and make them better informed with less work on their part," he concluded.
Viewer calls taken by Cramer
LATAM Airlines (NYSE:LTM): It's too hard. Cramer is not a fan.
American Outdoor Brands (NASDAQ:AOBC): The up move is done. Book partial profits.
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