Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, September 21.
The job market has been the strongest in 49 years, and the market is at all-time highs. This shows that the Street thinks tariffs may not hurt companies by much. "A company like Walmart (NYSE:WMT) that imports tons of stuff from the People's Republic might take a small hit for a couple of quarters, but then either the trade war gets resolved or they start sending their business to Thailand or Vietnam. In the meantime, we've got the tax cuts and a red-hot economy," the Mad Money host said. With that, he discussed the game plan for the week.
Cramer will be interviewing JPMorgan (NYSE:JPM) CEO Jamie Dimon. "Do not miss this interview; there are few executives with a better read on both the nation and the world than Jamie Dimon," he said.
Ascena Retail (NASDAQ:ASNA) will be reporting earnings, and it seems the stock has bounced back after it had fallen below $2.
Cramer will be at the Dreamforce conference, where Salesforce (NYSE:CRM) will hold its analyst meeting. He will be interviewing the best minds in Silicon Valley.
Cramer expects strong numbers from Nike. "Whether that sends the stock higher is another story. I like Nike going into the quarter, but so does everybody else, and that tends to limit the upside," he adds.
Cintas is also expected to report great numbers considering the strength in employment. "I think it remains a fabulous play on the resurgence of small business in this country. I would buy Cintas ahead of the quarter," Cramer shared.
Cramer expects strong numbers from Carmax. "The used car market is very robust here, and that allows Carmax to deliver excellent numbers. I bet they do it again," he said.
Bed Bath & Beyond always seem to be on the brink of a turnaround. "Hasn't happened yet. The stock has a decent risk-reward here, but that's not enough to make me want to pull the trigger. Plus, I think Bed Bath could get hit by the tariffs because they source a lot of their stuff from China. There are so many better companies. Why bother with this one?" he said.
The Fed's meeting on Wednesday is about to bring a 0.25% interest rate hike and a statement of tariffs. "The financials have the most to gain from a rate hike, but you need to wait and see what the Fed has to say and parse the statement before you buy them," Cramer explained.
Cramer expects strong numbers from Accenture. "Accenture's been an extraordinary story and we've been behind it every step of the way, but it can be an erratic trader. I would buy some before the quarter and some after," he added.
McCormick has become Cramer's favorite food stock too. The stock has run up a lot going into earnings. "You might want to wait until the stock cools down before you do some buying," he cautioned.
Cramer likes ConAgra, as the company acquired Pinnacle Foods. "Unlike McCormick, this is a deep value stock. I like the Pinnacle deal. I like the stock," he expressed.
Vail Resorts (NYSE:MTN) will report earnings on Friday, and Cramer thinks analysts' projections are conservative. "I think that's crazy. The secret behind Vail's success? The experiential economy: people cannot resist vacationing in Colorado," he added.
"We have a bunch of good quarters worth getting ahead of next week, as well as a key Fed meeting that could push the bank stocks still higher. Oh, and we'll put September, arguably the most difficult month of the year, to bed, hopefully with flying colors," he said.
CEO interview - Red Hat (NYSE:RHT)
Red Hat gave mixed earnings with downside guidance, and the stock went down. Cramer interviewed CEO Jim Whitehurst to know more about the quarter.
Whitehurst said the company outlook is better than what the quarter shows. The company gets much of its business from its Enterprise Linux operating system, which helps run companies' applications via private and public clouds. 8% modest growth in Linux does not mean the business is slowing. "Two and a half years ago, we started down a path of trying to get our customers in three-year agreements. By getting them in three-year agreements on Linux, it gives us time to go then sell them new products. The problem with that is those three-year agreements are typically fixed, and so they don't go up in value every year, so the bulk of our Linux business and these three-year deals isn't growing at all," he added. These contracts will be due for renewal and will turn up.
The company made 300 deals, and only 2 clients have left for competing offers. "If you went all 300 out of 300, it probably means you're underpricing. So I'm OK losing one every now and then. Let the customer try something else and then realize the value of what we do," the CEO added.
Signet Jewelers (NYSE:SIG)
Is Signet Jewelers bouncing back? The company had to deal with a host of problems in 2015, as the stock went from a high of $150 to lows of $33 in April 2018. It had taken up a lot of bad debt from aggressive financing, and the CEO was accused of sexual harassment. Apart from that, it was mostly mall-based, and the decline in footfall hit the company hard.
When new CEO Gina Drosos took over, she steadied the ship. The underperforming stores were closed and the bad loans were sold. The money from that was used to buy back shares and beef up its online presence.
As a result, the company was able to report a blowout quarter with a 1.7% rise in same-store sales. The Street is pessimistic about Signet. "When you look at the consensus estimates, they're only looking for 2% earnings growth next year. That seems crazy to me when you consider that Signet just shrank its share count by 14%, which is going to give the earnings per share a real boost," Cramer noted.
Gina Drosos has turned the ship around, and Signet is showing a strong comeback. Cramer thinks it's worth betting on.
Off the tape
Cramer went off the tape to review the privately held Q6 Cyber, which helps companies step up cybersecurity. Cramer interviewed CEO Eli Dominitz for his take on cybersecurity.
"By the time the bad guys are knocking down your door, banging on your window, it's too late. These guys are steps ahead of you. What we try to do is go after the bad guys, find out who they are. What kind of tools are they using? What kind of tactics do they have? Who are they targeting? Why are they targeting you?" Dominitz said.
Q6 Cyber's proactive approach is about going after the attackers, and it detected a new type of malware that was targeting a large bank. It was able to alert the company.
Q6 also alerts non-clients with its findings, and this helps sell its services better. With the US midterm elections on the horizon, the federal government could be in for a security challenge.
"The government is doing a lot. We actually collaborate, we advise and we work with them, but it's not enough. "I don't want to comment on any specific clients, but we've got good relationships in the public sector as well, and there are a lot of things that we see that have implications for the public sector, not just the private sector," he concluded.
Viewer calls taken by Cramer
Dunkin' Brands (NASDAQ:DNKN): The stock is up on takeover chatter, but Cramer does not recommend stocks on takeover.
NIO (NYSE:NIO): Cramer is not recommending Chinese stocks, as the US is an economic war with China.
Arconic (NYSE:ARNC): The company's fundamentals are weak. Cramer does not want to recommend it on a takeover basis.
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Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.