Although the FANG stocks are shaking, they are still incredible companies, Jim Cramer told his Mad Money viewer Wednesday. The…
Although the FANG stocks are shaking, they are still incredible companies, Jim Cramer told his Mad Money viewer Wednesday. The real question is how high can their stocks go when they start to return?
Cramer said that after several price cuts, Facebook (FB) is still the only game in town if you want to market for thousands of years. Therefore, the share closed 3.8%, despite the negativity surrounding it.
Amazon’s shares (AMZN) have fallen from $ 2000 to just $ 1600 on many fears, including IBM (IBM) competition following the Red Hat (RHT) acquisition; Walmart (WMT) competition, now paying its employees less than Amazon’s new minimum wage; and yes, the company’s earnings, which missed earnings with a penny. Cramer said he was not worried about any of these problems.
Netflix (NFLX) reported a fantastic quarter but sold at least. This means that investors can buy the shares and get the final quarterly results for free, and then some.
Finally, there is Alphabet (GOOGL), which lacked both earnings and revenues, but is still extremely attractive. Cramer said that the company now only starts making money on Waymo, and there is much more growth to come.
What do all of these stocks have in common? Just their FANG acronym, like Cramer now says he wishes he had never coined in the first place. Now that the ETF has tied these four layers together, they shop in lock-steps, even though they are all amazing in their own way.
Cramer and the AAP team add their position in Schlumberger (SLB), but trim PayPal (PYPL). Find out what they tell their investment club members and enter the conversation with a trial subscription on Action Alerts PLUS.
For its Executive Decision Segment, Cramer spoke with Benno Dorer, Chairman and CEO of Clorox (CLX), who reported just quarterly quarterly results, news that shipped shares by 2.8% on the day .
Dorer said Clorox continues to perform well and their brand portfolio remains strong. The company grew 4% last fiscal year and only coal and food supplements are relevant areas.
When asked about the add-on category, Dorer declared that Renew Life saw some irregular order patterns from major customers in the quarter, which is normal for additions, but new for forecasts. Clorox is still committed to growing Renew Life, but will have product innovations, new packaging and a renewed focus on value to help bring customers.
In terms of logistics issues, Dorer said that the US currently has 50,000 truck drivers at the moment, meaning there are seven loads for each truck that needs to be shipped. This ratio is about twice as high as normal, but Clorox continues to alleviate these problems.
When asked about prices, Dorer reminded viewers that Clorox is a US company and most of their items are made here. Tariffs are not a big deal for Clorox, he said.
In his second Executive Decision segment, Cramer also sat with Charlie Morrison, chairman and CEO of Wingstop (WING), the chain of restaurants recently published a top and bottom team with an increase of 6, 3% in the same retail trade.
Morrison said Wingstop has seen a positive sale at the same store for 14 consecutive years and is working towards completing its 15th year. The company has also consistently delivered between 10% and 12% store growth annually.
Wingstops franchisees love the company’s average sales of $ 1.1 million, equivalent to a 3-to-1 ratio from sales to investment. In fact, most of the company’s new franchisees are with existing franchisees.
Morrison was also quick to note that 25% of sales are digital now and Wingstop delivers dividends on selected markets while expanding internationally, where they currently have 130 locations.
Lastly, Morrison noted that Wingstop has always been shareholder-friendly and is no stranger to special dividends for shareholders.
In a third “Executive Decision” segment, Cramer checked back with Nick Akins, Chairman and Chairman, President and CEO of American Electric Power (AEP), the tool with a recession certificate 3, 6% dividend yield.
Akins said that AEP has a solid plan to increase profits 5% to 7% in the foreseeable future, and their increase of 8.1% is a sign of confidence in their business.
When asked for He read about the economy, Akins said in the quarter they saw a little bit that the growth of residential and commercial applications became slower. He attributed weakness to a strong dollar and tariffs began to grab.
When he joined the company’s generational business, he said he did not see a return to coal-based power plants. He said that the users broaden their investments to include natural gas, as well as renewable sources and also their transmission infrastructure.
Cramer said he is still a buyer of American Electric Power.
In its No Huddle Offense segment, Cramer said when a company reports bad numbers, and saved rallies, that’s when you need to sit up and notice. That was what happened yesterday with Masco (MAS), kitchen and bathroom fixture manufacturer, which rallied over 7% after slashing their full year’s guidance.
Cramer said Masco reached an inflection point this week, one where the bad news about rising costs, tariffs, rising interest rates and a slower housing market are all baked in the stock price.
Masco is a well-managed company, but was one of the worst shares in the quarter when investors climbed it with a sluggish housing market. But Masco told another story. Commodity costs have peaked and restructuring is still strong thanks to the strong labor market.
Cramer said that this stock has more space to run.
Cramer says that Masco (MAS) shows how much money they have for the money, which says the company is not a factor and accounts for less than rising raw materials. A company can fly on bad news. Get more of his insights with a free subscription for Real Money.
In Lightning Round, Cramer was bullish on Tellurian (TELL), Costco (COST), Kohls (KSS), Walmart (WMT), Target (TGT), Exact Sciences (EXAS) and XPO Logistics (19009002 ).
Cramer was keen on Align Technology (ALGN).
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