This week was a good one for stocks, Jim Cramer told his Mad Money viewers Friday. But if you still own the stocks of unprofitable companies, this is your chance to do some selling, Cramer said, because gains like this come in clusters, then they’re gone.
Cramer’s game plan for next week’s action starts on Monday with the latest news out of Ukraine. Chances are low for a peaceful resolution, but there’s always hope. We’ll also get earnings from Nike (NKE) – Get NIKE, Inc. Class B Report on Monday, but things will be complicated due to uncertainty over Chinese consumer spending amid more Covid lockdowns.
Next, on Tuesday, we’ll get a keynote from Nvidia (NVDA) – Get NVIDIA Corporation Report CEO Jensen Huang, a must-see presentation to learn the current state of technology. Adobe Systems (ADBE) – Get Adobe Inc. Report will also be reporting, and Cramer expects good things.
Wednesday brings earnings from General Mills (GIS) – Get General Mills, Inc. Report, KB Home (KBH) – Get KB Home Report and Ollie’s Bargain Outlet (OLLI) – Get Ollie’s Bargain Outlet Holdings Inc Report. Cramer was bullish on all three of these stocks.
Then on Thursday, we’ll learn if people are going out to eat more when Darden Restaurants (DRI) – Get Darden Restaurants, Inc. Report reports. This, coupled with the latest consumer sentiment numbers on Friday, should provide some clarity of the state of the consumer.
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Executive Decision: Vacasa
In his first “Executive Decision” segment, Cramer spoke with Matt Roberts, CEO of Vacasa VCSA, the vacation rental platform that came public late last year via a SPAC merger, but has now finally found its footing. Shares of Vacasa were up 5.7% today after the company reported strong earnings.
Roberts is no stranger to the technology sector, having previously been the CEO of OpenTable. He said Vacasa focuses on the supply side of vacation rentals, making it super easy for homeowners to rent out their vacation properties.
You can rent your home yourself, Roberts said, but with Vacasa you’ll have a full service partner, and ultimately, you’ll make more money.
Vacasa has everything homeowners need, Roberts added. The company has a home owner app, a guest app and a field services app, coupled with artificial intelligence to maximize revenue and minimize cost.
While vacation rentals because popular during Covid, Roberts said they’re a lot more than just a pandemic story. Travelers prefer the comforts of home, he said, and they prefer Vacasa over staying at a hotel.
Off The Charts
In a Friday edition of his “Off The Charts” segment, Cramer checked in with Larry Williams for yet another take on where the markets are headed next.
Williams looked at some of the old market leaders in FAANG, Cramer’s acronym for Meta (FB) – Get Meta Platforms Inc. Class A Report, Amazon (AMZN) – Get Amazon.com, Inc. Report, Apple (AAPL) – Get Apple Inc. Report, Netflix (NFLX) – Get Netflix, Inc. Report and Alphabet (GOOGL) – Get Alphabet Inc. Class A Report. He looked at a daily chart of Alphabet and noted the stock has been holding above its lows, indicating that shareholders are accumulating the stock. The on-balance volume indicator displayed a positive divergence. Williams also liked Alphabet’s seasonal patterns, which bottom right about now, then rally from April through July.
Next, Williams looked at a daily chart of Amazon, which is also bouncing off its lows and has a strong seasonal pattern going forward.
Lastly, Williams looked at a non-tech name that’s fitting for this point in the economic cycle, Coca-Cola (KO) – Get Coca-Cola Company Report. Coke’s daily chart showed rising volumes, even as shares have declined, which made it another great investment, especially given its dividend and stock buyback.
Screening the Rubble
If you’re a disciplined investor, it pays to look amongst the rubble for some bargains.
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Back in late-January Cramer looked into last year’s IPOs for companies that were actually profitable. Tonight, he used a different metric, positive free cash flow. Using this screen, Cramer found just five names he liked.
First was swimming pool supply company Hayward Holdings (HAYW) – Get Hayward Holdings, Inc. Report, which trades are 14 times earnings. Next was MarketWise (MKTW) , the most controversial of the group
For those looking for big gains from a boring stock, Cramer recommended Ryan Specialty (RYAN) , but those looking for more excitement can choose either Sovos Brands (SOVO) , at 20 times earnings, or ticket-selling Vivid Seats (SEAT) , which trades at a lofty 50 times earnings.
In the Lightning Round, Cramer was bullish on Enterprise Products Partners (EPD) – Get Enterprise Products Partners L.P. Report, Healthcare Realty Trust (HR) – Get Healthcare Realty Trust Incorporated Report, Ventas (VTR) – Get Ventas, Inc. Report and DraftKings (DKNG) – Get DraftKings Inc Class A Report.
Cramer was bearish on Hims & Hers Health (HIMS) – Get Hims & Hers Health, Inc. Class A Report, Two Harbors (TWO) – Get Two Harbors Investment Corp. Report, Shell Midstream Partners (SHLX) – Get Shell Midstream Partners LP Report and Gilead Sciences (GILD) – Get Gilead Sciences, Inc. Report.
No Huddle Offense
In his “No Huddle Offense” segment, Cramer proclaimed, “Oh, what a difference a week makes.”
It’s hard to remember, but just a week ago, Chinese stocks were collapsing, oil prices were sky high, Russia was advancing in Ukraine and no one knew what the Federal Reserve would do.
Fast forward just a week and the tides are turning against Russia, as the world rallies around Ukraine. Chinese stocks are up. Oil prices are down. And the Fed finally did raise interest rates, taking the measured approach that everyone expected.
Last week is what it looks like when the markets get too negative, Cramer concluded. When there’s no one left to sell, that’s the time to be buying. This week just proved it.