Lightning Round: Cerence is a winner, says Jim Cramer
'Mad Money' host Jim Cramer weighs in on stocks including: Aurora Cannabis, Skyworks Solutions, Sezzle, Build-A-Bear Workshop, Cerence, Highpeak Energy, and Republic Services.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
12 minutes ago
- CNBC
Cramer calls Wells Fargo's asset-cap removal a 'watershed moment,' raises price target on the stock
Wells Fargo is unshackled. That's according to Jim Cramer and Wall Street analysts, who are both forecasting more upside for the Club stock following the Federal Reserve's removal of the bank's $1.95 trillion asset cap Tuesday evening. The seven-year lid on Wells' balance sheet growth was precipitated by the bank's past misdeeds, such as its notorious fake accounts scandal in the 2010s. Bank of America and Morgan Stanley are among the Wall Street shops that became more optimistic Wells Fargo shares in response to the long-awaited development. Bank of America went to $90 a share from $83, while Morgan Stanley went to $87 from $77. Piper Sandler and Evercore ISI also upped their price targets. The Club is doing the same, hiking ours to $90 a share from $80. "I think this is a watershed moment" and a "pivotal milestone," Jim said Wednesday. With the nearly $2 trillion lid on its balance sheet gone, the bank can grow its deposit base further, invest more into high-growth lines of business and can lower costs that were previously poured into compliance and remediation efforts. On Wednesday, at least, the market reaction is somewhat subdued, with Wells Fargo shares up less than 1% to roughly $76 apiece. Investors had likely been pricing some of the good news, viewing the asset-cap removal as a "when, not if" event. Entering Wednesday's session, Wells Fargo's had significantly outperformed a group of banking peers since Election Day in November, as investors bet on an easier regulatory regime under President Donald Trump's second term. Wells Fargo also had numerous other scandal-related penalties lifted earlier this year. No matter the stock move Wednesday, Jim said investors need to remember that this is "a fundamental change" for the bank and CEO Charlie Scharf. The executive has wanted to "turbocharge" its growth, but he had "playing with shackles," Jim said. "The shackles are off." Wall Street analysts echoed similar sentiments. Bank of America, for example, described the event as a "positive catalyst, both fundamentally and for stock valuation." "We see potential for a new pool of investors who had been fatigued by the regulatory overhang to step-in given WFC's idiosyncratic growth story, room for efficiency gains in the consumer bank and potential for capital relief," the analysts, who reiterated their buy rating on the stock, wrote in a note to clients. Meanwhile, Morgan Stanley said the cap's removal will "spur a multi-year period of growth at Wells." Analysts cited more loan growth and an expansion into its capital markets business. "An unconstrained Wells will put balance sheet and capital to work in markets, supporting and financing client trading activity, driving higher markets-related NII and overall trading volumes," the analysts, who reiterated their buy-equivalent rating, said. WFC YTD mountain Wells Fargo (WFC) year-to-date performance All of this aligns with CEO Scharf's comments Wednesday in an exclusive interview with CNBC. The executive, who was hired in 2019 to clean up the bank, described the cap's removal as "hugely significant." He pointed to growth in customer deposits first and foremost because now the bank can expand its balance sheet. That's because by some estimates Wells Fargo has missed out on $400 billion worth of deposits over the past seven years due to the Fed-imposed regulatory punishment. It's more than just the deposit base, though, according to Scharf. "It's the ability to provide advice, provide investment services. If it's in corporate, it's the ability to help [clients] access public markets," he continued. "With the exception of the mortgage business, all have the opportunity to grow – both in terms of returns and in terms of rate of growth." Jim said Wells Fargo can also compete better among its Wall Street peers in the long run. "Before this cap, these banks were all kind of clustered. Since this cap, Wells has fallen so far behind," he said. "I think Charlie is going to go for JPMorgan, " Jim added, arguing that Wells Fargo can grab more share in businesses like commercial banking and credit cards. Asked specifically about going after JPMorgan, the CEO told Jim that Wells now has "the ability to compete differently moving forward," but "there's no one person we're targeting." Although none of these changes can happen overnight, management has been laying the groundwork for a turnaround in its businesses for years. Case in point: Wells Fargo has made a slew of senior level hires in its corporate and investment banking division. The expansion into Wall Street dealmaking and capital markets diversifies Wells Fargo's revenues further, so that the firm doesn't rely so heavily on interest-based incomes that are at the mercy of the Fed's monetary policy moves. And although Wells will definitely save on expenses in remediation efforts, the bank still plans to invest into compliance. "Yesterday versus today, the only thing that's different is the perception of Wells Fargo, which is incredibly important because we've always been perceived as being in the penalty box," Scharf said. He continued, "This is not the kind of environment where you come out guns ablazing on no light switch that's going to go off today versus yesterday." Still, that doesn't mean the stock can't benefit in the meantime. (Jim Cramer's Charitable Trust is long WFC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CNBC
an hour ago
- CNBC
Cramer calls weak ADP jobs data 'disturbing,' warns about stocks coming into earnings too hot
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. 1. The stock market rose modestly Wednesday, extending this week's gains. Payroll processing firm ADP for May reported the lowest levels of hiring growth at U.S. companies in over two years. Jim Cramer said the numbers were "disturbing" and showed a "remarkable decline in hiring." The data reignited President Donald Trump 's call for Federal Reserve Chairman Jerome Powell to cut interest rates. "I think there's a belief brewing that if we get a number as weak as we did today with ADP on Friday, that there'll be some sort of [rate] cut intra-meeting," said Jim Cramer. "I'm not buying it. But I just wanted to let you know it's out there." On Friday, we get the government's May employment report. 2. CrowdStrike saw a post-earnings drop of more than 4.5% in its stock Wednesday, snapping a three-session win streak that sent shares to a record close Tuesday. "I think the quarter was unbelievably good," said Jim. Revenue matched and earnings beat. We raised our Club price target on CrowdStrike to $500 per share from $400. "The decline is an overreaction" to some glitches in the numbers, Jim said, referring to the nearly 9% decline shortly after the open. CrowdStrike CEO George Kurtz will be on "Mad Money " on Wednesday evening. 3. Broadcom shares gained another 1% on Wednesday after closing at a record high in the prior session. In fact, including Wednesday's gains, the Club stock was on a seven-session winning streak. Broadcom reports earnings after Thursday's close. "I don't like to see stocks coming in this hot, although it's only up 12% for the year," Jim said. A main focus for us in Broadcom's earnings report and conference call commentary will be the company's custom AI chip business, which a quarter ago grew 77% year over year to $4.1 billion. 4. Stocks covered in Wednesday's rapid fire at the end of the video were: Yum , Dollar Tree , Snowflake (Jim Cramer's Charitable Trust is long AVGO, CRWD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
15 hours ago
- Yahoo
Cramer: Should've Told Investors To 'Pull The Trigger' On Trade Desk, Can't Believe 'How Low' Gentex Has Fallen
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. On CNBC's 'Mad Money Lightning Round,' Jim Cramer said QXO, Inc. (NYSE:QXO) can go higher. 'Because it's Brad Jacobs [Chairperson of QXO]. He will not let it stay down here,' he added. As per recent news, QXO filed for the resale of 67.5 million shares of common stock by the selling stockholders on May 29. Gentex Corporation (NASDAQ:GNTX) is a very good company, Cramer said. 'I cannot believe how low it's gotten,' he added. Lending support to his choice, the company reported quarterly earnings per share of 42 cents on April 25, in line with the analyst consensus estimate. Revenues of $576.8 million (down 2% year over year) outpaced the street view of $571.97 million. Don't Miss: Start investing with eToro's CopyTrader — mirror top-performing traders with no management fees, and receive a $10 bonus when you deposit $100 today. Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today. Cramer said although Energy Transfer LP (NYSE:ET) is an 'absolutely terrific' company, he prefers ONEOK, Inc. (NYSE:OKE) more. On the earnings front, Energy Transfer reported quarterly earnings of 36 cents per share on May 6, which missed the analyst consensus estimate of 37 cents per share. The company reported quarterly sales of $21.02 billion, which also missed the analyst consensus estimate of $21.54 billion. When asked about The Trade Desk, Inc. (NASDAQ:TTD), he said, 'I should have told people to pull the trigger after that one unfortunate quarter that Jeff Green had.' Trade Desk, on May 8, reported quarterly earnings of 33 cents per share, which beat the analyst consensus estimate of 25 cents. Quarterly revenue clocked in at $616.02 million, which beat the consensus estimate of $584.27 million and represents a 25.4% increase over revenue of $491.25 million from the same period last year. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000. Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Image created using photos from Shutterstock. Send To MSN: Send to MSN This article Cramer: Should've Told Investors To 'Pull The Trigger' On Trade Desk, Can't Believe 'How Low' Gentex Has Fallen originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
