Cramer says ‘stay close’ to Constellation Brands as it works to create value for shareholders
Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here’s today’s edition. Stocks are lower today after CPI in December came in a little bit hotter than expected but are off the worst levels of the session. Interestingly enough, there’s not a lot of movement in bonds today and the 10-Year yield is actually slightly down, which is not what you would have expected to happen on a hotter number. Still, if the market is ahead of itself on rate cut expectations, one would think the market has some downside to it. We’re seeing this play out in the stocks that melted up in November/December on increased rate cut expectations. Those are falling today while tech and the magnificent 7 are continuing their strong week. Shares of Constellation Brands have had a nice move since earnings. The company can take action against their underperforming wine and spirits business. The division has been a consistent underperformer. We’ve been calling for management to divest this part of the business so the company can focus on its stellar beer business which has a strong portfolio of premium beers including Modelo Especial, Corona and Pacifico. And with activist investor Elliot Partners involved, we know they’re focused on creating more value for shareholders. Jim urges investors to “stay close” to this beverage stock. On the downside, many of the stocks that melted up in November and December on increased rate cut expectations are falling today including Foot Locker , Stanley Black & Decker , Ford and Morgan Stanley . Tomorrow is the start of fourth quarter earnings season starting with the big banks Wells Fargo , JPMorgan , Citi , and Bank of America . (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
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