Jim Cramer says investors should buy this Magnificent Seven stock on a pullback
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 up with the S & P 500 looking to break its three-day losing streak but the Nasdaq has some work to do if it wants to end its four-session losing streak. The Magnificent 7 index is flat to slightly down today. We trimmed our tech stocks straight across the board Tuesday to raise some cash. The mega-caps had such a sharp run last year that at some point we had to take some profits. But there will be a time where it will be attractive to buy more again. And when that happens, Jim said he would be probably leaning to buy Amazon . Jim explained Amazon has pricing power through Prime Video and if members want to avoid the advertising, they can pay up a bit more for the ad-free tier. This presents margin expansion opportunities from Amazon for ad streams, not to mention, the rebound from AWS and the continued cost efficiencies that management is prioritizing. AMZN stock is down 2% Thursday at roughly $145 apiece with no specific catalyst behind the decline. Meanwhile, shares of TJX inched 1% higher Thursday after it got a recommendation by Bernstein as a top idea over a two-year timeframe. We like that call and believe you can count on this off-price retailer over time. TJX had a great year as consumers were cautious around spending but at the same time were searching for value. That trend is likely to continue in 2024 as Americans’ budgets are still pressured. Elsewhere, the Energy sector is lagging after EOG Resources came out saying there’s not going to be a lot of growth in energy. Jim, however, is not in that camp. He thinks that oil has bottomed and would “still buy more” Coterra as prices come in. (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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