Jim Cramer says stay clear of this retail stock: ‘It is not something you want to own’
Jim Cramer’s daily rapid fire looks at stocks in the news outside the CNBC Investing Club portfolio. First Solar : Shares rose more than 3% after the solar firm’s quarterly earnings topped estimates, and its guidance was formidable. “They make something that actually you can buy, as opposed to all the other companies that have turned out to be financing companies, where it’s very hard to get the money to be able to put a solar panel on your roof.” Urban Outfitters : Shares fell 13% after earnings, revenue and same-store sales growth missed Wall Street’s expectations. Ahead of the report, the stock had been up more than 35% since early January. “This is a little overstated. It did miss the numbers by a lot,” Cramer said. While Cramer complimented the performance of its clothing-rental business, Nuuly, he said investors should not view Urban Outfitters as much more than an industry temperature check. “Urban Outfitters has always just been a barometer. It’s not something you want to own,” he said. J.M. Smucker : The stock rose modestly after Stifel analysts upgraded the peanut butter and jelly maker to buy from hold. “My rap against Smucker is that they bought [Twinkie maker] Hostess … which is unfortunately square one for the GLP-1 drugs and I don’t know why they did it,” Cramer said. GLP-1 drugs refers to the class of increasingly popular weight-loss treatments made by the likes of Novo Nordisk and Eli Lilly . Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, has long owned Eli Lilly. Universal Health Services : The hospital operator reported better-than-expected quarterly results alongside strong 2024 guidance, as well. Its capital expenditures guidance also came in above expectations. That seems like good news for GE Healthcare , according to Cramer, whose Charitable Trust also owns shares of the medical-equipment maker. GE Healthcare has been the best-performing health-care stock in the S & P 500 in February, “and it’s not done,” Cramer said.
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