← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 12/6/24
00:45:43
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
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- [00:00]
American Express Representative
You made it through all the starts and stops of your tech business. And when you're with Amex Business Platinum, you can count on a network of benefits to keep going, including access to over $1,000 in business and travel value annually. And thanks to five times Membership Rewards points on flights and prepaid hotels booked on amextravel.com you and your plugged in engineers can get rewarded for working in the cloud. That's the powerful backing of American Express. Terms apply. Learn more@americanexpress.com AmExBusiness what's your boldest, truly ambitious life goal? Everyone has one and everyone deserves a way to get there. That's why Estateg offers a wide variety of ETFs to give all investors access to the market and the chance to reach their goals. Like with DIA, where you get 30 US blue chip stocks in a single trade wherever you're heading, getting there starts here with State Street. Before investing, consider the fund's investment objectives, risks, charges and expenses. Visit ssga.com for prospectus containing this and other information. Read it carefully. DIA Subject to risks similar to those of stocks all ATs are subject to risk, including possible loss of principal. Alternative Alps Distributors Inc. Distributor.
- [01:04]
Jim Cramer
My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mint Money. Welcome to Kramer Market. I'm very friends. I just want to try to make a little money. My job is not just to entertain, but to educate teachers. So call me at 100-743-CBC or tweet me Jim Cramer after Basically inline November jobs report better than October. But with the unemployment rate still ticking up to 4.2%, I don't think that does much to change the Federal Reserve's rate cut calculus. One reason the average has had a sedate session. Dow dipping 123 points, S&P advancing 0.25% and the Nasdaq gaining 0.81%. Loss of pleasure. That's right. I'm still expecting a 2025 basis point cut later in the month. Didn't see anything today that made me surprised. With the non farm payrolls out of the way though, what's on tap for next week? Let's take a look. Now we kick things off with two quarters that are emblematic. What's working in this market? The data center and the enterprise software plays. Now first, here's Oracle, one of the major companies building out these data centers. I think they'll show incredible strength mazes, really fabulous sales because there's practically an endless demand for data centers. Let's see if they're still planning to build those things like cloud Crazy question video stock of course the data centers are filled with that was uncariously weak today made no sense because HP Enterprise, one of the biggest customers put a blowout quarter last night and said the business of video is incredibly strong. We'll learn more from Oracle Monday evening. I'm sure we will find out what the story was with Nvidia stock to the story that had some had today and the rest no doubt will get on Monday. The other standout should be this company called MongoDB, which is an enterprise data place with tools that help other software developers create applications. For most of 2024, these kinds of stocks were in the doghouse market gravitated toward hardware, especially semiconductors. Then Salesforce reported excellent numbers this weekend the stocks soared. While some of that's because the quarter was truly excellent, much of just a big change of sentiment toward these kinds of stocks. These enterprise software stocks, which is what they're called, we're all doing okay during the lull but tal they're doing better than okay and their stocks are being greeted with extraordinary buying. Keep track of the enterprise software stocks. Toll Brothers high end housing reports Monday evening when the Fed cut. When the Fed was announced, the stock flew up but then it stalled because bond yields actually and surprisingly went higher. Given that mortgage rates are priced off the long end of the bond market, you can see why the stock struggled. And then bond yields came down again and Toll's been as strong as ever. Can it deliver on these numbers? Is lumber price too high? Well, we won't have to wait too long to find out. Now, you know I've become hesitant to endorse money losing companies with stocks that are extremely overvalued. And after the close we hear from a company called C3AI, the profitless enterprise software company with a stock that shot up more than 50% in the last three weeks, including 8% just today. Can it keep boring? In a rational market, no. But in this market, well, you can't afford to bet against any company with AI in its name. Tuesday morning we get results from autozone. Here we have a company that imports aftermarket auto parts, including some from China. And any company that imports anything from China's view with tremendous skepticism. Right now right here AutoZone though has a gigantic buyback that kicks in on any weakness. So can it Sidestep territories. I can tell you from the disappointing portion of my travel trust that you simply can't own stocks with China exposure here. That's been the case ever since the election. I don't think anything has changed. So I don't know. I used to love it. I can't load the boat up here now. Earlier this week, Ali's Bargain Outlet caught a rare downgrade as this purveyor of closeout merchandise has been an outstanding performer of many years. It's a highly promotional moment for retail. This kind of off price chain tends to be a big winner. Always gets tractor trail if you track trailer full of unsold premium price merchandise and they get it for next to nothing and then they sell the stuff to you with bargain basement prices. I don't want to get off this horse at the close. Boy, here comes complications. Tuesday morning GameStop, right? They report. Well, speak of the devil. Gamestop will most likely deliver numbers that please those who want to be pleased. No, that is not circular reasoning, people. We're inspective nirvana. Right now we have stocks like Soundhound AI and Hut 8 Corp where there's no real news, but they are just real moves. Okay? GameStop seems to have a similar percolation going. Hey, I could have cited the stock of mobile games software company Applovin. Now this is a cold Stock that's worth 168 to 401 in a month's time on nothing. Well, that stock doesn't know the word quit. That's right. All week I've been taking. I've been talking about how I'm beginning to see some signs of excess that do make me uncomfortable. I think the reaction to Gamestop both before and after will tell us whether we need to know about how excessive things have really become. I can't tell you to sell it. You'll blame me if it soars on no earnings. But I can't tell you to buy it either because I don't have any legitimate reason whatsoever to do so. It's a cold stock. And this is a market where people seem eager to drink the Kool Aid. Like I said, tough moment. If you want to be rigorous buyer of inexpensive stocks that belong to great companies. Wednesday we start the morning with the cpi, the consumer price index. Fed meets two weeks from now and if inflation flares up, it'll be pretty darn hard for them to cut rates again. All of us. All of us still see high prices when we go to the supermarket, right? So we shouldn't be surprised the CPI comes in hot at that point, why should the Fed really bother to cut? Be ready for that kind of chatter. Don't worry, they'll still cut. We also have some corporate news that could help explain something that's been a real mystery. Maybe to me, maybe to you. I'm talking about what happened, what went wrong at Macy's where an employee apparently had millions in delivery expenses hidden. Now shareholders are entitled to know what really happened here. I don't think the companies fully explain them at all. And we want to know exactly before we pay any attention to the forecast. We got to understand what went wrong. We need answers about how someone got away with this. And more important, does the company now have the systems to try to catch anything like this malfeasance? I don't know. As I mentioned earlier, the enterprise sulfur stocks have been roaring, reacting very positively to pretty much everything these days. So maybe we should start thinking about buying the stock of Adobe, which has some of the very best software to help businesses with marketing and web design. I like this company very much, but it's been stuck in enterprise software purgatory. Not anymore. Maybe it has a real run by just delivering good numbers. Thursday starts with the producer price index number again. We need these inflation numbers. Someone please cool down. There's been so much speculation. We have to worry about what happens if the Fed gets cold feet about rate cuts and pulls the rug out from under us. At this point, at this pace of excess, well, let's just say they might have no choice but to shelf some rate cuts next year. Finally, one of my favorite stocks reports. Broadcom symbol Avgo, by the way, reports this tends to run up into the quarter and then sell off when we see the actual sales and earnings. I expect that to happen again as Broadcom makes equipment for networking and artificial intelligence as well as hardware, phones and servers. And hardware is a little out of fashion all of a sudden. Now we own Broadcom for ages for the Chapel Trust. And I've urged investing club members to buy Broadcom on these very dips I just mentioned. It's been a terrific successful strategy. This time should be no different. So let's understand, it goes down at the report and that's your chance to pull the trigger. Bottom line. Look, I'm trying to get my arms around a market that takes up all sorts of crypto. Lots of unprofitable companies. Never too great a sign for those who want the Fed to cut repeatedly. I want you to keep that in mind so you won't be surprised if we get some overheated inflation numbers next week and the market gives us some of these extraordinary gains. Let's go to Michael in Pennsylvania. Michael. Oh, thank you, Mr. Cramer, for taking my call. Merry Christmas to you and your family. Thank you. And a happy New Year. Excellent. All right. I'm calling about Ford. It has a yield of 5.9 as a P of 13 and a dividend of $0.15. I know a lot of people don't like it right now because of the.
- [08:59]
Caller
Threatened tariffs coming from Trump.
- [09:02]
Jim Cramer
And I believe that over 40% of our automobile parts and stuff are exported to the United States and Mexico. So what is your outlook? Was it, you know, like buy, sell or hold? You know, I bumped into someone this morning walking up the stairs here at the exchange and he said, how come no one's paying any attention to these tariffs? I said, I sure am. I talked about it and then I mentioned Ford. I said, look, they've got this really convoluted ownership structure where you can have of how parts are made and shipped back and forth and that that's the kind of stock that could really be hurt. I think you've correctly summarized it. And I think even though a 10 it does seem cheap, it's not and I don't want to own the stock. Let's go to Rich in New Jersey. Rich.
- [09:42]
Caller
Hey, Jim, Happy holidays in a Jersey Shore booyah from red hot Red Jersey.
- [09:47]
Jim Cramer
Thank you. I'm an Ocean Grove guy. Good to have you on the show.
- [09:50]
Caller
Thank you. Thanks, Jim. Jim, My question today is on shares of Dow, Dow Chemical stocks and getting hammered down 23% year to date, closing today around $42. Stock hit a high of $60 back in May of this year and it's been on a slow, steady grind down got a nice dividend, six and a half percent. And I'm puzzled as to why the stock keeps going down week after week.
- [10:14]
Jim Cramer
So, okay, it's a great question. It's a great question, Rich. And let me just tell you that the numbers keep going down and that's why the stock keeps going down. Because, you know, it' still sells at 20 times earnings because the estimates keep going lower. And that is because of China. And when we have these stocks that have anything to do with China, they just tend to hurt and hurt and hurt. I will say this, though. The stock has reached a level where if it goes to 7% yield and I know that money to be able to afford the yield, I'm going to say you have to buy it. Let's go to Adam In Georgia. Adam.
- [10:41]
Caller
What's up, Jim? How's it going, man?
- [10:43]
Jim Cramer
Not bad. How about you, partner?
- [10:45]
Caller
Man, Jim, if I was doing better, I would get arrested.
- [10:49]
Jim Cramer
Now that is saying something.
- [10:51]
American Express Representative
House of pleasure.
- [10:55]
Caller
Well, Jim, I got a question, man. I have owned Home depot for about 25 years now. Rolling over my dividends the whole time. Now, do you think I should buy some more or sell?
- [11:08]
Jim Cramer
Okay, no, don't sell, don't sell. It's up on a Spike. It's at 431. I be on it for the Chapel Trust. It still doesn't sell at 30 times earnings. Why do I say that? Because if the Fed is actually going to cut, it's going to end up earning much more money than people think. Hold on. And if it comes back down to 410, I know that we will tell people from the Chapel just even for 15 to 5. Well played. All right, listen to me. Don't be surprised if we get some overhead. Inflation numbers next week and the market gets hurt a bit. I mean tonight is it finally happy hour for the alcohol industry. I'm pouring through the latest stock action, give you my take on El Hamidor. Then last night you called in on a menswear copy of A short name, a Long name and a short tenure as a public company. I did some homework. I'm gonna tell you where I stand, but it is a little difficult to, let's say fathom. And later, are your portfolios in need of a year end refresh? I'm looking at Kramer Orcas holdings as we play MI Diversified. So stay with Kramer.
- [12:07]
American Express Representative
Don't miss a second of Mad Money. Follow imKramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-free-CNBC. Miss something? Head to madmoney.cnbc.com slowing growth, geopolitical uncertainty, Shareholder unrest. In an increasingly complex world, today's business leaders must consider their strategy from every dimension. Creating long term value requires ambitious and achievable strategies enabled by the right experience, tools and capabilities to prepare for the journey ahead. Powered by 10,000 strategists, EY Parthenon works with you to see opportunities from every angle and execute on that vision. Learn more@ey.com us ey Parthenon. You've almost certainly been prescribed a medication before. But did you understand how it worked? The way your medication works in your body shouldn't be a mystery. Learn how Vivgart Hitrulo fgartigamod Alpha and Hyaluronidase. QVFC works by visiting Vivgart that's V Y V g a r t.com MOA brought to you by Argenx when you're hiring, the best way to search for a candidate isn't to search at all. Don't search Match with Indeed Indeed is your matching and hiring platform with over 350 million global monthly visitors, according to Indeed Data, and a matching engine that helps you find quality candidates fast. Use Indeed for scheduling, screening and messaging to connect with candidates faster. Plus, 93% of employers agree Indeed delivers the highest quality matches compared to other job sites, according to a recent Indeed survey. Leveraging over 140 million qualifications and preferences every day, Indeed's matching engine is constantly learning from your preferences. Join more than three and a half million businesses worldwide that use Indeed. Listeners of this show will get a $75 sponsored job credit to get your jobs more visibility at indeed.com madmoney just go to indeed.com madmoney right now and support this show by saying you heard about Indeed on this podcast. Indeed.com mad money terms and conditions apply. Need to hire you need Indeed.
- [14:41]
Jim Cramer
Whatever you call in a stock that I haven't really been following closely. I promise to do some homework and come back with a more informed opinion. Last time we got a real interesting one I've looked at in a long time. Trey in Texas asked me about Ermine Jildo Zinnia. That's the parent company of the high end menswear brand of the same name. Now lately, you know, I've been more of a Brioni guy I bragged about on Squawk on the street. But who can't appreciate a good Zinnia suit? I've worn my fair share, but I hadn't been following Xenia the stock because it only came public three years ago. When it came back, it came public via a merger with a special purpose acquisition company or spac. Remember those? Fastenia was a real company with real sales, real earnings. It's stock fare much better than most the other SPAC names. Xenia was flattish for most of 2022 when the other former SPACs were falling apart. Then it kind of got hot in early 2023, climbing from $10 to an all time high of $16 and change in August of last year. Since then though, Xenia has cooled off significantly. By the time the stock put In a bottom $7 and change early last month, it was down about 56% from its peak last year. Since then it's bounced to $8 and change. But that's still a major discount from its highs. We just need to figure out if Zen is worth buying down here. Now that is a tricky question because Zen is. The company is the corporate parent of three different menswear brands. There, Zenya, but there's also Tom Brown, which they bought in 2018. And then there's Tom Ford Fashion, which then you acquired just last year. All this stuff is extremely high end. The Xenia brand still accounts for 68% of sales this year though it's still down. That's. That's down from the high 70s before the Tom Ford fashion acquisition. Tom Brown's 20%. Tom Ford fashion remaining 12%. Now geographically, Zen is well balanced across the globe, though the uneven recovery from COVID has impacted some of these numbers. The Asia Pacific region made up 41% of the business last year versus over 50% in 2021. Europe, the Middle east and Africa was the second largest region, 35% of sales, while North America was only 22% of sales with the final 2% coming from Latin America. And the catch all other region. The big overarching story here is Zenith gradual transition from being a traditional family run business focused almost entirely on high end menswear to more of a modern diversified fashion house. It's kind of in the mold of LVMH or Hermes or Curing, that's the parent company of Gucci and Balenciaga Valencia. I like their shoes. That's why they bought Tom Brown and especially Tom Ford Fashion, which gave them a lot of accessory exposure. Even the Zenith brand itself has expanded beyond suits, including a big move into footwear. Yeah, they even make sneakers. Triple stitched sneakers to be clear. Apparently they're favorite with the executive class of fans like Apple CEO Tom Tim Cooker. JP Morgan CEO Jamie diamond wears them. So that's the strategy, but the rollout and execution, let's just say they have been uneven. Zany's had nice growth in 2022 and 2023. Companies consolidated revenues growing overall from 1.3 billion euros in 2021 to 1.9 billion euros last year. Now, much of that growth came from Tom Ford fashion acquisition, but the Zenith brand had 20% organic growth last year. Tom Brown was up 18% this year though the growth has disappeared completely. Through the first nine months of 2024, total company organic sales were down 4% while the Zania brand still saw 2% organic growth. Tom Ford fashion was down 4% and Tom Brown saw a sickening 27% plunge. Now some of that comes down to the temporary issues like changes to companies wholesale strategy, which has resulted in very uneven numbers. Another big big problem for Xenia is China. Remember, Asia Pacific is the largest region by sales, but that's been a horrible place to be in the post Covid era. Zen is certainly not the only luxury goods company that's been felled by China, but you've got to wonder if their weakness if the weakness in China is merely a result of a soft economy, something is temporary, or if it's a larger, more structural problem. Now the jury's still out on that one. But don't forget the Chinese government's been cracking down on the ultra rich, getting back to its Maoist roots. Not good for luxury menswear. When you look at Zayn's recent results, 2024 feels like a gap year for them. The consensus estimates call for basically flat sales and after seeing the actual results for the first nine months of the year, I actually think the flat sales would be a win. But earnings are on track to be down substantially now. The upshot is that at least according to the consensus estimates, Zany's business should bottom this year and start growing again with modest 3 to 4% sales growth in 2025 for accelerating the high single digit growth in 2026. Now I could translate into high double digit earnings growth over the next two years. If you go by the 2026 estimate, Zen is trading at less than 16 times earnings. That compares lead to LVMH at 20 times earnings. Those Zenya doesn't have that pedigree of LV match which is a really great company. More generally I'm not. I just not sure about how much confidence to have in those Xenia estimates. The analysts are all over the place in this one. Bulls and Goldman Sachs and Deutsche Bank. They have a buy rating on Zena and price targets of 1270 and 1050 respectively. Either one of those would represent very nice gains for the stock. But the most recent firm to initiate coverage on Xenia was Morgan Stanley and they slapped it with an underweight rating and a $727.20 price target. Candidly, given the company's recent sales trends, it's tough to blame Morgan Stanley for being so negative. Business has simply not been that good. So here's how I see it. Zen is certainly an intriguing story. I love the core brand, definitely love the brand. I actually wore two suits this week that was that were Zena and I feel good about the strategic plan at Least in theory. If you believe Zenith can get its act together, possibly in a position to be more like those large diversified fashion houses, then this would be a great time to buy the stock. Still a very shouted favorite, but I'm not a believer, at least not completely. We just don't know how the strategy will play out in the intermediate future. And the analysts don't seem to know either. So let me give you the bottom line on a very complex story that, that a viewer called in on isn't you can hit the consensus earnings numbers. The stocks definitely a buy, but I just don't follow the industry well enough to constantly tell you that they can pull it off. I say Zen is a speculative buy at best. If you believe in a turnaround, this is the time to get in before it happens. But given that there's no evidence of a turn yet and I don't have an edge here, I'm not willing to stick my neck out on this one. At least for now. The stock is not as good as the suits. Hey, let's go to Eric in Florida. Eric.
- [21:27]
Caller
Jim. Jim. Jim, we're back. Thank you so much for having me on tonight.
- [21:32]
Jim Cramer
It is my pleasure. I'm glad you're on. Glad you're on. What's going on? Tell me what's happening.
- [21:38]
Caller
We spoke a few months ago about Disney and it's up big since.
- [21:41]
Jim Cramer
Yes. And I still like the stock. You know they gave you that nice 33% boost in the dividend. That was nice.
- [21:46]
Caller
Yes. I hope you added some shares after we spoke.
- [21:49]
Jim Cramer
Oh, yeah. We got a ton of it for the travel trust. Bought some more. We have a good besides position. Thank you for bringing it up. What's going on?
- [21:55]
Caller
I'm pumped. Well, today I'm calling about Nike. We're looking at it and it's hovering around like a five year low. And I nibbled a little bit and I just want to, I want to have some confidence to really dump a load of cash into the stock.
- [22:10]
Jim Cramer
Right. Nike is so hard. Nike is so hard. Here's why. Because remember, we footlocker poured this week and the numbers from Nike were really knocked out. Great. You have a new CEO in Elliot Hill. You have to give him a little time. I think that the stock could be down one more leg and then up. So I urge you to stay with it. And if we get that second down leg, let's buy it because I think that that will be the bottom in the stock of Nike. Let's go to Jeremy in California. Jeremy.
- [22:37]
Caller
Hey, Jim. Huge fan thanks for taking my call.
- [22:40]
Jim Cramer
Thank you. Jeremy, what's going on? Booyah.
- [22:42]
Caller
I wanted to ask you about Topgolf Callaway Brands. And what are your thoughts on the decision to spin off topgolf and is it the right move to unlock shareholder value?
- [22:52]
Jim Cramer
This is a very, very hard call. I was confused by the spin and fused by the Nile. Whatever. All I can tell you is that we got cold feet on the stock and I'm glad we did. The stocks down 44% and I'm not touching, period. End of story. Now I'd say Zen is a speculative buy at best. If you believe in a turnaround, at least for now. I'd spend more money on the suits, not the stock. Now much more money ahead. Money ahead, including crime. America's favorite game show. Am I Diversified? Plus, after Lululemon and Ulta soared higher on today's earnings beats, I'm taking a close look at the consumer plays. And of course oil calls. Rapid fire. Tonight's issue. But lightning round, so stay with Kramer.
- [23:32]
American Express Representative
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- [24:06]
Jim Cramer
Your business is power.
- [24:08]
American Express Representative
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Jim Cramer
Now scratch that, we've got every option.
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American Express Representative
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- [24:24]
Jim Cramer
The power is yours.
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American Express Representative
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- [24:37]
Jim Cramer
Whatever you call in a stock that I haven't really been following closely, I promise to do some homework and come back with a more informed opinion. Last time we got a real interesting one I've looked at in a long time. Trey in Texas asked me about Irmin and Jildo Zinnia. That's the parent company of the high end menswear brand of the same name. Now lately, you know, I've been more of a Briony guy bragged about on Squawk on the Street. But who can't appreciate a good Zinnia suit. I've worn my fair share. But I hadn't been following Xenia the stock because it only came public three years ago. When it came back, it came public via a merger with a special purpose acquisition company or spac. Remember those Fastenia was a real company with real sales, real earnings. It stock fare much better than most the other SPAC names. Xenia was flattish for most of 2022 when the other former SPACs were falling apart. Then it kind of got hot in early 2023, climbing from $10 to an all time high of $16 and change in August of last year. Since then though, Xenia has cooled off significantly. By the time the stock put In a bottom $7 and change early last month, it was down about 56% from its peak last year. Since then it's bounced to $8 and change. But that's still a major discount from its highs. We just need to figure out if Zen is worth buying down here. Now that is a tricky question because Zen is. The company is the corporate parent of three different menswear brands. There Zenya. But there's also Tom Brown which they bought in 2018. And then there's Tom Ford Fashion which acquired just last year. All this stuff is extremely high end. The Xenia brand still accounts for 68% of sales this year though it's still down. That's. That's down from the high 70s before the Tom Ford fashion acquisition. Tom Brown's 20%. Tom Ford fashion remaining 12%. Now geographically, Zen is well balanced across the globe, though the uneven recovery from COVID has impacted some of these numbers. The Asia Pacific region made up 41% of the business last year versus over 50% 2021. Europe, the Middle east and Africa was the second largest region at 35% of sales while North America was only 22% of sales with the final 2% coming from Latin America. And the catch? All other region. The big overarching story here is Zenith. Gradual transition from being a traditional family run business focused almost entirely on high end menswear to more of a modern diversified fashion house. It's kind of in the mold of LVMH or Hermes or Curing, that's the parent company of Gucci and Balenciaga. Balenciaga. I like their shoes. That's why they bought Tom Brown and especially Tom Ford Fashion which gave them a lot of accessory exposure. Even the Zenith brand itself has expanded beyond suits, including a big move into footwear. Yeah, they even make sneakers. Triple stitched sneakers to be clear. Apparently they're favorite with the executive class of fans like Apple CEO Tom Tim Cooker. JP Morgan CEO Jamie diamond wears them so that's the strategy, but the rollout and execution, let's just say they have been uneven. Zen has had nice growth in 2022 and 2023. Companies consolidated revenues growing overall from 1.3 billion euros in 2021 to 1.9 billion euros last year. Now much of that growth came from Tom Ford fashion acquisition, but the Zenith brand had 20% organic growth last year. Tom Brown was up 18%. This year though, the growth has disappeared completely. Through the first nine months of 2024, total company organic sales were down 4% while the Zenith brand still saw 2% organic growth. Tom Ford fashion was down 4% and Tom Brown saw a sickening 27% plunge. Now some of that comes down to the temporary issues like changes to companies wholesale strategy which has resulted in very uneven numbers. Another big big problem for Xenia is China. Remember Asia Pacific is the largest region by sales, but that's been a horrible place to be in the post Covid era. Zen is certainly not the only luxury goods company that's been felled by China. But you've got to wonder if their weakness if the weakness in China is merely a result of a soft economy, something is temporary, or if it's a larger more structural problem. Now the jury's still out on that one. But don't forget the Chinese government's been cracking down on the ultra rich, getting back to its Maoist roots. Not good for luxury menswear. When you look at his recent results, 2024 feels like a gap year for them. The consensus estimates call for basically flat sales and after seeing the actual results for the first nine months of the year, I actually think the flat sales would be a win. But earnings are on track to be down substantially now. The upshot is that at least according to the consensus estimates, Zany's business should bottom this year and start growing again with modest 3 to 4% sales growth in 2025. For accelerating the high single digit growth in 2026 now I could translate into high double digit earnings growth over the next two years. If you go by the 2026 estimate, Zen is trading at less than 16 times earnings. That compares lead to LVMH at 20 times earnings. Those Zenith doesn't have that pedigree of LVMH which is a really great company. More generally I'm not. I just not sure about how much confidence to have in those Zenia estimates. The analysts are all over the place in this one. Bulls and Goldman Sachs and Deutsche Bank. They have a buy rating on Zena and price targets of 1270 and 1050 respectively. Either one of those would represent very nice gains for the stock. But the most recent firm to initiate coverage on Xenia was Morgan Stanley. And they slapped it with an underweight rating and a $727.20 price target. Candidly, given the company's recent sales trends, it's tough to blame Morgan Stanley for being so negative. Business has simply not been that good. So here's how I see it. Zen is certainly an intriguing story. I love the core brand. Definitely love the brand. I actually wore two suits this week that was that were Zenya and I feel good about the strategic plan, at least in theory. If you believe Zenith can get its act together, possibly in a position to be more like those large diversified fashion houses and this would be a great time to buy the stock. Still a very shouted favorite, but I'm not a believer, at least not completely. We just don't know how the strategy will play out in the intermediate future. And the analysts don't seem to know either. So let me give you the bottom line on a very complex story that that a viewer called in on is hit the consensus earnings numbers. The stocks definitely a buy, but I just don't follow the industry well enough to confidently tell you that they can pull it off. I say Zen is a speculative buy at best. If you believe in a turnaround, this is the time to get in before it happens. But given that there's no evidence of a turn yet and I don't have an edge here, I'm not willing to stick my neck out on this one. At least for now. The stock is not as good as the suits. Hey, let's go to Eric in Florida. Eric.
- [31:23]
Caller
Jim. Jim. Jim, we're back. Thank you so much for having me on tonight.
- [31:28]
Jim Cramer
It is my pleasure. I'm glad you're on. Glad you're on. What's going on? Tell me what's happening.
- [31:33]
Caller
We spoke a few months ago about Disney and it's up big since.
- [31:37]
Jim Cramer
Yes. And I still like the stock. You know they gave you that nice 33% boost in the dividend. That was nice.
- [31:42]
Caller
Yes. I hope you added some shares after we spoke.
- [31:45]
Jim Cramer
Oh yeah. We got a ton of it for the travel trust. Bought some more. We have a good besides position. Thank you for bringing it up. What's going on?
- [31:51]
Caller
I'm pumped. Well, today I'm calling about Nike. We're looking at it and it's hovering around like a five year low. And I nibbled a little bit and I just want to. I want to have some confidence to really dump a load of cash into the stock.
- [32:06]
Jim Cramer
Right. Nike is so hard. Nike is so hard. Here's why. Because remember, we footlocker poured this week and the numbers from Nike were really knocked out. Great. You have a new CEO in Elliot Hill. You have to give him a little time. I think that the stock could be down one more leg and then up. So I urge you to stay with it. And if we get that second down leg, let's buy it because I think that that will be the bottom in the stock of Nike. Go to Jeremy in California. Jeremy.
- [32:33]
Caller
Hey Jim.
- [32:34]
Jim Cramer
Huge fan.
- [32:34]
Caller
Thanks for taking my call.
- [32:36]
Jim Cramer
Thank you. Jeremy, what's going on? Booyah.
- [32:38]
Caller
I wanted to ask you about topgolf cowboy brands. And what are your thoughts on the decision to spin off topgolf and is it the right move to unlock shareholder value?
- [32:48]
Jim Cramer
This is a very, very hard call. I was confused by the spin and fused by the Nile. Whatever. All I can tell you is that we got cold feed on the stock and I'm glad we did. The stock's down 44% and I'm not touching, period. End of story. Now I'd say Zen is a speculative buy at best if you believe in a turnaround, at least for now. I'd spend more money on the suits, not the stock. Now much more money ahead, including crime. America's favorite game show, am I diversified? Plus, after Lululemon Ulta soared higher on today's earnings beats, I'm taking a closer look at the consumer place, of course. All your calls. Rapid fire. Nice of the lightning round. So stay with Kramer. As we ran out of near full record highs for the markets that by admittedly some fraud and some serious players. I think it's worthwhile to take a step back and evaluate where your portfolio is heavy or light on any given sector. And that's why we're going to play Am I Diversified. This will you call it? You give me your top five holdings. I tell you, portfolio is diversified. Maybe you need to mix it up a little. Let's start with Ken in Florida. Ken, your first caller. What do you got for me?
- [33:59]
Caller
Yeah, good evening, Ken from Florida.
- [34:04]
Jim Cramer
Excellent.
- [34:05]
Caller
Booyah and Semper fi. Thank you for all you did this week of November 11th for the vets.
- [34:12]
Jim Cramer
And thank you for serving. Most appreciated. How can I help?
- [34:17]
Caller
My stocks are Apple, Lily, Mastercard, Microsoft and Nvidia. I know that two of those are Buy, don't sell. I'm a little worried about my emphasis on text. Am I diversified?
- [34:38]
Jim Cramer
All right, Ken, let's take a look at this new and I said felt. I have a similar problem with my charitable trust. I have said own, don't sell, Nvidia and Apple. That's been right. But the problem is it is definitely at odds with my discipline. And I've been saying it because I think that it's okay to have a couple. This is my new rules that I'm working on. It's okay to have a couple of deviations from your rules. It don't have to be hard and fast. But we got a fintech, we've got a drug company. I think this one's going back to 1000 by the wheel. And the one that I'm most worried about, this Microsoft. I'm willing to condone these two. I own Microsoft for the chapel toss. I actually am interested in selling. Just started trimming some. So why don't we just ring the register on Microsoft and why don't we add an industrial. I am particularly enamored right now of Dover, which we had on recently by around the 200 level. Or if you want to just, you know, kind of really think that maybe things are going to get better, why not something like a Constellation Brands stc, the cheapest I've ever seen. And then I think you'll be fine. So we're going to, we're going to sell Microsoft and thank you again for what you've done for our country. Next, let's head to Ann in Indiana. You're up.
- [35:43]
Caller
And thanks, Jim. Five stocks are Lilly, Costco, Wells Fargo, Stanley, Black and Decker and Palo Alto. Am I diversified?
- [35:56]
Jim Cramer
All right, let's go to work. These are stocks that we probably own for the Chapel Trust, of which I like all of them. And one of them is kind of not doing that well. But we have Stanley, Black and Decker, the one that's not doing that well. And that's a, let's call it a household tool company. But we have Costco, which hit an all time high today. Palo Alto, which is the cybersecurity company, Eli Lilly, which I said is coming back, and Wells Fargo, which has been a total breakout stock. We got that one with Charlie Scharf doing a lot of good things. We got a finance, we have a retailer, we've got a cybersecurity, we've got that home tool company and we have drug company and Indiana is perfectly diversified and that's fantastic. Now let's take a Call from PT in Texas. Pt.
- [36:35]
Caller
Hey, Jim, thanks for your help with my Johnny Manziel portfolio partner.
- [36:40]
Jim Cramer
Oh, man. Okay. I'll be doing. All right, let's go to work.
- [36:43]
Caller
All right. My stocks are CMG, Chipotle Mexican Grill, TTD, the Trade Desk, Cava, Cava, HubSpot, Hubs and Palantir PLTR.
- [36:55]
Jim Cramer
All right. Palantir is a crowd favorite by the way. It's actually cheap. 1:40 basis. Right. HubSpot. We've got, you know, kind of a junior salesforce, let's call it that. Trade desk is the company is taken on Google and done a great job. Chipotle, well, you know what we like Chipotle says I guess like the low actually high single digits. Palance here is that cyber software. Cybersecurity. Cybersecurity and then kava oh two that I like very much. But we're going to have to trade car out. We're going to bring in Eli Lilly to go with the tech advertising company, a restaurant and a restaurant chain and a cybersecurity company. We have to make that change. Otherwise we have too much concentration as it is. Someone might argue that I shouldn't allow both Hubscott and Palantir, but I'm saying this is much more defense oriented. So we're going to be okay in that. And now our last but not least obviously is Drew in Connecticut. Drew.
- [37:49]
Caller
Booyah, brother Jim.
- [37:51]
Jim Cramer
Booyah.
- [37:52]
Caller
Thanks for all the education in the realm of diversification and suitability. My five stocks are Costco, Apple, Google, Procter and Gamble and a Good one in 2024, Goldman Sachs.
- [38:05]
Jim Cramer
Yeah, that is where I am an alum of. And Goldman is doing fabulously. Still think of it very proudly of the time that I spent there. Goldman Finance. Apple obviously own it, don't trade it. Procter and Gamble is actually off today along with some of those other stocks. I think it's a very good consumer products company. Costco, the great retailer again all time high today. Oh, Alphabet and Apple, we're not going to allow that. We're going to get rid of Alphabet. We're going to put in Eli Lilly. Alphabet is very inexpensive. But I don't like what the Justice Department is doing against them. I think we have to make that change. Hey, you know what? We have time for one more. Why don't we head with to Betsy in California. Betsy. Hey.
- [38:42]
Caller
Hey, Jim. Happy almost Happy happy almost weekend. My stocks are.
- [38:48]
Jim Cramer
My stocks are Adobe, Abercrombie in Fitch.
- [38:52]
Caller
Amazon, Axon, and my Christmas pick is Home Depot.
- [38:57]
Jim Cramer
All right, these are Nice. These are nice stores with nice store here. Home Depot which was a very big today I feel good because we told people in the chapel trust buy that into the teeth of some bad numbers and it has been dead. Right. Amazon is my favorite retailer of all time but it also has Amazon web services so I'm not going to say that it conflicts with that. By the way, the Amazon advertising business is doing quite well. Abercrombie. All right now this is fashion and this is home. This trades with the home companies. It does not trade with the fashion companies. Of course not. Right Axon, we know this really by the way it's not taser. It is all sorts of medical, I'm sorry all sorts of what I would call as police work papers like equivalent of like you know, all sorts of stuff involving justice I guess let's put it that way. And then Adobe which reports next week which is software that's going to makes you create and I could argue, you know what, I'm going to let this go and I'm going to let it go because each one has its own little niche and it would be a shame to sell Adobe ahead of what I think is going to be a decent quarter. So thank you again to all our callers. Mad Money is back after the break.
- [40:00]
American Express Representative
Coming up, Kramer takes your calls and the sky's the limit. It's a fast fire lightning round. Max.
- [40:19]
Jim Cramer
It is time. It's time for the white gold numbers team in the soccer so to buy my bison. I don't know the throw coming my staff and then the lightning round is over. Are you ready? Ski diet over the light round curves of. Let's go to Jerry Missouri. Jerry.
- [40:35]
Caller
Hey Jim, thanks for taking my call.
- [40:37]
Jim Cramer
My pleasure. What's happening, Jim?
- [40:40]
Caller
I don't normally like investment management companies but this one has had such a nice rise this year that it's hard to overlook since you added it to the portfolio. I also started a position but it isn't going anywhere. What do you see as the catalyst to get this one moving up? My question is about BlackRock.
- [40:58]
Jim Cramer
Okay, this is a great question. Do I get frustrated when a stock spin at a thousand change for a long time? I look at the long term of this and the reason why I was happy to buy it here is because I don't care about the near term on this stock. I think if you buy a company that Larry Fink is running and you wait, you just own it over the many years not everything can be. I like to have a pastiche in the, in the Chapel Trust. Not everything's going to go up at once. Some things are just going to be very solid for when things go down. You can buy more of and that's blackrock. Go to James in Pennsylvania. James.
- [41:29]
Caller
Hi Jim. Thanks for taking my call.
- [41:31]
Jim Cramer
Of course I will go.
- [41:33]
Caller
Opinion on Applied Digital. Is it a buy?
- [41:38]
Jim Cramer
Apply Digital is again. It's enterprise software and those stocks cannot be kept down. I am not going to tell you to buy it or sell it. I am just saying enterprise software is so hot people just can't resist. Danny and Danny.
- [41:54]
Caller
Professor Kramer.
- [41:56]
Jim Cramer
Yes, what's up? Danny?
- [41:59]
Caller
I just want to tell you that I'm a long time viewer and listener and a loyal fan of Jim Cramer and CNBC. And I just want to thank you for all you've done for us over the year.
- [42:14]
Jim Cramer
Thank you. Man. We go at it every day here. It's not easy. I had a great staff. Makes me look good. How can I help? Yes sir.
- [42:20]
Caller
We love you here in Gator country.
- [42:22]
Jim Cramer
Thank you. Thank you very much.
- [42:24]
Caller
I wanted to ask you please if you could let me know your opinion on ExxonMobil.
- [42:31]
Jim Cramer
I think Exxon is overvalued versus Chevron. Now that has been the wrong call to make in 2024 until recently. These stocks by the way are not stocks you want to own because they're actually high priced earnings. Multiple stocks with yields that are not as great only because the stocks are still too high. Go to Jack in Ohio. Jack.
- [42:50]
Caller
Hey, thanks for taking my call, Jimmy.
- [42:52]
Jim Cramer
Sure. Jack. What's up?
- [42:54]
Caller
A buying for the dividend which they have a good track record. Lyb Lyndell Basil Industries.
- [43:01]
Jim Cramer
It's funny you mentioned that one's got a 7% yield. The reason I haven't liked Dow Chemicals I think you go down a 7% yield. I agree with you. I think if these prices you do not want to ignore the stock. I buy some now and if it goes down to 70% yield that I would buy more about Fay in California. Faye. Booyah.
- [43:16]
Caller
Jen, how are you?
- [43:18]
Jim Cramer
I am doing well. Faye, how are you doing?
- [43:20]
Caller
Good, thank you Jim. Lumen Technologies.
- [43:24]
Jim Cramer
It's been a free fall down 40% in the down. It should be down. It doesn't have it's to me this is kind of the stock that should never have gone up. This is Digital Solutions for business purposes. It should never have gone up as much as it did and it's going to come back down and it's not done going down. It went too high. It's up way too much and I want you to avoid it. Let's go to Nick in Nebraska. Nick. Hey.
- [43:48]
Caller
Good afternoon Jim. And happy Friday.
- [43:50]
Jim Cramer
Yes, thank God. Me too. What's up?
- [43:54]
Caller
So in July, August of 2023 this stock hit all time highs and was hitting a on all cylinder cylinders. And like you typically suggest, you always say let it come in. So it came in around 95. It initiated a position and it went down to in the middle 80s so I bought some more and then it went down into the 70s and I was you know, filling out my position. So I'm wondering what to do with on semiconductor.
- [44:22]
Jim Cramer
Okay. On semi is a very difficult situation because it's an industrial, I wouldn't call it Internet of things, semiconductor. Those stocks are all going lower because they all have auto exposure. Auto places. No, auto is no place to be. Auto industry slowing down. So even though I think that Hassan El Corey does a fantastic job on. I'm going to say it's got to go even lower still. And I can't recommend it as painful as that is because it is cheap. Let's go to Curtis in Illinois, please. Curtis. Booyah. Dr. Kramer, the fly. Yes, definitely. I put in $3 billion. $3 million bet or moneyline bet And I'm out of Kentucky today. No, that was not me. It's someone who really is very bullish on the Eagles. How can I help?
- [45:07]
Caller
Yes sir, I like to know about a little company called Applied Industrial Technology.
- [45:14]
Jim Cramer
All right. Now this is the kind of company I do like. This is an industrial company of all different kinds of things. It reminds me very much of Dover and Illinois Tool Works. Both of which we like very very much. And that ladies and gentlemen is the conclusion of the Lightning round.
- [45:31]
American Express Representative
The Lightning Round is sponsored by Charles Schwab.
- [45:42]
Jim Cramer
Boy oh boy. When you report a good number in this tape be prepared to be rewarded. That's all I can say after seeing the action. Lululemon and Ulta Beauty today both delivered excellent top and bottom line beasts. Both saw their stocks soar. Lulu up almost 16%. Ulta up 9%. Their stunning moves are a testament to a new phase of this market. One which rewards all the board for performing well are dramatic, even violent crushing anyone who might be betting against these companies. Both have had their dollars over the last few quarters and there been a lot of people betting that we'd see some weakness from them. When they reported Alta's had to deal with a slowdown. The cosmetics lose. Clothing is exactly cheap and except for Ralph Lauren and William Sonoma, most retailers that sell goods at full Price well, they fare poorly. Both were ripe for a bruising, but both are beyond expectations, at least for those who didn't pay attention to what these companies have been saying. You know, for instance, we had also on the show at the end of October, I thought CEO Dave Kimball had a ton of good things to say. The competition, namely from the seemingly endless openings of Sephora, simmered down the mass cosmetic buyers have returned. The loyalty club members were spring for all sorts of goodies. It was hard not to feel more bullish about Ulta after a period where skin care and cosmetics had stalled and the customer was cutting back on spending. Still, despite a very bullish interview, the market was shocked. Shocked when all the things Kimball said on our show were happening. I mean, they happened. The stock erupted on news. Except I wouldn't even call it news because we broke the story with that interview a few weeks, five weeks ago. A reminder of why we do these interviews in the first place. Little Lemon showed you something special when we spoke with CEO Calvin McDonald's walk on the street this morning. He explained that not only was he able to maintain full price for the goods in the U.S. no promotions here, but he also has exceptionally strong sales in mainland China. Inventories in check loyalty program still growing nicely. Newness the key driver behind Lou's excellent sales. It was truly an excellent quarter at every level. Sure there were some nitpickers out there. US still a negative same store sales, but I bet those could be coming back. That may be a thing of the past. Company bought back a ton of stock during the quarter. Pretty prescient. It looks like they took out a lot of sellers when they did. That's become surprisingly common in this market. It seems as if the sellers for so many stocks either don't have that much stock left to sell or just out of shares entirely. Well, I've seen some bullish stock market eras before. You didn't know that. This is an extraordinary thing to see such outsized moves on very good earnings news. Usually sellers materialize at some level and the stock can't break through that ceiling. The price points tend to be too attractive to resist selling, but the sellers just aren't showing up in this phase of the market, which means there's no building ceiling. It just seems like everyone's content to stand pat up 10, 20, 30, even 40 points. That's new. That's different. And it's positive for those who held through adversity. I'm not a critic here. Lululemon and Alta had stocks that were undervalued going into the print, and they're still undervalued even after these runs. They absolutely deserve the premium. Just be aware that we're seeing this kind of action all over the place and there are many other stocks that don't deserve the premium. Those overly appreciated stocks, well, they're going to give back their gains once the seller starts showing up again, and they always end up doing so, Alex says, as always, Bull market. Sell my prime shop just for you right here. Mid Money. I'm Jim Cramer. See you Monday.
- [49:08]
American Express Representative
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of cnbc, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com mad money disclaimer is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning, and effective communication, and you can apply these skills right away. A different future is closer than you think with Capella University. Learn more@capella.edu.