Transcript
Homes.com Narrator (0:00)
Homes.com knows that when it comes to home shopping, it's never just about the house or condo, it's about the home. And what makes a home is more than just the house or property. It's the location and neighborhood. If you have kids, it's also schools, nearby, parks and transportation options. That's why homes.com goes above and beyond to bring home shoppers the in depth information they need to find the right home. And when I say in depth, I'm talking deep. Each listing features comprehensive information about the neighborhood, complete with a video guide. They also have details about local schools with test scores, state rankings and student to teacher ratio. They even have an agent directory with the sales history of each agent. So when it comes to finding a home, not just a house, this is everything you need to know, all in one place. Homes.com, we've done your homework.
Jim Cramer (0:48)
What made you confident that you could.
Julia Boorstin (0:51)
Do something that hadn't been done before? I have no fear of failure. Trailblazing women, Changing the game Favorite pieces.
Jim Cramer (0:58)
Of advice Think about what your boss's boss needs.
Julia Boorstin (1:02)
Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just gotta think big to accomplish big things. Julia Boorstin hosts CNBC Changemakers and Power Players. New episodes every Tuesday, wherever you get your podcast.
Jim Cramer (1:42)
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Crame America, my friends. I was trying to make a little bit of money here. My job is not just entertain, but to educate you. So call me at 1-800-743-CBC. Tweet me at Jim Cramer. Sometimes things just get out of whack with stocks at the beginning of the year. No worries. The market is an establish correct itself right in front of you. It can look inconsistent, even crazy when it all happens, but it's all part of a natural order of rationalization you need to embrace if you want to be a successful investor. So in a day when The Dow rallied 270 points, S&P edged up.01%, Nasdaq declined.44%. Let's go under the hood and figure out the method behind the market's madness. I want to start with two. It's a little cute, I know, but I'm going to give it a shot. Two big constellations, Constellation Energy, the independent power producer, and Constellation Branch, the beer, wine and spirits business. The big hyperscalers are obsessed with clean energy. That's why they're in love with Constellation Energy, which is the nation's most visible Nuclear powered utility. As clean as it gets if you want reliable electricity. Constellation has been loved to the point where the stock is up over 175% over the last two years. Stock seems invincible. Sells for 28 times. This year's earnings was pretty darn pricey, especially for a utility. Now how about Constellation, the beer company stc? It's been one of the worst stocks in the entire market over the last years. It is down over 40%. This one's been a toll Parade of arables. Beer has gone up a great deal price. Call it labor in cans. Younger people no longer drink like the older coworker. It's only going to get worse as the heavy drinking baby boomers age out. The company imports beer from Mexico. Very high packaging tax. The president's policies hurt it. Their customer base leans Hispanic which means those customers don't want to go out as often thanks to the immigration crackdown and yes, the omnipresent GOP. 1 Weight loss drugs make beer taste like nothing expensive nothing. So what's happening? Constellation Energy stock has already fallen from 353 to 322. I see no signs of this stock bottoming. To me it looks dangerously expensive. As for Constellation branch, I'll give you a full explanation later the show but let's just say that the Stock is down 13 times earnings and I think that may have overcorrected. In short, the value of two Constellations got out of whack and a company that makes liquor is certainly worth more or at least something we don't know what then under 13 times earnings. That's too low given the Constellation does make the beer with the most U.S. revenue. That's Modelo Especial. Or how about Costco versus Wal Mart? Well, this is really interesting. See last year was Wal Mart. Year this stock was up over 23% as the market recognized that this was the store of choice to for cash strapped consumers. Wal Mart even began to pull more customers from the upper middle class because CEO and now retiring sadly Doug McMillan made the stores more appealing while keeping prices low. Everyone loves low prices. However, Walmart's price journeys ratio how we measure whether the stocks cheap or expensive. It skyrocketed to the 40s. That was incredible. How about Costco? The sainted Costco? Well first it lost its long standing CFO Richard Glante more than 38 years he was the heart and soul of Costco. He knew pricing, new merchandise, knew the customer customer like no other CFO and most CEOs. Second, the renewal rates after steady as she goes upward. March finally faltered going more slowly, certainly more slowly than the street was looking for. For that we were paying more than 50 times earnings or last year. Come on. So of course this stock just got clobbered becoming an almost permanent denizen on the 52 week low list. By late last year we while the s and P500 was up 16% Costco stock actually declined 6%. But since the new year began, oh, it's a different story. Wal Mart's done nothing while Costco Stock has rallied from 862 to 915 including a monster 3.7%. Did it again today after some good numbers last night and I don't think it's done or this week. I told you Larry Williams, the great technician said Costco screaming, screaming by that number that they got last night much better than expected monthly sales I like to every single bit of it. The comparable sales accelerated in December with digital stepping up versus November. The year over year numbers showed a terrific gain. It was the best beat from the company that I've seen in quite a while. I think the estimates are now too low. I think we see a host of earnings bumps and price target increases. Costco, I like it. Or take Nike. Oh boy. The stock of Nike what it had been the house of pain. This thing spiked when they can the previous CEO and put in an old hand Elliot Hill he's had to work fast with his win now initiative. That includes returning the company to its roots as a sports based business. Still, if you take a longer term view, this stock has been a nightmare. Okay. But late last month three board members including Hill and Tim Cook, yes the CEO of Apple bought a ton of stock with Cook actually putting almost $3 million to work. Boy, talk about a handover fistfight of confidence. Today analyst from Needham decided to downgrade Nike. Sell, sell, sell from buy to hold. I'm going to quote because I thought it was just kind of outrageous. Quote the turnaround is progressing slower than we expected. We're concerned about the recent level of sell off in the North American wholesale channel. China appears highly problematic and street numbers for the next 12 to 24 months look to not look too high for us. To us quote did the stock get hammered in response to that incredibly negative sentences read no, it closed up more than 3%. Were Nike's buyers simply mocking this bearish analyst? Actually it's a new year and there's a lot of value in Nike. North America has already turned China is a disaster but Hill knows it he has a plan. I want to invest alongside Cook and Hill. I'm not dissuaded by what what Needham says, not at all. In fact I'm cheer when a stock goes up after such a sharp downgrade, you know, I think it's been immunized against the negativity. I predict analys analysts will come out from their from their foxholes, from their shelters and say bye, bye bye Nike. Finally, the homebuilders. Hardly a day goes by without an analyst downgrade in these stocks cut the price targets, they turn out to be a cut too far and the homebuilders actually bounced. I want to own them, I don't know but I do want to own the stock of Home Depot. A leading indicator rallied 3% today. Lots of people have given up on the stock because it's so tied to housing turnover. Something that would get a real boost though if the president can force institutional investors that own single family homes to dump them on mass. We own Home Depot for the Travel Trust proudly our only housing exposure. And I am beginning to feel pretty darn good about this situation which has been tough. Now some of these rebounds are because hope can spring eternal. Optimism tends to bloom at the beginning of the year. But that optimism does not come with new money. The cash to buy these things coming from somewhere else. Today these stocks were bought with gains from last year's winners, chiefly tech winners. These stocks have become sources of funds. It's not by luck that the worst performing Mag 7 stock in 2025 is Amazon. It's the best performing stock of the group so far in 2026. On the other hand, no matter what good in video says it's doing nothing. Nobody seems to care anymore. And that stock's being sold and that's providing a lot of cash for all the other stocks I talked about. I don't know how long this rotation from high performing stocks to low performing stocks will last. The valuations are shifting rapidly. I've seen this kind of early year action time and time again in my 44 years of trading and investing that sometimes it lasts about five days, other times I've seen it go for two weeks. Equilibrium tends to be reached by week three. But the bottom line for now brace yourself. It's Dylan time. Dylan kind so keep your eyes open because the wheel still in spin for the loser now will be later to win because the times they are changing. Jim in California, Jim.