HOTTEST
Monticelllo | Getty Images Global investors are being overly complacent about downside economic risks, aggravated but not limited to the growing impact of coronavirus. They are underestimating the forces that are changing the very nature of the world economy – a growing degree of “deglobalization” in the face of U.S.-Chinese decoupling. At the same time, […] More
Monday – Friday, 6:00 – 7:00 PM ET
CNBC’s Jim Cramer on Wednesday offered investors a list of seven semiconductor chip stocks he believes could be attractive buys.
“Growth at a reasonable price abounds in this beaten-down market, and that includes the more controversial semiconductor space,” the “Mad Money” host said.CNBC’s Jim Cramer on Wednesday offered investors a list of seven semiconductor chip stocks he believes could be attractive buys.
“I think there’s a sense that the chipmakers will get hurt as we head into a [Federal Reserve]-mandated recession,” the “Mad Money” host said, referring to the Fed’s upcoming interest rate hikes. “At these levels, I think a bunch of them have started to look pretty enticing,” he added.Here are his picks for the best semiconductor stocks that have reasonable valuations and earnings growth:
Micron
Western Digital
Advanced Micro Devices
Skyworks Solutions
KLA
Lam Research
Applied Materials“Growth at a reasonable price abounds in this beaten-down market, and that includes the more controversial semiconductor space. Just be aware that these chip stocks might remain at a reasonable price for the foreseeable future because Wall Street has just got no love — until today — for this entire darn group,” he said.
Cramer’s latest list of investable growth stocks comes after he earlier this week highlighted four financial stocks and six travel and leisure stocks buyers should have on their radars. To pick his favorite stocks in each sector, Cramer has used the same list of stocks containing companies from the S&P 500 that meet his criteria for having a reasonable valuation and earnings growth.
Disclosure: Cramer’s Charitable Trust owns shares of AMD.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.Disclaimer
Questions for Cramer?Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s world? Hit him up!Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.comWATCH LIVEWATCH IN THE APP More
Lululemon’s winning streak continued Thursday after it reported sales and profits that beat Wall Street’s estimates.
The athletic apparel retailer, known for its yoga pants and sporty purses, now expects sales of $9.51 billion to $9.57 billion for the fiscal year.
Sales were fueled by strong growth internationally, including a 61% boost in China.A customer enters a Lululemon store on June 02, 2023 in Corte Madera, California.
Justin Sullivan | Getty ImagesLululemon raised its full-year guidance Thursday after reporting an 18% jump in both sales and profit for its fiscal second quarter, boosted by a 61% revenue spike in China.
The athletic apparel retailer now expects sales to be between $9.51 billion and $9.57 billion for the fiscal year, compared to a previous range of $9.44 billion to $9.51 billion.Lululemon is expecting profits to be between $12.02 to $12.17 per share for the year, compared to a previous range of $11.74 to $11.94.
For its current quarter, the retailer is forecasting earnings per share of $2.23 to $2.28 and sales of $2.17 billion to $2.19 billion, in line with analysts’ expectations, according to Refinitiv.
Here’s how Lululemon did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:Earnings per share: $2.68 vs. $2.54 expected
Revenue: $2.21 billion vs. $2.17 billion expectedThe company’s reported net income for the three-month period that ended July 30 was $341.6 million, or $2.68 per share, compared with $289.5 million, or $2.26 per share, a year earlier.
Sales rose to $2.21 billion, up about 18% from $1.87 billion a year earlier.The top and bottom line beats were fueled by strong growth internationally. The retailer saw sales jump 52% in markets outside of North America, boosted by a 61% increase in China. That’s up from 30% growth in the region in the prior-year quarter.
Lululemon’s finance chief Meghan Frank said there was little volatility in the region during the quarter. She described the sales growth as “strong” and “healthy,” even as China’s economy slows with retail sales up just 2.5% year over year as of this July.
CEO Calvin McDonald said both e-commerce and in-store sales are performing “incredibly well” in China.
The retailer now has 107 stores in the country, and of the 35 it plans to open internationally during the current fiscal year, the majority will be in the region, McDonald said.
Sales in North America were up 11%. Meanwhile same-store sales across the global business fell short of expectations: Comparable sales were up 11% in the quarter, compared to an estimate of up 12.1%, according to StreetAccount.
Lululemon has undertaken an ambitious growth plan — its “Power of Three x2” strategy — that calls for sales to double to $12.5 billion by 2026 compared to 2021’s revenue of $6.25 billion. To get there, the retailer has been working to expand its brick-and-mortar footprint and double its men’s and direct-to-consumer revenue.
Sales in the men’s category were up 15% during the quarter, and the retailer opened 10 new stores on a net basis, including its first in Thailand. By the end of the quarter, it had 672 stores globally.
It’s also been working to address a persistent inventory glut, with year-over-year levels steadily coming down. During its second quarter, inventories were up 14% to $1.7 billion, compared with $1.5 billion in the year-ago quarter. The strong sales helped inventories move, as well as lower air freight costs, said Frank.
While turnover rates are still a bit slower than historical levels, the company said it’s in a good position with both the currency and level of its inventories, she said.
Direct to consumer revenue was up 15% but it was a smaller part of Lululemon’s overall channel mix in the quarter. Direct to consumer sales represented 40% of Lululemon’s overall sales, compared to 42% in the year ago period.
Lululemon’s gross margin was largely in line with expectations at 58.8%, compared to the 58.5% analysts had expected, according to StreetAccount.
Read the full earnings release here. MoreMedical workers wearing personal protective equipment (PPE) administer Covid-19 tests at a drive-thru testing site at the Alemany Farmers Market in San Francisco, California, U.S., on Thursday, Nov. 19, 2020.
David Paul Morris | Bloomberg | Getty ImagesThe United States reported 187,833 new Covid-19 cases on Thursday, yet another record-breaking daily total as U.S. health officials urge Americans to stay home for Thanksgiving and states impose tighter restrictions to slow the persistent spread of the virus.
“We’re alarmed,” Dr. Henry Walke, the U.S. Centers for Disease Control and Prevention’s Covid-19 incident manager, said during a press briefing Thursday where the agency urged people not to travel over Thanksgiving.“One of our concerns is that as people over the holiday season get together, they may actually be bringing infections with them to that small gathering and not even know it,” he said.
The U.S. first crossed 100,000 new Covid-19 cases on the Nov. 3, Election Day, and infections have continued to climb to all-time highs ever since. The nation has reported a weekly average of 165,029 new cases every day, a record-breaking streak that’s lasted for 24 consecutive days, according to a CNBC analysis of data compiled by Johns Hopkins University.Arrows pointing outwards
Unlike other peaks in the spring and summer that hit the Northeast and Sunbelt states, infectious disease experts have said the latest surge has no clear epicenter. Some state and city officials have warned that there’s so much spread, local outbreaks cannot be traced back to a single event or venue.
“I believe this is the most serious public health moment we’ve experienced since 1918 and the swine flu,” Dr. Michael Osterholm, a coronavirus advisor to President-elect Joe Biden, told CNBC’s Meg Tirrell during a Healthy Returns: The Path Forward event on Friday.
“We realize that we have a very dangerous period for the next two weeks that we’re going to have to respond to. We’re already watching our hospitals being overrun,” Osterholm said.In the U.S., a record 80,698 Covid-19 patients were in the hospital Thursday, according to the Covid Tracking Project, which is run by journalists at The Atlantic. Hospitals in at least 25 states are critically short of health-care workers to care for the influx of coronavirus patients, with some people traveling hundreds of miles for an open hospital bed, STAT News reported.
A handful of states and cities are closing nonessential businesses, limiting public and private gatherings and imposing curfews to try to slow the rapid spread. Some Republican leaders in Iowa, North Dakota and Utah, who have long resisted statewide mask requirements, are now ordering residents to wear face coverings in public.
Many governors and mayors have made it clear, however, that they don’t want to shut down the economy again like many did in March and April at the outset of the outbreak.
The White House coronavirus task force’s latest weekly report, obtained by NBC News, painted a bleak picture.
“There is now aggressive, unrelenting, expanding broad community spread across the country, reaching most counties, without evidence of improvement but rather, further deterioration,” it said.The World Health Organization on Wednesday warned that the outbreaks in several countries are beginning to overwhelm hospital systems, which will ultimately lead to worse outcomes for severely-ill patients since health-care workers will be forced to ration their time and attention.
“There’s only one way to stop more people from needing to go to the hospital, and that’s to stop more people getting exposed and getting infected,” Dr. Mike Ryan, executive director of the WHO’s health emergencies program, said during a press briefing.
Coronavirus fatalities in the U.S. are rising at an alarming rate. The daily U.S. death toll hit a weekly average of 1,335 people on Thursday, a figure last reported in May, according to Hopkins data. Earlier this week, the CDC updated its forecast for Covid-19 deaths to show that “newly reported COVID-19 deaths will likely increase over the next four weeks, with 7,300 to 16,000 new deaths likely to be reported in the week ending December 12, 2020.”
During a White House coronavirus task force press briefing Thursday — the first public appearance from the group led by Vice President Mike Pence since July — Pence and other officials repeatedly assured Americans that the U.S. has never been better equipped to combat the crisis.
Although the vice president acknowledged the rising cases and hospitalizations, he reiterated the positive vaccine developments in recent weeks, saying that the country could have one or more safe and effective vaccines “in a short period of time.”
Those comments come as companies like Pfizer and Moderna report promising preliminary data showing their vaccines to be more than 90% effective in preventing Covid-19. Pfizer, which is developing its vaccine with BioNTech, will apply for an emergency use authorization from the Food and Drug Administration on Friday.
Dr. Scott Gottlieb, the former FDA commissioner under President Donald Trump, told MSNBC’s “Morning Joe” on Friday that he expects an authorization could come by mid-December. However, vaccine doses will be limited this winter and will “have an impact for some Americans on the tail end” of the latest outbreak, but “it’s really not gonna change the contours.”
White House coronavirus advisor Dr. Anthony Fauci, who sits on the task force, also urged Americans on Thursday to take precautions as they await a vaccine.
“Now I’ve used that metaphor that the cavalry is on the way. If you’re fighting a battle, and the cavalry is on the way, you don’t stop shooting,” Fauci said. “You keep going until the cavalry gets here and then you might even want to continue fighting.”
— CNBC’s Nate Rattner and Will Feuer contributed to this report.Disclosure: Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer, genetic testing start-up Tempus and biotech company Illumina. Gottlieb also serves as co-chair of Norwegian Cruise Line Holdings′ and Royal Caribbean’s “Healthy Sail Panel.” More
Parking lots, of all places, are turning into bigger sources of revenue for some mall owners during the coronavirus pandemic. They’re hosting drive-in movie theaters, food venues and more. More
Monticelllo | Getty Images Global investors are being overly complacent about downside economic risks, aggravated but not limited to the growing impact of coronavirus. They are underestimating the forces that are changing the very nature of the world economy – a growing degree of “deglobalization” in the face of U.S.-Chinese decoupling. At the same time, […] More
Monday – Friday, 6:00 – 7:00 PM ET
CNBC’s Jim Cramer on Wednesday offered investors a list of seven semiconductor chip stocks he believes could be attractive buys.
“Growth at a reasonable price abounds in this beaten-down market, and that includes the more controversial semiconductor space,” the “Mad Money” host said.CNBC’s Jim Cramer on Wednesday offered investors a list of seven semiconductor chip stocks he believes could be attractive buys.
“I think there’s a sense that the chipmakers will get hurt as we head into a [Federal Reserve]-mandated recession,” the “Mad Money” host said, referring to the Fed’s upcoming interest rate hikes. “At these levels, I think a bunch of them have started to look pretty enticing,” he added.Here are his picks for the best semiconductor stocks that have reasonable valuations and earnings growth:
Micron
Western Digital
Advanced Micro Devices
Skyworks Solutions
KLA
Lam Research
Applied Materials“Growth at a reasonable price abounds in this beaten-down market, and that includes the more controversial semiconductor space. Just be aware that these chip stocks might remain at a reasonable price for the foreseeable future because Wall Street has just got no love — until today — for this entire darn group,” he said.
Cramer’s latest list of investable growth stocks comes after he earlier this week highlighted four financial stocks and six travel and leisure stocks buyers should have on their radars. To pick his favorite stocks in each sector, Cramer has used the same list of stocks containing companies from the S&P 500 that meet his criteria for having a reasonable valuation and earnings growth.
Disclosure: Cramer’s Charitable Trust owns shares of AMD.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.Disclaimer
Questions for Cramer?Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s world? Hit him up!Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.comWATCH LIVEWATCH IN THE APP More
BUSINESS
Eli Lilly sues two pharmacies making copycat Zepbound, Mounjaro
Federal funding cuts are raising questions about university endowments. Here’s what some are worth and how they work
Vaccine stocks fall after key FDA official resigns in protest of RFK Jr.
Conservative cable channel Newsmax spikes more than 700% in first trading day on NYSE