Buy-the-dip candidates: Caterpillar, Chewy, Carnival
|Toronto Star 15 Jun 2021 at 16:02|
The Nasdaq and the S&P 500 on Monday closed at records as Wall Street prepared for a key meeting of the Federal Reserve later this week.
And the S&P 500 posted its second consecutive record closing high on Friday with investors assessing the Federal Reserve’s stance that inflation spikes will prove to be transitory. The S&P 500 rose 0.4 per cent last week, TheStreet’s Joseph Woelfel noted. Jim Cramer doesn’t expect changes from the Federal Reserve.
Cramer likes Caterpillar (CAT) and has liked Caterpillar for a while, and sees it as a good target for buyers of the dip should the Fed decide to begin unloading assets and markets fall.
Here are several stocks that fell this past week and could present an opportunity to buy the dip.
The artificial-intelligence-driven lending platform Upstart (UPST) boosted its full-year revenue guidance and received price-target upgrades from Wall Street analysts. For fiscal 2021 Upstart expects $600 million in revenue, 20 per cent higher than its previous estimate of $500 million.
The company also reported a second-quarter-revenue forecast that topped expectations and first-quarter results that were better than expected.
When it comes to meme stocks, MeetKevin’s Kevin Paffrath said last week that “momentum stock” is the more accurate term for stocks such as GameStop (GME) . But Cramer says that “meme stock” is a better name for GameStop and AMC (AMC) , while “momentum stock” could be a better term for Wendy’s (WEN) .
Cramer is in favour of keeping the phrase “meme stock” to distinguish normal trading action, where investors bet on companies they believe in, from meme stock trading, where Cramer says the objective is to punish short sellers. GameStop was up 1.68 per cent, extending gains Friday of 5.9 per cent.
Electric vehicle battery makerQuantumScape Corp. (QS) reported first-quarter results that missed estimates. The company reported a net loss of 20 cents a share, compared with a 6-cent loss in the year-earlier quarter. Analysts polled by FactSet expected a loss of 7 cents a share for the latest period.
BlackBerry (BB) shares jumped to a nine-year high earlier this month as Reddit users continued to talk up the cybersecurity company. “BB is built different,” one Reddit user wrote. “Finally Wall Street is giving BlackBerry the recognition and share price it deserves.” The company was the second-most mentioned company on Stocktwits, a popular community of retail investors, trailing fellow meme stock AMC, Bloomberg reported.
The mobile gaming company Skillz (SKLZ) recently said it had agreed to acquire the marketing platform Aarki for about $150 million in cash and stock. The company said the acquisition would broaden its footprint across the mobile gaming industry by combining its competitive platform with Aarki’s advanced advertising capabilities.
Cramer does not expect the Federal Reserve to change its monetary policy, but should the Fed decide to begin unloading assets and markets fall, Caterpillar (CAT) could be a good target for buyers of the dip. Cramer said taper trades mostly affect commodities, but he specifically cited Caterpillar and some of the other stocks he follows.
Pfizer Inc. (PFE) and BioNTech (BNTX) announced plans to provide the U.S. government 500 million doses of the companies’ COVID-19 vaccine at a not-for-profit price. The companies will deliver 200 million doses in 2021 and 300 million doses in the first half of 2022, to further support the multilateral efforts to address the surge of infection in many parts of the world and to help end the pandemic.
The government will, in turn, donate the Pfizer-BioNTech vaccine doses to low- and lower-middle-income countries and organizations that support them.
Fuel-cell maker Plug Power (PLUG) said it completed the restatement of its financial statements for the past three years. The company said the restatements had no effect on its cash position, business operations or economics of its commercial arrangements.
“For those who like hydrogen, the stock to like is Plug Power,” Cramer said in an interview. “The company has been getting breakout orders, which I like. But at the same time hydrogen is at 60 bucks; it needs to be competitive with oil.”
Cruise line operator Carnival Corp. (CCL) confirmed plans to restart passenger voyages next month. Carnival said cruises from its port in Galveston, Texas will begin on July 3 via its Carnival Vista, with the Carnival Breeze launching on July 15 from the Port of Miami. Passengers who have received their final dose of a CDC-approved coronavirus vaccine at least 14 days prior to sailing are eligible for travel, the company said.
In March, Carnival received price-target increases from J.P. Morgan, based on the prospect of economic recovery.
Norwegian Cruise Line Holdings (NCLH) announced the next phase of its planned resumption of cruising across its three cruise lines. The company announced plans for eight additional ships to relaunch beginning Fall 2021.
Oceania Cruises will resume cruise operations with three additional ships between October 2021 and January 2022, and Regent Seven Seas Cruises will see all five ships back by February 2022. Voyages expected to operate in the U.S. are contingent on obtaining a Conditional Sailing Certificate from the CDC, and all initial voyages will operate with fully vaccinated guests and crew.