How Jim Cramer Advises Navigating the Macro Slide and His Take on 5 Stocks

In this article, we will look at ‘How Jim Cramer Advises Navigating the Macro Slide and His Take on 5 Stocks’. Please visit our article How Jim Cramer Advises Navigating the Macro Slide and His Take on 12 Stocks, if you’d like to see the extended list and methodology behind it.

5. Lemonade, Inc. (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was featured on Mad Money as Jim Cramer shared his take on the stock amid a sliding macro environment. Cramer mentioned the company during the episode and said:

Look, it is a tough market. We’re asking everybody about stocks, but the real companies under it, too. What do we make of the recent action, for instance, in the stock of Lemonade, the insurance technology company that uses AI to set its policies? Here’s a stock that came public with a bang in 2020, then languished a bit after the pandemic, going through the meat grinder like so many others in 2021, 2022, and then spending the next couple of years moving sideways. But over the past 18 months, as people recognize the value of AI, Lemonade’s growth has accelerated, while its losses have shrunk and the stock climbed from the mid-teens to a high of just under $100 earlier this year. Now, of course, as the market got choppy in recent months, this thing’s pulled back, just under $66 as of today, like many other stocks. I gotta tell you, I think this is a compelling story… I have to tell you, this may be the kind of stock you buy in one of these sell-offs.

Lemonade, Inc. (NYSE:LMND) provides insurance products, including renters, homeowners, car, pet, and life insurance. The company offers coverage for property damage and personal liability while also acting as an agent for other insurers. We recently discussed Morgan Stanley’s recent coverage of the stock, which you can read about here.

4. Dollar General Corporation (NYSE:DG)

Dollar General Corporation (NYSE:DG) was featured on Mad Money as Jim Cramer shared his take on the stock amid a sliding macro environment. Inquiring about the stock, a caller mentioned that they think it will go higher. Cramer replied:

Yes, yes… because they picked, they’re trying to expand really well in food, and they picked a guy who has managed a lot of great, I mean, really great grocery chains and done a terrific job. I say yes to Dollar General. It’s also kind of the right environment for Dollar General.

Dollar General Corporation (NYSE:DG) sells everyday essentials, including food, household items, personal care products, and apparel at affordable prices. In addition, it provides seasonal goods, pet supplies, and home products. A caller inquired about the stock during the February 2 episode, mentioning that Cramer recommended it last year, and he responded:

I know who you’re talking about. Dollar General… okay. I went to Dollar General… The reason I recommend this stock, I had a fabulous experience at my Dollar General… It was much better than before. I went aisle by aisle by aisle. I know they were thinking what are you, casing the joint? What’s he casing the joint? Because if I want to do a good job for you… I take the stuff that Wall Street does. I take a look at the conference calls, and then I go into my own aisles and see what’s going on. And Dollar General was terrific, and you know what? It remains terrific.

3. Chewy, Inc. (NYSE:CHWY)

Chewy, Inc. (NYSE:CHWY) was featured on Mad Money as Jim Cramer shared his take on the stock amid a sliding macro environment. Cramer discussed the company’s quarter and the following market reaction, as he stated:

Yesterday morning, we got a solid set of results from Chewy, the online pet supply retailer, and the stock immediately jumped 13% in response, in part because it had been beaten down for the past 10 months, so it didn’t take all that much to generate a rebound… What really matters, though, is that Chewy gave solid guidance for the current quarter and a very bullish full year forecast…

You wouldn’t appreciate why this was a good quarter for Chewy if you only looked at the analyst reactions to the report, because most lowered their price targets… But honestly, I wouldn’t read too much into that… They were just using the quarter as an excuse to get their targets more in line with reality… The new average price target stands at $40 and change. That’s still up more than 50% from where the stock’s currently trading. Instead, I think Chewy’s 13% gain yesterday, which was followed by another 1.7% gain today in a really terrible market, was the right read on the quarter. This was a solid set of numbers from Chewy with a better outlook and, perhaps most importantly, a reaffirmation of the company’s long-term plan, which will lead to continued market share growth and steadily expanding profits.

Here’s the bottom line: I know Chewy’s had a rough run for the past six months, but here, with the stock selling for just 17 times this year’s earnings estimates, with this kind of growth, it’s the cheapest it’s ever been. I think you’re getting a great chance to do some buying even after yesterday’s big bounce. Chewy’s story remains firmly on track, and I bet yesterday’s move is merely the beginning of a longer and larger rally.

Chewy, Inc. (NYSE:CHWY) runs an online marketplace for pet food, supplies, medications, and health products, along with a range of pet services. We recently discussed CHWY while covering stocks investors are buying now. You can read about it here.

2. Medtronic plc (NYSE:MDT)

Medtronic plc (NYSE:MDT) was featured on Mad Money as Jim Cramer shared his take on the stock amid a sliding macro environment. When a caller asked about the stock, Cramer said:

I have to tell you, I was surprised that Medtronic got back down to the high $80s. I think that everything they’ve been doing lately is right. I think you’ve got a good one. By the way, it’s 15 times earnings. That’s very inexpensive. I would buy more… I know it sounds like you’re just averaging down into oblivion, but I think it’s a great level.

Medtronic plc (NYSE:MDT) develops and sells device-based medical therapies to healthcare systems, physicians, and patients. The company provides specialized products, including cardiac pacemakers, surgical instruments, robotic-assisted surgery platforms, and a number of diabetes management systems.

1. NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corporation (NASDAQ:NVDA) was featured on Mad Money as Jim Cramer shared his take on the stock amid a sliding macro environment. Cramer called it the “easiest stock in the world to trade,” as he commented:

First, we have to ask, is NVIDIA stock down because of the war? I contend the war has something to do with NVIDIA, but it’s not totally quantifiable. I will posit this: NVIDIA’s a big, big part of the stock market itself, and it’s also the easiest stock in the world to trade. I think it’s going down because it’s so easy to get back in at a lower level… Next, is NVIDIA down because interest rates are going up largely because of war-related inflation? Entirely possible. The company will do better with lower rates because lower rates make it easier to build more data centers.

That said, if the war ends soon and we have a new Fed chief, you’ll feel like a moron for staying away from NVIDIA… Third, is there an intrinsic reason that NVIDIA might be down that’s incorrect? I think that’s true… Next item, how about oil? NVIDIA’s data centers run mostly on natural gas, which is U.S.-based and is rarely budged. So no, its computers could be impacted, its customers could be impacted, absolutely, but everything you use for NVIDIA is considered mission critical, so I’m not concerned…

Finally, we need to know is there anything about demand here that could be dropping off, war or not?… Last week, I attended the NVIDIA GTC conference, and I learned that demand is incredibly strong… What does the evidence cut to? I’d take the Chem Seven right now over buying NVIDIA tomorrow. But depending upon what happens these next 10 days, I might be done with the chemicals. I won’t be done with NVIDIA… To me, you’re only being given a chance to buy a high-quality stock at a lower price than you normally expect, because everyone’s saying it’s a watershed moment and it’s finished. You can’t time it. Don’t forget that. You can always buy more lower because, actually shocking, NVIDIA does get cheaper as the stock goes down.

NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.

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