In this article, we will look at Jim Cramer’s stock calls and the truth about strong consumer spending despite the Iran conflict. On Monday, the host of Mad Money talked about how consumer spending is holding up even as tensions rise amid the conflict with Iran.
It all starts with retail. That’s how everything works in this country. We see the strengths and weaknesses of the consumer at the register, and we make judgments because our country’s economy is based on service, not manufacturing. And all I can say is so far so good. No recession yet in sight, at least not here. We may be traumatized by the events in the Middle East, but so far, they haven’t impacted consumer spending. The consumer apparently remains confident, paying up, defying the toxic political environment in the country. I keep thinking she’ll hit a wall as the price of gasoline goes higher, but maybe not, given that cars are a lot more fuel efficient than they were the last time we had an oil shock. And gasoline seems cheap. It hasn’t been hit by the inflation stick like so many other commodities.
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Talking about travel, Cramer said that it mystifies him. He pointed out that airlines continue to perform well, even as issues with the TSA raise questions about why travelers would feel comfortable heading to airports. He added that companies like Airbnb and Marriott International are showing strength, while Booking Holdings has lagged behind, which he called “highly unusual.” He also noted that cruise operators are currently doing well, although there are already signs that some trips scheduled for next year are being canceled, which he said is not surprising given that the ongoing war is disrupting ocean travel routes.
Every day we hear that the consumer’s teetering. You hear it. I hear it. We hear that healthcare costs are going up, that energy’s up 32%, that car loans are stressed, but the retailers show it’s not true. Maybe it’s bigger tax refunds, maybe it’s low unemployment. Either way, it’s contrary to what you can expect and what I think the media’s reporting. And if President Trump can really deliver an end to the war, you can rest assured this group is to buy. I just don’t know if the Revolutionary Guard will cooperate. From what they’re saying, it seems a little unlikely.
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 23. We listed the stocks in the order that Cramer mentioned them.
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Jim Cramer’s 10 Stock Calls and the Truth About Strong Consumer Spending Despite the Iran Conflict
10. Dollar Tree, Inc. (NASDAQ:DLTR)
Dollar Tree, Inc. (NASDAQ:DLTR) made our Mad Money recap, as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer showed bullish sentiment toward the stock despite it being off its “game,” as he said:
The dollar stores, Dollar General, and Dollar Tree, they seem off their game right now. I wouldn’t bet against them, though. They always seem to pull a bull out of a hat.
Dollar Tree, Inc. (NASDAQ:DLTR) sells everyday essentials, household items, toys, and seasonal products at low prices. The company focuses on providing affordable food, personal care, home goods, and holiday merchandise. Cramer mentioned the stock during the March 19 episode and said:
This whole group has rallied like crazy since the post-Liberation Day lows last April. Initially, everyone thought these companies would be crushed by the tariffs because they relied heavily on cheap imports, but then most of these tariffs got rolled back, allowing the dollar stores to rebound. Lately, though, the dollar stores have pulled back hard. Dollar General’s down nearly 15% since it reported last Thursday morning. Dollar Tree had already started coming off its highs in January and February. When it reported Monday, the stock rallied 6.4%, but since then, it’s given back all of its post-quarter gains. Both Dollar General and Dollar Tree reported solid results, but… somewhat disappointing guidance.
9. The Home Depot, Inc. (NYSE:HD)
The Home Depot, Inc. (NYSE:HD) made our Mad Money recap, as Jim Cramer shared his take on the stock and highlighted resilient consumer spending despite the Iran conflict. Cramer explained why the Charitable Trust is holding on to the stock, as he remarked:
The only miss is the home-related stores and… dollar emporiums. The housing-related retail stocks are simply unable to move up because they’re tied to home sales, and the housing market’s frozen. Until interest rates come down, I don’t expect anything to bail out the stocks of Home Depot, RH, or Best Buy, for that matter. That said, if the war really winds down, and Fed Chief-in-waiting Kevin Warsh genuinely tries to cut interest rates, they could be winners. That’s why we hold on to Home Depot for the Charitable Trust.
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that sells tools, building materials, and decor. It also provides installation and equipment rental services. A caller asked for Cramer’s thoughts on the stock during the March 4 episode, and he responded:
Home Depot, big position for my Charitable Trust. It’s been problematic, but we have it on because rates are going to get cut, and you have to own the stock when rates get cut.
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