In this article, we will look at Jim Cramer’s 5 Stock Calls Including Starbucks, TJX, and AI Opportunities in the Neocloud Space. Please visit Jim Cramer’s 22 Stock Calls Including Meta, NVIDIA, and AI Opportunities in the Neocloud Space if you’d like to see the extended list and methodology behind it.
5. The TJX Companies, Inc. (NYSE:TJX)
The TJX Companies, Inc. (NYSE:TJX) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer showed a bullish sentiment toward the stock, as he said:
Finally, a whole bunch of retailers got shelled by the rotation. I don’t want earnings risk when I extrapolate someone else’s worldview on my own stock picking, but if you think the consumer’s weaker, that means the consumer could be in trade-down mode. Trade-down means TJ Maxx. The stock got walloped right at the opening, fell below $150 before rebounding, finished the session off nearly three bucks, $151. I can’t think of a more advantageous place to buy this high-quality stock, down 20 points from its high. Very rare that you get that.
Remember, there are two components to TJX earnings: the trade down and the amount of excess inventory they can pick up from struggling retailers for pennies on the dollar. On the last conference call, management said there’s a ton of spare inventory sloshing around. That’s exactly what we want. It’s a key stock in the Charitable Trust.
The TJX Companies, Inc. (NYSE:TJX) sells off-price apparel, footwear, accessories, and home goods. The company offers a wide range of merchandise, including clothing, beauty items, furniture, decor, kitchenware, and seasonal products.
4. Constellation Brands, Inc. (NYSE:STZ)
Constellation Brands, Inc. (NYSE:STZ) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer suggested starting a position in the stock for people with higher risk tolerance, as he commented:
Now, for those who want to take a risk, you might want to start a position in, and I’m being, I’m out there on this one, Constellation Brands, STZ… The quarter Constellation just reported last week was one of the first that even remotely smacked of a bottom, especially in beer. I think there was enough here to say that we got a bottom in earnings, but this historic trader fell nearly $7 today, $130 and change. I think it’s a steal down here, I remember when it was double that, especially given the fact that the stock now has a 3% yield. And no, I am not worried about World Cup sales being down because Mexico lost in the World Cup.
Constellation Brands, Inc. (NYSE:STZ) sells beer, wine, and spirits, with beer brands such as Corona, Modelo, Pacifico, and Victoria. Its portfolio also includes wine and spirits labels such as Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, and SVEDKA.
3. Starbucks Corporation (NASDAQ:SBUX)
Starbucks Corporation (NASDAQ:SBUX) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer highlighted that he likes the company’s new product, as he remarked:
Next, we know that a cup of coffee at Starbucks might not be such a bargain, but oh, I like that new protein drink, by the way, more than some of the other guys. But this rotation has put the common stock on sale. It got dinged for more than two bucks today, $102. At one point, it traded at $100. CEO Brian Niccol has been working hard on the turnaround, but you’ve rarely gotten a break in the stock. Hey, speaking of coffee, for those of you who are junior growth enthusiasts, how about this one? Dutch Bros dropped 5.6% today.
Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, and other beverages, as well as food products, through its stores and licensed outlets. The company’s brands include Starbucks Coffee, Teavana, Ethos, and Starbucks Reserve.
2. PepsiCo, Inc. (NASDAQ:PEP)
PepsiCo, Inc. (NASDAQ:PEP) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer highlighted the stock’s decline as a buying opportunity, as he said:
Or how about PepsiCo? Okay, last quarter, PepsiCo reported a fantastic set of numbers that sent the stock soaring. Now, in part because of this rotation, the stock’s been knocked down all the way back to right around where it was before it took off. Today, PepsiCo dropped nearly a buck, sinking to a level where it sports a dividend yield north of 4%. I think the rotation has given you a terrific place to start a position ahead of Thursday’s report. I am sure that CEO Ramón Laguarta simply cannot be satisfied with the stock that’s flat for the year. That’s not his style.
PepsiCo, Inc. (NASDAQ:PEP) produces, markets, and distributes beverages and convenient foods, including snacks, cereals, dairy, and ready-to-drink products. Cramer praised the company’s CEO during the April 16 episode. He commented:
This morning, PepsiCo’s Ramon Laguarta put on a clinic about how to grow earnings in a group that we’ve all, for the most part, given up on, consumer packaged goods… Let me walk you through the details here because I think it’s an important story. PepsiCo’s a complex company and doesn’t lend itself to easy analysis. There’s Frito-Lay, the snacking business. It’s the chief mover of the stock. Then there’s the beverages led by Pepsi, but also, of course, with the inclusion of Gatorade, which had a total facelift today. The company’s been challenged by a multitude of hardships… Some of these headwinds have dissipated. We’re seeing some behavior changes among people in GLP-1s…
The answer is smaller packages. That’s what Ramon figured out. A small… pack of chips with a good price is crushing it here. The price differential of a smaller bag has worked for more than just GLP-1 users. It seems like a great deal for consumers who are tired of inflation. Second, Ramon’s winning with innovation. The fast hydration system of Gatorade, faster to hydrate than water, was just introduced. I think it’s going to be a home run. There’s acquisitions like poppi, a more natural drink that’s doing quite well. The analysts seem a little clueless about these changes, though. Most are focused on how Ramon’s been able to control costs…. Having been through COVID, Ramon’s learned how to source from around the globe, and he is hedged on aluminum till the end of the year.
Plus, Pepsico’s scale allows them to crush on price the smaller players who can’t keep up with the sourcing, and they certainly aren’t hedged on aluminum till the end of the year. So Frito’s taken share, he’s confounding the analysts who are mostly focused on gross margins, not the bigger picture of PepsiCo’s business. They seem to be expecting the same shortfalls the other food companies gave them. Not with this one. What Ramon’s work shows is that you have to be inventive. You have to be willing to cut price, which he only did with the chips by the way, and you have to source from around the globe. Oh, and you need some luck, like the changing attitudes of consumers on the GLP-1s. That’s how you get a PepsiCo-style upsize surprise. At the end of the day, you should always look for wins wherever you can find them, whatever aisle they’re in. And there are plenty of wins outside of tech. The bank doesn’t asterisk that money; go make some of it.
1. Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. Cramer was bullish on the stock and expects positive developments for the company, as he stated:
You’re going to see some massive moves in real time for no reason whatsoever. Why do we care about this? Because these rotations create dislocations that seem to come out of nowhere, and sometimes those dislocations can give you incredible opportunities to [buy, buy, buy] high-quality companies at a discount that shouldn’t even exist, and it wouldn’t if weren’t for the rotation. Today, we got a bunch of them. I’ve been recommending Johnson & Johnson ever since they mostly got past the overhang from all those talc lawsuits. No, the asbestos litigation hasn’t gone away, but J&J’s now fighting each case individually so there are really no major rulings that can impact the stock that much.
Johnson & Johnson reports on the 15th of July. Often, the stock trades erratically on the report date, I know that, but then it begins to run higher in a stair-step fashion. I think the company will have lots of good news about its myriad blockbuster drugs, especially its oncological franchise. I expect some good news about share gains in cardio, and I like that Johnson & Johnson’s separating itself from the scrum that is orthopedic surgery. Think knees, shoulders, waist, that have become commoditized. Selling the orthopedic business simply gives the rest of the company a much higher price-to-earnings ratio, meaning it goes higher just to get rid of something that’s not so good,
Today, the stock closed down $3.71 at $259.33. Do you know, at one point, the rotation took the stock all the way down to $256? This stock was $263 last week. Nothing’s happened. What a great level to start a position in a high-quality drug company. The crazy thing about J&J, it is now a pure-play pharma business with no consumer exposure to begin with. It sold Kenvue, its over-the-counter business already, and it’s parting with orthopedics, which has a huge, actually, believe it or not, consumer component because of the voluntary nature of what can be very expensive surgery, even after insurance. It’s being taken down by mistake, people. That’s why I think you have to pounce.
Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases.
While we acknowledge the potential of JNJ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JNJ and that has 100x upside potential, check out our report about the cheapest AI stock.
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