Burlington Survives a Tariff-Related Selloff and Cramer Sees Business Accelerating

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The age of reason is over as stock fundamentals take a backseat to the media noise surrounding stocks, Jim Cramer told Action Alerts PLUS members who tuned into his monthly members-only call.

It was an odd year for trading, and despite multiple all-time highs set in 2019 by all three major indexes, Jim Cramer said he sees 2020 as being an even more volatile year for stocks as the presidential election cycle heats up and issues with China come to the fore.

“For as long as I have been buying and selling stocks, I have had to hear that stocks take into account all available information and are priced accurately. But 2019 will go down as the year that such a thesis was revealed as out of date and lacking in both relevance and, yes, truth. 2020 will mean more of the same,” Cramer warned.

Burlington Stores  (BURL) - Get Report was the victim of one of the worst tariff-related retail selloffs earlier this year since retailers tend to trade in lockstep with one another on negative tariff news.

Jim Cramer and the Action Alerts PLUS team watched in disbelief as the stock, in which they have a firm belief, was “eviscerated” in the selloff. Then the team watched as the company’s strong quarter brought the stock back to where it was supposed to be.

“It got really hairy there for a while. The much-loved CEO, Tom Kingsbury, was departing. We had endless worries about the consumer. It seemed like nothing could go right. Until it reported a quarter that required a dramatic increase in earnings estimates. The business was not only fine under the new CEO, Michael O’Sullivan, but is accelerating,” Cramer said. 

Catch all the stocks Cramer is watching into the new year in his exclusive Action Alerts PLUS investing call.