Morning Bell With Jim Cramer: Watch Goldman Sachs Stock

Jim Cramer shares insights about buying Dollar and Goldman Sachs, and evaluating President-elect Joe Biden’s economic team.
Author:
Updated:
Original:

Dow futures are moving higher on Friday as stocks near record highs as risk appetite improves amid stimulus negotiations progress in Washington and expected central bank support.

In the last episode of Mad Money, Jim Cramer said that companies need to go digital or they risk going out of business.

TheStreet's Katherine Ross and Cramer are talking about buying Dollar and Goldman Sachs and evaluating President-elect Joe Biden’s economic team.

Dollar General Stock: Buy or Sell?

Dollar General Corp.  (DG) - Get Report posted stronger-than-expected third-quarter earnings Thursday, with impressive same-store sales growth, but declined to provide updated profit guidance amid the increasing pandemic uncertainty.

Dollar General said adjusted earnings for the three months ending in October were pegged at $2.31 per share, up 62.7% from the same period last year and firmly ahead of the Street consensus forecast of $1.96 per share. Group revenues, Dollar General said, rose 17.3% to $8.2 billion, again topping analysts' forecast of an $8.13 billion tally.

Cramer said that companies such as Dollar General have a history of bouncing back and that he likes the margins of Dollar General, but believes that investors should consider Dollar Tree  (DLTR) - Get Report. Cramer says Dollar Tree has been reporting good numbers.

Goldman Sachs Stock: Buy or Sell?

Last month, it was announced that Goldman Sachs’  (GS) - Get Report co-head of investment banking Gregg Lemkau is leaving the firm, several media outlets reported.

He was considered a contender to eventually become chief executive at the storied investment bank but instead is joining Michael Dell’s investment firm, MSD Capital, knowledgeable sources told The Wall Street Journal.

The firm manages the assets of Dell, who founded Dell Computer, and his family.

Goldman posted relatively weak performances from the end of the financial crisis almost until October 2018, when David Solomon took over as CEO.

Cramer is expecting that evictions will happen as people may start to get rid of tenants who can’t pay rent. He thinks that there are landlords who are stressed to the limit with the banks.

He added that if investors are considering owning a bank stock, then they should consider Goldman Sachs because they don’t have that eviction risk.

What Does Biden’s Economic Team Mean? 

President-elect Joe Biden on Monday nominated former Federal Reserve Chair Janet Yellen as Treasury Secretary, confirming earlier reports, as he announced several other appointments or nominations to his economic team.

If confirmed by the U.S. Senate, Yellen, 74, would be the first woman to hold the position in the 231-year history of the department.

Cramer said that Janet Yellen is one of his favorite federal chiefs. He believes that reaching a compromise is what constitutes a good job.

Goldman Sachs is a key holding in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.