Morning Bell With Jim Cramer: Retail Stocks After Covid-19

Jim Cramer shares insights about GoodRx rivaling Amazon Pharmacy, retail stocks post-pandemic, and zero-commission trading.

Dow futures slip lower as stocks mixed as risk appetite fades amid a spat between the U.S. Treasury and the Federal Reserve over coronavirus stimulus funds.

In the last episode of Mad Money, Jim Cramer said that at this point in the year, the winners keep winning, because every year in late November, hedge funds start doubling down on their biggest winners, making a handful of stocks seemingly unstoppable. 

TheStreet's Katherine Ross and Cramer are talking about GoodRx rivaling Amazon Pharmacy, retail stocks post-pandemic, and zero-commission trading.

GoodRx Stock: Buy or Sell?

Shares of online prescription comparison platform GoodRx  (GDRX) - Get Report dropped Wednesday following downgrades from J.P. Morgan and Morgan Stanley. Shares came back on Thursday and were one of the top stocks in the market.

The Santa Monica-based company was fell after the launch of a rival service by Amazon  (AMZN) - Get Report Pharmacy was announced.

Analysts at Morgan Stanley downgraded the stock to equal-weight from overweight while cutting its price target to $36 from $57 a share.

Cramer said that people can sample Amazon all they want, but GoodRx is a “miracle” and that is why it “can stand up to Amazon’s death star.”

Retail Stocks Post-Pandemic

U.S. Retail sales rose at a slower-than-expected pace last month, data from the Commerce Department indicated Tuesday, as spending slowed amid steady increases in weekly applications for unemployment benefits as the COVID pandemic continues to accelerate.

Headline retail sales for the month of October rose 0.3% to $553.3 billion, the Commerce Department said, slowing from a downwardly revised 1.6% pace in September and missing the Street consensus forecast of a 0.5% advance.

Cramer said that “we will always be more frugal and understanding that we’re spending too much as consumers.

Why Zero-Commission Trading Is Preferable

On Wednesday’s episode of Mad Money, Cramer explained that index funds are still very popular, but the money is only flowing into stocks. Interest rates remain low, giving investors few other alternatives for long-term growth.

The real driver for investing in individual stocks is zero-commission trading.

Cramer said that zero-commission traders prefer buying stocks such as that of GE  (GE) - Get Report and Ford  (F) - Get Report, saying that these companies will not go under. Zero-commission traders are seeking opportunities in stocks with weaker performances, according to Cramer, as they study the companies they are interested in.

“They’re in there doing the right thing and I am blown away by how good they are,” he said.

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