Morning Bell With Jim Cramer: Buy Target After Earnings

Jim Cramer shares insights about buying Target, picking between Home Depot and Lowe’s, and reacting to Boeing’s FAA approval.

Dow futures slip lower as investors take profits from recent all-time highs amid a worrying rise in coronavirus infection rates.

In the last episode of Mad Money, Jim Cramer said that today, we saw the power of positive thinking. As stocks headed lower, investors welcomed the move, which finally gave them a good chance to buy.

TheStreet's Katherine Ross and Cramer are talking about buying Target and Lowe’s, and Boeing’s FAA approval.

Target Stock: Buy or Sell?

Target Corp.  (TGT) - Get Report shares hit an all-time high Wednesday after the retailer posted stronger-than-expected third-quarter earnings, with impressive same-store sale growth, as online pandemic shopping continues to drive the retailer's top and bottom lines.

Target said adjusted earnings for the three months ending in October were pegged at $2.79 per share, a 105% increase from the same period last year that smashed the Street consensus forecast of $1.60 per share. Group revenues, Target said, rose 21.3% to $22.63 billion, again topping analysts' estimates of a $20.9 billion tally.

Cramer said that Target had a “fabulous” quarter and that investors should buy the stock now. He added that the retailer “has great margins and it is just a well-run company.”

Lowe’s Stock: Buy or Sell?

On Wednesday, Lowe's Companies Inc.  (LOW) - Get Report posted modestly softer-than-expected third-quarter earnings, but a muted holiday season outlook sent shares sharply lower in early trading.

Lowe's said adjusted earnings for the three months ending on November 1 were pegged at $1.98 per share, a 40.4% increase from the same period last year but one penny shy of the Street consensus forecast. Group revenues, Lowe's said, rose 28.2% to $22.3 billion, topping analysts' estimates of a $21.25 billion tally.

Cramer said that he would buy Lowe’s stock. He added that he has faith in Lowe’s CEO Marvin Allison who is fixing the company’s e-commerce and “doing a lot of things right”, according to Cramer. But he said that he would choose Home Depot  (HD) - Get Report over Lowe’s.

Boeing Stock: Buy or Sell?

Boeing Co.  (BA) - Get Report shares jumped higher Wednesday after the Federal Aviation Administration approved the return to service of the planemaker's grounded 737 MAX aircraft.

FAA Administrator Steven Dickson said he was "100% confident" in the safety of the aircraft after rescinding a 20-month old order that allows the plane to resume commercial flights. The 737 MAX was grounded in March of 2019 following two fatal crashes that were ultimately linked to its navigation system, in Ethiopia and Indonesia that killed 346 people.

Cramer said that he likes Boeing and believes that it is going to get “big orders” as there is a demand for planes. He advised trading the stock when it hits $220.

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