Earlier Wednesday, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, took a look at Ulta Beauty (ULTA) - Get Report . Shares are down 1% on the day and more than 21% over the past three months.
Analysts at Oppenheimer lowered their price target on ULTA stock to $250 from $270, with the company set to report earnings on Thursday after the close. Can it go dramatically lower from here? "I don't know," Cramer said from the floor of the New York Stock Exchange.
Research notes like those from Oppenheimer lower investors' expectations, which have fallen quite a bit over the past few months. The company's got a great business with excellent customer loyalty, but Ulta could feel pressure from department store discounting, Cramer explained.
"I would not count out Mary Dillon," Cramer reasoned.
Turning to Dollar Tree Inc. (DLTR) - Get Report , the company is scheduled to report earnings on Thursday before the open. The dollar stores continue to do great, but retail has become so "case-by-case" that Cramer prefers to stick with Action Alerts PLUS name TJX Cos. (TJX) - Get Report and also likes Walmart (WMT) - Get Report .
Finally, Broadcom Ltd. (AVGO) - Get Report is also scheduled to report its quarterly results on Thursday after the close. "There's a lot of analysts who have been saying buy the stock ahead [of the earnings]," Cramer said, "and I hate that because that means the stock has run." Since Aug. 11, shares are up 6.5%. For the full year, AVGO stock is up 45%.
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The stock may be hard to time, but business should remain solid. The company will continue to deliver, Cramer said, that's why it's a holding in the Action Alerts PLUS portfolio.
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