Investors might want to be ready for a weak stock market tomorrow, Jim Cramer told his Mad Money viewers Wednesday.
But don't be like the bears.
That's right, ignore what's going on in Washington and the U.K., as well as plummeting oil prices, and stick with stocks you love, stocks that will likely be a whole lot cheaper tomorrow. Cramer even provided a list of the 15 stocks he said the bulls will be snapping up as prices decline.
Chipmakers Nvidia (NVDA - Get Report) and Broadcom (AVGO - Get Report) , along with semiconductor equipment maker LAM Research (LRCX - Get Report) were first on the list, as the need for faster chips continues.
Cramer was also bullish on Microsoft (MSFT - Get Report) and Activision Blizzard (ATVI - Get Report) , although he said any game stock will do. Adobe Systems (ADBE - Get Report) and Autodesk (ADSK - Get Report) , two cloud computing companies, also made the list.
Amazon.com (AMZN - Get Report) is a natural choice for the bulls to flock to, but Cramer said that both Visa (V - Get Report) and Mastercard (MA - Get Report) will also be in demand, along with names like Johnson & Johnson (JNJ - Get Report) and McDonalds (MCD - Get Report) , a stock that's been reignited.
Cramer said any of these stocks will make great additions to your portfolio, especially if the market puts them on sale later this week.
Meanwhile, over on Real Money, James "Rev Shark" DePorre says news hasn't had much of an impact on the markets lately, and he wonders if Thursday will be any different. Read more and get a free trial subscription to Real Money.
Are These Headlines Helpful?
Are stocks really vulnerable to a "sharp reversal," as the headlines suggested in today's Wall Street Journal? "Of course," Cramer said, but then again, they're vulnerable every day.
According to the Journal, with stocks, bonds, gold and even bitcoin all rallying at the same time, bad things must be looming. Cramer said it's true that stocks and bonds have historically traded in opposite directions, but it's also true that low interest rates are good for corporations and therefore good for their stocks as well. In today's world, we're actually rooting for rates to rise, as it would signal the economy is strengthening.
Then there's gold. Gold has historically been the place to go when things turn sour, but in today's market, gold is driven more by demand in China and India than by the fear of U.S. investors.
As for bitcoin, Cramer said the currency is still largely used for nefarious affairs, like the sharp rise of ransomware many computer owners have been experiencing lately.
So are we really headed for a stock apocalypse? Cramer said he thinks not. These headlines generate fear, he said, but little else.
Cramer and the AAP team are adding to their stake in Magellan Midstream (MMP - Get Report) . Find out what they're telling their investment club members with a free trial subscription to Action Alerts PLUS.
These Are Taxing Times
Trump's promise to repeal Obamacare and simplify the tax code was supposed to wreck havoc on the tax preparers. So how is it that shares of Intuit (INTU - Get Report) are up over 25% this year, after a solid 19% gain in 2016?
Cramer said Intuit is split down the middle between tax preparation services and bookkeeping for both small businesses and professional tax preparers, but underlying it all is a transition to cloud computing, which has put the company alongside other big name cloud providers like Workday (WDAY - Get Report) and Adobe Systems.
Cramer said with gridlock prevailing in Washington, it looks like Congress may barely be able to pass a budget, let alone anything meaningful with the tax code or health care. That bodes well for Intuit, which continues to take share from human-assisted methods of filing your taxes.
Intuit also has accelerating revenue growth, and in its most recent quarter, posted both strong earnings and strong guidance for the rest of the year. Shares of Intuit trade at 28 times earnings, which seems expensive when compared to rival H&R Block (HRB - Get Report) , but Cramer concluded it's actually cheap when compared to other cloud software providers.
Prognosis for Drug Makers
This year's annual meeting of the American Society of Clinical Oncology is just wrapping up and Cramer said that as is the case every year, there were some big winners and some big losers. For those not familiar, this is the time of year when just about every drug maker updates their colleagues and competitors on their successes and failures fighting cancer.
Among the winners this year were Loxo Oncology (LOXO) , which saw a 43% move in its stock after revealing strong data for two of its drugs. Cramer said he likes Loxo, but wouldn't chase the stock higher.
Bluebird Bio (BLUE - Get Report) also saw its shares rocket from $75 to $108 as its immunotherapy drugs are testing well. Cramer said that partner Celgene (CELG - Get Report) is a less risky way to play this story.
On the losing side was Incyte (INCY - Get Report) , Juno Therapeutics (JUNO) and Roche (RHHBY) . Of these three, Cramer said that Incyte is a buying opportunity, as the company's pipeline outweighs the less than stellar results it debuted at the conference.
In his "No-Huddle Offense" segment, Cramer pondered how Intuitive Surgical (ISRG - Get Report) , a stock he first recommended in July of 2005 and one that has rallied over 20 times since then. Shares of Intuitive Surgical are already up 47% for 2017.
How does this maker of surgical robots stay relevant? Innovation. Cramer said the company is constantly innovating, introducing both new robots and new accessories and higher-margin consumables. It's DiVinci robots are now approved for more procedures and the outcomes of those procedures keep getting better.
Intuitive Surgical is seeing an earnings explosion, delivering 19% growth in 2015, 16% in 2016 and 19% so far this year. The company has also amassed $1 billion in cash which it uses strategically for buybacks, including one in 2014 that snapped up 6.5% of the outstanding shares in less than a year.
At 34 times earnings, shares of Intuitive Surgical are not cheap, Cramer admitted, but he said he's willing to pay up for such explosive growth, especially when the earnings estimates are consistently too low.
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