Want to buy these 3 Jim Kramer stock options? Here’s what researchers think

A good thing about the market slump? You get a lot of opportunities to load stocks at the discount entry point. Who wouldn’t love a discount?

As the markets have functioned so far this year, there are stocks that can offer numerous rewards in each segment.

Jim Kramer of CNBC considers that there are many names in the retail industry that are now particularly attractive, to which the term “beaten-down” applies immediately. Some rallied well over the weekend, but following the severe market downturn, Kramer notes that it still takes “many more days” for many names to approach “expensive again”.

Looking at Kramer’s choices, we ran three sections of the TipRanks database that the Mad Money host thinks will make good additions to investors’ portfolios. This will let us know if the Wall Street experts agree with his choices. Let’s see the results.

Bath & Body Work (BBWI)

A lot of stocks may be on sale now but this cannot be said about household goods. Prices are on the rise, and macroeconomic concerns about consumer spending amid rising inflation make investors shudder in 2022. Shares of Bath & Body Works have been affected by this growth and are down 41% from their November high.

With over 2,000 U.S. and international stores, meaningful online presence and serving over 50 million consumers in the North, it is America’s largest specialist perfume and fragrance body care business. Last August, the company renamed its current moniker from L Brands and shut down its Victoria’s Secret business. Now, its three main revenue segments – Home Perfumes, Body Care & Perfumes and Soaps & Sanitizers – have helped the company generate $ 7.882 billion in revenue by 2021 (expiring January 31).

At the same time, the company achieved record sales at 4Q21, dialing a set of results that surpassed street expectations. Revenue rose 11.4% year-on-year to $ 3.03 billion, surpassing the $ 2.96 billion estimate of the street. Non-GAAP EPS broke Wall Street forecast by $ 0.03 at $ 2.30.

However, the company’s forecast said that for the full year of Q1 and 2022 returns should be lower, with investors not wanting improvements, while CEO Andrew Meslow’s exit for health reasons further obscured the view.

Simeon Seagal, BMO’s, agrees with Kramer’s assessment that the stock is currently up for grabs. The analyst writes: “We believe that the challenging environment, investor appetite and the expectations of this conservative guide have created very stressful long-term entry points. Multiple revaluation over time.”

To this end, Seagal has targeted BBWI Out Perform (i.e. Buy) shares at a price of $ 83. This allows for 80% annual growth. (See Seagal’s record, Click here)

To examine by consensus breakdown, other analysts agree. 12 purchases and 2 suspensions add to the strong buy consensus rating. In addition, the $ 78.93 average price target brings 71% overhead capacity. (See BBWI Stock Forecast on TipRanks)

Signet Jewelers (SIG)

For the next Kramer selection, we will change gears and switch from fragrance to jewelry. Signet is no less than the world’s largest diamond jewelry seller. The company, which operates mostly in the mid-range jewelry segment, also has leading market positions in the specialty jewelry sectors in Canada and the UK, while also topping the mid-tier US jewelry and watch market. It is a market valued at over $ 90 billion, of which Signet is seeking a ~ 6% share and sets its vision to grow to ~ 10% in the next few years.

Once again, we are talking about a stock that has recently greatly reduced its value. Shares have fallen 34% since November because the same concerns that have plagued others have lowered stock prices – the impact of inflation’s option costs and the possibility of a recession. Moreover, Signet has already stated that it will no longer buy gems from Russia, the world’s largest gem source.

These are things to worry about, but looking at the company’s recent quarterly results and outlook, Signet seems to be doing well.

Non-GAAP EPS reached $ 5.01 street targets and revenue rose 28.3% year-on-year to $ 2.81 billion, beating analysts’ $ 2.41 billion forecast. Even more promising is that in today’s difficult environment, the company expects total revenue for 1Q23 to be between $ 1.78 billion and $ 1.82 billion. The consensus was $ 1.74 billion.

This is an impressive achievement, says Ike Poruchov of Wells Fargo, who also supports Kramer’s pick.

“We hope this shows that the weak consumer is not picking up the SIG bull case because the QTD is so strong (during a major sales period, Valentine’s day),” the analyst said. “Indeed, SIG may be the first company in our space to raise 1Q numbers. With a war money in balance sheet and basic inspiration, we consider the story to be one of the best in space today, and SIG is a ‘great choice’ for us.

With this in mind, Borussia Dortmund raises the SIG a better performance (i.e. buy) with a $ 105 price target. If this goal is reached, the twelve month return may be 50% on the cards. (See Portuguese record of achievement, Click here)

Looking at the consensus fracture, the researchers split in the middle when it came to SIG. 2 Buys and 2 Sales Moderate Buying adds to the consensus rating. In addition, the $ 109.25 average price target is% 56% reversed from current levels. (See SIG Stock Forecast on TipRanks)

Macy’s (M)

With the scent and shiny look, it’s time to head to the department store, the legendary American company Macy. Although the company cannot claim ownership of the world’s largest department store, its premier New York City spot is still the largest, 1.25 million square foot retail location in the United States. The store is one of 725 department stores covering the Macy’s, Macy’s backstage, Market by Macy’s, Bloomingdale’s and Bloomercury brands. Macy’s has an international presence with licensed stores in Dubai, United Arab Emirates and Al Zahra, Kuwait.

Department stores were badly affected at the height of the 2020 epidemic lock-in period, but last year saw a major comeback. Macy’s fortunes coincided with the overall trend, and the improvement was evident in the company’s latest quarterly financial report for 4Q21.

Revenue rose% 28% from the same period last year to $ 8.67 billion, up from $ 8.45 billion in street calls. There was a great pulse underneath as Adj. The EPS of $ 2.45 broke the $ 1.99 consensus estimate.

There was still good news in Outlook. Macy’s 2022 earnings and EPS led to $ 24.46- $ 24.70 billion and $ 4.13- $ 4.52, respectively, which were 2% and 7% higher than street expectations at midpoint, respectively.

So, you can see why Kramer thinks it’s time to load, as stocks follow this trend and are down 36% from November’s annual rise. However, Morgan Stanley’s Kimberly Greenberger begs to be different, and explains why he has a rude view of Macy’s opportunities.

“The first blush suggests that the performance of Guidance M will be relatively stable against last year’s strong consumer environment, with 2022 revenues up to 1% y / y. However, management’s outlook represents 1Q y / y revenue growth, followed by a decline in revenue y / y at 2Q-4Q as the business reduces consumer demand peak, ”Greenberger explained. We are aware of the potential for revenue and revenue growth.

Accordingly, Greenberger predicts that Messi will lose weight (i.e. sell) and that his $ 20 price target will see the stock fall 16% in the coming months. (See Greenberger’s record, Click here)

The street outlook for M stock is a bit confusing; On the one hand, based on 4 holds and 3 purchases and sales, each hold makes one hold by consensus. However, the average goal is a definite positive; At $ 31.22, that represents a 31% return on savings over a one-year period. (See Macy’s stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are those of the Special Analyst onlyS. Content should be used for informational purposes only. It is very important to do your own analysis before making any investment.

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