Goldman Sachs might be trading at just five times next year’s earnings, Cramer said during Tuesday’s Stop Trading!. As attractive a price as that may appear, he urged investors to wait before buying the stock.
Cramer predicted Goldman would earn $30 a share in 2010, or $7.50 a quarter. That’s a significant jump from the bellwether bank’s second-quarter number, $4.93 a share, reported today. Still, buyers shouldn’t rush in, not so soon after a big report and especially not after the stock’s $7 jump on Monday.
“After this marks some time,” Cramer said of Goldman, “I think it’s going to start going up again as they redeploy capital in more sensible ways now that the crisis is over.”
Elsewhere in the market, a number of retail and restaurant stocks are benefiting from the “gasoline rally,” Cramer said. Yum! Brands , Darden , Sears , Tiffany , Coach and Lowe’s have all seen bumps in price as a result of falling gas prices. The move is similar to that seen last year when crude dropped from its $147 high. Cramer endorsed buying Home Depot , Darden, Yum, Lowe’s and Sears on this trend – but not Wal-Mart.
“I worry about Wal-Mart’s quarter,” the Mad Money host said. “Let’s hold off on that.”
Cramer's charitable trust owns Home Depot and Yum! Brands.
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