Investing Club: What Cramer is watching Friday — Qualcomm 'mis-valued,' no guidance at GameStop, Wingstop's double downgrade

Published Fri, Mar 18 20229:27 AM EDT

What I am looking at March 18, 2022 Putin and going nuclear ... sane investing in an insane world ... Adobe (ADBE) price target slashed to $455 from $611at Citi. Analyst says the computer software maker will have less upside than usual when it reports earnings March 22. FedEx (FDX) some bad news and some good news. On the one, the best days of e-commerce are behind us; and on the other hand, there are still many great years ahead of us. The delivery service earned an adjusted $4.59 per share for its latest quarter, missing estimates by 5 cents. The delivery service's revenue did beat analyst forecasts. Barclays cut price target to $320 from $345. Citi dropped to $270 from $300, citing concerns about margins in its low-cost service FedEx Ground service. Both analysts keep buy ratings. Dollar General (DG) caught two negative notes despite rally. Truist lowered retail chain's price target to $215 from $228. Piper Sandler cut to $265 from $270, cites "peak stimulus lap" and gross margin headwinds. Warby Parker (WRBY) price target lowered to $41 from $54 at Citi. Analyst says there had been a significant decline in store productivity, but it has bounced back to 85%. Piper Sandler analyst Nicole Miller Regan double downgraded Wingstop (WING) to sell from buy, with lots of costs rising. I think this is a reaction to the sudden quitting of Charlie Morrison, who left the restaurant chain this week to join Salad and Go. Piper Sandler analyst "pounding the table" and reiterates buy rating on Qualcomm (QCOM), says shares memory shortage not an issue, and that shares are "mis-valued." JPMorgan Fab Five: Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOGL), Salesforce (CRM), ServiceNow (NOW). Lam Research (LRCX) added to U.S. Focus List at Citi, says it has best memory sales exposure, NAND news flow should help stock ... Bizarre note from KeyBanc that says that KLA (KLAC) will be hurt by economic uncertainty related to Russia's invasion of Ukraine. Signet (SG) price target raised to $94 from $90 at Citi ... strong quarter and even stronger outlook. Very positive talk with the underrated CEO Gina Drosos on Mad last night. Barclays raises price target on every oil stock in its coverage. We like Devon Energy (DVN) and Coterra (CTRA). Tractor Supply (TSCO) upgraded to buy from hold at Oppenheimer. RBC Capital is uncomfortable with recommending Lennar (LEN) after upside may be gone ... predicting slowdown, cuts price target to $100 from $109 despite beat and raise first quarter. I question this call. A lot of good here. Williams-Sonoma (WSM)—sustainable because of new emphasis on B2B: Padres and Mets as well as Marriott (MAR) ... lots of outsourcing. DuPont (DD) numbers cut and Dow numbers raised by Deutsche Bank. Cummins (CMI) near-term risks building ... trucker profitability expected to peak in 2022. Estimates come down. Downgraded to hold from buy at UBS. MongoDB (MDB) upgraded to buy from hold at UBS. Down 24% YTD. Strong fourth quarter. Big database play. GameStop (GME) no guidance ... lots of cash, $1.27 billion, to finish 2021 ... maybe they should invest in a gold mine because business isn't doing well. Negative cash flow of $110 million in fourth quarter compared to an inflow of $164 million in year-ago period. Ended year with $915 million in inventory. Raised $1.673 billion on the back of the "apes" ... short call, no questions allowed ... CEO Matthew Furlong was the only one on call. Shares down more than 9% premarket. General Electric (GE) CEO Larry Culp gets $10 million cut in 2022 equity incentive grant ... it was supposed to be $15 million ... no longer after nearly 58% voters against that amount. Culp was paid $22.7 million last year ... $100 million special grant in 2020. JPMorgan analyst Steve Tusa unrelenting on GE ... higher conviction that it is no good after analyst day ... sees well below EBITDA ... sum-of-the-parts valuation minus 25% for where the stock trading. (Jim Cramer's Charitable Trust is long AMZN, DVN, MSFT, GOOGL, QCOM, CRM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Qualcomm president and CEO Cristiano Amon speaks about Qualcomm's digital chassis for automakers at a news conference during CES 2022 in Las Vegas, Nevada, January 4, 2022.

Steve Marcus | Reuters

What I am looking at March 18, 2022

Putin and going nuclear ... sane investing in an insane world ...
Adobe (ADBE) price target slashed to $455 from $611at Citi. Analyst says the computer software maker will have less upside than usual when it reports earnings March 22.