Investing Club: What Cramer is watching Wednesday — Micron's magnificence and a possible bottom for PayPal

Published Wed, Mar 30 20229:08 AM EDTUpdated Wed, Mar 30 20229:11 AM EDT

What I am looking at March 30, 2022 Russia isn't going anywhere. There is no de-escalation, just artillery. Is this Phase Two of leveling Kyiv, just like Russian President Vladimir Putin leveled Grozny in 1999 to 2000. Home furnishings retailer RH is a problem with the war. Sales are down a bit because of it. That could be psychological because this is such a big year for gallery openings, including the Inn in New York and Bethlehem Steel in San Francisco. Jefferies upgrades to buy from hold. This is a very good one to own. Stock has had a 50% pullback. Barclays lowers price target to $528 from $723. Micron Technology (MU) was magnificent on all fronts — especially data center and auto — in its earnings report Monday. Shares of the chip maker jumped in after-hours trading. Big lead on the others in the class, strong earnings power. Morgan Stanley raises price target to $83 from $77. Lululemon Athletica (LULU) had outstanding new product and a lot of discipline. New lines selling well. Mirror, its home exercise system, is very strong. It announced a $1 billion stock buyback plan. Air freight is the only real issue. The company issued excellent guidance for 2022. Credit Suisse keeps its buy rating but has to lower price target to $450 from $465 because of multiple compression. Baird raises target to $450 from $425. Fred Smith retiring. He built a great company and, more important for earnings, the TNT Express combination is at last finished and FedEx (FDX) is ready to take on Europe. Chewy (CHWY) awful on all fronts plus weak retention rates. Stock was crushed in premarket trading by more than 13%. Paypal (PYPL) initiated with a buy at Goldman Sachs. Has this stock at last bottomed or is it fool's gold? The Charitable Trust owns it. Ark back buying a ton of Coinbase (COIN). Total rapture with bitcoin. Stanley Black & Decker (SWK) price target lowered to $170 from $237 at JPMorgan, cites "severe headwinds." Analyst keeps hold rating. This is really a logistics and supply chain story. Home appliance maker Whirlpool (WHR) price target lowered to $221 from $295 at JPMorgan, keeps overweight rating. Analyst taking a "less constructive, more selective approach" to the sector. JPMorgan also cuts price target for Trex Company (TREX) to $98 from $107 ... keeps sell rating. Analyst also slashes PT for Fortune Brands (FBHS), but keeps buy rating. PVH price target lowered to $112 from $145, multiple compression. European headwinds. Wayfair (W) downgraded to sell from hold at Loop Capital. UBS starts Mondelez (MDLZ) with a buy, talking about a record strong consumer. Same with Kellogg (K). I would add McCormick (MKC) after last night's interview with CEO Lawrence Kurzius. Deutsche Bank raises price target to $99 from $96. Refinance applications fell 15% for the week and were down 60% from a year ago, as rates hit their highest level since 2018. Five Below (FIVE) big miss on earnings. The discount retailer beat estimates by a penny with quarterly earnings of $2.49 per share, but both revenue and comparable sales came in below Street consensus. Just a terrible outlook. Procter & Gamble (PG) downgraded to hold from a buy at JPMorgan. Cost pressure, possible trade down. Goldman Sachs likes Block (SQ). Netflix (NFLX) has "meaningful room" for global subscriber growth, says JPMorgan. Reiterates buy with a $605 price target. (Jim Cramer's Charitable Trust is long PYPL. 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.

Dan Schulman

Mark Neuling | CNBC

What I am looking at March 30, 2022

More In CNBC Investing Club Newsletter

Our takes on new Wall Street research analyzing 4 Club consumer stocks

Paulina Likos