We recently published an article titled Jim Cramer discusses these 7 stocks.In this article, we’ll take a look at Walgreens Boots Alliance, Inc. (NASDAQ: WBA )’s stance against other stocks recently discussed by Jim Cramer.
“Mad Money” host Jim Cramer recently shared his thoughts on market action this week, focusing on economic data that will impact the outlook. He highlighted Friday’s upcoming non-farm payrolls report and noted that it could affect market sentiment. Cramer pointed out that the 10-year Treasury bond yield has remained high and the market has been shaken and unwilling to fall.
“Friday’s jobs data needs to show lower wage growth and disappointing hiring. Now that could lower the 10-year yield and give people a sense that the Fed will start cutting interest rates again as planned. You know, We have to get them back to where they were. On the other hand, if recruiting and payroll remain hot, any good thing that happens next week could be undoing.
Also read Jim Cramer recently discussed these 10 Nasdaq 100 stocks and Jim Cramer’s Bold Predictions for These 10 Healthcare Stocks
Cramer said the labor report is particularly important because despite strong performance in sectors such as autos, housing and materials, the overall economy may still be too hot and the Fed will not be able to slow down in line with demand. He turned his attention to other economic indicators, such as the Purchasing Managers’ Index (PMI), which provides a strong signal of economic activity. Cramer pointed to recent reports, including Monday’s PMI composite index, as important barometers of the economy.
He explained that the data provided valuable insights into the economic performance of different sectors, with manufacturing in particular performing particularly strongly. In addition to these important reports, Cramer also mentioned the impact of the Job Openings and Labor Turnover Survey (JOLTS), which focuses specifically on job vacancies.
“I’ve been thinking about these job opening numbers and I’ve been thinking about how President-elect Trump might reverse the high immigration levels seen under the Biden administration.”
Cramer warned that mass deportations could create labor shortages that could drive up wages, especially if the country can’t rely on enough workers to fill the gap. In this case, Cramer mused, “Robots may be our only hope,” alluding to the role of automation in solving potential labor shortages.
“So the bottom line is: It’s an easy week but still impactful, accept that people are going to be nervous ahead of Friday’s jobs report. Still, I think if the market gets hammered, you should buy some. As we have today As you can see, the situation is not as bad as many people think.
Our methodology
In this article, we’ve compiled a list of 7 stocks that Jim Cramer discussed on the January 3 episode of Mad Money. For stocks, information is taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by mimicking the top hedge funds’ stock picks. Our quarterly newsletter strategy, which selects 14 small- and large-cap stocks each quarter, has returned 275% since May 2014 and beat the benchmark by 150 percentage points (See more details here).
Pharmacists discuss the health benefits of prescription drugs with customers.
Number of hedge fund holders: 33
While Cramer praised the CEO of Walgreens Alliance Boots (NASDAQ: WBA ), he mentioned that betting on the stock is difficult.
“Finally, there’s Walgreens Boots Alliance. This is the pharmacy chain in trouble. It needs to do something, anything, to turn its power around. Now I believe it, and I have full confidence in CEO Tim Wentworth. I don’t think he’s sitting around doing anything, I think he’s trying to make changes, and he might even have buyers lining up to buy some parts of the company, maybe not all of it. I wouldn’t bet on this guy, but it’s still hard to bet on. Walgreens.
Walgreens Boots Alliance, Inc. (Nasdaq: WBA) is a well-known name in the retail pharmaceutical industry with a portfolio of brands including Walgreens, Boots, Duane Reade, No7 Beauty Company and Benavides of Mexico. However, the company faces significant financial challenges, and its stock has lost more than 80% of its value over the past five years.
The company faces increasing competition in the pharmaceutical space from technology-driven retailers such as Walmart and Amazon. The company reported a fourth-quarter operating loss of $526 million, primarily due to impairment charges of $332 million. The company is considering asset sales and cost-cutting measures to turn a profit. As part of a turnaround, the company plans to close 1,200 underperforming stores and focus resources on more profitable stores.
Chief executive Tim Wentworth stressed that despite the challenges, about 6,000 of its 8,000 stores remained profitable. Additionally, Walgreens Boots Alliance, Inc. (NASDAQ: WBA ) made a major move in early 2024, cutting its dividend yield by 48% to focus on prioritizing capital allocation. In early December 2024, the Wall Street Journal reported that the company was in talks with private equity firm Sycamore Partners on a potential going private deal that could be completed in early 2025. These discussions are followed by formal comments.
overall boxing champion Ranked sixth On our list of stocks Jim Cramer has recently discussed. While we acknowledge WBA’s potential as an investment, we firmly believe that AI stocks have greater promise of delivering higher returns in shorter time periods. If you’re looking for an AI stock that’s more promising than WBA but trades at less than 5 times its earnings, check out our report on the stock The Cheapest Artificial Intelligence Stocks.
Read next: 8 Best Wide-Moat Stocks to Buy Right Now and The 30 most important AI stocks, according to BlackRock.
Disclosure: None. This article originally appeared on Insider Monkey.
