One Stock Soaring, Another in Turmoil
Jim Cramer, the respected host of CNBC’s “Mad Money,” recently shared his optimistic outlook on the future of GSK plc, despite its recent legal issues. Cramer believes the pharmaceutical powerhouse’s stock “is going even higher than it is right now” and has been a “terrific winner of late.”
The backdrop for Cramer’s effusive remarks is GSK’s resolution of a U.S. lawsuit surrounding its heartburn medicine, Zantac. The company reached a confidential settlement with the plaintiff, leading to the dismissal of the case just before it was set for trial in California. This legal win no doubt buoyed Cramer’s confidence in GSK’s potential.
Conversely, Cramer’s comment on The Kroger Co. was laced with concern. While he would normally be upbeat about the grocery giant, he expressed consternation regarding the abrupt departure of its Chief Financial Officer. He remarked, “Normally I would say we’re fine with Kroger, but the CFO just quit. And I got to find out what the heck is going on.”
The Ripples of Change
Millerchip, the Senior Vice President and CFO at Kroger, abruptly left to assume a high-ranking position at another public company. In his stead, the company appointed Todd Foley as Interim CFO. Although such changes are not inherently troubling, Cramer’s unease is palpable and hints at deeper turbulence within the company.
Cramer elucidated his admiration for Parker-Hannifin Corporation, lauding it as a “remarkable” entity. His praise came on the heels of the company’s report of better-than-expected second-quarter financial results and an upward revision of its guidance for FY24.
In contrast, Cramer was less sanguine about BigCommerce Holdings, Inc., dismissing it with a curt “No, we got Amazon.” This dismissal comes in the wake of the company’s appointment of Brent Bellm as Interim President, succeeding Steven Chung effective Feb. 16, 2024.
Expressing perplexity, Cramer stated that he has no idea what Icahn Enterprises L.P. truly holds, leading him to refrain from recommending its stock on “Mad Money.” This is a rare instance of hesitation from the typically decisive Cramer, signaling his lack of confidence in the company.
Market Reactions
Price Action:
- Shares of Icahn Enterprises rose by 1.3% to close at $18.62 on Monday.
- BigCommerce shares fell by 4.4% to $7.98 on Monday.
- Parker-Hannifin shares fell by 0.3% to settle at $508.87 during Monday’s session.
- Shares of Kroger fell by 0.3% to close at $45.99 on Monday.
- AST SpaceMobile shares fell by 2.5% to settle at $2.77.
- Shares of GSK gained by 2.1% to close at $41.57 on Monday.
It’s worth examining consumer stocks that could take off in Q1,
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