Jim Cramer’s daily rapid fire looks at stocks in the news outside the CNBC Investing Club portfolio. Chipotle : The Mexican-inspired burrito chain announced a 50-for-1 stock split. Shares rose more than 6% after the announcement, to roughly $2,970 each. Stock splits do not change the underlying fundamentals of a company, but proponents of the decision, including Jim Cramer, say it helps make stocks with a high nominal price tag — such as Chipotle’s — become more accessible to individual investors. “I checked in with [Chipotle CFO] Jack Hartung,” Cramer said, recalling his dialogue with the executive. “The employees, [Hartung] said, just absolutely loved the idea, but he thinks the institutions are going to start coming around to the idea that there should be more stock splits because it’s so hard to buy a big stock like this,” Cramer said. Best Buy : Telsey Advisory Group upgraded the electronics retailer to a buy-equivalent rating, helping push its stock up nearly 3% in the session. The retail-focused research shop expressed confidence that its business was stabilizing as the “replacement cycle” kicks in for devices bought during the Covid pandemic. “This is a great call,” Cramer said. “I thought [Best Buy CEO] Corie Barry had a terrific quarter. Five percent [dividend] yield. The stock sells at 13 times earnings. Buy.” Intel : The U.S. government awarded the semiconductor firm up to $8.5 billion in grants toward its new manufacturing facilities in the country. The money came from the Biden administration’s 2022 Chips Act. “Government has to do a buyback for me to like that stock,” Cramer said of Intel, which has been in turnaround mode under CEO Pat Gelsinger in recent years. General Mills : The maker of Cheerios cereal topped Wall Street expectations on the top and bottom lines in its fiscal third quarter. Organic sales in the three months ended Feb. 25 were down 1%. Shares of General Mills added almost 1%. “This stock has a quite outperformer of late,” Cramer said, adding: “It looks like the inflation problem is going down.” Signet Jewelers : Shares tumbled more than 11% after the parent company of Zales and Kay Jewelers issued a light first-quarter outlook. “It might be an opportunity. [CEO] Gina Drosos is historically very conservative,” Cramer said. “The stock is down very big on the guidance, not on the quarter. Sells at eight times earnings. Big dividend boost. Buy. It’s not well-covered, either, so I think that’s a good situation.”
previous post
