CNBC Investing Club: Cramer’s Morning Take on Target 5/20/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:30)

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Jim Cramer (1:00)

Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 10 20 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

SPEAKER_4 (1:21)

Some big headlines today also. Target reports to bear that they don't expect a quarter. Same store sales up 5.6%.

Jim Cramer (1:27)

The guy, the guy, the guy.

SPEAKER_4 (1:29)

Yeah, they're calling for a tougher second half of the year.

Jim Cramer (1:31)

I want people to understand, I think this is boilerplate. I do believe that there's major changes there. When I speak to the company, I'm really impressed about how they've changed the way that they do things.

And they're redoing the stores rather than buy back stock. Thank God, the stores look terrible. Now, if you go and look at the new targets, you'll really be impressed with how they look.

SPEAKER_4 (1:51)

Low, slightly beat estimates. A similar story to what we heard from Home Depot yesterday.

Jim Cramer (1:57)

I was surprised that the direct to consumer was not stronger. I thought that the consumer business, do-it-yourself would have been a little bit stronger.

SPEAKER_4 (2:09)

Toll Brothers reports a better than expected quarter.

Jim Cramer (2:13)

Gross margins, they really know how to build. Remember, these are the million-dollar house, and this stock was at a 52-week low going into the quarter.

SPEAKER_4 (2:22)

Then, Cava raises its full-year adjusted EBITDA outlook. Stocks rising on the back of that.

Jim Cramer (2:28)

If you take a look at how to make money in any market, I say this is the one to buy because Ron Shake, who did Panera, told me, listen, Mediterranean is the new best for your heart, and it is working. It's considerably more of a health. I don't mind it.

I had it last Saturday. It's okay.

SPEAKER_4 (2:49)

Yeah, I like Kava. Kava's solid. Good option. But you're more of a sweet queen person. I do, but that stock is in the dogs.

Jim Cramer (2:54)

You're helping sweet queen to get out of the $7 range.

SPEAKER_4 (2:56)

Well, I think it's important you have to distinguish between companies and stocks. You could like a product, but that doesn't mean you like a stock.

Jim Cramer (3:04)

So just again, by the way, Nvidia has to lean on Dell. They have to tell a good Dell story. I think that would matter. They have to lean on their nebius and core wave, the neoclouds.

They've got to talk about optical.

SPEAKER_4 (3:20)

Sovereign too.

Jim Cramer (3:21)

Sovereign, they want that. They have to talk about how they've created, without using the term moat because it sounds exclusionary. They've created an ecosystem that basically makes it so you can't go against.

SPEAKER_5 (3:33)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates. They may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer.

SPEAKER_2 (4:05)

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before, like access to the Trade Desk, our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24-7 professional answers and live help, and access support by phone, email, and in-platform chat. That's how Schwab is here for you to help you trade brilliantly.