Cramer's Morning Take: Consumer Discretionary Stocks 9/30/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. I think that autos, which are really big in this country, are beginning to really, really slow. And I think that's important.

Jeff Marks (0:15)

Well, yeah, it's interesting because you had Morgan Stanley downgrade for GM last week, basically pointing out that there's better ways to play rate cuts. You pointed out a couple of them in your Sunday note yesterday.

Jim Cramer (0:25)

Thank you.

Jeff Marks (0:27)

Three almost ugly ducklings that got hurt when rates were so high, but now are coming back to life. Best buy, Home Depot, Stanley Black and Decker.

Jim Cramer (0:34)

Did you see Stanley Black and Decker as one of the top performers in the S&P last month, this month, and one of the reasons it is is pure play. And I think the analysts, I hope you read my report, I think that the analysts, do you know that there's only just two buys? There's 19 holds or sells here.

Jeff Marks (0:52)

Yeah, they missed a good move.

Jim Cramer (0:53)

Yeah, now the stock was at 200 It comes all the way down. There's some mishaps that occurred. It's not all been fair weather for Stanley Black and Decker. This is the one that's most likely to be upgraded again and again and again because you need the tools professionals use to wall. Amateurs use Black and Decker and Stanley. And look out, I want to recommend that we don't sell another share.

Jeff Marks (1:13)

And then Home Depot, you had Piper raise its price target at 455 from 387, pointing out cash out refinance activity starting to improve. And this of course happens as rates start to come down.

Jim Cramer (1:24)

And I think that people should recognize, I know some of them working on this SRS. You know, SRS is for professionals, it's roofing, it's a pool, it's what you need if you're going to be a soup-dinut's home builder. And it turns out there was a brilliant acquisition because it was bought at the bottom of the cycle.

Jeff Marks (1:40)

And you also contrasted staples versus industrial staples. I mean, Procter is really the most staples-y staple, I'd say, we have consumer household product.

Jim Cramer (1:47)

We're getting bailout because they had a bad quarter from China. But I made it very clear to people, look, we're tag ends, Procter, it's not going to work, okay? I mean, look, I have to tell you, if we need another position, I would just bring the register. I want to make a little more money, Procter, because it's still one of the finest, and it was hurt by China.

Jeff Marks (2:04)

Right. Barclays downgrades it today to equal weight, pointing out it has outside exposure to slower growing markets, one of them being China. They do say stimulus not withstanding, because here's the thing, because if the stimulus really is real this time in China, you should see an improvement. There it is, a big market for them that has lagged.

Jim Cramer (2:21)

It's why they missed the quarter. Right.

Jeff Marks (2:24)

Right, the last quarter was weak. But as you pointed out, we've been aggressively selling above 170 here.

Jim Cramer (2:30)

We may have to talk about the coming meeting, what it means to have tag ends, because I, in my piece this weekend, talked about the need to keep Procter on. But you could argue, if you told me, Jim, I think that we shouldn't bother, I would be one over. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive warning minis every day at 1020 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (3:03)

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