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Wearing workout clothes as casual attire is a fashion trend that’s gaining steam, CNBC’s Jim Cramer said Tuesday.
He recalled that sporting gear companies such as Dick’s Sporting Goods, Nike, and Lululemon all delivered varying quarterly performances from poor to amazing results, but the athleisure space is ever popular.
“I don’t think that the pie is shrinking on athleisure. I think it is growing,” the “Mad Money” host said.
Cramer conceded that Lyft‘s entrance to the public market “was decidedly a dud,” but he thinks the stock’s more than 22 percent collapse from its Friday high mark is actually a positive for the bull market.
Lyft’s stock price slipped for a second day in a row and remains below its $72 IPO price. The Dow Jones Industrial Average dipped 0.39 points during the session, while the S&P 500 and Nasdaq both ended the session positive.
“I think the decided lack of enthusiasm for the stock deal that is Lyft is one of the best things that’s happened to this market in ages,” the host said. “With the help of a grizzled vet I used to trade with, I figured out that the collapse of Lyft is a powerful sign that there’s no irrational exuberance here. The enthusiasm is constrained for this market. Investors are behaving rationally. That’s not what I expected a week ago.”
Find out what Lyft’s “ice cold” trading means for looming IPOs here
Tesla‘s stock is working to get its groove back and there is an argument to be made that the share price could be ready to soar from its current levels, Cramer said.
He turned to technical analyst Bob Moreno, who Cramer noted called the market-wide bottom in December, to understand how the electric car manufacturer’s stock is in prime position to bounce back.
Moreno is publisher of RightViewTrading.com and Cramer’s colleague at RealMoney.com.
“We know Tesla’s been incredibly volatile … and with good reason,” the host said. “But the charts, as interpreted by Bob Moreno, say that it’s time to buy this stock. He thinks Tesla has limited downside and substantial upside at these levels.”
The stock is down more than 14 percent in 2019, but about 13 percent higher than it was one year ago.
Click here to see why Tesla could be ready to pop
Restoration Hardware reduced its 2019 guidance over worries that its new strategy would not bring results as soon as expected. The stock dropped 19 percent on the announcement Friday, and its down more than 15 percent in 2019.
But Cramer said he likes the risk-reward on the security and it could be worth a buy at $101.
Learn why here
Dow Inc., which listed on the New York Stock Exchange Tuesday, could face future headwinds if more and more states turn on plastics and outlaw the material, Cramer said.
The commodity chemical company, led by CEO Jim Fitterling, is a spin off of DowDuPont.
“I think Dow is a terrific investment,” he said. But “what happens if every state outlaws plastic bags, like the ban that New York approved last week?”
Cramer said it’s important for both investors and companies to think how shifting consumer preferences for more eco-friendly products “will directly impact Dow’s earnings in the not-too-distant future..”
Get Cramer’s full thoughts here
After falling off the cliff with the rest of the stock market in the last quarter of 2018, Yext has caught fire soaring nearly 50 percent this year.
But even as the share price went south during the fourth-quarter sell-off, business was still going strong, according to CEO Howard Lerman told Cramer.
“We added 350 new enterprise logos last year, 128 in Q4 alone. That’s nearly one logo per day,” he said. “We live in an era of too-much information and much of it is wrong. And in this era of too-much information, Yext delivers a new paradigm in search that enables consumers to get brand-verified answers on all of the major search platforms like Siri and Google and Alexa.”
Catch the full interview here
In Cramer’s lightning round, he zipped through his thoughts on callers’ stock questions:
Duluth Holdings Inc.: “[I have a] Duluth jacket and I love it and wear it constantly, but I cannot game the earnings. I do not know how they do, although I will say that that skull and crossbones on the shoulder, people like how I look in it.”
Mastercard Inc.: “[CEO] Ajaypal Banga pulled it off. He is [affiliated] with the Goldman [Sachs] and the Apple [credit card]. He is so good, Mastercard is so good. Buy it.”
Carrizo Oil & Gas Inc.: “People think it might be in takeover talks, or might be buying someone. [CEO] Chip Johnson’s really good … I can’t believe the stock is down where it is, but that’s what’s going on. It’s all about takeover.”
Disclosure: Cramer’s charitable trust owns shares of Goldman Sachs and Apple.
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