Jim Cramer says he's 'intrigued' by these 10 top performing stocks

CNBC Television

8 Feb 202312:25

Summary

TLDRIn this episode of 'Mad Money,' Jim Cramer discusses the stock market's performance in 2023, highlighting the dichotomy between bears who believe the rally is over and those who deny it happened. He emphasizes the importance of recognizing positive changes in companies like Disney and Salesforce, which have seen significant stock growth. Cramer also reviews the top-performing stocks of 2023, including Tesla, Align Technology, and Meta Platforms, attributing their success to a combination of market rebound, business improvement, and investor sentiment. He advises investors to look for opportunities in oversold stocks and to be cautious of heavily shorted stocks, suggesting that some may still have room to grow.

Takeaways

📈 The host aims to level the playing field for all investors and promises to help find bull markets.
📉 After a down day in the market, the host reviews the market's performance in 2023, highlighting two major camps: bears who think the rally is over and those who deny the rally happened.
💹 Disney's stock rose 8.8% in after-hours trading due to CEO Bob Iger's announcement of seeking $5.5 billion in savings and the possible return of the dividend.
🚀 Tesla's stock rebounded 63% in 2023 after a significant sell-off in the previous year, proving the host's point about market fluctuations.
🦷 Align Technology, known for Invisalign braces, turned around in Q4 2023, leading to a 58% stock increase.
🌐 Warner Bros. Discovery's stock became the fourth-best performer in 2023 due to a bounce back from a low share price caused by the spin-off from AT&T.
📱 Meta Platforms' stock soared 52% in 2023 after layoffs and an encouraging quarter focused on Instagram and Reels.
🎮 NVIDIA's stock also rose 52% in 2023, with the host suggesting that AI chat programs likely run on NVIDIA's technology.
🚢 Cruise line stocks like Carnival, Royal Caribbean, and Norwegian Cruise Line rebounded significantly in 2023 after being hit hard during COVID-19.
🏦 SVB Financial, a merchant bank with a deposit base, had a 40% rally in 2023, but the host notes that it's still far from recovering its value after a 66% drop in the previous year.

Q & A

What is the primary mission of the speaker in the 'Mad Money' segment?
-The speaker's primary mission is to level the playing field for all investors by helping them find investment opportunities, regardless of their background or resources.
How does the speaker describe the two major camps in the market after a down day?
-The speaker describes two major camps: the bears who believe the rally is over and done with, and another group of bears who refuse to acknowledge that the rally happened.
What significant announcement from Disney is mentioned in the script?
-Disney's CEO, Bob Iger, is seeking $5.5 billion in savings, and there's a possible return of the dividend, which sent the stock up 8.8% in after-hours trading.
What does the speaker suggest about the market's reaction to Disney's changes?
-The speaker suggests that the market is reacting positively to Disney's changes, as indicated by the stock's increase in after-hours trading.
Which stock is highlighted as having a significant rebound in 2023 after a tough year in 2022?
-Tesla is highlighted as having a significant rebound in 2023, with its stock up 63% after being down 65% the previous year.
What is the speaker's opinion on the cruise line stocks' performance in 2023?
-The speaker believes that cruise line stocks, which were horrendous performers during COVID, are bouncing back in 2023 as people are eager to take vacations and the industry is recovering.
What is the speaker's view on the performance of Meta Platforms in 2023?
-The speaker views Meta Platforms as a surprising performer in 2023, with the stock soaring after layoffs and an encouraging quarter, making it the fifth best performer of the year.
What is the speaker's advice regarding the stocks of the top ten performers of 2023?
-The speaker advises that the stocks of the top ten performers are overbought and suggests waiting for a couple more down days for a better buying opportunity.
What is the caller's question about Intuit in the 'Mad Money' segment?
-The caller asks for the speaker's thoughts on Intuit, particularly regarding it as a long-term company and addressing concerns about its chart.
What is the caller's question about the federal oil reserves and the impact on oil prices?
-The caller inquires about the economic implications of President Biden removing about three-quarters of the federal oil reserves filled by President Trump, and how this affects oil prices and potential investment opportunities.
What does the speaker suggest about the future of oil stocks?
-The speaker suggests that oil stocks are a good investment, as they believe the demand for oil will increase, and there seems to be a floor at around $70 per barrel.

Outlines

00:00

📈 Stock Market Analysis and Disney's Financial Move

The paragraph introduces the host's mission to empower investors by identifying profitable market trends. It discusses the market's mixed reactions following a downturn, with some viewing it as the end of a rally and others as a temporary setback. The host highlights Disney's financial strategy under CEO Bob Iger, who aims to save $5.5 billion and potentially reinstate dividends, leading to an 8.8% stock increase in after-hours trading. The discussion also touches on market bears who overlook positive financial shifts, focusing instead on negative aspects. The host suggests that some companies, like Disney, are showing signs of improvement, which could indicate a market recovery.

05:00

🚀 Top Performing Stocks of 2023 and Market Insights

This segment delves into the performance of various stocks in 2023, starting with Tesla, which despite a 65% drop in the previous year, rebounded significantly in 2023, though still not fully recovered. The host then discusses Align Technology, known for Invisalign braces, which saw a business turnaround leading to a 58% stock increase. The conversation also includes the surprising success of Warner Brothers Discovery, which, despite initial struggles, became one of the best-performing stocks of the year due to its undervalued status. Other stocks like Meta Platforms and NVIDIA are highlighted for their potential in AI technology, with the latter's stock rising due to its relevance in AI chat programs. The host concludes with a discussion on the cruise industry's recovery post-COVID and the significance of market bounce-backs for stocks that were previously undervalued.

10:01

📊 Market Trends, Oil Reserves, and Caller Interaction

The final paragraph covers a range of topics including the caller's inquiry about Intuit, a company praised for its support of small businesses. The host addresses concerns about Intuit's long-term prospects and its current market position. Additionally, there's a discussion about the federal oil reserves, where the host compares the strategies of former President Trump and current President Biden regarding oil prices and the impact on the market. The host suggests that oil stocks could be a good investment, considering the potential for increased demand. The segment ends with a teaser for upcoming discussions on 'Mad Money', including insights on agricultural equipment companies, semiconductor industry updates, and a review of Mattel's quarterly report.

Mindmap

Keywords

💡Bull Market

A bull market is a condition in which financial markets are characterized by rising prices or overall optimistic expectations. In the script, the speaker mentions that 'there's always a bull market somewhere,' emphasizing the potential for investment opportunities despite market fluctuations. This concept is central to the theme of seeking out positive investment climates.

💡Mad Money

Mad Money is a finance television show hosted by Jim Cramer, focusing on investment advice and market analysis. The show's title is mentioned in the script, indicating the context of the discussion and the speaker's role as an advisor and educator in the financial sector.

💡Bears

In finance, bears are investors who expect the market or a particular asset to decline in value. The script discusses two 'camps' of bears with differing views on market rallies, illustrating the diversity of opinions among market participants and the complexity of market sentiment analysis.

💡Rally

A rally in finance refers to a period of sustained increase in the prices of securities or a market. The script mentions a rally being 'over and done with,' which is part of the debate between the bears and the more optimistic investors, highlighting the dynamic nature of market trends.

💡Dividend

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. The script refers to Disney's possible return of the dividend, which is a significant event for investors as it can signal a company's financial health and commitment to shareholder returns.

💡Aftermarket Trading

Aftermarket trading occurs outside of regular trading hours on an exchange. The script mentions Disney's stock rising '8.8% in aftermarket trading,' which is an indicator of the market's reaction to news or events that occurred after the close of the regular market session.

💡Inventory

Inventory refers to the goods and merchandise held by a company or retailer with the intention of selling them. The script notes that retail is tough due to 'too much inventory,' which is a common issue that can lead to reduced prices, discounts, or markdowns to clear stock.

💡Snap Back

A snap back in finance refers to a rapid recovery in the price of a security or market after a decline. The script mentions 'this year's tremendous action is about a snap back after a horrendous 2022,' indicating a rebound from previous losses and a return to more favorable market conditions.

💡Shorted

Shorting is an investment strategy where an investor borrows shares of a stock and sells them with the expectation that the price will decline, allowing them to buy them back at a lower price and profit from the difference. The script discusses stocks that were 'heavily shorted' and the implications for their price movements.

💡Bounce Back

A bounce back in the financial context refers to a recovery in stock prices after a significant drop. The script uses this term to describe the performance of certain stocks in 2023, suggesting that they have rebounded from previous declines and are now performing well.

💡Overbought

Overbought is a term used to describe a security that has risen in price to a level that may be difficult to sustain based on its current fundamentals. The script suggests that some stocks are overbought, implying that they may be due for a correction or a drop in price.

Highlights

Jim Cramer's mission is to level the playing field for all investors by identifying bull markets.

After a down day in the market, Cramer assesses the stock performance in 2023, highlighting two major camps of investors.

Disney's stock surges 8.8% in after-hours trading due to CEO Bob Iger's cost-saving measures and potential dividend return.

Cramer discusses the market's snap back in 2023 after a poor performance in 2022, with some businesses showing actual improvement.

Retail is tough with too much inventory, but spending is shifting towards travel and leisure.

Tesla's stock rebounded 63% in 2023 after a 65% drop in the previous year, despite Elon Musk's Twitter-related stock sales.

Align Technology, known for Invisalign braces, turned around in Q4 2023, leading to a 58% stock increase.

Warner Bros. Discovery became one of the best performers in 2023 due to its undervalued stock post-spin-off from AT&T.

Meta Platforms' stock soared 52% in 2023 after a poor 2022, with management focusing on Instagram and Reels.

NVIDIA's stock rose 52% in 2023, with its technology likely powering AI chat programs.

Cruise line stocks like Royal Caribbean and Carnival are among the top performers as the industry rebounds post-COVID.

SVB Financial, a merchant bank, is highlighted for its potential despite a 66% drop in 2022, needing a significant gain to recover.

Cramer suggests that the bounce back moves for certain stocks might not be over, especially if they were driven down to artificial levels.

Investors are getting a buying opportunity in agricultural equipment company despite reporting a top or bottom line beat.

President Biden's actions on the federal oil reserves are discussed, with Cramer advising on potential benefits and investments in oil stocks.

Cramer fields a call from a viewer about Intuit, emphasizing it as a great long-term company for small businesses.

The show ends with Cramer urging viewers to consider the top ten performers and waiting for a market dip for a better buying opportunity.