Cramer: Buy Yahoo, Wells Fargo, and These 2 Stocks
Jim Cramer made the following calls on July 17th, 2013. What do you think about his picks?
Yahoo! Inc. (NASDAQ:YHOO): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 12, 2013. The stock’s 52-week high is $29.73, and its 52-week low is $14.59.
Yahoo!’s lackluster earnings didn’t deter Cramer from loving the stock, attributing a lot of his optimism to chief executive Marissa Mayer. Mayer has led Yahoo! on a buying spree of startups to acquire the talent working there, specifically purchasing mobile startups. Mayer hopes to lead the company more into this area and Yahoo! looks to better compete with rivals. Cramer also noted their $4.8 billion in cash on hand as reason for optimism, since it will allow them to develop strategies for competitive shortfalls quickly, foremost of which is their decline in advertising revenue.
Wells Fargo & Company (NYSE:WFC): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 12, 2013. The stock’s 52-week high is $43.88, and its 52-week low is $31.25.
Cramer continues to like Wells Fargo compared to some other financials as earnings continue to come out, saying earlier in the week that he would consider this as an alternative to Bank of America (NYSE:BAC). On last night’s show, though, he admitted he was still a fan of Bank of America, and was bullish on both. Well’s Fargo has recently announced a deal to buy Commerzbank’s Hypothekenbank Frankfurt (formerly Eurohypo) U.K. commercial real estate portfolio. The deal is valued at over $6 billion dollars.
Realogy (NYSE:RLGY): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on April 17, 2013. The stock’s 52-week high is $55.28, and its 52-week low is $32.50.
Cramer’s buy recommendation for Realogy came from his interest in hedge fund manager John Paulson, who has become quite bullish on the housing market after previously making money shorting it. Paulson in particular likes AAA-rated mortgage bonds, and Cramer points to Realogy as a company that is exposed to these kinds of assets. As a hedge against a short term housing slowdown the host did warn against home building stocks, preferring a longer outlook on the market through companies like Realogy.
Xilinx Inc. (NASDAQ:XLNX): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 12, 2013. The stock’s 52-week high is $43.88, and its 52-week low is $30.25.
Cramer identified Xilinx as a top performer during this week’s earnings reports. Currently, according to his website, no analysts rate the stock as a sell, and his site also encourages buying shares of this company. Reasons include, “solid stock price performance, increase in net income, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.” He felt this was a better alternative, along with EOG Resources (NYSE:EOG), to potential buys Express Scripts (NASDAQ:ESRX) and Qualcomm (NASDAQ:QCOM), which were mentioned at the Delivering Alpha conference.
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