Cramer: Sell Verizon and UPS, and Buy UnitedHealth, U.S. Bancorp Instead
Jim Cramer made the following calls on July 12th, 2013. What do you think about his picks?
Verizon Communications Inc. (NYSE:VZ): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on April 18, 2013. The stock’s 52-week high is $54.31, and its 52-week low is $40.51.
Mad Money’s host was very skeptical of Verizon’s earnings this week, telling viewers that he would sell. Verizon currently has a massive iPhone sales obligation to Apple (NASDAQ:AAPL) which it may be unable to meet, something that could result in penalties from the the tech giant.
United Parcel Service, Inc. (NYSE:UPS): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on June 26, 2012. The stock’s 52-week high is $91.78, and its 52-week low is $69.56.
Citing economic reasons as his chief complaint, Cramer warned investors away from UPS, as sluggish small business growth continues to hamper the logistics client. Moreover, he said that consumers are unwilling to pay for faster shipping and other amenities, something which makes their business model suspect until the recovery picks up.
UnitedHealth Group, Inc. (NYSE:UNH): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on October 22, 2012. The stock’s 52-week high is $68.75, and its 52-week low is $50.32.
Cramer was bullish on this week’s earnings results for UnitedHealth, which come out this Thursday. The company offers the largest care provider network in the United States and has accountable care relationships with more than 575 hospitals, 1,100 medical groups and 75,000 physicians across the country, and expects its accountable care contracts to reach $50 billion by 2017.
U.S. Bancorp (NYSE:USB): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on May 10, 2012. The stock’s 52-week high is $37.68, and its 52-week low is $30.96.
The Mad Money host was a bit more tentative about U.S. Bancorp, which has been trading near its 52-week high recently. He told users to buy on weakness following this week’s earnings report. His website rates the company as a buy, stating, “The company’s strengths can be seen in multiple areas, such as its growth in earnings per share, expanding profit margins, increase in stock price during the past year, notable return on equity and increase in net income.”