Friday, September 22, 2023
Homemad moneyCramer game plan: Huge payoffs from jobs report

Cramer game plan: Huge payoffs from jobs report

Jim Cramer considers it his mission to teach investors how to make money in any situation.

On Friday, his task was to evaluate the non-farm labor report and find the areas where investors can make money.

"You look for outsized gains in certain segments of the report and you extrapolate," the "Mad Money" host said.

One segment that had standout growth was construction. The economy added 37,000 construction jobs in March. The second winner was retail, which added 48,000 jobs, and added a significant amount of jobs in building, materials and garden supply stories.

Bingo! That led Cramer directly to Home Depot as the top payoff. The stock has still not broken out, though the company announced it would have a huge hiring wave to staff its 2,000 stores for the spring selling season.

You need to try to make money from everything that gets thrown at you.Jim Cramer

Other top winners were companies that sold lumber, appliances and tools, especially Stanley Black & Decker, which Cramer said he considered to be the ultimate play on tools. He also noted employment in health care, with hiring led by ambulatory healthcare services and hospitals. Cramer wouldn't be surprised to see AMN Healthcare break out as a result.

"You do the homework on the companies, then when you get the release you will know the profit points. That is how calculated risk plays out and money can be made," Cramer said.

With this in mind, Cramer shared the companies and events he will be watching next week:

Monday: Tesla Model 3, durable goods
Tesla: Early reports signal that approximately 198,000 orders have been received for its new Model 3. This stock tends to trade on orders, so Cramer said to look out for if it gets another 100,000 orders over the weekend because it could be the big hit that Tesla's been looking for.

Tuesday: Darden, Walgreens, Nvidia and First Solar analyst meetings
Darden: Now that the chain is being revamped by the board established by the dissidents of Starboard, Cramer thinks it will report excellent numbers.

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Wednesday: Constellation Brands, Bed Bath & Beyond
Bed Bath & Beyond: With competition from Amazon, consumers may not have the appetite for its stores that they once had. However, Cramer has noticed that management has a huge appetite for its own stock. He recommended monitoring the number of shares bought, because it could go private if same store sales ever stabilize.

Thursday: ConAgra Foods, CarMax
CarMax: Both Ford and General Motors had lighter than expected numbers when they reported on Friday. However, CarMax looks like it has bottomed, and Cramer is interested to see if this could be a false breakout.

Friday: Marriott shareholder meeting
Usually Cramer doesn't care about shareholder meetings, but this one could produce fireworks when Marriott tallies the votes in its plan to buy Starwood. China's Anbang recently walked away from its bidding war over Starwood, and Cramer thinks Marriott may have been bluffed into paying a lot more than it was willing to for Starwood and expects some blowback at the meeting.

"You need to try to make money from everything that gets thrown at you," Cramer said.

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