AMD News – Buy-the-Dip Candidates: Jim Cramer Would Rather Own DoorDash Than Uber
Stocks declined Monday as Wall Street measured inflation risks and the implications a global tax agreement would have for the biggest technology companies in the U.S.
The Dow Jones Industrial Average ended down 126 points, or 0.36%, to 34,630 and the S&P 500 dipped 0.08%.
TheStreet’s senior portfolio analyst, Jeff Marks, and Jim Cramer discussed breaking news in the stock market. Cramer spoke about AMC Entertainment (AMC) – Get Report, the return to the New York Stock Exchange floor for the first time since the pandemic, and Monday’s market.
Cramer said the key to the market for him is still the Nasdaq. “We need to see Advanced Micro Devices (AMD) – Get Report not get beaten down by Nvidia ((NVDA)) – Get Report … We need to see all sorts of technology stocks keep up with what I regard as a runaway industrial market,” he said.
Here are several stocks that fell this past week and could present an opportunity to buy the dip.
1. Tal Education Group | -29.92% Past Week | -50.05% 1 Month
Shares of TAL Education Group (TAL) – Get Report have been on a decline after the Chinese education company disclosed a case of apparent sales fraud by an employee.
TAL said “Light Class” sales accounted for approximately 3% to 4% of the company’s total estimated revenues for the fiscal year ended Feb. 29.
TheStreet Quant Ratings rates Tal Education as a Hold with a rating score of C-.
2. Vipshop Holdings | -7.28% Past Week | -24.09% 1 Month
Soros Fund Management bought $194 million of ViacomCBS (VIACA) – Get Report, Baidu (BIDU) – Get Report stock valued at $77 million, $46 million of Vipshop Holdings (VIPS,) – Get Report and $34 million of Tencent Music Entertainment during the first quarter, according to a 13-F regulatory filing.
TheStreet Quant Ratings rates Vipshop as a Buy with a rating score of B-.
3. Twilio | -6.45% Past Week | +2.33% 1 Month
Growth stocks like DocuSign (DOCU) – Get Report continue to trade better, and it wasn’t long ago that other growth stocks like Twilio (TWLO) – Get Report, Pinterest (PINS) – Get Report and others were being sold despite strong results. “That’s as growth stocks were entangled in a painful bear market. Hopefully, we’re seeing a turning point in that regard,” wrote TheStreet’s Bret Kenwell.
TheStreet Quant Ratings rates Twilio as a Hold with a rating score of C-.
4. Danaher | -6.18% Past Week | -7.03% 1 Month
Danaher Corp. (DHR) – Get Report recently announced that it has appointed A. Shane Sanders to its board of directors and to its audit committee. This addition expands the size of Danaher’s board from 12 to 13 members.
“I like Danaher better than Medtronic (MDT) – Get Report,” said Cramer.
TheStreet Quant Ratings rates Danaher Corp. as a Buy with a rating score of A+.
5. Abbott Laboratories | -5.70% Past Week | -7.52% 1 Month
Abbott Laboratories (ABT) – Get Report shares fell this past week, but even though this is a disappointment for investors, Jeff Marks, Senior Portfolio Analyst at Jim Cramer’s Action Alerts PLUS, says “it’s actually a confirmation that the reopening is going very well right after this memorial weekend.”
“I think this is all a product of some of the loosening indoor and crowd gathering and mass restrictions that we are seeing ever since CDC eased its testing guidance for fully vaccinated individuals,” said Marks while speaking with Chris Versace, the co-manager of Trifecta Stocks and Stocks Under $10.
“We own Abbott Laboratories, which is a great device company,” said Cramer. To read more about how you can profit from Cramer’s advice and the insights from other Real Money contributors, click here.
TheStreet Quant Ratings rates Abbott Laboratories as a Buy with a rating score of A-.
6. United Rentals | -5.26% Past Week | -8.91% 1 Month
A New York-based national securities firm is investigating United Rentals (URI) – Get Report relating to its proposed acquisition of General Finance Corp (GFN) – Get Report. Under the terms of the agreement, GFN shareholders will receive $19 per share they own.
The investigation focuses on whether United Rentals and its Board of Directors violated securities laws and/or breached their fiduciary duties to the Company by failing to conduct a fair process, and whether the transaction is properly valued.
TheStreet Quant Ratings rates United Rentals as a Buy with a rating score of B.
7. Thermo Fisher Scientific | -5.17% Past Week | -4.95% 1 Month
Thermo Fisher Scientific (TMO) – Get Report reported first-quarter earnings in late April, and earnings growth printed at an astounding annual rate of 145%, a third consecutive quarter of 91% earnings growth or more. And they did this on revenue growth of 59%, a fourth consecutive quarter of rapid acceleration.
“Demand for what this firm provides should only increase in my opinion as large swaths of the public start seeking out medical care for issues put on hold during the pandemic,” wrote Real Money contributor Stephen Guilfoyle.
TheStreet Quant Ratings rates Thermo Fisher Scientific as a Buy with a rating score of A-.
8. DoorDash | -5.11% Past Week | +14.18% 1 Month
Earlier in May, Uber (UBER) – Get Report reported a decline in revenue for the first quarter and missed analysts’ expectations even though earnings topped estimates.
However, first-quarter revenue for DoorDash (DASH) – Get Report tripled to $1.08 billion from $362 million in the year-ago quarter and came in ahead of FactSet estimates of $994.3 million. The results sparked analyst upgrades and price target increases for the food delivery company.
Cramer said Uber is “caught between a rock and a hard place because DoorDash is really coming after them when it comes to Uber Eats and Lyft (LYFT) – Get Report is coming on, too,” he added.
Cramer has said that he’d rather own DoorDash than Uber.
TheStreet does not have a Quant Rating rating for Doordash.
9. Splunk | -5.02% Past Week | -2.30% 1 Month
Splunk Inc. (SPLK) – Get Report shares traded lower this past week after the infrastructure software company posted fiscal second-quarter sales that missed Wall Street forecasts, prompting several analysts to lower their price targets.
Splunk shares closed at $111.98, down 9.5% after the San Francisco-based tech company posted a wider-than-expected fiscal second-quarter loss and gave a toned-down outlook for future revenue.
The company’s loss widened on higher operating expenses, driven in part by its transition to the cloud. Splunk’s fiscal second-quarter sales rose 16% but missed Wall Street forecasts. Analysts at Morgan Stanley, Barclays and BMO Capital Markets lowered their price targets on the stock.
TheStreet Quant Ratings rates Splunk as a Sell with a rating score of D.
10. Humana | -4.93% Past Week | -10.53% 1 Month
CenterWell Senior Primary Care, a provider of whole-person, senior-focused healthcare that is part of Humana’s (HUM) – Get Report Care Delivery Organization, is participating in a new federal population health program that will allow CenterWell to extend and enhance its care-team approach for Original Medicare beneficiaries.
“The industry is moving away from a transactional model of healthcare, in which a doctor or other healthcare professional treats one specific condition, to a more holistic view in which we assess all of the patient’s needs and then develop a plan to address each of those needs,” said Reneé Buckingham, president of Humana’s Care Delivery Organization, which includes CenterWell.
TheStreet Quant Ratings rates Humana Company as a Buy with a rating score of B.
NOTE: Recently, Quantitative Analysis by TheStreet Quant Ratings objectively rated these stocks according to their risk-adjusted total return prospect over a 12-month investment horizon. Not based on the news on any given day, the rating may differ from Jim Cramer’s view or that of this articles’ author.
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