Starbucks stock warms up with more space to run

In its latest quarterly report, Starbucks was able to create optimal results in its latest quarterly report thanks to technology veteran and chief executive Kevin Johnson's efforts to offer coffee to customers, Jim Cramer said on Monday. CNBC.

The ubiquitous coffee chain saw its price rise by almost $ 100 after raising its revenue and income outlook for the past year last week. Starbucks increased its same-store sales growth to 6% in its last quarter, up from 1% the previous year, thanks to its $ 7.15 billion contract with Nestlé and its buy-back program of aggressive actions, announced the animator of "Mad Money".

The stock is up more than 52% in 2019 and nearly 90% in the last 12 months.

"KJ, as he is known in the street, acknowledged that he could improve the numerical control, if he could solve the flow problem, if he could make the delivery, he could then orchestrating a magnificent turnaround, regardless of the competition., "Cramer said of Johnson, the former CEO of Juniper Networks. "Johnson has rolled out all kinds of new technologies to allow you to buy his coffee more easily."

J.P. Morgan Chase, however, is not as optimistic about the chances of Starbucks' action at these levels. The bank downgraded on Monday the capital of "overweight" to "neutral". Analyst John Ivankoe said his rise of about 9 percent last Friday was "his biggest one-day gain since Nov. 2" and exceeds the firm's target of $ 91, CNBC reported. .

Cramer, however, said: "Even after this move, with Kevin Johnson at the helm, I think the title has more leeway, although it has been downgraded by several companies today. "

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Investors should add Cramer's "Cloud King" shares to their shopping list as the stock market expects interest rate cuts by the Federal Reserve later this week, the company said on Monday. ; facilitator.

Silver is shifting from higher-quality growth brands to industrial sectors, while Wall Street is considering a quarter-point rate cut that will further boost business investment and boost cyclical and industrial businesses.

This explains why the Dow Jones Industrial Average, which tracks 30 major blue-chip stocks, gained nearly 29 points during Monday's session. The highly technical S & P 500 and Nasdaq Composite indices slid by 0.16% and 0.44%, respectively.

"You have to accept the fact that this rotation is happening, which is what motivates these actions," Cramer said. "Fed rate cuts are going to take the money out of the" Cloud Kings "and the industrials, but your job is not to negotiate a rotation, but to find high quality stocks and keep them for so long that the underlying business remains strong. "

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Exact Sciences announced Monday a $ 2.8 billion partnership with Genomic Health. Cramer has spoken with the president of the cancer diagnostic company, Kevin Conroy, to find out what lies ahead in the wake of the merger.

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Amazon shares plunged on Monday for a third trading day in a row, which may have opened the type of reduction investors are looking for, according to the charts.

Cramer, quoting badyst badyst Caroly Boroden, said the action was on a positive trend that could bring it back above the $ 2,000 level in due course. Since announcing the loss of its profits in the second quarter last week, stocks have lost nearly 4.5%, but they have a chance to break a record, said Boroden, director of FibonnacciQueen.com.

"Boroden says the general trend is still bullish, indicating much higher prices on the road," said the host. "After the recent decline of the title, she thinks you're getting a rare opportunity to buy on Amazon."

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Gold is trading at levels not seen in years and could soon reach unprecedented heights, CNBC's CEO told a Canadian miner Monday.

Sean Boyd, vice chairman of the board and CEO of Agnico Eagle Mines, said the current state of interest and inflation rates created an ideal environment for the sector . The price of gold surpbaded the level of $ 1,400 last month for the first time since 2013 and is currently in the range of $ 1,420.

"We are in a period where gold is flourishing when real interest rates are low … gold is doing well," Boyd said in an interview with Cramer. "And then, the inability of the industry to react to a higher gold price is, I think, the key to getting it going."

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In Cramer Lightning, the host of "Mad Money" gives viewers his impressions on their favorite stock choices at a fast speed.

Newmont Goldcorp: We do not want Newmont, we want to Agnico. D & # 39; right? Agnico is better, faster growth, better badets. "

Dollar Tree: "I think you buy a Dollar Tree."

DXC technology: "DXC does not grow, and that's what I'm looking for, if you want to use DXC, I suggest you trade your knowledge and go to IBM, where I think [Red Hat CEO] Jim Whitehurst is changing the culture. "

Disclosure: The Cramer Charitable Trust holds shares in Amazon.com and JP Morgan Chase.