If the economy really slows down, then what works best here? What actions can you buy or at least are you willing to buy, like PepsiCo (PEP), if you feel that the world is actually slowing and that the Fed can not change the equation?
I have six.
The first is Estee Lauder Companies (EL). Here is a company run by one of the best leaders I've ever met, Fabrizio Freda, the late Procter & Gamble (PG), who took over this prestigious brand and made it the most makeup company. appreciated in the world. Because we are in the selfie generation, where everyone has to look good at every outing, it's Estee Lauder instead of the catbird. I like the fact that Freda has created a reverse mentoring system in which young people from the office occasionally frame elders to make sure they are aware of the latest advances in the millennium. . It is a company with a fantastic Chinese company that only improved during the commercial tensions. Is there anyone else who can possibly say that? I do not think so.
Second, Starbucks (SBUX). Have you seen that stock jump from $ 50 to $ 90 since Kevin Johnson took over from Howard Schultz? He managed by combining $ 7.15 billion to sell a well-packaged consumer goods business generating $ 2 billion in revenue for Starbucks, and using that money to buy back shares, because it was so undervalued. In addition, Johnson once ran Juniper (JNPR), a technology company, and used that knowledge to solve the flow problems that have plagued society for ages. He did that in his own way. He has donned the green apron and, as he is not known, he could be both ubiquitous and anonymous. I like that a lot. He improved his loyalty program, established close ties with the Chinese and prolonged the friendship between Howard and Jack Ma. It's so important because the Chinese market is gigantic for Starbucks and that he had slowed down . Now he comes back with a vengeance.
Three: Today, several companies have raised their price targets for the Chipotle Mexican Grill (CMG) and I think they are right to do so. Here is the deal with Chipotle. Since Brian Niccol became CEO in February 2018, he brought to the company a system of expertise that had not been integrated in the previous direction. Like Starbucks, Chipotle suffered from extremely irregular flow. Niccol – Yum late! Brands (YUM) Taco Bell, from all places – has pretty much solved the problems. Of course, his stewardship coincided with the country's oblivion. We have virtually stopped thinking about foodborne illnesses and think of tasteful burritos instead. CFO Jack Hartung bought back a ton of stock in the sordid times. What a clever decision.
Next is a strange: Nike (NKE). Analysts did not appreciate the last quarter of Nike. In fact, they hated it. And all that has happened is that the stock has skyrocketed. How is this great? What does it mean? Quite simple: People think the next quarter will be better and that may be enough. I think it's an incredible comeback done on nothing. But when you come back on anything, it usually means that there is something on foot. I love their Chinese business. I love their European affairs and their American affairs. What more can i say? This one goes down, you buy it.
Here is one that makes me angry every time I look at it: Procter & Gamble. Why? Because he never intervenes. I have never had a chance to recommend it to you, so I want to let you know because it has become the everyday consumer goods company of all. I think David Taylor has done a fantastic job for his growth and his partnership with Nelson Peltz is going on, which has really helped the company's execution. I see chemical companies that the gross costs have gone down. I see transportation companies that freight costs have gone down. Sharing, gross cost, improving business in China … What's wrong? Look at this stock. It never comes. When that happens, I think you have to be there.
Finally, I like McDonald's (MCD). There are easy comparisons. He has an incredible mastery of technology. Steve Easterbrook is a genius, just a genius. The first thing he did was win the franchisees. It's the most important thing he can do. Then he worked on technology and costs – reducing them. Now, it's all about the convenience and the use of technology to make it happen.
Listen, I know it would be nice to be able to count on traditional growth. I like Facebook a lot (FB). I like Libra. But I feel that I am the only one to support their virtual currency and it seems that no one adheres to the idea that Facebook is somehow reformed. I do not care. I know that Instagram is crushing it and that the chain is excellent. The overhang of Libra is a negative, of course.
I love Amazon (AMZN), but do you know how much hot money is ready to explode, even for a lot of holidays at Amazon Prime? It's ridiculous. Expectations are far too high I hated Dickens' "Great Expectations" and I hate Great Expectation in stocks. This one has expectations far too high. Plus, I bought the Firestick last week. If I had waited a week, I could have saved a fortune.
Alphabet (GOOGL)? I thought we might have a winner, but then Peter Thiel, who is rich in Croesus, started talking today about China and betrayal and whether Google knows if his own business is compromised by the Communist Party Chinese. Thiel can create problems. I think we have not heard the last of these accusations.
Apple (AAPL)? Damn, the stock runs again. Are you talking about the worst thing that can happen? When this stock is in circulation, it's almost always bad news, and that's where I'm going right now.
Of course, I love the kings of the cloud. But actions such as Workday (WDAY), Splunk (SPLK) and Salesforce (CRM) have worked a lot. As the rising Web plays with Okta (OKTA), Zscaler (ZS) and Zendesk (ZEN). I think the risk had become so high that I could not be flippant. I need these to refresh me too. Tech is great; too great for the moment.
I wanted to list some pharmaceutical companies until the president formed his weapons against them. You have all the food stocks you need if you own PepsiCo.
So I come back to six major groups: Estee Lauder, McDonald's, Nike, Starbucks, Chipotle and Procter & Gamble.
No, I would not just go buy them now. Not with what I just said about the results season.
But I say that these actions are anointed by a lot of money. They do not leave. This will be the second half's actions in which the big money seems to want to be, anyway. And now you have the list. Memorize them. They are winners. I believe that they will be for the rest of 2019
Apple, Alphabet, Amazon, Facebook and Salesforce belong to Jim Cramer. Action Alerts PLUS club member.
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