Buy Capital One stock after blockbuster deal for Discover
Home Depot : The home-improvement retailer beat Wall Street’s lowered earnings expectations Tuesday, but said it expects comparable store sales to decline about 1% in its fiscal 2024. Shares of Home Depot were flat. The report was a “big surprise,” Jim Cramer said. “I thought the professional was there because of the repair [and] remodel business, and it looks like that was overstated.” Walmart : The largest U.S. retailer reported a strong holiday quarter Tuesday, with sales rising 6% in three months ended Jan. 31. Meanwhile, its full-year sales guidance was within the range of analyst expectations. Jim noted he’ll interview Walmart CEO Doug McMillon on CNBC’s “Mad Money” later Tuesday. Walmart is an “inflation fighter,” Jim said. Roku : Shares of the smart TV maker and streaming service provider fell nearly 6% Tuesday. The decline comes after Walmart announced a deal to acquire TV maker Vizio for $2.3 billion. “I would point out, just so people know,” that Walmart says the deal is slightly dilutive to near-term earnings per share, “which surprised me,” Jim said. “I thought it would be additive.” Intel : Shares rose more than 1% amid reports that the California-based chipmaker could soon receive more than $10 billion in U.S. government subsidies tied to the 2022 Chips and Science Act. “They can get $50 billion, it doesn’t matter. They are so far behind AMD now. I mean, please,” Jim said. Capital One : The company on Monday announced an all-stock deal , valued at $35.3 billion, to acquire credit card rival Discover Financial Services . “Buried within Discover is a payments system that may be unrivaled, that [Capital One CEO] Richard Fairbank can put to work,” Jim said, reiterating his call to buy Capital One stock into Tuesday’s weakness.
Source link
