Cramer Remix: I’d downgrade 100 stocks before ditching Lululemon

CNBC’s Jim Cramer revealed Monday that he would be a buyer of Lululemon shares at current levels.

With the stock trading just shy of $180, a “Mad Change” viewer, who bought shares at about $179 before its most recent quarterly report, phoned the host to get his reasons on the name after some analysts downgraded it from buy to hold.

“I’d like the stock to go to $200. They have had a series of preposterous quarters. They have amazing management,” Cramer replied. “A downgrade? I got 100 stocks I’d downgrade before I force downgrade Lululemon.”

Doubt can be Wall Street’s best friend.

Investors are skeptical wide the state of the market and which way it’s going, Cramer said — they’re the fuel that continues to drive the bull farther.

After the major indexes gave up much of their gains from earlier in the day, Dow Jones Industrial Average finished up various than 117 points, the S&P 500 settled higher 0.77% and the Nasdaq Composite advanced 1.06%.

The host said the period is a “pretty good microcosm for how the whole year’s been going.”

“The market is full of skeptics. It’s full of bears who from time to time masquerade as bulls, and their doubt is the fuel that lets us go higher,” he explained to viewers. “Bull markets seizure on disbelief. The moment everyone believes in the bull, well the rally’s over, because then there’s no one left to buy.”

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Monday kicked off the start of the end of the year.

Now that the calendar has turned lifetime the halfway mark of 2019, Cramer reviewed the top five performers on both the Dow Jones Industrial Average and the broader S&P 500 factors and projected where those stocks are headed.

“When I look at the top five best performers in the Dow and the S&P, I see a good group of carries, most of which have more room to run. As we’ve seen over and over this year, stocks that are in passage tend to stay in motion,” he said. “Maybe they get knocked down by big-picture worries, but if you’ve got a high quality whodunit … the odds are good the stocks going to get right back on track.”

Find out the top performers here

Cramer viewers the unskilled light to buy into The RealReal, the online luxury consignment shop that made its public debut last week.

He apostrophize b supplicated it an “intriguing growth story with some hair on it,” but suggests waiting for the stock price to recede a few bucks.

“At a stretch when the department stores are being eaten alive, The RealReal could be poised to make a killing,” the host signified. “Right now, it’s at $26 and change. You’ve got my blessing to buy it if it pulls back to $22.50 or less. And if it doesn’t, you gotta just say you missed it.”

Cramer said payroll processing companies can give in to defeat a good read on the job market. Paychex, the second-largest business in the sector, has seen its stock bouncing after delivering an earnings study that did not impress investors last week.

CEO Martin Mucci told the host that the company feels “de facto strongly” about revenue growth in human resources services.

“That’s what’s been growing the fastest,” he required in a one-on-one interview. “Double digit growth, even without Oasis, the acquisition that we completed … we did have duplicate digit growth and we think we’ll continue to have that in our client employees.”

Catch the full discussion here

In Cramer’s lightning round, the “Mad Money” host zips through his thoughts about viewers’ funds picks of the day.

Xilinx: “I say [sell, sell]. Own half of it, at least. Look, there’s conflicting reports about what the joke with Huawei is. This company makes space station for China and therefore I think it may not be part of the amnesty, so I don’t demand to get too out of control.”

AeroVironment: “The bears have been winning on this one. I have to tell you that there’s a big move away against these defense stocks, too. … We got to stay away.”

Intel: “Why own Intel when you can own AMD? That’s the one I’d by.”