Jim Cramer is pushing back against a recent UBS recommendation.
It’s easy to pick stocks that everyone agrees is going higher, but based on one of his picks Wednesday, CNBC’s Jim Cramer likes things to be difficult.
The “inverse Cramer” crowd is having a field day in in Cramer’s mentions after the legendary investor picked shoe seller Foot Locker (FL) – Get Free Report as one of his surefire stocks.
DON’T MISS: This Major Mall Retailer Is Shuttering Hundreds of Stores
“UBS says sell Footlocker [sic], if you do this please remember to invite me to your funeral,” Cramer tweeted Wednesday.
The UBS call, and Cramer’s rebuttal, comes just weeks after the company unveiled its “Lace Up” plan to close 400 underperforming mall stores and focus its efforts more on off-mall locations.
Foot Locker is guiding for ~$10 billion in annual sales and a 10% operating margin over time. Currently, the company has about $8.5 billion in sales with a 7% operating margin.
Twitter users were quick to point out that Foot Locker has been decimated over the past four weeks, falling more than 11%.
Others questioned the wisdom of betting on a brick-and-mortar retailer in the current climate, with the company set to close about 14% of its current store base of 2,800 stores.
Foot Locker shares were down 1.6% to $39.50 in morning trading Wednesday after UBS downgraded the company’s stock to sell from neutral on the view that it will struggle in a potential recession.
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Jim Cramer is pushing back against a recent UBS recommendation.
It’s easy to pick stocks that everyone agrees is going higher, but based on one of his picks Wednesday, CNBC’s Jim Cramer likes things to be difficult.
The “inverse Cramer” crowd is having a field day in in Cramer’s mentions after the legendary investor picked shoe seller Foot Locker (FL) – Get Free Report as one of his surefire stocks.
DON’T MISS: This Major Mall Retailer Is Shuttering Hundreds of Stores
“UBS says sell Footlocker [sic], if you do this please remember to invite me to your funeral,” Cramer tweeted Wednesday.
The UBS call, and Cramer’s rebuttal, comes just weeks after the company unveiled its “Lace Up” plan to close 400 underperforming mall stores and focus its efforts more on off-mall locations.
Foot Locker is guiding for ~$10 billion in annual sales and a 10% operating margin over time. Currently, the company has about $8.5 billion in sales with a 7% operating margin.
Twitter users were quick to point out that Foot Locker has been decimated over the past four weeks, falling more than 11%.
Others questioned the wisdom of betting on a brick-and-mortar retailer in the current climate, with the company set to close about 14% of its current store base of 2,800 stores.
Foot Locker shares were down 1.6% to $39.50 in morning trading Wednesday after UBS downgraded the company’s stock to sell from neutral on the view that it will struggle in a potential recession.
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.