Cramer examines Tuesday’s market ‘mistakes,’ underappreciated stocks
CNBC’s Jim Cramer on Tuesday said he thinks Wall Street has made some poor decisions when evaluating mega cap stocks.
“Look, on any given day, we’re giving, getting these imperfections, these mistakes, these juvenile, uninformed moves,” he said. “To me, it says there are plenty of shareholders who don’t even know what they own or even what matters to the direction of a stock.”
Cramer pointed to tech giant Apple, which he said opened down on Tuesday due to a market-wide decline. But attitudes changed once major Apple supplier Foxconn, officially known as Hon Hai, raised its fourth quarter outlook, expecting strong end of year sales. Investors soon realized their mistake, Cramer said, and the stock was up a little over 2% by close.
To Cramer, investors made a similar error with stock of pharmaceutical giant Eli Lilly, which also opened down on Tuesday and proceeded to fall further just after open. But its stock changed course after the company announced its recently approved weight loss treatment Zepound is now available at pharmacies. Eli Lilly’s stock was up .42% at close.
These “mistakes” can bode well for investors who might want to buy shares of high quality stocks at lower prices.
“As long as there are mistakes, there are opportunities,” Cramer said. “I think it’s just a matter of time before the others react correctly, giving the opportunistic, more fearless investors a terrific chance to build great positions in these amazing American companies.”
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