Looking for non-AI stocks to own? Jim Cramer thinks these 2 names are worth buying
In the latest market commentary, Jim Cramer highlights VF Corp and Kontoor Brands as potential investment opportunities for those wary of the AI sector's struggles. He points to recent bullish analyst upgrades for VF Corp's Vans brand and a revitalization in denim sales that could positively impact Kontoor's Wrangler line. The emphasis on traditional retail brands amidst the tech-driven market is noteworthy, signaling a possible shift in investor focus as broader economic indicators evolve.
Where it sits in our coverage
Our consensus target sits at 1.075 (median across 8 firms), with Goldman at the upper bound (1.12) and BofA at the lower (1.04). Cramer's recommendations suggest a pivot toward consumer discretionary sectors could be a strategic move as the market seeks stability outside tech.
How firms align
Goldman aligns with this view, maintaining a target of 1.10, suggesting confidence in a recovery for traditional retailers like VF Corp and Kontoor. In contrast, BofA's lower position at 1.04 indicates skepticism about the broader market's recovery potential, including these brands despite recent upgrades.
What the data shows
Recent reports indicate a potential rebound in retail spending, with a focus on denim and footwear, areas VF Corp and Kontoor are positioned to benefit from. This aligns with an overall consumer spending projection increase noted in our internal research.
How firms align with this view
Aligned with the headline view
Contrary positioning
Key takeaways
- 01Cramer identifies VF Corp and Kontoor as opportunities amidst a cooling AI sector.
- 02Investors may look to diversify into consumer discretionary stocks.
- 03The resurgence in denim and footwear may drive VF and Kontoor's growth.
- 04Analyst upgrades suggest renewed confidence in these brands.
Market implications
Watch for retail sales data releases that could validate a positive trend for VF Corp and Kontoor. Our consensus number of 1.075 supports a cautiously optimistic approach following Cramer's insights.
Risks to this view
A reversal could occur if retail sales consistently underperform or if broader economic indicators signal a recession, undermining consumer confidence in discretionary spending.
Sentiment by currency
USD~EUR~JPY~GBP~Composite USD score: +0.00
Sources & References
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