Jim Cramer: UPS Is A 'Very Tough Stock To Own'

On CNBC's "Mad Money Lightning Round," Jim Cramer expressed reservations about Wingstop despite its recent earnings beat, while acknowledging Philip Morris as a "very good company" but stating he "can't get behind it." B of A Securities analyst Lisa Lewandowski maintained a Buy rating on Philip Morris, raising the price target to $200. Cramer was unenthusiastic about United Parcel Service, with Wingstop shares up 0.4%, Philip Morris down 0.6%, and UPS shares rising 1.1% at the close of Monday's trading.

Analysis

The article highlights divergent analyst opinions and recent performance metrics for Philip Morris (PM), Wingstop (WING), and United Parcel Service (UPS). Philip Morris is characterized by Jim Cramer as a "very good company and a very good stock," a view corroborated by B of A Securities analyst Lisa Lewandowski, who on June 4 maintained a Buy rating and increased the price target from $182 to $200; however, Cramer expressed personal reservations about the industry. PM's shares recently settled at $180.63, down 0.6%. Conversely, Cramer expressed skepticism towards Wingstop, stating, "I don't see what they have that I'd like to see," despite the restaurant franchise reporting a first-quarter earnings beat on April 30, with EPS of 99 cents against a 90-cent estimate, and quarterly sales of $171.1 million, a 17.4% year-over-year increase, marginally surpassing consensus. WING shares gained 0.4% to $376.13. For UPS, Cramer described it as a "very tough stock to own" with an uncertain outlook, even as the company announced the appointment of John Morikis to its board on June 2 and its shares rose 1.1% to $99.31. The per-ticker sentiment data reflects these nuances, with PM showing a positive sentiment (0.6), WING mildly positive (0.3) likely due to its earnings, and UPS also mildly positive (0.2).

Key Decisions for Investors

• Investors in Philip Morris should note the strong analyst endorsement and raised price target to $200, while remaining cognizant of potential ESG concerns that may influence broader market sentiment.
• For Wingstop, the recent first-quarter earnings beat (EPS 99 cents) and sales growth (+17.4% YoY) present positive fundamental data points, but investors should contrast this with influential commentator skepticism and evaluate the sustainability of its competitive advantages.
• Given the cautious commentary on United Parcel Service and its characterization as a 'tough stock to own,' investors might consider a hold position, monitoring closely for impacts from the new board appointment of John Morikis or clearer signals on operational performance and outlook in the logistics sector.