Jim Cramer Says Investors Should Check Share Count Before Buying A Stock: 'You Want A Management That Agrees With You'
Portfolio Pulse from Benzinga Neuro
Jim Cramer emphasized the importance of share count reduction in driving stock performance, noting that over half of the S&P 500 stocks reaching new 52-week highs in Q1 benefited from this strategy. He highlighted companies across housing, retail, and technology sectors, including Lennar, Toll Brothers, Best Buy, Dick's Sporting Goods, Apple, and Microsoft, as examples of firms that have significantly reduced their share counts since 2019. This trend is seen as a positive indicator for the S&P 500, which is predicted to surge by 15% by the end of 2024.
April 01, 2024 | 10:23 am
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POSITIVE IMPACT
Apple's aggressive share repurchases have reduced its share count, potentially driving its stock price higher.
Share repurchases by tech giants like Apple indicate a bullish outlook by management and can lead to stock appreciation.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Best Buy's reduction in share count is a positive move that could enhance its stock value.
Reducing share count is a strategy that can lead to higher earnings per share and is often viewed favorably by investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Dick's Sporting Goods has reduced its share count, which could positively impact its stock performance.
A lower share count can improve a company's earnings per share ratio, making the stock more attractive to investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Lennar has significantly reduced its share count, which is a positive indicator for its stock performance.
Share count reduction often leads to a positive reevaluation of a stock as it indicates strong management confidence and can enhance earnings per share.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Microsoft has reduced its share count, a move that could positively affect its stock price.
Reducing share count is a positive financial maneuver that can lead to an increase in stock price, reflecting well on Microsoft's market position.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Toll Brothers has notably decreased its share count, potentially boosting its stock performance.
A decrease in share count can lead to an increase in stock value, reflecting positively on the company's financial health and investor appeal.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90