Jim Cramer: United Microelectronics Is A ‘Tough’ One, Pass On This Industrial Stock
Jim Cramer advised against United Microelectronics (UMC), calling it a 'tough' stock despite strong sales growth, citing a lack of catalysts after a 135% year-to-date rise. He praised Avnet as a good stock with a low P/E, though he noted concerns about the move ending. Conversely, Cramer recommended passing on Archer Aviation, suggesting better speculative options exist, despite its recent acquisitions and earnings beat.
On CNBC’s “Mad Money Lightning Round,” Jim Cramer said no to United Microelectronics Corporation (NYSE:UMC) adding that it is a “tough” one. Cramer noted that although the stock is not expensive, but it’s higher by 135% this year and he doesn’t have a catalyst at these prices.
UMC posted sales results for July on Aug. 6. The company said July net sales rose 18.98% year-over-year, while sales for the Jan.-July period climbed 12.41% to NT$153.61 billion.
Avnet, Inc. (NASDAQ:AVT) is a “really good” stock, Cramer said. “I’m glad you brought my attention. I cannot believe how low the P/E is. But then again, a lot of people feel that the move is about to end at any given moment, and that’s what’s wrong with Avnet.”
On the earnings front, Avnet reported fourth-quarter earnings of $2.28 per share on Aug. 5, beating the analyst consensus estimate of $1.77 per share. The company reported quarterly sales of $8.295 billion, which beat the analyst consensus estimate of $7.519 billion.
Cramer recommended passing on Archer Aviation Inc. (NYSE:ACHR). “If we want to do a spec, there’s better specs out there,” he added.
As per recent news, Archer Aviation posted better-than-expected second-quarter sales on Aug. 10 and announced definitive agreements to acquire Boeing’s Wisk Aero, SkyGrid, and Insitu subsidiaries.
Price Action
- Avnet shares fell 5.3% to settle at $93.40 on Tuesday.
- Archer Aviation shares fell 1.1% to close at $6.32 during the session.
- United Microelectronics fell 5.4% to settle at $18.48 on Tuesday.
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