Squawk on the Street Cramer's Morning Take: Nike & Costco 10/15/25
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Oct 15, 2025 Jim Cramer advocates for investing in retail stocks, spotlighting Nike's potential turnaround under CEO Elliot Hill despite current challenges. He also discusses Capital One's low P/E ratio as a sign of undervaluation. Plus, there's excitement around Wells Fargo’s turnaround success. The conversation wraps up with insights on Costco, highlighting its attractive valuation and growth prospects. It's a blend of market analysis and investment opportunities that could pique any investor's interest.
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Nike's Turnaround Could Compress P/E
- BTIG named Nike its top pick for 2026 with a $100 target and cites Elliott Hill's turnaround potential.
- Jim Cramer sees Nike as under-earning now and expects a materially lower P/E after the turnaround.
Buy Nike If You Believe In Management
- Consider buying Nike to bank on management-led multi-year turnarounds under Elliott Hill.
- Expect profits to recover and the stock's P/E to look cheaper as earnings rebound.
Watch Capital One For Cheap Valuation
- Cramer flags Capital One as potentially very cheap if credit losses remain low relative to peers.
- He watches banks' credit trends as a signal for undervalued opportunities in the sector.