Jim Cramer Is Worried About This Consumer Cyclical Stock: 7% Yield? 'Something May Be Wrong Here'

On CNBC's “Mad Money Lightning Round,” Jim Cramer said he is worried about The Wendy’s Company (NASDAQ:WEN).

Cramer says it should not have a 7% yield, adding, “That, to me, suggests something may be wrong here.

Morgan Stanley analyst John Glass supported his view on Jan. 21, downgrading Wendy’s from Equal-Weight to Underweight and lowering the price target from $22 to $14.

Nu Is A ‘Really Hard’ Company

Nu Holdings Ltd. (NYSE:NU) is a “really hard” company. Cramer added that he prefers SoFi Technologies, Inc. (NASDAQ:SOFI) over the fintech firm.

Supporting his view, Citigroup analyst Ashwin Shirvaikar, on Dec. 2, downgraded the rating from Neutral to Sell on the stock and lowered its price target from $14.6 to $11.

Other Stocks In Focus

TETRA Technologies, Inc. (NYSE:TTI) is a “very good company, and it did come up from the ashes,” Cramer said. “As a matter of fact, it's come up so much, it's up 28% for the year, so I cannot sanction buying it.”

The company's stock also jumped more than 33% over the past month.

When asked about Abbott Laboratories (NYSE:ABT), he said, “I can't recommend anything on a straight line. But if it pulls back a couple bucks, though, it's good, because this should be one of the great pharma stories because it's got the best growth in device and pharmaceuticals.”

Abbott Laboratories, meanwhile, on Jan. 22, reported fourth-quarter sales of $10.97 billion, up 7.2% year over year, missing the consensus of $11.01 billion.

“This one has been around forever, and it just caught fire,” Cramer said when asked about Casella Waste Systems, Inc. (NASDAQ:CWST). The “Mad Money” host added that although it's good he will go back to Waste Management, Inc. (NYSE:WM).

Adding support to his choice, Jefferies analyst Stephanie Moore, on Jan. 23, downgraded Casella Waste from Buy to Hold and lowered the price target from $115 to $113.

Price Action:

• TETRA Technologies shares fell 1.7% to settle at $4.60 on Friday.
• Abbott shares gained 1.5% to close at $125.03 during the session.
• Wendy's shares gained 0.6% to settle at $14.30 on Friday.
• Nu Holdings shares rose 1.2% to close at $12.34.
• Casella Waste shares slipped 1% to settle at $105.03 on Friday.

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