Jim Cramer says buy these 2 beaten-down stocks as the AI trade gets ugly
Jim Cramer recommends investing in VF Corp (VFC) and Kontoor Brands (KTB) as investors rotate away from volatile AI stocks. VF Corp's turnaround depends on Vans' growth and improving earnings, with Williams Trading raising its price target to $22. Kontoor offers denim growth, buybacks, and a lower valuation, with Jefferies upgrading it to Buy and raising its target to $89.
How this was made
The 30-second read
Why it matters
Analyst upgrades and buyback plans provide fresh catalysts that could lift both VF Corp and Kontoor Brands.
Market read
The article offers fresh analyst upgrades for two apparel companies, suggesting a short‑term buying opportunity as investors rotate out of AI stocks.
What to watch
Potential supply‑chain constraints for Vans and denim inventory levels could temper earnings recovery.
Background
Jim Cramer highlighted two beaten‑down apparel stocks amid a market rotation away from AI‑focused names.
Ticker impact
Williams Trading raised its price target on VF Corp to $22 and maintained a Buy rating, citing improving Vans trends.
likely upward pressure as investors price in the higher target and turnaround narrative
The new target and buy rating provide a fresh catalyst that could attract buying interest.
Jefferies upgraded Kontoor Brands to Buy from Hold and raised its target to $89, highlighting denim growth and a $400 million share repurchase plan.
likely upward pressure as the market digests the upgrade and cash‑return program
The upgrade and sizable repurchase tranche constitute fresh, material news that can drive buying.
Market effects
Consumer apparel may benefit from rotation out of AI‑heavy names, supporting broader sector breadth.
U.S. equities could see modest gains as investors shift toward consumer staples and apparel.
Limited to U.S. markets; no direct global macro effect.
Counterpoint
If AI volatility persists, the upside from apparel turnarounds may be overstated.
Key entities
- personJim Cramer
CNBC host recommending the stocks.
- analyst_firmWilliams Trading
Raised VF Corp price target to $22.
- analyst_firmJefferies
Upgraded Kontoor Brands to Buy with a $89 target.
