Here’s our Monthly Meeting rapid-fire update on all 35 stocks in the Club’s portfolio
Here’s a rapid-fire update on all 35 stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim ran through each name during our June Monthly Meeting on Wedensday. Apple (AAPL): After jumping more 40% year-to-date, the iPhone maker’s stock looks somewhat expensive, at over 28-times forward earnings. But that’s not reason enough to budge from our “own it, don’t trade it” mantra because Apple’s services revenue and emerging-markets business are still on track to keep growing. Those two sales streams are key to Apple’s next chapter. Advanced Micro Devices (AMD): Jim said investors hopefully have taken some profits in AMD amid its more-than-50% surge since May 3 . Those who have done so can stick with AMD here, Jim said, arguing its personal-computer revenues are bottoming. More broadly, Jim repeated our belief that AMD’s new graphics processor isn’t enough to dethrone fellow Club holding Nvidia as king of artificial intelligence chips. Amazon ( AMZN): In the current quarter, Amazon’s profitable cloud-computing business, Amazon Web Services, may be growing slower than Wall Street expects. Look further into the future, though, and increased adoption of AI workloads should help reaccelerate AWS sales and boost the company’s value. Amazon’s internal efforts to become more efficient should also be good for the stock. Bausch Health (BHC): The worst may be priced into this troubled stock, but there’s still no reason to buy this lackluster pharmaceutical company. Jim acknowledged Bausch has been a mistake, but remains willing to hold onto the stock in hopes of a favorable outcome in its ongoing Xifaxan patent litigation . Caterpillar (CAT): Caterpillar shares have jumped nearly 20% so far this month, and could still move higher as investors realize the construction-equipment giant isn’t as cyclical as before. The company also raised its quarterly dividend Wednesday for the 29th s traight year, increasing it by 8% to $1.30 per share. That amounts to a roughly 2.1% annualized yield, based on Wednesday’s stock price. Costco Wholesale (COST): We sold 11 shares of Costco on Wednesday morning, a move that locks in profits in the wholesale retailer and replenishes our cash balance after buying shares of Humana earlier in the day. Make no mistake, we remain huge fans of the members-only retailer as a best-in-class operator. Salesforce (CRM): Investors should hold onto Salesforce stock, Jim said, expressing confidence in the enterprise software maker’s business over the long term. While its fresh AI announcements this week didn’t wow the market, Jim said he thinks Salesforce customers will grow to appreciate the productivity boost provided by these new tools. Coterra Energy (CTRA): Coterra remains a stock worth owning, due to its robust capital-return program. This is true even though Coterra shares haven’t gained traction lately. The stock is down more than 1% over the past three months amid an uncertain outlook for oil prices. Still, exploration-and-production companies like Coterra may benefit from inflation easing in the oil patch. Danaher (DHR): Danaher is experiencing one of its most-disappointing stretches in recent memory, but we expect trends to improve as the biotechnology industry regains its footing. Plus, if the environment for public offerings starts to thaw it could have some knock-on benefits for Danaher, if its customers tap the capital markets. Disney (DIS): Disney is incredibly inexpensive, trading at around 19-times forward earnings compared with a five-year average of 29, according to FactSet. And, Jim said, there’s the potential for the media-and-entertainment giant to reinstate its dividend, which can’t come soon enough. Disney has been frustrating us for months, but Jim expressed optimism in its long-term prospects. In fact, he named Disney as the best Club stock to gift to a young grandchild. Estee Lauder (EL): The prestige beauty firm has disappointed because its travel retail business in Asia has underperformed relative to expectations. Despite our faith in CEO Fabrizio Freda to right the ship, we need additional signs of a recovery in its struggling segment before we think about adding to our position again . Additionally, economic stimulus in China would be a win for Estee Lauder . EL shares jumped nearly 4% Wednesday after Berenberg upgraded the stock to buy, from hold, with a 12-month price target of $243 per share. Emerson Electric (EMR): After a prolonged period of being stuck in the mud, Emerson Electric shares are beginning to see some momentum, up more than 11% so far in June. Despite our dissatisfaction with the circumstances surrounding its National Instruments acquisition , Jim said he’s willing to let the stock ride here. Ford Motor (F): Ford’s cash-flow outlook is a real battleground on the Street right now. Management is guiding for full-year adjusted free cash flow of $6 billion. But analysts are more skeptical, with consensus estimates around $3.6 billion, according to FactSet. CEO Jim Farley’s focus on only making profitable cars and trucks will be put to the test in the current quarter. In any case, Ford has been a strong performer as of late , up around 22% over the past month. Foot Locker (FL): Jim said he doesn’t trust Foot Locker’s nearly 6% dividend yield, but stressed his faith in CEO Mary Dillon’s ability to orchestrate a turnaround at the sneaker retailer in a manner similar to what she did at Ulta Beauty (ULTA). Patience is required, though. GE Healthcare (GEHC): GE Healthcare, which joined our portfolio last month, is poised to accelerate growth now that it’s a standalone entity. At roughly $78 per share Wednesday, the stock is down around 10 points from its late-April high, but that doesn’t shake our conviction. We expect demand for its MRI machines to grow in the coming years, tied to the rollout of Alzheimer’s drugs that require patients to undergo multiple brain scans. Alphabet (GOOGL): Our decision to lock in profits in early May has made us feel better about our remaining position, especially because management no longer seems overconfident, Jim said. We don’t want to sell anymore shares, but would advise members to wait for weakness to buy more. Halliburton (HAL): A sustained rally in oil prices would likely bring outsized gains to Halliburton, relative to our other energy holdings. But we’re not betting that will happen anytime soon. Honeywell (HON): If the market rally continues to broaden beyond tech, shares of Honeywell may get a lift, Jim said. He added that investors who don’t own the industrial should look to start a position. Honeywell, now led by CEO Vimal Kapur, has a humming aerospace business. Humana (HUM): We bought more Humana shares Wednesday morning, taking advantage of what we believe is an excessive sell-off following a higher-cost warning from managed-care peer UnitedHealth Group (UNH). The magnitude of Humana’s decline, which at one point reached 13%, is unwarranted given our positive outlook on its fundamentals. Johnson & Johnson (JNJ): Investor need to hold off on buying the drugmaker, given the persistent overhang caused by talc-related lawsuits, including an ongoing trial in California brought by a 24-year-old with mesothelioma. J & J argues its talc is safe and doesn’t cause cancer. But Jim said a loss in the California case would be a big setback to J & J’s efforts to reach a settlement with tens of thousands of plaintiffs in different talc cases. Linde (LIN): The industrial gas firm set a fresh all-time high Wednesday, at over $373 per share, to push its year-to-date gains to around 14.6%. This move may help more investors flock to Linde and push its stock even higher, Jim said. Eli Lilly (LLY): Eli Lilly has wisely been investing in manufacturing capacity to ensure it has ample supply of Mounjaro, its type-2 diabetes drug that U.S. regulators hopefully will approve as an obesity treatment later this year or early in 2024. Meanwhile, its experimental Alzheimer’s treatment looks to have significant potential. We remain confident in Eli Lilly’s future. Meta Platforms (META): Instagram is in a much-better place now, due in part to the tech giant’s use of AI . CEO Mark Zuckerberg has also aggressively worked to bring costs down. That one-two punch may translate into a surprisingly good quarter for Meta, which reports its next round of quarterly results in late July. Morgan Stanley (MS): We’re bummed CEO James Gorman plans to retire , given he oversaw a turnaround of the once-ailing franchise. A decision on his replacement may come by year-end. In the interim, it’s worth noting, that fast-casual chain Cava’s upcoming IPO has added to hopes that the IPO drought is nearing its end. If that does happen, Morgan Stanley, which is one of the underwriters for the Cava deal, should see a much-needed lift in its investment banking division. Microsoft (MSFT): All the praise thrown in Microsoft’s direction makes Jim somewhat nervous, but there’s no denying its strong position in AI, which should aid both its cloud-computing unit, Azure, and its Windows and Microsoft 365 software offerings. Jim admitted that after the stock’s more-than-40% surge this year he’s feeling a bit greedy. Similar to Alphabet, Jim said investors should only be looking to add to Microsoft on a pullback. Nvidia (NVDA): The chip designer and AI enabler has joined Apple as one of Jim’s “own it, don’t trade it” stocks. At the same time, Jim said Nvidia’s monster run this year — nearly tripling in value — spotlights one of his crucial investing lessons: the need to take something off the table to ensure paper profits become real money in the bank. That’s why he said investors whose Nvidia positions have grown too large shouldn’t hesitate to trim. This conundrum, balancing long-term optimism in a company and a desire to guarantee profits, is understandably a tricky one. Palo Alto Networks (PANW): Our discipline led us to take profits in the cybersecurity firm Monday, after the key catalyst of S & P 500 index inclusion was officially announced. It’s possible to both like a company’s prospects and take action to ensure on-paper gains aren’t squandered. Additionally, Jim said we’re now better positioned to buy more PANW shares if there’s significant weakness in the future. Pioneer Natural Resources (PXD): While longtime CEO Scott Sheffield is retiring at the end of the year, Pioneer remains committed to steady capital returns, which we like to see. Echoing our thoughts on oil and natural gas producer Coterra, PXD would certainly benefit from inflationary pressures easing in its industry. Procter & Gamble (PG): Our consumer packaged goods exposure is minimal, but we feel P & G is the best of the group. We’re betting it will be able to maintain its recent price hikes while benefiting from a reduction in input costs that boosts earnings. If we’re wrong and that doesn’t occur, we’ll move on. Starbucks (SBUX): The coffee chain, like Estee Lauder, stands to gain from potential stimulus efforts in China, amid a floundering post-Covid recovery in the world’s second-largest economy. Constellation Brands (STZ): Constellation Brands can go higher on the strength of Modelo Especial, which in May become the top-selling beer in the U.S. The company’s current sales look excellent, Jim said, and its cash flow is strong, too. That should help power STZ stock over time. Stanley Black & Decker (SWK): We called up the hardware and tools maker from the Club Bullpen on Wednesday, scooping up 100 shares . With a steady track record of increased dividend payments, we’re betting that this fallen angel can execute its multiyear restructuring plan . TJX Companies (TJX): The parent company of TJ Maxx, Marshalls and Home Goods remains an ideal way to play the current retail environment as consumers pull back on their spending. Management has shown it can deliver profits in a slowing economy. Wells Fargo (WFC): Our faith remains in CEO Charlie Scharf’s ability to lead Wells Fargo out of the regulatory crosshairs. Scharf continues to make progress on this front while making the bank more efficient. There’s good news on the business fundamentals, too. On Tuesday, the CFO said Wells Fargo expects upside to its full-year net interest income outlook, which currently calls for a 10% year-over-year increase. Wynn Resorts (WYNN): Like Estee Lauder and Starbucks, Wynn is poised to benefit from any economic stimulus efforts undertaken by the Chinese government. Jim said he’s still looking to add to Wynn if the casino operator’s stock dips below $100 per share. Its business in both Las Vegas and Macao are booming. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Here’s a rapid-fire update on all 35 stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim ran through each name during our June Monthly Meeting on Wedensday.
