By Here’s a rapid-fire update on all 34 stocks in Jim Cramer’s Charitable Trust, the holdings we manage in the CNBC Investing Club. Jim and Club portfolio director Jeff Marks ran through each one of them on Saturday during our special February “Monthly Meeting,” live from Miami. Apple (AAPL): We see a good, strong outlook for the company and the stock. Services revenue is doing quite well. Apple didn’t have enough high-end product due to production issues, which management said are behind them. The stock turned around Friday after quarterly headline earnings and revenue misses. Too many people were betting against, or shorting, the stock. Own it, don’t trade it, as we always say. Advanced Micro Devices (AMD): The stock caught a big rally this week after the chipmaker’s quarter exceeded low expectations, even as the industry still faces headwinds. AMD expects the current quarter to be the bottom for personal computers. CEO Lisa Su told CNBC she sees a strong second half of the year. Su has been, and will continue, crushing the once-mighty Intel (INTC). AMD keeps gaining customers. That’s the name of the game. Amazon (AMZN): We know Amazon needs to cut more costs, while management was conservative on guidance this past week after a quarterly beat. Amazon is all about customer quality and getting stuff delivered fast. Management worries about how much layoffs and cost reductions will impact speed. Bausch Health Companies (BHC): This is a tough one; there’s not much coming from management as we await an appellate court decision concerning a Xifaxan patent dispute. BHC’s corporate bonds indicate the company is still weak. However, it still owns most of Bausch + Lomb (BLCO). Jim said it would be wrong to take a loss on the stock ahead of the appeal. Caterpillar (CAT): We see a multiyear tailwind from a U.S. infrastructure build-out, as the money mandated from 2021’s Infrastructure Investment and Jobs Act starts to be doled out. Jim said it’s nice to have that reliable revenue stream in 2023, 2024 and into 2025. We’re looking to buy more of CAT on Monday. Costco (COST): Another strong monthly sales report went under the radar this past week with all the attention on Big Tech earnings. It’s the place to go with inflation still high. It’s one of the best-run retailers. And a possible future catalyst is a membership-rate increase. Salesforce (CRM): There are lots of activists in the stock. The business software company recently announced layoffs and a board shakeup. Elliott Management and Starboard want further changes to boost shareholder value. ValueAct and Jeff Ubben’s Inclusive Capital hold positions as well. The more controversy the better for the stock. Cisco Systems (CSCO): We’re getting concerned. Lots of Big Tech companies are indicating a slowdown in IT spending. The action in the stock has not been good, but it’s a cheap stock on earnings and pays a solid dividend yield. Coterra Energy (CTRA): Natural gas prices have plunged to December 2020 lows on the very warm winter around the country. Coterra is about 50/50 natural gas and oil. We don’t know how much the company hedged on natural gas, but the slide probably means a dividend cut. Jim says he would sell the stock in a bear market. We’re not in a bear market. So, it’s a wait-and-see. Danaher (DHR): We like this one ahead of the spin-off of its environmental and applied solutions (EAS) unit later this year. This stock is seeing a little hangover from Covid. The company has lots of diagnostics machines, and there is some inventory destocking on the bioprocessing side. We think this is one of the best-run companies in the world, and it’s underappreciated. Walt Disney (DIS): It reports earnings next week, and that will mark the return of Bob Iger to the analyst conference call. Iger came back as CEO after Bob Chapek was ousted late last year. Chapek didn’t understand the team effort required at a company like Disney. Iger is the steady hand it needs. Jim said the new Iger era is the “end of craziness.” Jim also said he supports activist Nelson Peltz joining Disney’s board. Peltz would give management an excuse to cut costs. Disney also has to figure how to deal with massive streaming losses. Devon Energy (DVN): We see similar themes here as with Coterra, though Devon is less exposed to natural gas. We want to own oil stocks because there’s a lot wrong in the world that can force energy costs higher. Again, in the bull market we’re in, we do not want to sell shares with natural gas this low. Estee Lauder (EL): The reopening of China’s economy after ditching zero-Covid is real. Estee Lauder is very levered to China and travel retail. Skincare is a high-margin business and the most popular beauty product in China. The stock is in a bit of a lull recently after a big move off its November 2022 lows. Shares are very ripe, Jim said. Emerson Electric (EMR): The company is trying to make a deal with National Instruments (NATI). Emerson thought it had an agreement and then went hostile. Jim said he doesn’t like hostile takeover situations. But he added the company feels confident it’s ready to announce something soon. Ford Motor (F): We’re puzzled over how Ford could leave $2 billion of profits on the table. Jim Cramer has told CEO Jim Farley: “I’m done if they miss this quarter.” It was a really messy fourth quarter, with soft guidance. Farley told Jim that Ford will make the current quarter and he accepts Jim’s challenge. Alphabet (GOOGL): The Google parent doesn’t know where to cut back on staff and costs and seems unwilling to give anything up. Jim said he’s concerned this is the wrong stock to be in. We’re also worried about the government’s antitrust lawsuit concerning Alphabet’s online advertising practices. Halliburton (HAL): There’s been seven years of underinvestment in oil drilling. Exxon and Chevron are ramping up production in what promises to be a long-term investment cycle. You can’t get oil out of the ground without the services of Halliburton and rival SLB (SLB). We like HAL better on valuation and a better outlook. Honeywell International (HON): Jim said he would buy the industrial conglomerate right now, pointing out the company is right for the moment thanks to exposure to aerospace, oil and gas, and healthy buildings. Humana (HUM): This is the right one in health care. If you don’t own any, you might want to buy. It’s been down lately due to a vicious rotation out of managed care stocks, but it should still grow earnings by more than 10% this year and trades at a reasonable multiple. Johnson & Johnson (JNJ): The company has the talc lawsuit situation under control. The litigation could go to the Supreme Court. They will fight. They will win. J & J is a good stock to get into ahead of the impending split into two companies: consumer brands and pharma/medical technology. The company reported a good quarter and guidance, while fundamentals are solid ahead of the split. Linde (LIN): Linde hit a rough patch last week with shares falling in reaction to a weak guide by competitor Air Products & Chemicals. But long term, this industrial gas giant has the right products for the economy – green hydrogen for fuel cells and semiconductor production. It also keeps costs down and can pass along higher operating costs as price increases. Eli Lilly (LLY): Don’t look at one quarter of weakness. Mounjaro, new to the market for type-2 diabetes, is still awaiting approval to treat obesity. We think, and so do many Wall Street analysts, that the added indication for weight loss could make Mounjaro the best-selling drug of all time. Meta Platforms (META): This major 2022 loser was the big winner of the past week. CEO Mark Zuckerberg finally listened to investors and pledged cost cuts in a “year of efficiency.” Thursday’s post-earnings stock jump of more than 23% also caught a lot of naysayers in a short squeeze. Morgan Stanley (MS): Easy to own. And it delivered a great quarter. Microsoft (MSFT): We’re still inclined to keep it. It’s a very high-quality company. Though, it does need to work through some cloud weakness. Nvidia (NVDA): The company provides the backbone of ChatGPT, the generative AI chatbot everyone is talking about. (ChatGPT made by OpenAI is backed by Microsoft). Jim said he likes Nvidia, while acknowledging the ban on some chip sales to China. The company says it can re-manufacture the chips in question to prevent the Chinese military from using them. But the problem is China can get old chips through different sourcing. Still, Nvidia is the most brilliant company in the industry. Pioneer Natural Resources (PXD): We view this stock in the same camp as Devon. Procter & Gamble (PG): While the stock has under pressure of late, P & G still has a role to play in a diversified portfolio due to the steady demand for its must-have, daily-use consumer products. It’s also a dividend aristocrat and regularly buys back stock. Headwinds from a strong dollar, commodity prices and transportation costs could soon turn into tailwinds. Qualcomm (QCOM): We would most likely lighten up on this chipmaker to buy more Caterpillar. A big autos business would be great. But the company is mostly smart phones and we already own Apple. The low multiple on the stock was somewhat of a value trap for us. Starbucks (SBUX): Wall Street is selling the stock on the previous quarter. Yes, China was not great in the quarter released last week. But China in January is looking good. Starbucks is set up for a very good year. Constellation Brands (STZ): Jim said it’s one the best cash flow stories of all time. It’s a great long-term stock because the alcohol business is recession resistant. Mexican beers are always in hot demand. But investors might have to take some near-term pain. TJX Companies (TJX): Off-price retail is a good place to be in a softer economy, as people look for bargains. TJX, which operates T.J.Maxx, Marshalls and HomeGoods, stands to benefit from the misfortunes of Bed Bath & Beyond (BBBY) and Kohl’s (KSS). Those struggling retailers will have to liquidate inventory to raise cash. Wells Fargo (WFC): There’s been a sneaky rally in bank stocks. Wells Fargo recently solved the biggest consent decree over past misdeeds. What Jim hears from the company is that it’s buying a lot of stock now. Wynn Resorts (WYNN): It’s a China reopening story. Package tours to Macao will resume next week. It might not be all foot traffic at the casinos there, but high rollers are coming back. Hold Wynn in a bull market. It still has some room to run. Las Vegas and Boston are also looking better. There’s a key United Arab Emirates (UAE) project, too. (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 34 stocks in Jim Cramer’s Charitable Trust, the holdings we manage in the CNBC Investing Club. Jim and Club portfolio director Jeff Marks ran through each one of them on Saturday during our special February “Monthly Meeting,” live from Miami.
