Here’s a rapid-fire update on all stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim ran through each stock during our September Monthly Meeting on Thursday. Apple (AAPL): Skeptics have argued for years that Apple is no longer a growth company. But that viewpoint overlooks the high-margin, fast-growing services revenue stream that Apple has built over the years. While risks to its business in China remain something to watch, the iPhone maker has considerable opportunity in emerging markets such as India. Amazon (AMZN): Jim said Amazon is doing everything he’s wanted it to do for months, specifically cutting back on money-losing projects and focusing on boosting profitability at cloud unit Amazon Web Services and advancing its advertising business. Broadcom (AVGO): We wish we could’ve bought shares of the semiconductor and software firm Thursday morning, as the stock slid on a news report that suggested Alphabet-owned Google might drop Broadcom as a supplier for its artificial intelligence chip. We were skeptical of the report earlier, and now a Google spokesperson put out a statement saying, “We see no change in our engagement with Broadcom.” The stock is well off its intraday lows, and our longer-term thesis on AVGO remains intact. Bausch Health (BHC): We’re not out of the woods yet with Bausch Health, which just lost its CFO to a job at a different company, but a recent upgrade from investment bank Jefferies is certainly notable. The analysts say Bausch’s patent litigation could be resolved in the troubled pharmaceutical company’s favor — a positive catalyst for shares. Caterpillar (CAT): Shares of this industrial stock had a crummy spring, but the situation turned around in a big way in June, and the stock mounted a huge rally throughout the summer. We still see a big 2024 ahead, thanks to the federal government’s infrastructure spending. Costco Wholesale (COST): Costco is one of the easiest stocks to own right now. On conventional price-to-earnings metrics Costco isn’t exactly cheap, but Jim believes it’s one of the few retailers that’s truly able to thrive in this moment. The potential for membership fee hikes and a special dividend remain on the table as well. Salesforce (CRM): If our cost basis in Salesforce wasn’t much lower than its current stock price, we’d be tempted to add to our position. That’s because we’re believers in Salesforce’s ability to leverage AI to improve its suite of software tools in ways that attract more customers and saves them time and money. Coterra Energy (CTRA): Lately, shares of this energy company have been rangebound between $27 to $28 apiece, but Jim stressed that he’s staying patient. With its low all-in costs for natural gas, a cold winter that pushes prices up would be good news for Coterra. Dupont De Nemours (DD): We look at Dupont as an industrial juggernaut with exposure to fantastic end markets, such as construction, packaging and semiconductors, and a sizable stock buyback program. That’s a winning combination, and as more investors come around to the idea that Dupont is a secular growth story, its stock should receive a higher valuation. Danaher (DHR): This hasn’t been a great year for Danaher’s stock, but our belief is that the business cycle is beginning to turn the corner. In particular, we’re optimistic that a wave of biotech IPOs is coming, which would inject key Danaher customers with fresh capital to buy the Club holding’s tools and services. Jim said Danaher is a buy here. Disney (DIS): Shares of the media and entertainment giant may have finally hit a floor, and Jim said new members to the Club who don’t own Disney yet should buy some. CEO Bob Iger is poised to get rid of the assets that aren’t making the company money, while doubling down on the good ones. Estee Lauder (EL): It’s going to be another quarter or two before inventories in Estee’s travel retail business normalize, so patience is required. But for investors who haven’t bought into its steep pullback, it’s reasonable to buy some shares at current levels around $146.50 each. Emerson Electric (EMR): It would be premature to declare victory in Emerson, after battling it earlier this year amid its once-hostile bid for National Instruments (NATI). We’re willing to hold on as the company makes additional progress on its transformation into a pure-play automation firm. Ford Motor (F): The situation at Ford is longer as good as it was, due to the ongoing United Auto Workers strike. While the union is driving a hard bargain, Jim said he doesn’t want to make a rash decision and is wiling to be patient with the stock for a bit longer. Foot Locker (FL): Foot Locker has been a monster disappointment, but Jim said he’s willing to give the sneaker retailer and its CEO, Marry Dillon, one more quarter to demonstrate that the turnaround plan can be executed. GE Healthcare (GEHC): Jim said he has no idea what the sellers of GE Healthcare are thinking, but believes they’re wrong to exit the medical imaging and diagnostics firm. We see GE Healthcare as a key beneficiary from the launch of anti-amyloid Alzheimer’s drugs, such as Biogen ‘s (BIIB) Leqembi and Eli Lilly’s donanemab, which is expected to receive U.S. regulatory approval in the coming months. Alphabet (GOOGL): The tech giant has a lot going for it: A strong position in the advertising market, a fast-growing cloud-computing business and still-dominant search engine. And yet the stock only trades at 21 times forward earnings. Honeywell International (HON): Vimal Kapur took over as CEO in June, and we remain very interested to see what he does to the company’s diversified portfolio of businesses. Jim said he believes the low-multiple portions of Honeywell may be about to go. While its stock is down about 10% year to date, it’s had a nice move in September. Humana (HUM): Humana’s current valuation and the quality of its Medicare Advantage offerings keep us invested. Concerns about increased medical costs derailed the stock in mid-June, and while it’s recovered some of those losses, it’s still not back to old highs. Linde (LIN): The industrial gas firm has demonstrated its consistency time after time, and the stock deserves its premium multiple. With exposure to key secular themes such as de-carbonatization and semiconductor manufacturing, Linde remains a great stock to own. Eli Lilly (LLY): We trimmed our Eli Lilly position last week out of discipline, booking a gain of more than 100% on stock purchased in December 2021 and January 2022. We’re still bullish on the drugmaker’s long-term growth prospects, led by Mounjaro and its experimental Alzheimer’s treatment, but we didn’t want to be greedy with the stock up huge this year. Meta Platforms (META): It’s tempting to take profits in Meta, which has more than doubled in value this year. However, the stock is still trading at a valuation below its five-year average, and CEO Mark Zuckerberg has refitted the social media behemoth into a leaner, more profitable organization. We like its ability to beneficially use AI, and WhatsApp has untapped potential. We’re not selling. If anything, we should be buying, Jim said. Morgan Stanley (MS): Morgan Stanley’s dividend yield of nearly 4% and its growing wealth-and-asset management operations are reasons to stick with this financial, despite the stock essentially being flat year to date. While we’re still waiting to hear who is going to replace outgoing CEO James Gorman, our belief in the Morgan Stanley franchise remains strong. Microsoft (MSFT): Shares of the tech giant have yet to recover from their July post-earnings slide , which then as now is a mistake. Concerns about a cloud slowdown do not hold up under close scrutiny, Jim said. Unless you believe inflation is going to keep raging, making Microsoft’s price-to-earnings multiple too high, then this stock is a buy. Nvidia (NVDA): Investors who don’t own Nvidia yet should use its recent weakness to start a position, Jim said. Then, he said, if the once-hot stock falls another 10% or so, that would be an appropriate level to scoop up additional shares. Eventually, though, Jim said he expects the buyers to return to Nvidia, perhaps later this year, returning the stock to its winning ways. Oracle (ORCL): Jim said Oracle is worth buying here, before the rest of the market fully comes around to the strength of its cloud computing business driven by AI adoption. He said his recent interview with Oracle CEO Safra Catz validated his belief in the company, which we added to our portfolio last month . Palo Alto Networks (PANW): A slew of recent headlines about cyberattacks at companies such as Clorox (CLX) demonstrate just how valuable digital security is nowadays, and Palo Alto Networks is the best way to play that theme. Procter & Gamble (PG): The consumer products behemoth may seem like a boring stock to own, but we value its stability. It will not report perfect quarters every time, but it’s a dividend aristocrat with a stock that appreciates in value over time. That is enough for us. Pioneer Natural Resources (PXD): We decided to buy additional Pioneer shares Thursday as the stock fell more than 2%. Crude prices have taken a slight breather after a big move higher, but Jim said he believes oil can reach $100 in the near term. Higher oil prices mean more free cash flow for Pioneer, which in turn means more capital returns to shareholders. Starbucks (SBUX): Starbucks is another wait-and-see stock in the portfolio. The market seems increasingly worried about the coffee chain’s business in China, but Jim said he’s been unable to find clear evidence of conflict between the company and the government in Beijing. Constellation Brands (STZ): The first week of November is going to be key for this stock. That’s when Constellation management holds an investor day, where we expect information on a growth strategy informed by its constructive dialogue with activist firm Elliott Management . Stanley Black & Decker (SKW): While it’s been a poor performer over the past month, the stock maintains a nearly 4% yield. Jim said he’s willing to take the near-term pain for the gain that we expect will occur on the other side of the Federal Reserve’s tightening cycle. Plus, the company has put its supply chain woes behind them. TJX Companies (TJX): The parent company of TJ Maxx, Marshalls and HomeGoods is in a great position. Jim said he expects the traditional brick-and-mortar retailers to close stores in the near future, which would play right into TJX’s hands. Wells Fargo (WFC): Jim said Wells Fargo is like a sleeping giant that’s poised to rally when the Federal Reserve’s interest rate hiking campaign comes to an end. There are still some regulatory overhangs, namely the Fed-imposed asset cap, but the scandals under previous management continue to move further in the rearview mirror. Wynn Resorts (WYNN): The collection of high-quality gambling properties that is Wynn Resorts is worth considerably more than its $10.4 billion market capitalization, Jim said. While concerns about the Chinese economy have hurt Wynn, our intention is to stick with the stock. 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.
CNBC Investing Club with Jim Cramer
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