Here’s a rapid-fire update on all the stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim ran through the holdings Wednesday during our January Monthly Meeting. Apple : After a tough start to 2024 that included a series of analyst downgrades, Apple in recent days got its mojo back — something we figured would happen . With the launch of the Vision Pro just over a week away, Jim said preorders for the mixed-reality headset seem strong, though it will take time before it’s a real financial needle mover. And while Apple bears seem to only focus on the precarious economic situation in China, a key market for the iPhone maker, we see a lot of opportunity in other countries like Indonesia, Brazil and India. Own it, don’t trade it. Amazon : The online retailer’s fast, reliable delivery times gives it the upper-hand against buzzy Chinese players Temu and Shein. With the latter two, you might wait a week or two, Jim said, much longer than a typical Amazon Prime delivery. Meanwhile, Amazon’s advertising and cloud computing businesses are performing well and recent layoffs reflect management’s newfound cost discipline, which should lift earnings. Broadcom : The semiconductor-and-software maker is still Jim’s favorite tech stock right now, even after soaring more than 40% since we took a stake in late August . To be sure, we took some profits in December after shares jumped 20% in just one week. Now we await the benefits that the VMWare acquisition should have over time. In addition to boosting earnings, it should help Broadcom’s stock multiple expand because it makes software a larger part of the company’s revenue pie. Investors tend to assign a premium to software revenue because it is often recurring and higher margin than hardware. Bausch Health : The disappointing Canadian pharmaceutical company keeps its 4 rating, meaning we’re not taking any action until we get more information on Bausch’s legal overhangs, including the Xifaxan patent litigation. A U.S. appeals court heard oral arguments in the case on Jan. 8. Caterpillar : We sold half our position in CAT earlier Wednesday to ensure we didn’t squander any of our hard-fought gains in the stock, given the weak earnings reports we’ve seen in recent days from other industrial players. That includes Club holding Dupont (more on that lower). Costco Wholesale : The membership retailer is a one-of-a-kind institution, Jim said, and it’s hard to sell stocks of companies in that rarefied air because it’s unlikely they will ever fall enough to buy back in at lower levels. The long lines during the grand opening of Costco’s latest store in the southern Chinese city of Shenzhen illustrate its appeal to shoppers everywhere. Salesforce : Wall Street oscillates between hot and cold on the enterprise software firm. Right now, it’s hot amid its rollout of Einstein generative-AI tools and continued cost controls, even as some of the activist investors that targeted Salesforce pared back their exposure. On Tuesday, research analysts at Baird bumped their Salesforce price target and said the risk-reward ratio is still favorable in the stock, even with its 80% gain over the past 12 months. Coterra Energy : The natural gas market has been quite volatile lately , and Coterra’s stock has been influenced by the commodity’s up-and-down trading. But given Coterra’s revenues are split roughly 50-50 between oil and natural gas, the price of crude matters too, and a sustained move toward $90 a barrel is likely what it will take for Coterra’s stock to reach $30 per share or more. It’s around $25 per share Wednesday. Still, Jim said he likes the company’s flexibility between the commodities and its low-cost gas operations. Dupont De Nemours : We’re in no hurry to buy back the Dupont shares we sold earlier this month at higher levels after the chemicals maker issued a disappointing earnings preannouncement Wednesday , sending its stock down more than 12%. We hope to have a better read on the situation following Dupont’s complete fourth-quarter earnings on Feb. 1. Danaher : Shares of the life-sciences company had a big run in the fall, rising more than 25% into January before stalling out. Still, most of Danaher’s struggling businesses — particularly its bioprocessing unit, which serves pharmaceutical and biotech firms — have likely seen the very bottom. Danaher closed its Abcam acquisition in December , and Jim suggested management should be on the hunt for another deal. Walt Disney : Simply put, activist investor Nelson Peltz needs a spot on Disney’s board of directors to help right this poorly captained ship. Netflix’s strong earnings report Tuesday only makes Disney management’s inability to get its stock working all the more embarrassing, Jim said. Estee Lauder : The high-end cosmetics maker has been an extreme disappointment, amid prolonged challenges in its China business and an apparent lack of a backup plan. The usually bankable management team, led by CEO Fabrizio Freda, has never struggled this much. But to sell here would be to risk an upside surprise that could occur thanks to Chinese central bank recent efforts to boost economic growth . Eaton Corp .: Our hesitancy to violate our cost basis in Eaton, the newest stock in our portfolio, has hurt us. We’ve made three purchases — on Nov. 15, Nov. 28 and Dec. 8 — and since then have been waiting for a pullback to add more. The reality is the price drop just hasn’t arrived in this red-hot stock, which we like for its climate control and data-center businesses. Ford Motor : Holding onto our position in the iconic carmaker has been challenging, as the Blue Oval has yet to get its arms around its vehicle recall issue , which has kept a lid on its stock price. However, Jim said he’s trying to avoid a situation where we finally bail on the stock, only for it overcome its headwinds and go on a big run shortly thereafter. That could happen if the Federal Reserve starts cutting rates, which in theory should stimulate demand for autos. For that reason, Jim said, he’s willing to take the pain in Ford. Foot Locker : The shoe retailer is one of two struggling consumer stocks in our portfolio, even though it’s had a big move since late November. That’s around the time the company tweaked its full-year forecast after strong performance during Thanksgiving week. Jim said he’s tempted to sell our small position in Foot Locker, even as he respects CEO Mary Dillon’s turnaround capabilities, given the difficulties facing the retail sneaker business. GE Healthcare : Like Danaher, GE Healthcare also has been mostly flat following a big move in the fall. While the stock seemingly lacks a champion in the Wall Street analyst community, we remain optimistic that GE Healthcare stands to gain from the rollout of anti-amyloid Alzheimer’s drugs , which require patients to receive multiple MRI scans as part of treatment monitoring. GEHC makes many of those MRI machines. Alphabet : Even after a small round of January layoffs , Jim said the company still employs too many people and has too many money-losing initiatives that need to be scaled back. If Google is able to accomplish that, accompanied by a recovery in its cloud computing unit, its stock will be in good shape. Its core ad business for Google Search and YouTube are very strong. Honeywell International : The latest Boeing controversy has weighed on Honeywell’s stock, given the company’s important aerospace division, which supplies parts to Boeing and European rival Airbus . However, we see the overhang for Honeywell as temporary, especially because we have faith CEO Vimal Kapur, who took over last year, to continue remaking the industrial conglomerate. We like the deal for Carrier’s security solutions unit . Linde : Linde’s ability to report consistently solid results during a slowing global economy could make the stock a big winner if growth picks up pace. Perhaps the most exciting part about Linde as a long-term investment is its exposure to clean energy initiatives, even though Wall Street is less enamored with ESG. Eli Lilly : One of our standout stocks in 2023, Eli Lilly is back at it again this year, up about 9% on the promise of its obesity-and-diabetes drugs. For Club members wanting to add to their position in a stock like Lilly, we recommend waiting for about a 3% to 5% pullback to start. It may seem like red-hot stocks only go up, but those kind of declines can and do happen from time to time. Meta Platforms : The second generation of Meta’s Ray-Ban glasses seem to be flying under the radar and may give the social media titan’s metaverse ambition its first real hit. Meanwhile, if a resilient U.S. economy helps increase ad spending, the Facebook and Instagram owner could demonstrate huge operating leverage after a year of efficiency initiatives. Despite all these positives, the stock trades at less than 22 times earnings. Morgan Stanley : The bank’s wealth management operations don’t seem to be as profitable as we would’ve expected . But we’re giving a chance to new CEO Ted Pick, who recently replaced longtime leader James Gorman. Microsoft : Its deft AI strategy — specifically its AI-infused Copilot virtual assistant — helped the company dethrone Apple as the world’s most valuable firm earlier this month and to reach a $3 trillion market cap for the first time Wednesday (Apple is back on top, albeit slightly). At least for now, the combination of enterprise software and AI is unbeatable in Wall Street’s mind. Nvidia : Shares of the leading AI chipmaker keep going higher after leading the S & P 500 last year. The continued strength seems tied to a growing realization that Nvidia has plans to continually improve its high-performing graphics processing units (GPUs) alongside a robust software suite that keeps customers locked into its technology ecosystem. Long-term questions remain about Nvidia’s ability to sell chips in China, though the company is set to starting producing a new batch of chips that comply with U.S. export restrictions. Palo Alto Networks : There may not be another industry growing as fast as cybersecurity, which makes us comfortable sticking with our Palo Alto Networks investment despite the stock trading north of 57 times forward earnings. Digital threats remain a huge risk to companies, and Palo Alto’s suite of services can help protect against them. Procter & Gamble : P & G has become dead wood lately, despite Tuesday’s pop on earnings. It’s not really hurt us, but it also hasn’t really gained traction. We downgraded the stock to a 2 rating, and may look to swap out the consumer products giant for one of the stocks in our Bullpen depending on how the situation progresses. Starbucks : Along with Foot Locker, Starbucks is a problematic consumer stock right now. Jim reiterated his belief that recent pro-Palestine protests targeting the coffee chain could lead the company to miss its quarterly numbers, which its set to report Jan. 30. Still, he said he’s being patient with the stock because selling it in the low $90s is likely to prove misguided over time. Constellation Brands : Constellation’s wine-and-spirits business remains under pressure, but Jim reiterated his understanding that the company is shopping some brands in that division. If private equity firms come knocking and a deal can be made, turning the Modelo parent into a mostly beer company with robust cash flows, its stock could fly, Jim said. Stanley Black & Decker : The new Stanley Black & Decker is a leaner, better-operated company than previous iterations, including the one that was plagued by a host of supply chain and inventory issues during the pandemic recovery. The stock is due for a breakout, Jim argued, but for that to happen it will need to demonstrate continued gross margin improvement and show its business can withstand a slowdown in new U.S. housing starts. TJX Companies : We trimmed TJX earlier this month , part of a series of sales done to ensure we didn’t let profits slip away. However, we’re comfortable sticking with the rest of our position because the off-price retailer has amassed high-quality merchandise to appeal to shoppers looking for deals. Wells Fargo : Club members who don’t own any Wells Fargo could consider buying some at current levels, Jim said. CEO Charlie Scharf is poised to buy back a lot of stock, and he also has the money to be able to raise the dividend. With its first-quarter results, Wells Fargo created low expectations for the rest of the year. Wynn Resorts : We’ve been holding onto our small position in Wynn for a while now, part of our bet on the Chinese economy’s recovery from the pandemic. The issues in the world’s second-largest economy have hurt sentiment around the casino operator for months, even if its fundamental business hasn’t been that bad. We took advantage of its discount in November . We’ll see if the aforementioned growth initiatives from China’s central bank gives a lift to Wynn, which has two key properties in the gaming hub of Macau. (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 the stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim ran through the holdings Wednesday during our January Monthly Meeting.