During the recent Monthly Meeting, Jim Cramer and Jeff Marks, the Investing Club’s director of portfolio analysis, discussed potential opportunities in the stock market looking ahead to 2026. They identified several currently unfashionable stocks that Cramer suggests are strong buys.
Starting with seven out-of-favor stocks, Cramer highlighted that Boeing, despite being considered a “hated stock,” could be a good buying opportunity. Cramer noted investors should leverage its current weakness, as the company’s turnaround under CEO Kelly Ortberg appears promising with solid free cash flow performance.
Danaher also made the list, as Cramer anticipates increased biotech funding will bolster demand for the company’s equipment, making it a strong buy. Home Depot, while facing challenges from poor comparable store sales and a tough housing market, is expected to bounce back, especially if interest rate cuts are accelerated under new Federal Reserve leadership.
Another mention was Honeywell International, suggesting it’s wise to invest now as the company prepares to split into three publicly traded entities. This restructuring, which could lead to greater value being unlocked, has made Honeywell shares underperform relative to its peers.
Nike is advised for purchase ahead of an upcoming earnings report, as there’s a belief in a turnaround under CEO Elliott Hill, who is focused on clearing out old inventory. Procter & Gamble is expected to see gains as new CEO Shailesh Jejurikar starts implementing changes next month.
Finally, Texas Roadhouse is positioned favorably for purchase now; although cattle prices have weighed on the stock, there is optimism that they are stabilizing, appealing to value-conscious consumers.
Alongside these seven, Cramer provided insights on 27 other stocks. Apple has rebounded into favor, and Cramer emphasizes an “own, don’t trade” approach, noting it as a top product backed by solid management. Amazon’s poor performance offers a buying chance due to its potential growth in the cloud and Prime business.
Broadcom, despite a recent drop linked to misunderstood earnings, remains a solid investment, while BlackRock’s underperformance doesn’t deter confidence due to consistent fee growth.
Cramer also noted Bristol Myers Squibb’s encouraging developments in Alzheimer’s drug studies, and Capital One’s acquisition strategies that may position it for significant growth. Costco’s solid operational foundation remains intact, enhancing long-term investment prospects.
In the tech sector, Salesforce showed promising results despite challenges, and CrowdStrike’s transformation from its prior crisis has bolstered investor confidence. Cisco Systems displayed strong growth potential amid emerging AI demands, while DuPont is expected to gain from its recent spinoff.
As for other companies, Jim expressed hope for GE Vernova’s prospects with its AI boom support, and Palo Alto Networks remains strategically positioned despite recent dips. Starbucks is undergoing a turnaround under its new leadership, and Solstice Advanced Materials is expected to thrive post-split.
Notably, both Wells Fargo and TJX Companies have shown resilience in challenging environments, and there’s anticipation for continued market rewards as consumer behavior shifts.
Cramer’s insights reflect a nuanced understanding of the market’s cyclicality and the opportunities that arise from it. Members of the CNBC Investing Club are advised of trade alerts before transactions occur, placing emphasis on strategic waiting periods to ensure informed decision-making.
Overall, the session illustrated both optimism and caution in a real-time market analysis, showcasing numerous stocks poised for recovery and growth.
