During a thorough examination of the Club’s 31 portfolio holdings during the September Monthly Meeting, Jim Cramer and Jeff Marks, the director of portfolio analysis, offered insights into navigating the stock market as 2025 approaches. They emphasized the importance of various factors, including Federal Reserve monetary policies, President Trump’s tariff strategies, and the impact of China.
Cramer provided a rapid-fire update on select stocks:
Apple: Addressing Wall Street’s skepticism about the iPhone 17, Cramer encouraged dismissing the negativity, highlighting the model’s value combined with trade-in incentives. He expressed excitement for upgrading.
Amazon: The tech giant shows potential for margin expansion, particularly in e-commerce. Reacceleration in Amazon Web Services growth is also critical, especially in light of competition from Google and Microsoft.
Abbott Laboratories: Cramer noted the company’s volatility but stressed its value at approximately 24 times earnings, urging investors to stay the course with this promising med tech stock.
Broadcom: The firm’s outlook remains positive, yet with prudent investment strategies in mind, Cramer mentioned taking profits due to the stock exceeding a 5% portfolio weight.
Boeing: Recently added to the portfolio, Boeing stands to gain from Trump’s trade policies and a turnaround strategy that promises significant multi-year upside.
BlackRock: Cramer referred to this financial stock as a “bull market stock,” which benefits from rising asset prices. The company’s foray into high-growth, high-fee areas like infrastructure is viewed positively.
Bristol Myers Squibb: The focus remains on Cobenfy, a drug for schizophrenia, despite setbacks. Cramer is optimistic about upcoming studies that might improve stock sentiment.
Capital One: Following the completion of its Discover acquisition, there’s renewed upside potential, with further share repurchases anticipated.
Costco: Despite recent struggles attributed to market perception and competition from Amazon, the fundamental business remains strong and a long-term hold is advocated.
Salesforce: While the stock has faced difficulties, Cramer refrained from suggesting a buy during a current downturn, advocating for patience ahead of the Dreamforce conference.
CrowdStrike: The company’s ambitious goal of reaching $20 billion in annual recurring revenue impressed Cramer, making it an attractive investment despite its current valuation.
Cisco Systems: Despite its underperformance, Cramer advised maintaining positions given solid dividends and potential from a partnership with Nvidia.
DuPont: The company is moving towards its planned breakup strategy, which Cramer sees as beneficial for unlocking value in its semiconductor-focused spin-off, Qnity.
Danaher: The firm’s recent challenges in China were noted, but a significant buyback announcement keeps the stock in the portfolio.
Disney: Concerns about the cost of its theme park operations have limited growth, but Cramer believes there’s value still to be realized, advocating patience.
Dover: Disappointing earnings led to a reevaluation, yet the long-term outlook remains optimistic thanks to solid order momentum.
Eaton: The firm’s potential for increased business from data centers is a point of interest, with further acquisitions potentially enhancing growth.
GE Vernova: Seen as a strategic investment tied to the data center buildout, the stock is high-priced but pivotal as demand for energy increases.
Goldman Sachs: Cramer sees strong potential in Goldman’s investment banking and wealth management sectors, expecting revenue growth as IPO and M&A activities rise.
Home Depot: Cramer mentioned the potential for trimming positions due to stagnation in the housing market, indicating a cautious approach moving forward.
Honeywell International: Awaiting completion of a corporate split, Cramer remains optimistic about maintaining value despite current challenges.
Linde: Even with underwhelming markets, Linde’s steady performance suggests it remains a worthy wait for recovery and growth.
Eli Lilly: The company’s recent strong performance suggests a hold, with Cramer confident in its long-term value proposition.
Meta Platforms: Cramer praised Meta for its advertising dominance, bolstered by advances in generative AI.
Microsoft: A strong long-term investment, even with potential trimming of positions as performance warrants.
Nvidia: Recent partnerships highlighted the firm’s strength in the GPU market, successfully staving off competition from AMD.
Palo Alto Networks: As a leader in cybersecurity, the company’s high valuation is justified in a lucrative market.
Starbucks: Under new leadership, there’s optimism for a turnaround as the company seeks to improve customer engagement.
TJX Companies: Cramer declared this the strongest earnings period ever for TJX, praising its strong retail performance.
Texas Roadhouse: Future stock performance hinges on cattle futures; Cramer expects a surge once prices stabilize.
Wells Fargo: Positive projections include increased buybacks and a strategic move into fee-based services post-asset cap removal.
Cramer emphasized that subscribers to the CNBC Investing Club will receive alerts before any trades are executed. The Club aims to maintain transparency and uphold investment integrity, ensuring informed and strategic decisions for its members.
