Here’s a rapid-fire update on all 33 stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim ran through the holdings Wednesday during our March Monthly Meeting. Apple: The stock tumbled last week after the Department of Justice announced its landmark antitrust lawsuit against the iPhone maker. This comes amid the tech giant’s broader underperformance in 2024 as weakness in China continues to weigh on shares. Still, Jim Cramer is maintaining his “own it, don’t trade it” stance on the stock, arguing the Justice Department’s case isn’t substantial enough and could take years to play out. Overall, we’re upbeat on the firm’s forthcoming artificial intelligence offerings, which are expected to detailed in June at Apple’s annual developers conference . Abbott Laboratories : The stock hit a one-month low earlier in March after rival Reckitt Benckiser lost a lawsuit involving its baby formula and the death of an infant. There are similar lawsuits filed against Abbott, prompting some investors to offload shares. Jim acknowledged the tragic nature of the situation. But from an investment perspective, he doesn’t see this as an existential threat to Abbott, pointing to a lack of scientific data showing Abbott’s baby formula causes the same illness. We’ve added to our position twice over the past two weeks, and may look to do so again on further weakness. Amazon : The stock continued its stellar 2024 performance in Wednesday’s session, with shares up more than 17% year to date. The stock may be due for a pullback as a result of the outperformance, but we’re not looking to sell anytime soon, particularly ahead of what could be excellent quarterly results in a few weeks. Amazon’s recent AI moves have been impressive, specifically its close relationship with fellow Club holding Nvidia and, most recently, its multibillion-dollar venture investment in startup Anthropic. Broadcom: Investors should consider buying the stock after the chip name’s recent weakness has it down more than 6% since its recent high in March. While Broadcom has generally been viewed as the No. 2 chip stock to play AI behind Nvidia, Jim argued some in the marketplace continue to overlook how much the company can benefit from investments in the buzzy technology. He also warned Broadcom may be unlikely to have another substantial drawdown in the near term, which is why the stock looks attractive here. Best Buy : We added the electronics and appliance retailer to the portfolio shortly after the Monthly Meeting concluded. Here’s a closer look at what attracted us to the stock. Bausch Health Companies : The stock notched a new 52-week high on Wednesday, climbing higher ahead of a federal ruling on patent protection for Xifaxan, a key drug that represents majority of sales within the company’s Salix Pharmaceuticals segment. Bausch’s legal overhang presents a material threat to the stock, which we continue to hold a 4 rating on. We’re hesitant to embrace Bausch’s recent move higher because buyers don’t know the outcome of the case yet. Jim pointed out one hopeful sign for the company: Recent trading in the corporate bond market suggests investors are feeling a little better about Bausch’s financial outlook. Costco Wholesale: It’s a good time to initiate a small position in Costco after its post-earnings pullback, Jim said. The retailer is going through a big leadership change right now, with a new CEO and CFO, but culture at the firm remains strong. We’re looking out for a potential hike in membership price later this year or in 2025. This will help Costco keep merchandise prices down, which will drive more market gains as customers flock to the bargain deals. Salesforce : Jim said he was surprised Salesforce didn’t have a bigger presence at Nvidia’s GTC conference last week, given the enterprise software maker has leaned heavily into AI. AI. Still, we’re upbeat on Salesforce’s products, which he described as “invaluable” to its customers. To be sure, the Club’s not recommending buying shares at these levels. Instead, he said first-time buyers may want to initiate a position around $290 per share. The stock closed Wednesday’s session at $301.38 per share. Coterra Energy: This stock is a must-own name tied to energy and oil. We’ve continued to like Coterra for its flexibility to adapt to the fluctuation in commodity prices. Recently, that’s allowed the company to lean into its oil business with natural gas prices at depressed levels. The stock ended Wednesday’s session at its highs of the year. DuPont De Nemours : We’re considering trimming our position in this materials giant after buying more shares in February, a few weeks after management’s disappointing earnings preannouncement . It’s hard for us to believe business has gotten that much better since the quarter to justify the comeback the stock has had. Weakness in China and inventory destocking has weighed on DuPont. To be sure, there are some green shoots in the electronics and water businesses. Danaher: Shares of Danaher have recently pulled back, presenting a buying opportunity for new investors. Jim forecasted more upside for the stock, particularly as a thawing IPO market could allow more drug startups to raise cash through public offerings. That would help stoke demand for the Club holding’s offerings, which are used in the drug development process. Walt Disney : The media and entertainment giant was among the top five performing Club stocks since the Annual Meeting , and the jockeying from activist investor Nelson Peltz explains the strength. We’re voting for Peltz in the proxy fight, believing he would provide much-needed oversight on the board. When our trading restrictions lift on Disney, we expect to trim some of our large position out of discipline. Estee Lauder : Shares continue to lag – down about 1% year to date – as the cosmetics giant receives more negative reads out of China. Many members may be asking: Why not sell here? Jim said hold on to Estee Lauder for now because the worst times could be behind the company. While the stock surged double-digit percentage points in early February after quarterly earnings , it has given back some of those gains. No reason to buy more down here. Eaton Corporation : The electrical components maker, whose products go into data centers, has become one of the top ways to invest in the AI boom without directly owning a tech company. Nevertheless, Jim said the stock has run too far in recent months to recommend buying it here. It’s only a few dollars below its all-time high reached earlier in March. The company’s exposure to megatrends such as electrification of the grid make it an important stock to own. Ford Motor: At less than seven times forward earnings, the stock trades like there’s an impending recession – yet we don’t see one on the horizon. Jim said he’d buy Ford right now, arguing the stock is wrongly priced. In addition to valuation, Ford sports a nice dividend and its decision to spend less on electric vehicles is good for profits. Jim added that he wishes Ford would commence a big stock buyback initiative, like crosstown rival General Motors announced in the fall. Foot Locker: We remain on the fence about the company, even after two Wall Street analysts upgraded the stock over the past week, citing optimism that Nike’s decision to lean into third-party retail again could provide a boost to Foot Locker’s business. Its our smallest position in the portfolio, and we could decide to leave the fence any minute. GE Healthcare Technologies : Wait for a better price on the medical equipment maker, whose shares are trading around $90 apiece Wednesday. The stock is no longer the bargain it was last year in the upper $60s-per-share range or even the $70s. However, all the reasons to like the stock, including its ability to further infuse artificial intelligence into its health-care machines, remain intact. We’re encouraged by how the stock has reacted to former parent General Electric unloading a tranche of stock in mid-March. Alphabet: We are hopeful that soon we’ll get an official announcement that Apple and the Google parent reached an agreement to bring the latter’s Gemini AI model to the next-generation iPhone. The discussions were reported by Bloomberg on March 18, and such a deal would be a major boon to Alphabet in the competitive AI race. If the deal doesn’t come to fruition soon, Jim said we may look to trim our exposure to Alphabet. Honeywell International: The industrial conglomerate has had two solid sessions in a row, though the exact catalysts for the moves are unclear. In any case, Jim reiterated his belief that CEO Vimal Kapur, who took over the job last year, could significantly reshuffle Honeywell’s sprawling business portfolio, streamlining its focus to improve performance. Investors should own Honeywell before Kapur makes his move, Jim said. Linde : We trimmed our position earlier Wednesday after UBS analysts provided a wake-up call to book profits with their downgrade of the stock. It had been around nine months since we did so, despite Linde solidly outperforming the S & P 500 during that time. Linde remains an incredibly well-run company in an industrial gas market with only a few major players. Eli Lilly: The timeline for potential approval of its Alzheimer’s therapy has been pushed out , which is a disappointment, but not a thesis-breaking development for the world’s most valuable drugmaker. Some observers want to call a top in the GLP-1 trend, but Jim said he sees many years of staying power for Lilly’s franchise to treat diabetes and obesity. Its stock must be owned. Meta Platforms: The social media giant appears to have become the premiere advertising destination as monetization improves around Meta’s short-form video feature to rival TikTok, Reels. For many years, investors hoped to see Meta make more money off WhatsApp, but Jim said business at the company seems so good elsewhere that it might not have to do that anytime soon. He also touted the early success of Meta’s Ray-Ban smart glasses. Morgan Stanley: The bank looks set up for a comeback, Jim said, after its success leading Reddit ‘s multibillion dollar IPO last week. As we reported recently, more dealmaking activity will not only boost Morgan Stanley’s lagging investment banking segment, but it can benefit its wealth management business over time, too. We’ll have to wait and see what new CEO Ted Pick has to say during the Wall Street giant’s earnings call next month, though. Microsoft: Investors should wait for another substantial decline in order to buy more of this mega-cap name. Shares slid last month on media reports regarding mixed reviews around the company’s much-hyped AI assistant, Copilot for Microsoft 365. Jim said the software heavyweight has to fall at least 20 points lower to consider buying more of the stock. Nvidia : Jim maintained his stance that Nvidia is the unquestioned leader in AI chips. The stock continues to be a top performer in the portfolio – up 82% year to date compared with the S & P 500’s 10% gain in 2024. And although many stocks wouldn’t be able to sustain such a monstrous run, the Club is confident Nvidia will maintain its dominance in the AI compute market. Its small, but fast-growing software-and-services business is an increasingly important area to watch with Nvidia. Palo Alto Networks : This is still the Club’s favorite cybersecurity play despite the stock’s brutal post-earnings pullback last month after management cut its full-year revenue guidance. We remain upbeat on Palo Alto, given increased demand for cybersecurity services in an elevated threat environment. In fact, Jim said he’s tempted to add to the portfolio’s position if shares break below $280 apiece. The stock closed Wednesday’s session at $282.26 a share. Procter & Gamble: Jim said the stock is currently in no man’s land – at roughly $162 per share, it’s trading around $2 below its all-time high set back in January 2022. In other words, it’s too close to the peak to be bought here. Nevertheless, the company continues to live up to its reputation as a steady, reliable stock to own. Starbucks: Without a doubt, Starbucks has been a disappointing position. And we’re fully prepared for management to cut full-year guidance again when it reports quarterly results in a few weeks, as the coffee chain faces headwinds in the U.S., Middle East and China. The question is whether that potentially cut serve as a so-called clearing event for the stock, given it’s trading at such a discount to its history. Jim acknowledged he has concerns around the company. Constellation Brands: The Mexican beer powerhouse is another stock in no man’s land, after its solid move higher in recent weeks . At $272.04 a share, it’s less than a dollar away from its all-time high notched in late July. For it to go much higher, Jim argued, the company needs to act on its underperforming spirits business or look to monetize part of its troublesome stake in Canopy Growth. Stanley Black & Decker : Shares of the maker of DeWalt tools also find themselves in no man’s land at the moment. While being slightly lower on a year-to-date basis, the stock has been strong in the past few weeks, putting it near its highest levels of the year We’re holding onto Stanley Black & Decker in case we’re wrong about the path of rate cuts, but either way, the company’s turnaround efforts seem to be working. TJX Companies: This is not a cheap stock, but the parent company of Marshalls, HomeGoods and TJ Maxx has carved out a place as one of the best long-term winners in the retail industry. The operating environment remains ideal for TJX, which benefits from bankruptcies, cash crunches and excessive inventory at other retailers. Shares haven’t done much over the past month, but we continue to like the story. Wells Fargo: The bank is entering a spot where it can begin to play offense, with key regulatory hurdles in the rearview mirror. The Fed-imposed asset cap remains in place, but to us it’s a matter of when, not if, that will get removed . Meanwhile, the Fed keeping interest rates higher for longer actually benefits a bank like Wells Fargo, so more upside earnings surprises could be in store here. Wynn Resorts : Jim said the casino operator remains on our shopping list, believing that a rebound in the Chinese economy will provide a big boost to the company’s properties in the gaming hub of Macao. And yet Wynn is an attractive stock to buy ahead of the turn in China because its Las Vegas operations continue to hum along. (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 33 stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. Jim ran through the holdings Wednesday during our March Monthly Meeting.
