Investment Club Recap
Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. Here’s a summary from Tuesday’s highlights.
1. The S&P 500 showed some recovery on Tuesday, notably thanks to rising stocks in the enterprise software sector. Salesforce experienced a bump of over 3.5%, easing some recent concerns about AI-related disruptions. The club’s portfolio stock, Advanced Micro Devices, also thrived in the AI chip market, boosting its shares by 7%. Home Depot, another club stock, increased by 3% following a robust quarterly performance. Keep an eye on your email for an analysis of Home Depot’s earnings, and don’t forget about our monthly Friday meetings for ongoing updates.
2. Eli Lilly’s stock dipped slightly after competitor Novo Nordisk revealed plans to slash the U.S. list price of its GLP-1 medications, Ozempic and Wegovy, by up to 50%. Jeff Marks, the club’s director of portfolio analysis, noted that the negative market response was largely due to pricing competition. He mentioned, “Lilly has always claimed to offer a great product at a great price, so perhaps they can adjust their pricing.” Jim referred to the modest decline in Lilly’s stock as “good news,” as it could have been worse. Lilly competes in the market with its drugs Mounjaro and Zepound.
3. TJX is expected to provide earnings reports before the market opens on Wednesday, capitalizing on shoppers’ ongoing interest in the treasure-hunt experience of finding good deals on quality brands. Jim pointed out that while department stores face challenges, “this company thrives on the volume of goods it sells, allowing it to be selective.” Retailers like TJ Maxx, Marshalls, and HomeGoods often set modest guidance and exceed profit expectations. “It’s a must-have in your portfolio,” Jim said, labeling it a solid pick.
As a member of Jim Cramer’s CNBC Investment Club, subscribers receive trade alerts prior to any transactions Jim makes. After sending out an alert, he typically waits 45 minutes before acting on stocks within his charitable trust. If Jim discusses a stock on CNBC, he follows up with a trade alert, pausing for 72 hours before proceeding with the trade.
