Cramer tells investors to buy the earnings-driven declines in 2 portfolio stocks
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Thursday’s key moments. 1. U.S. stocks bounced on Thursday, one day after slumping on Fed talk that an interest rate cut was unlikely in March. We worried this would happen because the market got ahead itself on the number of expected rate cuts in 2024. This is why we built up a war chest of cash throughout the month. Meanwhile, investors continue digesting quarterly earnings, with Club names Apple , Amazon and Meta Platforms set to post results after the bell. Jim Cramer said Thursday that members should be aware that the iPhone maker will likely guide down on softer China sales. But as we said earlier this week , Apple’s growth prospects and solid fundamentals leave us bullish long term. 2. Stanley Black & Decker posted better-than-expected quarterly earnings per share before the opening bell Thursday. But it missed on revenue and the full-year EPS guide midpoint was below estimates. The stock was falling 4%. The Club holding, however, continues to show progress on cost initiatives as management gets rid of excess high-cost inventory. Jim said it’s a perfect time to buy this industrial stock on the dip. Shares should run up once the Fed starts lowering rates — likely later this year — and mortgage rates fall. This will give people more confidence to improve their homes themselves or hire contractors, which should lead to increased demand for the tools that Stanley Black & Decker makes. 3. Honeywell shares were down nearly 4% after the industrial giant’s earnings release. We took the dip as a buying opportunity , remaining upbeat because of its better-than-expected segment margin performance and cash flow generation. Although the results weren’t stellar, Jim said management’s full-year guidance was conservative and beatable. “This is a major opportunity” to buy the stock’s unwarranted sell-off, Jim said. “Go buy Honeywell.” (Jim Cramer’s Charitable Trust is long SWK, HON, META, AAPL, AMZN. See here for a full list of the stocks.) 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.
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