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Our top 5 stocks from mid-November until the eve of December’s Monthly Meeting
U.S. stocks have been trending higher since the Investing Club’s November Monthly Meeting as markets celebrate signs of cooling inflation and a seemingly less hawkish Federal Reserve . Watch our December Monthly Meeting at live noon ET and later on video. The S & P 500 has jumped 5.2% since the market close on the Nov. 15 meeting day through Monday’s close. Equities have sustained a rally after the U.S. central bank indicated that three interest rate cuts were on the table next year. A pullback in Treasury yields has also boosted risk assets. Here are the Club’s five top-performing stocks over that stretch ahead of Tuesday’s Monthly Meeting for December. They span three sectors from consumer to tech to banks. 1. Foot Locker Foot Locker came in first for gains since November’s Monthly Meeting. Shares of the company surged 34.2% over the period after posting better-than-feared quarterly results and upbeat commentary from Wall Street analysts. Piper Sandler analyst raised its rating on Foot Locker to a buy from a hold last week, saying that 2024 could be a big turnaround year for the embattled retailer. Analysts see margin expansion opportunities for Foot Locker as the firm’s inventory stabilizes to healthier levels. The stock popped on that positive note, but we’re optimistically cautious. FL YTD mountain Foot Locker (FL) performance year-to-date The stock has dragged this year, like many retailers, as shoppers continue pulling back on discretionary spending amid macroeconomic uncertainty and warnings of a recession. Shares are down 16% year-to-date. It’s a make-or-break quarter for Foot Locker, and we need to see more progress around its long-term prospects to stay in. Still, we’re hopeful on management’s track record around embattled companies, however. CEO Mary Dillon, who overhauled Ulta Beauty , was a key reason we invested in Foot Locker to begin with. 2. Salesforce Coming in second for gains is Salesforce . The Club stock popped 20.1% on the back of a strong fiscal 2024 third quarter . During the earnings call, management delivered a rosy outlook and CEO Marc Benioff named some “green shoots” for the business. CRM YTD mountain Salesforce (CRM) performance year-to-date Overall, we were happy with the cloud software company’s improving margins and growing sales. The stock’s rally continued Monday when Wolfe Research analysts shared a rosy outlook for the company. “This is one I would not take profits in,” Jim Cramer recently said of Salesforce . “I want it to run.” 3. Palo Alto Networks Palo Alto Networks jumped 20.06%, coming in third for gains over the period. In November, the company became the first in the cybersecurity industry to hit a whopping $100 billion market capitalization — a goal long held by management. PANW YTD mountain Palo Alto Networks (PANW) performance year-to-date “The winner and new champion of cybersecurity may actually be Palo Alto,” Jim said after the firm passed the market cap milestone on Nov. 30. The stock has cooled some since but the Club is bullish on Palo Alto compared to peers like Fortinet because its revenue streams are more diversified and less cyclical. Overall, CEO Nikesh Arora said he anticipates even more demand for Palo Alto’s offerings into 2024 as companies continue to face cybersecurity threats and various hacks. “This year has been a phenomenal year for cybersecurity stocks,” Arora told Jim during an interview Monday, adding that more businesses will rely on these kinds of services. “And I think it’s just the beginning.” 4. Broadcom Broadcom placed fourth in terms of gains. The stock has jumped 17.6% since November’s Monthly Meeting. The semiconductor giant was one of the S & P 500’s best-performers last week in a delayed reaction to a solid outlook for recently acquired VMWare. AVGO YTD mountain Broadcom (AVGO) performance year-to-date Since reporting earnings after the closing bell on Dec. 7, Broadcom shares gained 24% as of Monday’s close of $1,147. Last Friday, we increased our price target to $1,200 per share from $1,000. On Monday, we took some profits, selling 5 shares . We’re still big believers in the company and own 75 shares in our portfolio. 5. Wells Fargo Coming in fifth is Wells Fargo , whose stock has jumped 15.9% over the period. This comes amid a broader market rally, which has lifted lagging groups like financials. WFC YTD mountain Wells Fargo (WFC) performance year-to-date We remain upbeat on shares because of its multi-year turnaround plan. The Club sees even more long-term growth prospects once regulators lift the $1.95 trillion asset cap , which should in turn allow the firm to expand its balance sheet and rake in more profits. (Jim Cramer’s Charitable Trust is long FL, CRM, PANW, AVGO, WFC. 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.
Traders work during the opening bell at the New York Stock Exchange (NYSE) on August 16, 2022 at Wall Street in New York City.
Angela Weiss | AFP | Getty Images
U.S. stocks have been trending higher since the Investing Club’s November Monthly Meeting as markets celebrate signs of cooling inflation and a seemingly less hawkish Federal Reserve.
Watch our December Monthly Meeting at live noon ET and later on video.
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