These 4 turnarounds are making headway
Jim Cramer and Jeff Marks, the Club's director of portfolio analysis, on Thursday went over all 34 Club holdings during the January Monthly Meeting.
TL;DR
- Nike shows signs of improvement under new CEO Elliott Hill, with China being the next focus after stabilizing the U.S. market.
- Procter & Gamble views its weak quarterly earnings as a 'clearing event' and expects better performance in 2026 under new CEO Shailesh Jejurikar.
- Starbucks is expected to reaccelerate due to steadier China sales and improving U.S. trends, with an Investor Day update upcoming.
- Texas Roadhouse is still a viable investment despite cattle inflation, as beef prices are forecasted to decrease.
- Apple's partnership with Alphabet for AI technology on its devices is seen as a significant win, encouraging investors to start positions.
- Amazon's cloud business is reaccelerating, positioning its shares for a breakout, and Jim Cramer favors it over Meta and Microsoft.
- Broadcom's underperformance despite a strong quarter is noted, and a dip is being considered for purchase.
- Boeing is recommended for long-term investors due to strong free cash flow and recent order increases, with its turnaround story on track.
- BlackRock's bullish outlook remains despite recent share sales, driven by acquisitions aimed at expanding its client base and market exposure.
- Bristol-Myers Squibb's schizophrenia drug trial for Alzheimer's remains a key investment thesis, despite recent setbacks.
- Capital One's earnings report will be closely watched, especially regarding interest rate caps and the benefits from its Discover acquisition.
- Costco's position was trimmed due to lower renewal rates and a more selective consumer, though Jim Cramer believes this trend has passed.
- Salesforce is the portfolio's only problematic tech position, facing pressure due to AI-driven disruption risks, with the success of its AI tools being a key question.
- CrowdStrike is highlighted as a standout in cybersecurity due to its platform and management team, differentiating it from competitors like Palo Alto Networks.
- Cisco Systems offers a high-quality networking company at a reasonable price and is considered a good AI play.
- DuPont's industrial businesses are expected to do well with lower interest rates, though exposure to the diminishing EV market is a noted risk.
- Danaher's life sciences business is expected to revive with increased momentum in biotech IPOs and pharma takeovers.
- Dover saw some profits taken after positive analyst calls sent the stock higher without major company announcements.
- Eaton is considering spinning off its vehicle division, a legacy business with limited growth, while remaining a leading electrical machinery company.
- GE Vernova is a key winner from the AI data center buildout, with production capacity concerns now resolved.
- Corning's business replacing copper in data centers with its fibers is seen as a trend that is still in its early stages.
- Alphabet is considered an 'outright winner' with its Gemini 3 AI model leading competitors and a promising partnership with Apple.
- Goldman Sachs shows strong momentum among financial names due to its dealmaking business, and is considered undervalued.
- Home Depot, a beneficiary of interest rate cuts, has underperformed its peer Lowe's.
- Honeywell stock surged after its majority-owned Quantinuum, a quantum computing company, filed to go public.
- Linde's stock is being held despite softer guidance, owing to its strong pricing power and diverse client base.
- Eli Lilly remains confident in its GLP-1 market position, with an oral GLP-1 and potential drug readout catalysts expected.
- Meta Platforms is called the 'premier ad company' and is increasing AI spending, with its valuation becoming more reasonable.
- Microsoft's stock has declined, with uncertainty surrounding its AI assistant Copilot or OpenAI partnership, presenting a potential buying opportunity.
- Nvidia, the AI chip leader, faces volatility due to geopolitical tensions and is expected to trade in a holding pattern until the GTC conference in March.
- Palo Alto Networks is expected to benefit from AI integration in the cloud, and its current stock price is seen as a potential buying opportunity.
- Qnity Electronics has upside potential despite year-to-date gains due to high demand for its semiconductor and cellphone technology materials.
- TJX Companies is poised to benefit from inventory from failing retail brands, with its expert merchandising team ready to acquire at a discount.
- Wells Fargo is undergoing changes under CEO Charlie Scharf to become more of an investment house, aiming for diversified revenue despite current higher expenses.