Rapid-fire update on all 33 portfolio stocks in November meeting 2024
Here’s a rapid-fire update on all the stocks in Jim Cramer’s Charitable Trust, the portfolio we use for the CNBC Investing Club. During the November Monthly Meeting on Thursday, Jim looked at how Donald Trump’s return to the White House could impact each company — good, bad or not much at all. Apple : If U.S.-China tensions rise over President-elect Trump’s proposed tariffs, it will create an overhang for the tech stock. Investors need clarity around these trade talks. China is Apple’s second-largest market and the company has seen a slowdown in iPhone demand in the region. While Apple’s expansion into emerging markets like India may offset that weakness eventually, it will take time to materialize. Abbott Laboratories : The fate of Abbott Labs’ legal fight involving its premature infant formula improved greatly after securing a big win in Missouri state court on Nov. 1 . Trump’s return to the White House improves it further, and it could make the lawyers in outstanding cases versus the company more likely to settle. Once the dark legal cloud is gone, the stock will be free to go much higher. Advanced Micro Devices : The chipmaker could be in the crosshairs of Trump’s tougher stance on China. As the Biden administration’s export controls on AI chips reminded us, semiconductors are geopolitical tools. It’s not clear how much AMD would suffer if there were more restrictions from Trump or the Chinese, but it’s one reason why the stock has struggled lately. As an aside, AMD’s layoffs were tough but necessary as part of its sharper focus on AI. Amazon : The e-commerce giant is an ironic beneficiary of incoming administration, given it drew so much criticism from Trump during his first term. This time around, Trump’s tariff proposals on Chinese imports could help Amazon in its competition against low-price online sellers Temu and Shein. It’s worth noting, Amazon on Wednesday debuted a discount storefront of its own. Broadcom : The semiconductor and software firm is in a good spot if Trump brings about a friendlier M & A environment, as many expect, given that CEO Hock Tan is a serial dealmaker with a strong track record of success. Its most recent sizable deal, the blockbuster acquisition of VMWare, closed roughly a year ago, which is practically lifetime for Tan. Best Buy : Our recent trim of Best Buy wasn’t due to its tariff risk — it was about locking in profits to give us room to buy more in case of disappointing sales ahead. But now that Trump won, tariffs are a more significant concern for investors. We’ll also see what the company says at its upcoming earnings report on the holiday shopping season. Don’t lose sight of its 4% dividend yield. BlackRock : Don’t be deterred by this stock’s roughly $1,000 share price, Jim said. Yes, it’s pricier than fellow financial Club holdings Morgan Stanley and Wells Fargo. But remember buying fractional shares of BlackRock are an option. With a 2% annual dividend yield and a consistent growth model, the stock actually isn’t that expensive. And if asset values go up under Trump, that’s good news for BlackRock, the world’s largest asset manager. Costco : Tariff risk is a question for all retailers, but Costco is a relative winner because of its membership model and its emphasis on volume, not price. Costco makes money from membership dues and passes on pretty much everything that it can to the customer. Salesforce : Not a Trump stock, but it wasn’t a Kamala Harris stock either. The most important thing for Salesforce is Agentforce, its new suite of chatbot tools to help salespeople and customer service agents. The stock has been red hot ever since Agentforce was debuted at the company’s big Dreamforce conference in September. CrowdStrike : This stock is a buy on the next dip, according to Jim. The cybersecurity company is a beneficiary of increased geopolitical conflict under another Trump presidency. This means more cyber terrorism, increasing demand for CrowdStrike’s offerings. Plus, shares are still catching up from a brutal sell-off in July. Coterra Energy: Jim labeled this is our best stock for Trump’s policies and temperament. Trump will very likely reverse Biden’s restrictions on liquified natural gas export terminals while providing that industry easier permits and more clarity in general. That’s great news for Coterra. Its two bolt-on acquisitions announced Wednesday were smart and adds to our conviction in holding on. DuPont : Another beneficiary of an easier M & A climate. There’s been speculation about DuPont outright selling its attractive water business , instead of going through with a traditional spin-off. Reservations that DuPont may have had about doing so under Biden are likely gone now. Danaher : China has remained a thorn in the company’s side, even as its bioprocessing business in other parts of the world is in the midst of a turnaround. We thought that challenge was priced into the stock, but the market’s reaction to its earnings report in late October says otherwise. We need to see tangible signs that announced stimulus measures in China are leading to orders. Potentially heightened U.S.-China tensions are something to watch here. Disney : The entertainment giant posted better-than-expected quarterly earnings Thursday and issued upbeat earnings guidance for the next three fiscal years, which Jim said suggests “the old Disney is back.” Shares are up more than 7% Thursday. As for the Trump impact, Disney’s theme park in Shanghai should be able to stay above the fray even if tensions mount. Dover : This stock is among the few portfolio names not in the crosshairs of a tariff-toting president. Instead, Jim said Dover will keep benefitting from its exposure to key megatrends like data center buildouts. Sales for the company’s thermal connectors and heat exchangers will increase as more of these facilities are constructed to meet AI computing needs. Eaton : Like fellow industrial Dover, Eaton’s ties to megatrends should keep the stock on track despite the incoming administration. The electrical equipment supplier also wins from more data center construction on the back of AI adoption. GE Healthcare : The maker of MRI and CT machines is in the same leaky China boat as Danaher. In recent days, its former parent company, known now as GE Aerospace , sold its last big chunk of GEHC stock, which has pressured shares. But big picture, it’s positive that the GE Aerospace has nothing left to sell. Alphabet : If Trump takes steps to help realize Tesla CEO Elon Musk’s autonomous vehicles ambitions, that should by extension be good for Alphabet’s robotaxi company Waymo , Vice President-elect JD Vance is no fan of Google . But Vance’s fiercest criticism was dished out before he was the VP pick. Now is certainly a different time. Home Depot : Sure, the home-improvement retailer imports a lot of goods from overseas including China. But the reason we’ve looked past that — and bought more stock as recently as Tuesday — is Home Depot can absorb them better than competitors due to its scale, taking market share along the way. Plus, the rate-cut cycle is the real reason we own it, and that matters more than Trump’s victory. Honeywell : We’re more upbeat on this stock after activist investor Elliott Investment Management decided to take a $5 billion-plus stake in the conglomerate earlier this week. Jim encouraged management to follow Elliott’s recommendation of splitting its aerospace and automation divisions. We’ve long argued that Honeywell’s portfolio needed reshaping to focus on more profitable segments. Plus, a friendlier M & A environment under Trump could help these businesses. Linde : This stock isn’t in the Trump crosshairs either. As history has shown, Linde is a consistent operator that’s been able to deliver beats on the top and bottom lines regardless of the macro and industrial environment. Just look at its recent solid quarterly earnings report on Oct. 31. Eli Lilly : It remains to be seen what role, if any, Robert F. Kennedy Jr. will have in Trump’s administration. But it’s a fluid, if not fraught, situation that we need to monitor because Kennedy has been critical of GLP-1 weight-loss drugs and the profits they’re generating for their makers. Still, we don’t want to sell Lilly since its main GLP-1 called tirzepatide , sold as Mounjaro for diabetes and Zepbound for obesity, may go on to be the best-selling drug in history. Meta Platforms : In the past, Trump has been critical of co-founder and CEO Mark Zuckerberg. But in a recent podcast interview, the President-elect said he likes Zuckerberg better now. Taking him at face value seems like the right move. He doesn’t need to inflame tensions with a company that has tried to move away from politics and have solid relationships across the board. Morgan Stanley : This stock stands to benefit from the surge in Wall Street dealmaking as well, allowing its crucial investment banking business to rake in more revenues. In fact, Jim forecasted a “wave of mergers that might be the most intense we have ever seen” under Trump, which could lead to more gains for Morgan Stanley than any other bank stock — except for M & A rival Goldman Sachs . Microsoft : Unlike Big Tech peers Apple and Meta, another Trump presidency shouldn’t have big ramifications for the software and cloud giant. The stock has run higher since his decisive win last week. While the Financial Times reported Thursday that the FTC is looking into its cloud unit, the changeover in the White House minimizes the potential impact. Nvidia : The geopolitical risk weighing on AMD also extends to Nvidia, but you might not know it by looking at the latter’s stock chart. Why? It could be because Nvidia’s China exposure as a percentage to its book of business is small and any chips it can no longer sell into China will probably be gobbled up by other customers. Nextracker : Shares are down around 15% since Election Day as investors fear that Trump could end subsidies for solar installations, which no doubt complicates the story here. At the same time, Nextracker did just report a terrific quarter . Plus, Nextracker is rolling out its first solar-tracking product made fully in the U.S., which Trump should like. Palo Alto Networks : Investors should expect this stock to trade higher in the next four years. Global tensions means more cyber attacks. Unlike CrowdStrike, it would take a sizable move lower for us to add to our position again. We still think Palo Alto is a great stock. Starbucks : Jim said the Trump administration’s policies may force new CEO Brian Niccol to get creative with its China operations. Starbucks could do a spin-off of its Chinese stores, a strategy once employed by Yum Brands . In 2016, it separated its operations in the country to create Yum China . Niccol led Yum-owned Taco Bell during that time. Constellation Brands : The Mexican beer importer has been punished on fears about what Trump’s tariff and immigration proposals could do to its business. The immigration component is admittedly a risk to watch, but the stock is trading at a cheap valuation. And the potential that the entire beer industry could turn the corner may more than offset Trump concerns. Stanley Black & Decker: This stock is one of the most at-risk portfolio names under the incoming administration. Stanley Black & Decker has numerous imports from China, which are at the mercy of the proposed tariff increases. Management said Tuesday a 60% tariff rate on imports from China could result in a $200 million headwind to operating income. Still, we’re sticking with the toolmaker for now. At the very least, it pays to wait with its great 3.75% dividend yield. TJX Companies : Compared to other retailers, the parent of TJ Maxx, Marshalls and HomeGoods has less direct tariff risk. That is because TJX buys merchandise from other retailers and manufacturers, which will have paid the import levy already. It’s a case of losing less than peers. Wells Fargo : Shares have hit record highs on a post-election rally and expectations of lower borrowing costs. Despite its recent gains, we are remaining long on the financial stock and not selling entirely. Wells Fargo has a key catalyst coming its way : The removal of the firm’s $1.95 trillion asset cap. If investors get out now, they might miss a big move higher down the line. (See here for the complete portfolio page for 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.
