Every weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch – an actionable afternoon update, just in time for the final hour of trading on Wall Street. (We are no longer recording audio so we can get this new written feature out to members as quickly as possible.) Market Snapshot: The market came off its session high on Thursday, but all three major indexes recorded gains. new intraday records. earlier in the trading day. That follows a sharp rally on Wednesday in response to April’s colder-than-expected consumer inflation index, which sent bond yields lower on heightened expectations of rate cuts later this year. Eli Lilly Dives: Shares of Eli Lilly are missing the rally following news that Swiss pharmaceutical company Roche’s experimental obesity drug showed promise in a Phase 1 study. It’s no surprise to see Lilly shares fall amid the threat of another potential new entrant into the fast-growing weight-loss market; we’ve seen this story before on trial data from Amgen and Viking Therapeutics. However, on days like these, the market seems not to take into account the magnitude of Lilly’s defensive moat, rooted in its manufacturing scale, direct-to-consumer service and next-generation obesity drugs in preparation. Additionally, we’re talking about a competing drug that is in an early stage of study, meaning it will be years and years before a potential commercial launch. Bullpen Cleaning: We are removing some names from the Bullpen, our list of stocks to watch for the Club portfolio. Deere: The agricultural equipment maker lowered its full-year outlook on Thursday, citing a difficult agricultural market and inventory drawdown in the second half. We want to maintain our industrial focus on companies linked to secular themes – such as aerospace, energy transition and data centers – or on companies that are coming out of a destocking period and are about to see orders bend. We are still considering a recent removal of Dover, added to Bullpen. Walgreens Boots Alliance: Expectations and the stock have fallen significantly in recent months, but this turnaround appears much more difficult than previously thought. We probably won’t know the outcome of management’s strategic review for a few quarters, which keeps us on the sidelines. Cloudflare: All the major content delivery technology companies have reported disappointing quarters this earnings season, leading us to fear a possible slowdown. The valuation is also high, with the stock trading at 100 times adjusted 2025 earnings estimates. Jim’s Quick Points: Walmart’s earnings report on Thursday looks to be good news for our favorite value-oriented retailer, Costco. “Doug McMillon, Walmart’s CEO, has repeatedly emphasized that the company’s success this quarter was due to lower prices,” Jim Cramer said. “I think this bodes well for the company with the lowest prices, Costco.” Shares of Estée Lauder are up about 7% over the past week, among the best-performing Club stocks over that period. It could receive help from an e-commerce giant with a presence in Estée Lauder’s important Chinese market. “Alibaba’s recent strength has pushed Estée Lauder to make an offer,” Jim said. “I still believe that what matters here is inventory clearance and that the company will be able to offer products at higher prices.” Next up: Profits are winding down for the week. Applied Materials and Take-Two Interactive are the only ones on our radar Thursday night. Applied Materials is a good read on what’s happening in the chip industry, while Take-Two is effectively in a transition period while waiting for GTA 6’s official release date. (See here for a full list of stocks from Jim Cramer’s Charitable Trust.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY OBLIGATION EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Every weekday, CNBC Investing Club with Jim Cramer publishes the Homestretch – an actionable afternoon update, just in time for the final hour of trading on Wall Street. (We are no longer recording audio so we can get this new written feature out to members as quickly as possible.)
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