These 4 turnarounds are progressing – plus, updates on 30 other stocks
Jim Cramer and Jeff Marks, the Club’s director of portfolio analysis, presented updates on all 34 Club assets during the January Monthly Meeting on Thursday. Here are the highlights of the first meeting of 2026, starting with our four comeback stories: 4 comeback plays Nike: The apparel and sneaker retailer has shown real signs of recovery under CEO Elliott Hill, who has already stabilized Nike’s U.S. market. Next is China, another important segment. Procter & Gamble: Thursday’s weak quarterly earnings report was expected, and we view it as a clarifying event for the consumer packaged goods giant. Management said the worst was over, setting the stage for better performance in 2026; especially with new CEO Shailesh Jejurikar coming to the helm. Starbucks: With China now more stable and U.S. sales trends improving across its core business in North America, we are confident the business can regain momentum. Investors will get an update at Starbucks Investor Day next week. Although the stock is overbought, we are still happy with its current position in the portfolio. Texas Roadhouse: Beef inflation has been a headwind for the restaurant chain for a while, so we recently reduced our position. However, Jim predicts that beef prices will drop. As a result, we’re not giving up on Texas Roadhouse or taking a profit on the stock again. …and 30 others Apple: We don’t understand why this stock isn’t higher after management announced a new partnership with Club holding Alphabet. The regulation allows Apple to use Google’s leading artificial intelligence technology on some of its devices. This is a huge gain. Investors on the sidelines should open positions in Apple. Amazon: Shares sometimes trade on emotion rather than fundamentals, but Jim urged members not to give up. After all, Amazon continues to deliver where it matters. Shares are poised to rise as the cloud business picks up again. Jim also likes this better than the other names in the Club, Meta and Microsoft. Broadcom: The custom chip maker had a great quarter in December, but the stock still underperformed into the new year. It’s odd that stocks haven’t rebounded, given that the broad market rebounded after President Donald Trump lifted his threat to lift tariffs on a number of European countries over Greenland. We’re considering buying this dip as shares are down more than 4% this year. Boeing: This is a stock investors should own for the long term, according to Jim, who noted the company’s strong free cash flow and recent order growth. We’re excited to see Boeing’s turnaround story continue on track under CEO Kelly Ortberg. BlackRock: We recently gained strength by selling some of our shares, but that doesn’t mean we’re any less optimistic. BlackRock has announced a series of acquisitions over the past two years that will expand its customer base and give the firm greater access to fast-growing markets such as private lending. As the world’s largest asset manager, no one has BlackRock’s scale. Bristol-Myers Squibb: Shares tumbled despite no new updates on the company’s expansion of its schizophrenia drug Cobenfy to treat Alzheimer’s, which is key to our investment thesis. Despite recent setbacks in trials, we’re still sticking with it. Jim also pointed out Johnson & Johnson, a former Club holding company now based in the Bullpen. Jim called J&J “a better healthcare company than we’ve ever had” after reporting a strong fourth quarter of fiscal 2025 on Wednesday. Capital One: The credit card issuer will report quarterly earnings after the bell on Thursday. All eyes will be on the administration’s response to Trump’s call for card interest rates to be 10% for a year. Jim said it would be unwise for CEO Richard Fairbank to push back against Trump. We focused on the benefits of Capital One’s acquisition of Discover. Costco: We were dismayed when Costco had a mixed quarter in December, indicating that renewal rates were down and the consumer was more selective. Therefore, we decided to cut our position on December 16th. But Jim thinks “we are seeing the last of these trends.” Salesforce: According to Jim, this is the portfolio’s only problematic technology position. Salesforce shares have been under pressure, along with the rest of the enterprise software group, due to concerns about the risks of AI-induced disruption. The big question: Is Agentforce, CEO Marc Benioff’s company’s suite of AI tools, strong enough to offset weaknesses in other businesses? CrowdStrike: This stock has differentiated itself from the rest of the cybersecurity group, including Club, which owns Palo Alto Networks. CrowdStrike’s security platform that protects enterprise customers from bad actors and its all-star management team, led by CEO George Kurtz, make it stand out in the industry. Cisco Systems: It’s hard to find a high-quality networking company trading at a reasonably high price-to-earnings ratio. This is also a great AI play because the company is making huge strides to attract more customers at web scale. DuPont: This industrial name has stable healthcare, water and various materials businesses that could thrive as the Federal Reserve lowers interest rates. But DuPont has access to the shrinking electric vehicle market. This is a downside risk, but we can tolerate it because it accounts for less than 10% of total sales. Danaher: As biotech IPOs and big pharma acquisitions gain momentum, the tide is turning for this life sciences company; Both need to be followed by orders for more equipment. This will help revive Danaher’s bioprocessing equipment business. Dover: The club made some profit on Wednesday. There was no major announcement from Dover that would guarantee superior performance. Instead, positive analyst calls pushed the stock even higher. We can’t waste the upward move, but we’re hesitant to move any further right now. Eaton: We got some good news Wednesday: Management is considering closing its vehicle division, a legacy business with limited growth. We love Eaton because it is the world’s leading electrical machinery company. GE Vernova: The turbine maker remains one of the top winners in AI data center deployment. We previously worried that the management would not be able to expand production capacity enough to meet demand. This is no longer a problem. Corning: This stock is trading better than most other data centers. Corning makes a difference with its work replacing copper in data centers. Corning produces fibers that can reduce heating costs in energy-intensive facilities. We are just at the beginning of this trend. Alphabet: Jim said Alphabet is “the clear winner” among the most advantageous megacap tech stocks. Google’s latest AI model, Gemini 3, has put it ahead of other chatbots from publicly traded companies. Alphabet’s latest partnership with Apple is also promising, given Apple’s massive installed base. Goldman Sachs: The stock has the best momentum among our financial names thanks to terrific deal business on Wall Street. It’s a multiple expansion story that’s “too cheap for the best in the business,” Jim says. Home Depot: We’re not sure what to make of this home improvement retailer. It’s one of the biggest beneficiaries of interest rate cuts, but it hasn’t performed this well. Peer Lowe actually has more momentum. Honeywell International: We were patient with Honeywell being left behind as the company split into an automation company and an aerospace company. Fortunately, Honeywell shares are on the rise after Quantinuum, the world’s largest integrated quantum computing company, went public earlier this month. Honeywell is the majority shareholder of Quantinuum. Linde: This stock appears to have lost its way after issuing softer guidance last quarter. We’re holding on to this. The industrial gas giant has strong pricing power and a diverse customer base. Eli Lilly: We remain confident in the drugmaker’s leading position in the rapidly growing GLP-1 market. The reach of oral GLP-1, which the company is expected to launch this year, should be further expanded. Additionally, some drug readings later in 2026 could be catalytic events. Meta Platforms: Jim said the social media giant is “the leading advertising company of our time.” The meta is spending more money on AI, which is a necessary evil for competition. One positive development: The stock’s valuation is becoming more reasonable. Microsoft: It was a mystery. Microsoft shares have been on a downward trend, falling 14% in the last three months. It’s unclear whether this is because Copilot, the company’s AI-powered co-pilot, has been a disappointment or because there are difficulties with the OpenAI partnership. The stock is rarely this cheap so it can be purchased. Nvidia: The AI chip leader is exposed to volatility, trapped in geopolitical tensions between the US and China as both countries race to be first in AI. Jim believes the stock can continue to trade in steady form until the Nvidia GTC conference in March, where CEO Jensen Huang will introduce its latest semiconductor platform, Vera Rubin. We maintain our stance of “own, don’t trade.” Palo Alto Networks: Our other cyber name should continue to benefit from the secular trend of integrating AI-driven solutions into the cloud. The stock is currently trading at $182 apiece, well off its 52-week high of $223. It is a potential buying opportunity. Qnity Electronics: Shares are on the rise despite being up 25% year to date. That’s because this DuPont spinoff provides materials used in high-performance semiconductor and mobile phone technologies. Both are seeing a significant increase in demand, which is great for sales. TJX Companies: The low-price retailer is poised to benefit from ongoing retail bankruptcies and closures, including Saks’ most recent bankruptcy. These failing brands will shift large amounts of inventory to the off-price channel. TJX will be available for purchase at a discount with its expert sales team. Wells Fargo: The Wall Street bank failed to break either the top or bottom line last quarter. Still, we’re not worried. CEO Charlie Scharf is transforming Wells into more of an investment company, which brings higher expenses for now. We remain hopeful that these efforts should further diversify revenues. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) 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