We’re raising price targets on 2 cyber stocks after their hard-fought recovery
Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Stocks started the week mixed; The S&P 500 fell as AI-related names came under pressure. There were various rotations in artificial intelligence trading last week, and this situation continued in the new week. Oil traded lower for most of the morning on Monday and then rose on uncertainty that a deal will be reached between the United States and Iran on opening the Strait of Hormuz. Market interest rates were relatively unchanged, but the 10-year Treasury yield remained high at roughly 4.6%. CrowdStrike and Palo Alto Networks hit all-time highs despite Monday’s market weakness. After a terrible start to 2026 on concerns about the disintermediation of AI, both Club cybersecurity stocks have rightfully ditched traditional enterprise software because AI will likely accelerate their business. Thanks to roughly 30% gains this year, CrowdStrike and Palo Alto have far exceeded our price targets, prompting us to raise to reflect recent strength. We are increasing CrowdStrike from $500 to $650 per share and Palo Alto from $200 to $255. However, we think both stocks are up more from here, especially in light of our recent sales. We shortened our CrowdStrike position at the beginning of the session and dropped Palo Alto a few weeks ago. We will re-evaluate both positions after earnings. Palo Alto reports June 2 and CrowdStrike reports June 3. We’re getting quarterly results from Club Name Home Depot before the opening bell on Tuesday. We don’t expect much from Home Depot as high mortgage rates delay the home improvement recovery. In other news Tuesday morning, Vertiv kicks off the first day of its two-day investor conference, and we’ll be watching to see what the power and cooling equipment company has to say about data center demand. This could give us the opportunity to read some of our AI industrial plays like Eaton, GE Vernova, and to some extent Dover. On the data side, pending home sales occurred before the opening bell on Tuesday. Correction: An earlier version of this story incorrectly said Chinese tech giant Baidu reported earnings Monday night. He reported Monday morning. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
