We’re downgrading a retail stock. Evercore initiates 2 stocks with buys
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s highlights. 1. The S&P 500 fell on Monday as investors moved away from technology companies into value-focused areas of the market. Case in point: Shares of chipmaker Broadcom are down more than 4% this morning, while Wells Fargo and Goldman Sachs’ financials are in the green. Meanwhile, investors are looking forward to this week’s major economic developments: October retail sales and November employment report on Tuesday and November consumer price index on Thursday. 2. We downgrade Costco to hold from 1 to 2. In his Sunday column, Jim explained why the retailer is a concern for the portfolio. Not only has the stock lagged the market this year, but customers are also renewing their memberships at lower rates than before. We see its impact in the last few quarters. If we are no longer restricted we will consider selling tomorrow. 3. Evercore ISI begins covering Honeywell and GE Vernova with buy ratings. In the case of Honeywell, analysts said the upcoming spin-off of its aerospace unit would lead to further earnings growth for its more focused automation division. They like the GE Vernova for its strong earnings growth, fueled by electrification and power build-up. While we agree that GE Vernova is an excellent stock, we took some profit on Monday and downgraded it to 2 after last week’s rally to a new record high. 4. At the end of the video, the stocks covered in Monday’s rapid fire were: ServiceNow, Masco, Zoetis, Texas Instruments, Dollar General. (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.
