Here’s an update on all 34 portfolio stocks, including 7 buys
During the December Monthly Meeting, Jim Cramer and Jeff Marks, the Investment Club’s director of portfolio analysis, laid out the outlook for the stock market in 2026, including identifying out-of-favor stocks that are strong buys right now. Here’s a quick update on each stock in the portfolio; We’re starting with seven currently outdated names that Jim says will soon be in style again. 7 unfavorable stocks to buy 1. Boeing: This is a hated stock that has taken unwarranted blows. Jim says investors should consider buying now. Since our last Monthly Meeting, we have used the weakness as an opportunity to strengthen our position. This aircraft maker’s turnaround story remains promising under CEO Kelly Ortberg, especially given its strong free cash flow performance. 2. Danaher: Buy this overlooked stock as biotech funding rises. The more biotech companies go public, the more buyers there will be for Danaher’s equipment. 3. Home Depot: Shares continue to lose value due to weak comparable store sales and a stubborn housing market. But they need to make a splash. This is the best stock to own if President Donald Trump’s new Federal Reserve chief starts accelerating interest rate cuts. 4. Honeywell International: Now is a good time to invest in this industrial conglomerate before it splits into three publicly traded companies. Honeywell shares have underperformed peers for much of 2025 due to the Wall Street phenomenon known as “spin purgatory.” Once the triple split is completed, more value will emerge for Honeywell. Be patient. 5. Nike: Buy this retailer ahead of next week’s earnings report. We have no idea if it will be a good press. But we believe in the turnaround story under CEO Elliott Hill. In order for this stock to rise further, it must be cleared of old stocks. We believe Hill is taking the right steps. 6. Procter & Gamble: It’s not too late to buy Procter & Gamble before shares soar after new CEO Shailesh Jejurikar takes office next month. That’s when the real house cleaning will begin. 7. Texas Roadhouse: Cattle prices have put pressure on this stock, but they may finally be breaking out. That’s why now is the perfect time to buy shares of this high-quality restaurant stock. After all, value-conscious consumers choose this place because of its affordable prices. … and other 27 1. Apple: This tech stock is out of favor with investors in 2025. Jim believes the iPhone is the greatest product in the world. The company also has a strong management team led by CEO Tim Cook. We say again, “own Apple, don’t trade it.” 2. Amazon: Jim would happily pay more for this e-commerce and cloud giant, even though it’s among the worst performers in the mega-cap tech cohort. Given Amazon’s underperformance is likely to re-accelerate its industry-leading cloud business and Prime memberships, Jim said Amazon’s underperformance is a buying opportunity for new investors. Next year should be better for the stock. 3. Broadcom: Shares tumbled Friday following the company’s quarterly earnings on both the top and bottom lines. This was a misunderstood push as the chipmaker still had fantastic fundamentals. Jim recommends waiting two days for the dust to clear and then purchasing. 4. BlackRock: Underperformance in this financial name doesn’t mean you should sell. The withdrawal may be due to concerns about its exposure to private credit. Still, we’re not worried. As long as there is strong wage growth and CEO Larry Fink is in place, we will stay for the long haul. 5. Bristol Myers Squibb: We have a small position in this biopharmaceutical name, and this biopharmaceutical name recently took off after announcing that its promising drug for treating Alzheimer’s disease psychosis, Cobenfy, needed more time for its late-stage study, including enrolling more patients, which the market took as a positive sign. 6. Capital One: Jim predicts shares could go as high as $300 in 2026, representing a 25% increase from Thursday’s close. With its recent acquisition of Discover, the credit card provider is creating a strong rival that could challenge American Express. CEO Richard Fairbank will probably make his last move, but it will be a spectacular one. 7. Costco: While the company reported a strong quarter late Thursday, a slowdown in the non-food category gave bears an excuse to lower the stock. Still, Jim won’t sell Costco because it’s a well-run retailer with a durable business model. 8. Salesforce: The software-as-a-service (SaaS) company recently had its first good quarter; It’s had big earnings growth, making it hard for us to abandon the stock. AI still poses an existential threat to Salesforce’s armchair-based business model, but CEO Marc Benioff is moving into the world of AI with his Agentforce product. 9. CrowdStrike: This cybersecurity giant is a completely different company than the one that caused a massive global IT outage just a year and a half ago. Jim said it was time to buy on weakness because CEO George Kurtz’s prompt and decisive leadership positioned CrowdStrike to effectively navigate the crisis. Investors who bought the dip were handsomely rewarded after the stock finished 2024 up more than 30%. CrowdStrike shares are up 46% so far in 2025. 10. Cisco Systems: Our confidence in Cisco increased after the networking company reported quarterly bullish and outlook improvement in mid-November. This was driven by accelerated product order growth, particularly from hyperscale AI customers. We were pleased to hear that the campus network renewal cycle is also continuing. The security business still needs some improvement, but we can’t let it go. 11. DuPont: This industrial stock is poised for further gains following the recent spin-off of Qnity Electronics. Lesson: Don’t give up on companies that are falling apart. You’re just running away from value. The specialty chemicals business is amazing. 12. Dover: Shares have rebounded nicely since mid-October after a long period of underperformance. We bought the stock when it was falling because its strong fundamentals were unchanged. We’re glad we did this as Dover is trading at its highest levels since February. 13. Eaton: This stock has been volatile lately. Yet we’re sticking with it. Eaton has a great data center business. Deutsche Bank called the power solutions company one of its top picks for 2026 earlier this week. 14. GE Vernova: The stock is up more than 15% in one session this week following positive updates from management, prompting us to raise our price target. The heavy-duty turbine manufacturer is driving data center build-out and is a key beneficiary of the AI boom. 15. Corning: The maker of fiber optics, connectors and hardware used in AI data centers has enjoyed a boom in 2025, with its shares rising more than 86%. Shares tumbled on Friday following Oracle’s disappointing earnings this week, which reignited fears of an AI bubble. But they are still too high to be added to our position. 16. Goldman Sachs: After a strong rally, we decided to cut top-performing bank stocks earlier this month and made huge profits. The club believes Goldman is the big winner of the deal-making recovery. 17. Linde: Shares of the industrial gas giant have made a comeback in the last few sessions amid overall weak performance in 2025. We were encouraged by the news this week that CEO Saniv Lamba purchased nearly $1 million worth of Linde stock. This is a great sign of management’s confidence going forward. 18. Eli Lilly : The stock has been a tough one to own lately, falling back after finally reaching a $1 trillion market cap. However, the FDA may fast-track the oral weight-loss pill oforglipron, which could catalyze Lilly’s stock price gains. The company is ready to launch and is unlikely to face supply constraints like Mounjaro did. “We’re going to stay for the long haul,” Jim said, adding that if prices drop any further, we’ll consider buying. 19. Meta Platforms: The social media giant has figured out how to dominate the ad market, but it’s the massive AI-related expenses that investors still continue to worry about. However, management recently announced cuts to the Metaverse project, giving investors like us confidence that the company has more flexibility to shift its investments to other areas of growth. 20. Microsoft: This is one of the best enterprise software stories out there, as it has successfully implemented AI into its suite of cloud tools to increase productivity. Its partnership with artificial intelligence startup OpenAI also boosted its cloud revenue. In fact, Microsoft was the only Magnificent Seven stock to rise on Thursday as the market moved away from technology. 21. Nvidia: Shares have fallen in recent months, and Jim said the chip stock could fall even further. However, Jim advised members to be patient. With huge demand from China and the launch of a new reasoning chip, Nvidia will be back. After all, the Club made a lot of money by not listening to the naysayers at Nvidia. “I’ve seen this so many times,” he said of Nvidia’s decline. “The stock is undervalued and you need to buy it.” 22. Palo Alto Networks: Shares of the cybersecurity giant are down more than 8% in the past month. This is despite better-than-expected quarterly results and an optimistic outlook for the full year in late November. We used this decline to add to our position. Wall Street may be wary of Palo Alto’s acquisitions of CyberArk and Chronosphere, but we see these deals as positioning the company to differentiate itself in the age of artificial intelligence. 23. Qnity Electronics: This is a terrific stock that is also one of the cheapest in its group. The company’s exposure to secular trends like high-performance computing and artificial intelligence has made it worth keeping since it was spun off from DuPont. 24. Starbucks: The coffee giant is in the midst of a transformation led by CEO Brian Niccol, whom Jim trusts completely. While progress may take longer than we initially expected, we are seeing progress as sales in the core US market improve. We expect the return to take shape further in 2026. 25. Solstice Advanced Materials: This specialty chemicals company recently spun off its Club name from Honeywell. The stock has already been gaining since its public debut. Solstice’s revenue growth is among the best in its group, driven by attractive end markets such as electronics, which was reflected in the company’s November quarterly earnings. 26. TJX Companies: The low-priced retailer has been a bright spot in the retail industry as consumers look for high-quality products at a cheaper price. Luckily, the parent of Marshalls and TJ Maxx has both. It wasn’t a surprise to us when the company reported a strong quarter last month. We also expect TJX to benefit from the holiday shopping season. 27. Wells Fargo: Once the most out-of-favor bank stock, Wells has come a long way under CEO Charlie Scharf, whose leadership and turnaround plan led regulators to lift a longstanding $1.95 trillion asset cap this year. If the stock continues to rise and its price-to-earnings ratio exceeds that of peers like JPMorgan, we’ll consider taking a slight discount. (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 would wait 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. 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