okay, here’s a breakdown of the investment activity and news discussed in the provided text, focusing on the CNBC Investing Club with Jim Cramer:
Key Themes & Market Overview:
Earnings Season Strong: A very high percentage (81%) of S&P 500 companies have reported positive earnings surprises, and the magnitude of those surprises is above the 10-year average. Most sectors are showing earnings growth year-over-year.
drug Stock Pressure: The pharmaceutical industry is facing notable headwinds due to potential government intervention to lower prescription prices, and concerns about potential price increases of up to 250%.
Market sensitivity: Even good earnings reports are being met with scrutiny, with investors focusing on forward guidance and specific data points (like weight loss trial results).
individual stock Updates (CNBC Investing Club Portfolio):
Here’s a summary of the actions taken and rationale for each stock mentioned:
Eli Lilly (Lilly): Downgraded to a 3 (Looking for a Sell Level). Strong earnings were overshadowed by disappointing results from a Phase 3 trial of its obesity pill, orforglipron. Price target was cut. Worst performing stock of the week (-18%).
DuPont: Reiterated a 1 (Buy-Equivalent). Reported a “beat and raise” quarter with strong cash flow. The stock reaction was seen as underwhelming, so 100 shares were added to the portfolio. Rose less than 1% this week.
Coterra Energy: Reiterated a 3 (Hold). Positive results driven by production,but Jim Cramer believes the company can’t overcome negative commodity prices. Price target trimmed. Gained nearly 1.4% this week.
Eaton: Upgraded to a 1 (Buy). “Beat and raise” quarter, but investors were concerned about the third-quarter outlook and 2025 guidance. Despite this, the Club raised its price target. Lost nearly 4.9% this week.
Disney: Upgraded to a 1 (Buy). Mixed quarter (sales miss, earnings beat), but strength was seen in key areas like streaming, sports, and experiences. Price target raised. Lost more than 3.5% this week.
Texas Roadhouse: Maintained a 2 (Hold). sales beat expectations, but profitability was hurt by high beef prices. Demand remains strong. Lost 5.5% this week.
Cisco Systems: Earnings report is coming up next week. (Newest addition to the portfolio).
Crucial Notes about the CNBC Investing Club:
Trade Alerts: Subscribers receive trade alerts before Jim Cramer executes trades.
waiting Periods: There are waiting periods (45 minutes after an alert, 72 hours after TV mention) before Cramer buys or sells to allow others to act on the data.
* Disclaimer: The information is provided with no fiduciary duty or guarantee of profit.
Let me know if you’d like a deeper dive into any specific stock or aspect of this report!