Club’s Top 10 Things to Watch for Monday, February 13 1. The Dow Jones Industrial Average, S&P 500 and Nasdaq are set to start the week mixed. No big economic news on Monday. The Consumer Price Index for January has been released on Tuesday morning. The Dow declined marginally last week, posting its second consecutive weekly decline. The S&P 500 and Nasdaq had their worst weeks since December, with the former snapping a two-week winning streak and the latter ending five straight weeks of gains. 2. Club Holding Caterpillar (CAT) at Baird was downgraded to Neutral (Hold); The price target has been reduced from $290 to $230 per share. Analysts believe CAT is “close to a cyclical pivot point,” and they think a dealer in tailwind stock is going to be slow. Demand backlog to peak in Q1 2023. However, the club still sees room for growth from projects funded by the Infrastructure Investment and Jobs Act and Inflation Reduction Act spending plans. 3. According to the Financial Times, Meta Platforms (META) has delayed the final budgeting of several of its teams ahead of a new round of job cuts. There’s no word on the potential size of layoffs at Club Holding, but we do know from CEO Mark Zuckerberg that this is going to be a “year of efficiency” for the company behind Facebook, Instagram, WhatsApp and the pioneering virtual reality headset. 4. RL (RL), the company formerly named Ralph Lauren, has been upgraded to buy in Bank of America. Analysts agree that the fashion powerhouse’s US wholesale business is among the best positioned among sellers. 5. Disney (DIS), a club stock, has cut the price target at Citi from $145 to $130 per share; Maintains a buy rating after last week’s solid earnings and restructuring announcement. JPMorgan reinstates coverage with an overweight (buy) rating and a $135 price target, representing a near 25% update from Friday’s close of $108 per share. 6. Morgan Stanley downgraded XPO Logistics (XPO) to Equal Weight (Hold). Keeps the stock in the “penalty box” until there is more evidence on market performance and sees a path toward longer-term goals. 7. Bank of America on Software: Double Upgrade Fastly (FSLY) to buy; With no positive catalyst in sight the neutral is (holds) on the octa (OKTA); Club Holdings calls Salesforce (CRM) an emerging quality growth at a reasonable price (GARP) stock. 8. Merck (MRK) price target on Credit Suisse has been raised to $125 per share from $120. Analysts expect the 2023 American College of Cardiology conference in early March to be a catalyst for the stock. 9. Five Below has upgraded to buy Roth MKM. Analysts say the “sudden change” in the value of merchandise happened faster than expected. 10. According to The Wall Street Journal, the board of Chevron (CVX) is considering relaxing the mandatory retirement age for CEO Mike Wirth. (Jim Cramer’s charitable trust is long CAT, META, DIS, CRM. See here for a full list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive trade alerts before Jim trades . Jim waits 45 minutes to send a trade alert before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our terms and conditions and privacy policy, along with our disclaimer. No fiduciary obligation or duty exists, or is created, by virtue of your receipt of any information provided in connection with Investment Club. No specific results or benefits are guaranteed.
The club’s top 10 things to watch on Monday, February 13
1. The Dow Jones Industrial Average, S&P 500 and Nasdaq are set to start the week mixed. No big economic news on Monday. The Consumer Price Index for January has been released on Tuesday morning. The Dow declined marginally last week, posting its second consecutive weekly decline. The S&P 500 and Nasdaq had their worst weeks since December, with the former snapping a two-week winning streak and the latter ending five straight weeks of gains.
2. Club Holding Caterpillar (CAT) at Baird was downgraded to Neutral (Hold); The price target has been reduced from $290 to $230 per share. Analysts believe CAT is “close to a cyclical pivot point,” and they think a dealer in tailwind stock is going to be slow. Demand to reach backlog peak in Q1 2023. However, the club still sees room for growth from projects funded by the Infrastructure Investment and Jobs Act and Inflation Reduction Act spending plans.
3. Meta Platforms (META) has delayed the final budgeting of several of its teams ahead of a fresh round of job cuts, according to the Financial Times. There’s no word on the potential size of layoffs at Club Holding, but we do know from CEO Mark Zuckerberg that this is going to be a “year of efficiency” for the company behind Facebook, Instagram, WhatsApp and the pioneering virtual reality headset.
4. RL (RL), the company formerly named Ralph Lauren, has been upgraded to buy at Bank of America. Analysts agree that the fashion powerhouse’s US wholesale business is among the best positioned among sellers.
5. Disney (DIS), a club stock, has lowered the price target on Citi from $145 to $130 per share; Maintains a buy rating after last week’s solid earnings and restructuring announcement. JPMorgan reinstates coverage with an overweight (buy) rating and a $135 price target, representing a near 25% update from Friday’s close of $108 per share.
6. Morgan Stanley downgraded XPO Logistics (XPO) to Equal Weight (Hold). Keeps the stock in the “penalty box” until there is more evidence on market performance and sees a path toward longer-term goals.
7. Bank of America on Software: Double Upgrade Fastly (FSLY) to Buy; With no positive catalyst in sight the neutral is (holds) on the octa (OKTA); Club Holding calls Salesforce (CRM) an emerging quality growth at a fair price (GARP) stock.
8. Merck (MRK) price target on Credit Suisse has been raised to $125 per share from $120. Analysts expect the 2023 American College of Cardiology conference in early March to be a catalyst for the stock.
9. Five Below has upgraded to buy Roth MKM. Analysts say the “sudden change” in the value of merchandise happened faster than expected.
10. The board of Chevron (CVX) is considering relaxing the mandatory retirement age for CEO Mike Wirth, according to The Wall Street Journal.
(Jim Cramer’s Charitable Trust is long CAT, META, DIS, CRM. See Here for a full list of stocks.)
As a subscriber to CNBC Investing Club with Jim Cramer, you will receive trade alerts before Jim trades. Jim waits 45 minutes to send a trade alert before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade.
The above Investment Club information is subject to our disclaimer as well as our terms and conditions and privacy policy. No fiduciary obligation or duty exists, or is created, by virtue of your receipt of any information provided in connection with Investment Club. No specific results or benefits are guaranteed.
Source: www.cnbc.com
