My Top 10 Things to Watch Monday, April 20th 1. Oil prices are higher this morning as stocks are heading lower as tensions in the Strait of Hormuz flare up. The United States has seized an Iranian merchant ship that was trying to evade a naval blockade. On Friday, Iran’s brief reopening of the Straits ended a strong week for the S&P 500 and Nasdaq. In Sunday’s column, I wrote about how things are going well in the stock market outside of Iran. One of them is revenue, and there’s more revenue this week. 2. Roofing and building materials retailer QXO has agreed to acquire installation company TopBuild for $17 billion. The deal comes at a significant premium, with Topbuild shares surging nearly 20% on the news. The deal makes Brad Jacobs’ QXO No. 1 in waterproofing and insulation, No. 2 in roofing, and either No. 1 or 2 in lumber. Last year, the club’s name, Home Depot, defeated QXO and acquired building materials distributor GMS. 3. Morgan Stanley expects Apple to report quarterly earnings per share of $2.02 on revenue of $110.82 billion. These numbers exceed the consensus on the street. Analysts cited pressure on memory as the reason. But that shortfall is well known, and so is Apple’s ability to alleviate it. Morgan Stanley’s outlook for next quarter is better than feared. Analysts maintained a $300 price target and rated the club’s stock a “buy.” 4. Popular stock AST Space Mobile fell 12% this morning after a mission by Jeff Bezos’ Blue Origin rocket placed a satellite in the wrong orbit. AST satellites are covered by insurance. The company said it plans to launch satellites every one to two months this year. The accident cast doubt on that schedule. 5. Melius Research raised its price target on Dell from $200 to $245 and reiterated its Buy rating. Analysts expect Dell’s multiple to expand further as the introduction of AI increases demand for servers and storage. The company claimed that the stock price also “continues to defy bearish arguments.” 6. Bank of America lowered its price target for Club Name Meta Platform from $885 to $820, citing “multiple compression in the broader market.” This PT remains high, representing a 19% increase over Friday’s closing price. Analysts expect an improvement on a quarterly basis and no change to the spending guide this quarter. BofA said its new Muse Spark artificial intelligence model helped address excessive cost concerns in the stock. 7. Evercore ISI added Arista Networks to its “Tactical Outperform” list ahead of quarterly results on May 5th. Analysts predicted higher sales and bottom lines, pointing to increased demand for AI and continued traction on the enterprise side. The company has been a networking winner for a while now because its CEO, Jayshree Ullal, is very good. Evercore ISI maintains its buy rating and $200 price target. 8. IBM has been added to the same Evercore list. This is a brave move, as the technology company will submit its report in just two days. Analysts expect IBM to beat earnings and revise its 2026 constant currency revenue growth outlook. Jefferies lowered its price target from $370 to $320, but maintained its “buy” rating on the stock. 9. Jefferies raised its price target on UnitedHealth from $340 to $373 after a thorough review of the company’s managed care coverage. Analysts maintained the stock at Buy level. I think this is a strong stock heading into this quarter. United Health plans to report results tomorrow morning. 10. Airlines are canceling flights because of the rising cost of jet fuel. The Independent reports that Dutch airline KLM has canceled more than 150 flights to Europe because they are “no longer financially viable.” This, combined with higher interest rates, will have a negative impact on the entire food chain, including our Boeing holdings. Sign up for free for my Top 10 Morning Thoughts on the Markets email newsletter (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you’ll receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
