The Club’s Top 10 Things to Watch Friday, May 22 — Today’s newsletter was written by Jeff Marks, the Club’s Director of Portfolio Analysis. 1. Stocks are poised to extend yesterday’s gains. While oil prices have risen slightly due to uncertainty over the Iran war peace deal, bond yields have not followed the same pattern and have fallen. Stocks have struggled to rise recently in the face of rising yields. 2. Big profit driver: Workday rose more than 7% after the enterprise software vendor reported higher sales and bottom line results and raised its full-year profit margin outlook. Co-founder Aneel Bhusri has returned as CEO and insists the company’s AI strategy is working. 3. Decker’s Outdoor posted better-than-expected sales and provided a full-year outlook that beat Wall Street expectations. Hoka’s sales increased 14.5% in the quarter. Ag rose 9.2%. The stock price is down about 2.5%. BTIG called the quarter a solid quarter, but affirmed the rating. 4. Shares of Take-Two Interactive are up more than 3% after the video game publisher reaffirmed that Grand Theft Auto VI will be released in November of this year. The game has faced repeated delays, and it’s been more than a decade since the last GTA game was released. 5. Ross Stores follows the club name TJX Companies with its own strong beats and raises. Same-store sales increased 17% in the quarter. Off-price retail is best when consumers are nervous. TJX showed that on Wednesday. 6. Estée Lauder is soaring more than 11% this morning after merger talks with Spanish beauty company Puig were called off. When news of the acquisition surfaced in March, the market took a tough stance on EL stock. The concern was that acquiring Puig would further complicate Estée Lauder’s organizational restructuring efforts. 7. Walmart was added to JPMorgan’s Analyst Watch List after falling 7% yesterday on the back of earnings. KeyBank said that despite Walmart’s weak guidance, it believes the retailer is poised to gain additional market share in the grocery and general merchandise sector and offset rising fuel costs. 8. BJ’s Wholesale shares are down less than 1% after the company reported adjusted earnings of $1.10 versus expectations of $1.03. The income was also better than expected. We reconfirmed our full-year outlook. The club has long owned rival Costco. Costco will report next week. 9. Zoom Communication rose more than 7% on ups and downs and full-year guidance hikes. Analysts said Zoom achieved better-than-expected profit growth and stable performance, and KeyBank upgraded the stock from sell to hold. 10. Steelmaker Nucor was initiated at Barclays with a Buy rating and a $270 price target. The company’s stock has been a winner this year, rising about 40%. It reported a strong quarter at the end of April thanks to the steel mill’s production volumes and margins. There are four additional points worth noting. 11. Loop Capital initiated American Express with a Buy rating and $389 price target. We like Capital One, but it’s been hard to own the entire group this year. 12. Chipmaker Marvell Technology raised its price target on Stifel from $140 to $210, and Wells Fargo raised its price target on server maker Dell from $180 to $270. Both beneficiaries of the AI transaction will report earnings next week. 13. Nvidia remains an essential AI stock to own in our eyes. Club portfolio analyst Zeb Fima highlighted that point in an article for members yesterday. Sellers don’t fully understand what Nvidia’s next growth will be. 14. Elon Musk’s SpaceX has delayed the test flight of its experimental reusable rocket Starship. I plan on trying again today. We own two winners from SpaceX’s planned IPO. One is Goldman Sachs, the lead bank in the deal, and the other is the lesser-known Linde, which supplies gas used in rocket launches and satellites. 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.
