My Top 10 Things to Watch Friday, Dec. 12 1. Investors continued their rotation from tech to value as the Nasdaq looked to open lower and the Dow looked to build on yesterday’s record. S&P futures were relatively unchanged yesterday after broader market indexes also hit record closes. Our club will be hosting a livestream of our December monthly meeting exclusively for members at 12:00 PM ET. 2. Lululemon Athletica reported a decent quarterly profit yesterday. The company has dramatically increased its revenue but has struggled with execution amid a number of challenges this year, including tariffs. Additionally, CEO Calvin MacDonald announced that he will be leaving the athleisure giant at the end of January after more than seven years. As a result, Jefferies analysts upgraded Lululemon stock from sell to hold. This is pretty cruel considering McDonald’s success over the past few years. The stock had risen more than 10% before the move. 3. Clubs that own Broadcom stock are down 5% this morning after a misunderstanding on the quarterly earnings report. The semiconductor maker announced better-than-expected profits and raised its outlook. Still, investors were concerned about CEO Hock Tan’s comments that could suggest customers move chip development in-house. We disagree with this interpretation and think it was a strong quarter overall. 4. Costco late yesterday announced better-than-expected quarterly profits, supported by increases in membership fee revenue, gross profit, and net sales. Still, the results weren’t enough to overcome Wall Street’s negative view of the retailer, as the stock fell early this morning. However, we still think there is a chance that the club’s shares will rebound based on the results. Although we maintained our rating of “1 equivalent to buy”, we lowered our price target from $1,100 to $1,050 due to the recent decline in stock prices. 5. Citi names Club Holding Linde as sector leader after positive investor meeting. The stock has performed poorly of late, falling 6% in the last month. But analysts say the retreat is overdone and the industrial gas giant still has a backlog of high-quality projects. 6. RH (formerly Restoration Hardware) worked with pizazz to lead a post-earnings conference call regarding plans to open an RH Paris store. The luxury furniture company reported year-over-year growth in the third quarter, despite the worst U.S. housing market in 50 years. EPS missed, but revenue matched. However, revenue growth guidance was not met. Analysts lowered their price targets for RH, and Stifel also lowered his target from “buy” to “hold”. 7. Guggenheim upgraded the disappointing portfolio name Bristol-Myers Squibb from Hold to Buy for 2026, citing “more compelling value-oriented, pipeline-driven risk/reward.” The stock has been trending higher since its year-to-date low in late October, but is still down 9.5% heading into 2025. The club is looking forward to further utilization of the company’s schizophrenia treatment drug Cobenfi. 8. Fermi stock fell nearly 44% to $8.5 per share this morning after the utility announced its first tenant had terminated a $150 million financing agreement. Fermi, co-founded by Republican former Texas governor and former Energy Secretary Rick Perry, traded as high as $37 the day after its debut on October 1. The IPO price was $21. 9. JPMorgan raised Alphabet’s price target from $340 to $385 and maintained its buy rating. Analysts remain positive on Mag7 stock, including Google’s parent company. JPMorgan’s top pick for next year is Alphabet, which also includes Amazon, DoorDash and Spotify. 10. High-speed connectivity provider Ciena delivered a clean beat-and-raise quarter with great guidance yesterday. Analysts updated their outlook for the stock, which has nearly tripled this year, and raised their price targets one after another. Some PTs were set below yesterday’s closing price of $242 for Siena stock. That was not the case with Barclays. Analysts at the bank upgraded Siena’s investment rating from $138 to $279, maintaining a buy rating. 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.
