Let’s say you just joined the Club, and you are trying to figure out which stocks we think are buyable right now, right here. Ideally, what I would like members to be thinking about is a companion portfolio of up to a dozen stocks to a market index fund position — something we recommend for investors just starting to manage their own money. Your own portfolio. Curated by us. Selected by you. More than 12 names, unless you’re a stock junkie like me, might be too hard to stay on top. Remember, buy and homework is my motto, not buy and hold and forget about it. The question is: Which stocks would I buy right now? There are some in our 33-company portfolio that are just too high to recommend — and some, because of changes in circumstances are just too low, correctly low, and going lower like Salesforce after Wednesday evening’s quarter. We have a tough market. But I see stocks that are calling to me and saying it’s a good level to start. Not a single stock should be bought all at once. That’s a fool’s errand in a market that has developed a downward bias as we wrap up the month. GEHC YTD mountain GE Healthcare YTD I can’t help but think that a company like GE Healthcare should be bought here. GEHC makes all kinds of medical machines. In fact, we added some more shares to the Club portfolio Wednesday. The MRI business is very, very strong. The orders are there. Companies and hospitals that buy them make a great deal of money off them. The cost of making each MRI is coming down because of component supply availability, and artificial intelligence is cutting down the time it takes to scan. HON YTD mountain Honeywell YTD I feel the same way about Honeywell at these levels. This is a company that is about to embark of a journey of reinvention where there could be a rather large breakup not unlike what we are getting from DuPont . Honeywell is somewhat of a fanciful amalgam of chemicals, aerospace, climate controls, safety and security, health care and warehouse automation. At one point, that might have made sense but now seems without purpose. Honeywell needs to be broken up, and I think it will — judging by the amount of money made in the merger and breakup of Raytheon and United Technologies or the split up of General Electric. Honeywell shares are coming down to levels that just make too much sense to me to ignore. WYNN YTD mountain Wynn Resorts YTD I would most certainly buy the stock of Wynn Resorts . The gambling and resort company’s American properties — both Las Vegas and Boston — are doing incredibly and so are its two in Macao, the Chinese administrative region that’s the gaming hub of Asia. But every time some portfolio manager gets comfortable with the trajectory of China’s sluggish post-Covid recovery, something negative happens and everything gets thrown away. Even Wynn, which has had some amazing numbers, gets caught up. SWK YTD mountain Stanley Black & Decker YTD I am not a big believer in forecasting Fed rate cuts. That’s been a ridiculous parlor game played by managers who have no idea how else to pass the time. I think Fed President Neil Kashkari said it right the other day when he opined that things are going well, why not play it out? Why rush to cut? Now that is a minority view. Most people think there will be at least one, if not two cuts this year. I am not there for that. However, if you think that’s the case, then you are not going to do better than owning shares in Stanley Black & Decker with an almost 4% annual dividend yield and a very good business that could catch fire on the first cut. It’s at the top of the list of many a fund manager right now but the reluctance to go too early is keeping them back. If the stock had no, or low yield, I would say they are right. But at these prices? It makes too much sense not buy it and get paid to wait. F YTD mountain Ford YTD I know I have been tearing my hair out over this one, but you can earn 5% on a CD or you can earn a 5% annual dividend yield on shares of Ford . The CD is not going to entertain the idea of buying back stock, and it is not going to have a very good quarter because the electric vehicle losses are being stemmed. This stock was at $13.50 per share just a few weeks ago, and I feel better about it now nearly $2 lower than I did back then. What more of an endorsement could there be? The stock is at a level where we are upgrading it to our buy-equivalent 1 rating. (Jim Cramer’s Charitable Trust is long GEHC, HON, WYNN, SWK, F. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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Let’s say you just joined the Club, and you are trying to figure out which stocks we think are buyable right now, right here. Ideally, what I would like members to be thinking about is a companion portfolio of up to a dozen stocks to a market index fund position — something we recommend for investors just starting to manage their own money. Your own portfolio. Curated by us. Selected by you. More than 12 names, unless you’re a stock junkie like me, might be too hard to stay on top. Remember, buy and homework is my motto, not buy and hold and forget about it.
The question is: Which stocks would I buy right now? There are some in our 33-company portfolio that are just too high to recommend — and some, because of changes in circumstances are just too low, correctly low, and going lower like Salesforce after Wednesday evening’s quarter. We have a tough market. But I see stocks that are calling to me and saying it’s a good level to start. Not a single stock should be bought all at once. That’s a fool’s errand in a market that has developed a downward bias as we wrap up the month.
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