Cramer names six stocks to buy in CNBC Investing Club portfolio
Jim Cramer and portfolio director Jeff Marks named six stocks they consider the most attractive to buy at the September CNBC Investing Club meeting: Kimberly-Clark, Bank of New York, Intel, Micron, Meta and FedEx. They also reviewed all 33 positions in Cramer's charitable trust portfolio, CNBC Top News reports.
Six favorites
In Cramer and Marks' view, Kimberly-Clark could benefit from the planned acquisition of Kenvue through greater scale, lower costs and an opportunity to refresh its portfolio of consumer health brands. They called Bank of New York a financial company with lower risk than Capital One: about 70% of its revenue comes from fee income, reducing dependence on the credit cycle and changes in interest rates.
Intel, in their assessment, has the potential to recover after a sharp decline in its share price. Cramer and Marks pointed to higher processor prices and the acquisition of customers for contract chip manufacturing. In their view, Micron remains one of the most compelling semiconductor assets: shipments of advanced HBM memory from the company's new plant are due to begin in January.
Regarding Meta, the meeting participants said the market underestimates the positive nature for the company of the recent legal settlement. In their view, this will allow Meta to focus on developing cloud services. They consider FedEx shares attractive because of expectations for a strong holiday season and the possibility that the company could take market share from UPS.
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Technology and other positions
Cramer and Marks said they have become more selective regarding companies linked to artificial intelligence, but have not abandoned Nvidia. They recommend holding its shares rather than actively selling and buying them. They also maintained a positive assessment of GE Vernova, Eaton, Qnity, Amazon, Alphabet, Microsoft, CrowdStrike, Palo Alto and Salesforce.
At the same time, Cramer called Broadcom the least desirable technology position in the portfolio. Ahead of the quarter, the stake in the company was reduced because of concerns about intensifying competition from Nvidia and Marvell. Cramer and Marks also took a more cautious approach to Home Depot, Costco, Honeywell and TJX Companies. For Costco, they cited a high valuation multiple of about 44 times annual earnings.
In the financial sector, they retained a positive view of Capital One, Wells Fargo and Goldman Sachs, citing company valuations and a revival in underwriting activity. Among healthcare companies, Cramer and Marks see no reason to sell Johnson & Johnson and Eli Lilly, emphasizing the prospects of their product development. Boeing, DuPont, Linde, Starbucks and FedEx Freight also remain in the portfolio.
