What Cramer is watching on Wednesday, including a big buy moment for two bank stocks

A view of the Morgan Stanley offices in Canary Wharf, London, UK

iStock Editorial | Getty Images

(This article was first sent to CNBC Investing Club members with Jim Cramer. To get real-time updates delivered to your inbox, subscribe here.)

What I’m watching on December 15, 2021:

  • Powered … conical? To squeeze? Inflation fears? Supply chain versus commodities versus wage inflation? Let’s explain it …
  • Big call to club members—United Parcel Service (UPS) upgraded by Citi holds to buy … Citi highlights FedEx (FDX) in hierarchical order… FDX reports tomorrow after the bell … UPS now has the discipline … air cargo tightness remains a tailwind … we told club members to believe in CEO Carole Tome during the quarter …
  • Eli Lilly (LLY) … burst advice – many companies looking for a bad number but it was way better … increase the numbers for 4th q also … Non-GAAP EPS of 2021 before $ 7.95 to $ 8.05 – increased from $ 8.15 to $ 8.20. .. Covid Antibodies … people were looking for a weaker 2022 with tough compositions and investments – but they guided $ 8.50 to $ 8.65 non-GAAP BPA … the consensus was $ 8.13 – estimates had fallen … margin improvement: 30% to 32% for 2022. Higher R&D, increased marketing sales administration; cancer, diabetes and Alzheimer’s …
  • KeyCorp (KEY) has gone from selling to buying at Bank of America … very unusual but there’s still an analyst or two who think the regionals are doing better than the majors right now … I say buy Morgan Stanley (MS) and Wells Fargo (WFC).
  • Comcast (CMCSA) has downgraded the buy to keep at Citi … says it is difficult to unlock the sum of the parts … notes high investments in direct consumer investment and below consensus financial outlook …
  • Truist says Etsy (ETSY) is way ahead of expectations … great holiday name but much appreciated … they have proprietary data … app usage is strong … I continue to believe this is a supply chain winner …
  • Edwards Lifesciences (EW) … upgrade to buy from Citi … will be fine because of the heart valve business, but you need the pandemic waves to subside …
  • Hologic (HOLX) buys to own Citi … first of the Big Three to be downgraded … HOLX, DHR and TMO … fears the rest of the story will make up for the Covid machines …
  • Omicron has been multiplied by seven this week … authorities still trust the three-shot regimen … only GlaxoSmithKline (GSK) seems to work against omicron … Pfizer’s Paxlovid is our hope – 89% effective in reducing risk hospitalization and death
  • JPMorgan downgrades Trex (TREX) neutral to sell and upgrades Azek (AZEK) to buy. Faux wood but TREX has better ESG characteristics …
  • Deutsche Bank AMD (AMD) price target drops from $ 113 to $ 120 … stock is much higher – still believes risk of over-shipping … Xilinx (XLNX) PT $ 195 to $ 207 – why still write unless you think the AMD-xilinx deal won’t close? … Applied Materials (AMAT) PT rose $ 170 to $ 180 despite a low q. finally … also raises KLA (KLAC) and Lam Research (LRCX) …
  • It is now Mizuho’s turn to lower the price targets to a high multiple: Zscaler (ZS), CrowdStrike (CRWD), Cloudflare (NET), VMware (VMW), Fortinet (FTNT) … cautious optimism but as usual it’s the Fed … and owning several companies that don’t seem to be doing things or doing things …
  • Centene (CNC) … Deutsche Bank likes changes in corporate governance, but just doesn’t like CEO Neidorff? …
  • Campbell Soup (CPB) PT raised $ 44-45 at Deutsche Bank, quotes analyst meeting … tonight …
  • Enbridge (ENB) … tonight … why can’t it make more money with the boom in natural gas? … and what can it do with ESG constraints?
  • Neogen (NEOG) … the 3M (MMM) OK… What does it mean?
  • I had Bausch Health (BHC) on Mad last night and think it’s worth way more than 4x the profits … paid off $ 10 billion of Valeant’s 20 billion debt …
  • Deutsche Bank loves ON Semiconductor (ON) … it’s one of the best names because it has auto …
  • Bill Ford buys $ 8.5 million in Ford (F) stock … Morgan Stanley’s Jonas says sell but $ 25 bullish deal … investor feedback is positive
  • JPMorgan cuts the numbers Uber (UBER), Lyft (LYFT), DoorDash (DASH), Stitch Fix (SFIX), Roku (ROKU), Pinterest (PINS) …
  • Barclays says Apple (AAPL) is doing a great job … Chinese Smartphone Ministry loves Apple (Ministry of Industry and Information Technology) … strong implications – supplier demand is crazy ?

The CNBC Investing Club is now the official headquarters of my charity. This is the place where you can see every move we make for the portfolio and get my market snapshot before anyone else. The Charitable Trust and my writings are no longer affiliated with Action Alerts Plus in any way.

As a CNBC Investing Club Subscriber with Jim Cramer, you will receive a Trade Alert before Jim completes a trade. Typically, Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust portfolio. If the trade alert is sent before the trade, Jim waits 5 minutes after the market opens before executing the trade. If the trade alert is issued less than 45 minutes during the trading day, Jim executes the trade 5 minutes before the market closes. If Jim has mentioned a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. See here for investment disclaimer.

(Jim Cramer’s Charitable Trust is Long UPS, LLY, MS, WFC, AAPL.)

(Comcast is the owner of NBCUniversal, CNBC’s parent company.)


Source link

Comments are closed.