5 stocks Jim Cramer is worried about, plus updates on the rest of the portfolio

CNBC

21-05-2025

Jim Cramer ran through all 30 holdings in the Investing Club's portfolio during the May Monthly Meeting on Thursday. He discussed the ones he most excited about — and others he's concerned about — as uncertainty over tariffs and the macroeconomic backdrop continue to linger. Apple: We're most worried about this stock. The tech behemoth is facing many headwinds, including Alphabet's legal battle with the Department of Justice, which could take away $20 billion in annual revenue, and President Donald Trump's pressure to manufacture iPhones in the U.S., which would drive up prices exponentially. Still, we're remaining long on the stock for now. After all, the company makes the best tech products in the world. Amazon : This is a great one to own amid the tariff uncertainty. Amazon can grab more share for its e-commerce business following Trump's crackdown down on a trade loophole that benefited Chinese retailer competitors like Temu and Shein. Abbott Laboratories : The medical device company has been "doing everything right," Jim said. He said Abbott can overcome ongoing litigation regarding its baby infant formula lawsuit as well. Members should continue to hold this stock. Broadcom : This chipmaker has been on fire over the past month as China and U.S. tensions ease. Shares gained more than 32% since the April 16 Monthly Meeting to Tuesday's close, making it the third best performer in the portfolio over the period. We will trim some if shares surpass the $251 level, roughly 8% higher than Tuesday's close. BlackRock : Shares of the world's largest asset manager have been closely correlated with the overall market's performance. We didn't anticipate that when starting a position late last year. Jim isn't overly worried yet though. Bristol Myers Squibb : Another worrisome stock. We originally thought Bristol Myer's schizophrenia treatment Cobenfy was unassailable. Recent trials, however, have shown otherwise. This has kept us from buying back shares we sold in the low $60s. In fact, we are considering a sale if things don't improve. Capital One: Investors should consider buying at current prices. The credit card issuer's recent acquisition of Discover Financial should provide more upside. One benefit of the deal is that Capital One can use Discover's network to drive down the percentage of fees that retailers have to pay, making it more competitive with rivals American Express, MasterCard and Visa. Costco : The bulk retailer is well positioned to offset any future tariff risks, according to Jim. Costco derives the majority of its sales domestically. Plus, the company has a nice recurring revenue stream from its regular membership fees. Salesforce : Agentforce, the company's AI suite, will be a "huge deal" for Salesforce, according to Jim. It could lead to a product that saves customers a lot of money. Still, there are risks for Salesforce right now, including increasing competition from ServiceNow , which could hurt its price-to-earnings multiple. CrowdStrike : The company reports earnings next week and cybersecurity spending has remained resilient, as we heard from peer Palo Alto Networks Tuesday evening. The stock has recently been knocked down on concerns about layoffs and an investigation into an old deal, but the company's outlook should remain strong. Coterra Energy : Jim described this stock as a "quandry." We want to buy more because of the benefits of its long coveted mix of oil and natural gas assets. It's also great news that some of its recent operational issues have been fixed. But we're holding off any additional purchases for now. DuPont : Here's another name we're upbeat on. DuPont's forthcoming spinoff means more upside for the stock as investors realize the specialty gas maker's full value. We would add to our DuPont position if the opportunity presents itself ahead of the breakup. Danaher : We're disappointed in this one. Danaher's China exposure remains a key risk for the company. The Chinese government's strategy to control health-care costs has hit Danaher's diagnostics business. The Club will consider trimming some the next time the stock rallies. Disney : Shares are nowhere as high as they should be, according to Jim. This stock was a dog for years but it's turning around nicely now. It should continue to do so. There has been a lot of progress since management has gotten serious about succession plans for current CEO Bob Iger. Jim also said there's a "tremendous group of leaders all rowing together" at Disney. He cited the recent hire of CFO Hugh Johnston as an example. Dover : We're worried about this industrial name, whose stock performance has been closely tied with the AI trade. Shares have been volatile because Wall Street's convinced that its data center exposure is all that Dover has to offer. That's only part of the company's story though. Remember, management has been wisely reshaping its portfolio by selling its low multiple businesses in order to buy high multiple ones. Eaton : The market has also wrongly viewed this stock as solely an AI play because of its data center business. Like Dover, its share performance has been tied to spending patterns of big hyperscalers. Jim said, however, that Eaton's aerospace business is very solid too. With Dover in the portfolio, we're considering taking one of these two industrial AI plays off the table. "I don't want to be the data center fund," Jim said. GE Vernova: This is the stock that Jim's most excited about right now. The upward trend in demand for natural gas to fuel electric grids means more revenues for GE Vernova's power and electrification business. The Club initiated a position in this energy equipment manufacturer on May 13. We'd consider buying more if it pulls back. Goldman Sachs : A rebound in the firm's investment banking (IB) business is underway, according to Jim. There are more initial public offerings on the horizon once tariff uncertainty fully subsides. That means a boost in revenues for Goldman's crucial IB division. "The tidal wave of deals means the 13 times multiple on Goldman Sachs is just plain silly," Jim said. Home Depot : This retail name is a buy right now on its current dip. Shares are down nearly 2% Wednesday on a mixed quarterly earnings report Tuesday evening. Although headline numbers were a miss, the company reiterated its full-year guidance. Honeywell International : We're upbeat on this stock as well. The market hasn't fully priced in the value of this forthcoming spinoff. Jim forecasted that Honeywell's aerospace may be an acquisition target once the divestiture is complete. Linde : We're remaining long on this industrial gas name. "It's not at a level where we can take action," he added. Eli Lilly : Jim maintained his forecast that Lilly will hit a $1 trillion market cap, up from its current $692 billion mark on Wednesday. The company's enormous growth prospects from its GLP-1 weight loss and diabetes drugs are enormous. It's not all roses for Lilly though.This stock is facing a risk as Trump tells drugmakers to cut prices. Meta Platforms : This stock has surged in recent weeks. Jim said it has more room to run, given its solid quarterly earnings report on May 1. This is our favorite of the Club's Mag 7 names right now. We own all except Tesla and Alphabet , which we exited earlier this year. Microsoft : The tech giant's quarterly earnings report in May was fantastic. Jim said it's the beginning of several great quarters due to growth at Azure, Microsoft's crucial cloud computing business. There's been a boost of share price, but don't sell any of this stock. Nvidia : Jim outlined why the chipmaker benefits from recent news out of CoreWeave . The AI company announced a huge $1.5 billion private offering of senior notes this week in order to expand its operations due to immense demand. That's great news for Nvidia because CoreWeave derives its revenues from cloud-based rentals of AI servers that utilize the Nvidia's chips. Palo Alto Networks : This stock is down over 5% Wednesday despite posting a better-than-expected quarter on Tuesday evening. We're going to wait a session or two and see how things shake out. At that point, investors may want to consider buying more shares. After all, management said Palo Alto's platformization strategy — bundling its services together — remains on track. Starbucks : The coffee chain's turnaround is progressing under CEO Brian Niccol. Jim said he'd like to see the stock reach the $100 level again, about 18% higher than Tuesday's close. TJX Companies : Jim said it's a great time to buy this stock. Shares are down more than 3% Wednesday despite the retailer's solid quarterly earnings report in the morning. The TJ Maxx parent delivered a beat on sales and maintained its annual forecast. This is a great stock to own, in part, because the company is able to largely sidestep any direct hit from tariffs. Texas Roadhouse : If this restaurant stock was to surge higher, we would trim our position. Jim said we'd offload some shares at the $200 level. That's a little less than 5% higher than its Tuesday close price. Wells Fargo : This bank stock will jump once its $1.95 trillion asset cap is finally lifted. Management has made plenty of progress that makes us predict its removal will occur sooner than later. Just look at all the consent orders that have been cleared since CEO Charlie Scharf stepped into the role in 2019: A dozen, including one removed as recently as April 28. 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Jim Cramer ran through all 30 holdings in the Investing Club's portfolio during the May Monthly Meeting on Thursday. He discussed the ones he most excited about — and others he's concerned about — as uncertainty over tariffs and the macroeconomic backdrop continue to linger.