We're raising our price targets on 5 stocks — and cutting our outlook on another
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 is rallying to a new record high on Friday, though the index came off its best levels of the day after President Donald Trump said on Truth Social that he has ended trade talks with Canada due to concerns about digital services taxes on U.S. tech companies. Still, it has been an exceptional week for the broader market. As tensions in the Middle East eased, oil prices plunged, interest rates declined, and stocks surged. Some of the biggest winners this week were in tech and AI -infrastructure related stocks. But the financials had an impressive week, too. We'll see the results of the Fed's annual stress test later Friday. Some Wall Street analysts expect Club name Wells Fargo to be among the biggest winners . Price target changes: We're making a handful of changes to our price targets on portfolio stocks. Apple : We are lowering our price target to $240 a share from $280 to reflect some of our recent concerns that a demand pull-forward from people buying iPhones ahead of tariffs could moderate sales in the quarters ahead. We've also expressed frustration about how Apple is allocating too much capital to stock buybacks, when those funds could be more effectively used to accelerate its lagging AI initiatives. Capital One Financial : We are increasing our price target to $250 from $210. As we talked about on Friday's Morning Meeting, the stock still trades at a huge discount to peer American Express , and maybe it shouldn't since Capital One now also operates a closed-loop network – meaning it issues its own cards and runs its own payment network, just like American Express. Based on 2026 earnings per share estimates, Capital One is trading at an 11 multiple while AXP trades at 18. We're not arguing for parity, necessarily. But if Capital One re-rates to 13 times earnings, still a five-turn discount to American Express, as it proves the benefits of the Discover deal, then we're talking about stock trading at about $250 based on the consensus earnings per share estimate of $19.32. CrowdStrike : We are nudging up our price target to $520 from $500. This higher price target reflects the higher price-to-earning multiple the best of breed cybersecurity companies continue to deserve in the market. Although we are raising our price target, we remain mindful of the run the stock has had this year. This was the main reason why we trimmed this position earlier in the week. GE Vernova : We are increasing our price target to $550 from $500. GE Vernova's valuation may look stretched, but the stock keeps powering higher due to the heavy investment needed to power AI data centers around the world. The robust demand for the company's gas turbines and electric grid solutions should translate to strong pricing power for many years. The company remains a potential winner from future trade deals and should benefit from the Trump administration's push to boost energy supply to power AI. Goldman Sachs : We are increasing our price to $725 from $615. We continue to see Goldman Sachs as one of the biggest beneficiaries of an improving initial public offering market, as well as an increase in mergers-and-acquisitions activity. The big banks could also get a boost from looser regulations , as we wrote Thursday. Meta Platforms : We are raising our price target to $800 from $700. A pair of separate bullish analysts raised their Meta price target above $800 this week, and we want to be right there with them because the social media giant has been one of the best at using AI to generate more revenue. Next week: There are no companies in the portfolio scheduled to report earnings next week. On the data side, it will be a jobs-week, which means we'll see the ADP employment report Wednesday morning, as well as the all-important nonfarm payroll report. The jobs report will be on Thursday, not the usual Friday, because the market is closed on July 4 in observation of Independence Day. A few other key data reports are the Institute for Supply Management's manufacturing and services activity indexes for the month of June. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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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