My top 10 things to watch Friday, Sept. 13
1. The S&P 500 is trying close out the second week of September trading with its fifth straight positive session. What a difference a week makes. The index has now erased almost all of last week’s bruising losses. At our September Monthly Meeting for Club members on Thursday, I offered my latest thinking on all 32 of our stocks during this volatile period for the market.
2. Oracle‘s amazing transformation continues. Just days after reporting strong fiscal 2025 first-quarter results that sent its stock soaring, executives guided for fiscal 2026 revenues of at least $66 billion, above the $64.5 billion consensus estimate. Shares are jumping Friday. Price target bumps are flooding in, too. Larry Ellison’s prediction that Oracle will one day operate at least 1,000 data centers, up from 162 currently, is looking more and more realistic.
3. Club holding Nvidia‘s next-generation Blackwell chip platform is starting “full volume production,” CEO Jensen Huang told CNBC’s own Megan Cassella on Thursday outside the White House. Jensen, other tech executives, and leaders of power and utility companies were there for a meeting about the future of AI energy infrastructure in the U.S. We own Eaton as a bet on growing electricity needs due to AI. Nvidia and Eaton are both core holdings for the Investing Club. There’s one more stock I’d like to add to that list.
4. Adobe shares are tumbling after the software maker’s current quarter outlook was softer than expected. The guidance wasn’t really understandable. Multiple analysts had hiked their price targets ahead of the results. We’ve now seen a couple go the other way.
5. Boeing shares are under pressure after unionized factory workers in the Pacific Northwest overwhelmingly voted against a tentative contract. The machinists’ strike may prove costly and could be the last straw for Boeing needing to raise capital. I’ve been worried about Boeing’s free cash flow outlook.
6. Baird told clients to buy FedEx stock on any weakness. I agree. This is a great stock to own as the Federal Reserve prepares to begin a rate-cutting cycle. Another stock that fits the bill: Home Depot. At Thursday’s Club meeting, we took an in-depth look at why we started a position.
7. More price-target bumps for GE Vernova, the spin-off of General Electric’s energy business that started trading on its own in April. The latest are from JPMorgan, which went to $240 a share from $216, and Morgan Stanley, which went to $256 from $220. Thursday’s close of $215.27 was the stock’s fourth record high in a row. Is GE Vernova best in show?
8. Analysts at Stephens lowered their price target on Olive Garden owner Darden Restaurants to $159 a share from $165. Investors in search of restaurant stocks need to look elsewhere. It is time to buy Cava or Sweetgreen. I had Cava CEO Brett Schulman on “Mad Money” Thursday night, and he detailed compelling expansion plans for the fast-casual Mediterranean chain.
9. RH is back with a great quarter. Shares are jumping nearly 20%. The maker of luxury home furnishings reported better-than-expected revenues, earnings per share and margins. Notably, executives said demand trends are expected to accelerated throughout the rest of the year and into 2025. This is another stock that benefits from more activity in the housing sector spurred by lower rates. 10.
10. JPMorgan nudged up its Eli Lilly price target to $1,100 a share from $1,050 ahead of what analysts see as looming catalysts for its fast-growing obesity drug franchise. The firm kept its buy-equivalent rating on the Club stock. On Thursday, the drugmaker announced more investment to expand manufacturing capacity for obesity drugs as well as its recently FDA-approved Alzheimer’s therapy.
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