4 takeaways from the Investing Club’s ‘Morning Meeting’ on Thursday
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Thursday’s key moments: Cisco Systems looking strong Quick takes on Bullpen: SBUX, EL Prepare to pounce on Nvidia Still a chance to buy Pioneer 1. Cisco Systems looking strong Cisco Systems (CSCO) beat Wall Street expectations on earnings and revenue in its latest quarter, which was reported after the closing bell Wednesday. The Club holding, which is also a Dow stock, was up nearly 6% in Thursday trading. The company’s performance was boosted by its easing supply chain problems. We believe the stock is headed higher, especially since shares went down so much earlier in the year due to issues obtaining semiconductors and other things needs to make and ship product and software. Now that those challenges appear to be abating, Jim Cramer said: “I’ve known CEO Chuck Robbins from the day that he was appointed seven years ago, and this is the most bullish I’ve seen him.” 2. Quick takes on Bullpen: SBUX, EL We have some quick takes on two stocks in our Bullpen, Starbucks (SBUX) and Estee Lauder (EL). We put stocks in the Bullpen to signal that we’re considering them as potential additions to the Charitable Trust, which serves at the portfolio for the Club. Of course, there’s no guarantee we’ll buy them. That being said, Jim is really looking for a way to buy Starbucks. The company’s Investor Day is on deck for September, and we expect that they could shine light on everything from who will take over as CEO to the direction of its strategy. We expect that such announcements could cause the stock to move up, and are considering creating a position in Starbucks ahead of the meeting. We believe that shares of Estee Lauder will eventually go higher. While we have no plans for the stock currently, investors should consider owning it if they have faith that lockdown restrictions in China will ease, since that will bring the beauty company’s stock up. Estee Lauder shares dropped 1.3% in the premarket after the company forecast full-year sales below estimates due to the lockdowns, but has since gained 2%. 3. Prepare to pounce on Nvidia While shares of Nvidia (NVDA) fell earlier this month after the company warned in preliminary results that quarterly revenue would come in well below estimates, the stock has since recovered. We advise investors to pounce on the stock if the company guides down in its latest quarterly earnings, because that will bring the stock down. We are still bullish on Nvidia long-term and believe that this quarter could give investors a chance to buy a long-term winner on a dip. Nvidia is set to release earnings next week, after the closing bell this coming Wednesday. 4. Still a chance to buy Pioneer Pioneer Natural Resources (PXD) CEO Scott Sheffield told Jim on Wednesday the oil company expects to continue to return most of its free cash flow to shareholders, weeks after returning over 95% of its fiscal second-quarter free cash flow to shareholders via dividends and buybacks. Especially in a market that continues to see froth from overexcited investors, particularly in meme-stocks such as Bed Bath & Beyond (BBY), we expect that Pioneer will be a safer stock due to its hearty capital return mission. Even if the oils were to decline, Pioneer’s dividend would still keep its shareholders afloat. While the stock rose on Wednesday, it tends to be volatile, meaning investors still have a chance to do some buying on any dips. (Jim Cramer’s Charitable Trust is long CSCO, NVDA, PXD. See here for a full list of the stocks.) 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.