Strong housing data boosts stocks, bolstering our new Club holding

1. No Man’s Land

   The stock market saw a slight upward trend on Tuesday morning, attempting to recover from the losses incurred on Monday. However, the market remained in an ambiguous state known as “no man’s land.” The S&P 500 Short Range Oscillator indicated a neutral position, suggesting that equities are neither overbought nor oversold. Despite this uncertainty, positive economic data emerged, with new home sales surpassing expectations in May. This development bodes well for Stanley Black & Decker (SWK), the newest addition to the CNBC Investing Club’s portfolio. We are actively seeking opportunities to increase our stake in this promising company.

2. Watch Big Tech

   Alphabet (GOOGL) faced a downgrade from Bernstein on Monday, shifting its rating from outperform to market perform while maintaining a price target of $125 per share. With Alphabet stock experiencing a 40% surge since November, analysts at Bernstein believe it has reached a fair valuation, resulting in a balanced risk-reward ratio. On the other hand, Citi raised its price target on Meta Platforms (META) to $360 from $315, reiterating a buy rating due to an improving online-advertising market and increased adoption of its Reels video offering. Stay tuned for a detailed analysis of the online ad battle between GOOGL and META via email and text notifications.

3. Stick with Coterra Energy

   JPMorgan upgraded Coterra Energy (CTRA) from neutral to outperform, citing heightened confidence in its future operations. The firm also noted that Coterra’s capital expenditures are projected to be significantly lower than company guidance for the year, while highlighting its attractive relative valuation at current share levels. Although JPMorgan analysts slightly reduced their price target for Coterra stock to $31 per share from $33, there is still substantial upside potential. Shares of Coterra witnessed a more than 2% increase on Tuesday, reaching approximately $24 per share. (Jim Cramer’s Charitable Trust holds positions in SWK, GOOGL, META, and CTRA. For a comprehensive list of stocks, refer to this link.)

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim executes any trades. Jim adheres to a waiting period of 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. Furthermore, if Jim discusses a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

Please note that all information provided by the CNBC Investing Club is subject to our Terms and Conditions, Privacy Policy, and Disclaimer. It is important to highlight that receipt of this information does not create any fiduciary obligation or duty, and no specific outcome or profit is guaranteed.