Best Buy bounces back ahead of earnings, Black Friday - but here's why we're still cautious

Best Buy bounces back ahead of earnings, Black Friday – but here’s why we’re still cautious

November 27, 2024 | Taylor Reeves

Every weekday, CNBC Investing Club hosts a “Morning Meeting” livestream with Jim Cramer at 10:20 a.m. ET. Here’s a recap of Monday’s key moments. 1. Stocks rose on Monday as the shortened Thanksgiving week began and the S&P 500 and Dow Jones Industrial Average hit new highs. The Nasdaq also recovered and was not too far from its all-time highs. The market reacted positively to President-elect Donald Trump’s selection of hedge fund manager Scott Bessent as Treasury secretary late Friday. Wall Street views Bessent as someone who can balance Trump’s promises of tax cuts, spending cuts and tariffs against what wouldn’t be too damaging to the economy. Bond yields fell sharply on Monday, with the 10-year Treasury falling to around 4.30%. 2. Jim Cramer thinks Bristol Myers Squibb shares are undervalued, driven by the potential of its breakthrough schizophrenia drug Cobenfy – the first FDA-approved novel treatment in over 30 years. JPMorgan predicts Cobenfy sales could reach $5 billion by 2030. Jim sees a much bolder goal of $20 billion, especially since there is limited competition from other similar drugs in the industry. That optimism led the club to move Bristol Myers out of the bullpen on Monday. We also increased our holding in Eli Lilly, sufficiently penalized by fears that Trump has chosen obesity drug critic RJK, Jr. to head HHS. 3. Shares of Best Buy rose about 4.5% on Monday ahead of the company’s third-quarter fiscal 2025 earnings release before the opening bell on Tuesday. and before Black Friday shopping. The market may be hoping that the tariffs will have a minimal impact on Best Buy’s financial performance. However, Melius Research on Monday lowered its Best Buy price target to $85 per share from $100, citing slower-than-expected AI benefits from the PC and iPhone upgrade cycle. Given the cautious outlook, we reduced our Best Buy position last week in anticipation that sales estimates could be missed. 4. The stocks covered in rapid fire on Monday at the end of the video were: Macy’s, Target and Arm Holdings. (Jim Cramer’s Charitable Trust is long BMY, LLY, BBY. See a full list of stocks here.) As a subscriber to 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 foundation’s portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.

Monday, November 25, 2024: Cramer sets a bullish target for this pharmaceutical stock

Every weekday the CNBC Investing Club with Jim Cramer hosts one “Morning meeting” Livestream at 10:20 a.m. ET. Here’s a recap of Monday’s key moments.

Leave a Reply Cancel reply