The Modest Man
July Leaders:
HAL: Halliburton, an oilfield services giant, has become the top performer in the Investing Club’s portfolio for the second half of the year. HAL’s stock performance has improved significantly, gaining nearly 12% in July. This rally is attributed to the expectation that oil and natural gas producers will need to boost production, creating opportunities for Halliburton.
CRM: Salesforce, an enterprise software giant, has seen an 8.6% increase in its stock performance this month. This follows a strong first half of the year, where CRM’s stock value rose by 59%. Salesforce recently announced that it will be raising prices for some of its top-selling products, which is expected to contribute to top-line growth and boost cash flow.
META: Meta Platforms, the parent company of Facebook and Instagram, continues to be a top performer in the portfolio. META’s stock has risen by 7.6% in the first two weeks of July, following a significant increase in the first half. Investors are attracted to META’s leadership in generative AI and its ability to attract users and offer AI-powered tools for advertisers. Meta is expected to deliver strong second-quarter earnings later this month.
NVDA: Nvidia, a leading tech holding in the portfolio, has continued its momentum in the second half of the year. NVDA’s stock has risen by 7.5% in July, following a strong performance in the first half. Nvidia’s infrastructure and technology are crucial for meeting the growing demand for artificial intelligence, positioning the company as a leader in the market.
July Laggards:
FL: Foot Locker, a footwear and athletic apparel retail company, has experienced a 6.5% drop in stock performance at the start of the month. FL was the worst-performing stock in the first half of the year, with a decline of over 28%. Analysts have expressed concerns about FL’s exposure to lower-income consumers and the challenging macroeconomic environment. However, the company’s CEO, Mary Dillon, has a track record of turnaround success.
PANW: Palo Alto Networks, a cybersecurity company, has seen a decrease of over 5.5% in stock performance this month. This comes after a strong first half, where PANW’s stock value increased by 83%. The drop in PANW’s stock can be attributed to Microsoft’s announcement of expanding its cybersecurity offerings, which created competition for PANW. However, CEO Nikesh Arora remains confident in PANW’s position in the cybersecurity market.
LLY: Eli Lilly, a pharmaceutical company, has experienced a 4% decline in stock performance in July. Negative headlines, including a study suggesting patients’ discontinuation of weight loss drugs and reports of suicidal thoughts in patients using certain medications, have impacted LLY’s stock. Despite these setbacks, Jim Cramer believes in the potential of Lilly’s products and pipeline, including a potential Alzheimer’s treatment.
JNJ: Johnson & Johnson, a healthcare company, has fallen by nearly 3.5% in stock performance this month. The decline can be attributed to the perception that healthcare is an out-of-favor defensive sector in comparison to high-growth tech names. The company is also awaiting the outcome of a pivotal talc trial, which could impact the settlement offers for ongoing legal disputes. The separation of J&J’s consumer products division from its pharmaceutical and medical technology units has also been overshadowed by the trial.
Overall, the second half of the year has seen some shifts in stock performance within the Investing Club’s portfolio. While certain stocks have emerged as top performers, others have experienced declines. However, Jim Cramer maintains confidence in the long-term potential of these stocks and believes in the strategies of the respective companies.
