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What Jim Cramer Is Watching Wednesday — Our Favorite Economic Recovery Play

Scott Mlyn | CNBC

(This article was sent first to members of the CNBC Investing Club with Jim Cramer. To get the real-time updates in your inbox, subscribe here.)

What I am looking at, January 5, 2022:

  • Boeing (BA) wins an order!!!!... Allegiant Air, 50 737Max!!!!!... There is a pulse!!!!... Trust owns it...we are up on it but, oh man, it's been tough...
  • JPMorgan downgrades the tower stocks: American Tower (AMT) goes hold to sell... Crown Castle (CCI) goes buy to hold... analyst sees extended period of slow growth..
  • Piper says time to buy Pinterest (PINS)...says  it has come down enough.
  • Chevron (CVX) upgraded hold to buy at Wells Fargo...we highlighted this one at our monthly club call as our favorite large cap energy company… Occidental Petroleum (OXY) hold to sell at Wells, BP (BP) buy to sell!... hold to buy on Chesapeake (CHK)...
  • KeyBanc starts Plug Power (PLUG) with a buy and likes the clean hydro segment... I do, too, but we are slow in adopting it and that has hurt the PLUG story... Ballard Power (BLDP) starts as a hold...
  • Peloton (PTON) PT cut from $70 to $50 at JPMorgan... says December seems to have been highly promotional, traffic declines...
  • Atlantic Equities starts Roku (ROKU) with a sell and says that business is slowing and international not doing well...
  • RBC: 3M (MMM) hold to sell—operational and legal issues hurting it...
  • Emerson Electric (EMR)...upgraded hold to buy at RBC...analyst says right point in the cycle... Attractive SOP (sum of parts)...
  • Estee Lauder (EL)... Bank of America goes from buy to hold, but totally on valuation.. this is something I agree with and we sold it here for the trust because it did get too high... we want to get back in below maybe $340...
  • Major call from UBS on Salesforce (CRM)-buy to hold... say sales getting softer—MuleSoft is the problem?...how many times have I heard that?...saying that they sold a lot last year and it was a pull forward... I really doubt this call... Salesforce is a core position of the trust and I think that the company is doing well... we are up a lot, but will wait to see how low it goes... if we have to buy more, we will...
  • Union Pacific (UNP)... price target raised $245 to $287 from Citi... club name... betting that yields will be good and the unwinding of congestion will be great for them... This is by far our favorite name-a play on ports getting better and costs coming down... Citi  raised targets for NSC and CSX, too
  • KLA Corp. (KLAC) started with a buy at Jefferies... we highlighted this semi-equipment company as one to buy in last night's Mad Money... there is a tectonic shift in spending going on here... it's huge even as this was a top ten Nasdaq 100 winner last year... They like Lam Research (LRCX) and Applied Materials (AMAT), too... So do I... secular shift....
  • Regeneron (REGN)...gutsy call... Bank of America says the Covid bump is over but Eylea and Dupixent will be fine... I don't know about this call as I didn't think there was much Covid built into the numbers to begin with....hold to sell... they also downgrade Amgen (AMGN) which really has nothing new going for it... a dud... but Pfizer (PFE) hold to buy on pill...
  • Mizuho raises Eli Lilly (LLY) target...our favorite name and I will talk about it when I am on Halftime Report today...
  • Mizuho likes AbbVie (ABBV) as best large cap name...as we do for the club... cheap with big yield and not as much patent cliff as thought... 4.1% yield...
  • Altria (MO) buy to hold at Bank of America... says regulatory newsflow troubling for 2022...
  • WOW... Williams-Sonoma (WSM)...PT $250 to $190 at  Wedbush—saying sales slowed markedly... hurt by omicron... REALLY?—it is mostly on line!
  • Dick's Sporting Goods (DKS) gets best idea nod at Wedbush—sales were very strong and it has gotten no credit...
  • Nvidia (NVDA) at CES... new gaming chips will be indispensable....
  • Defense production act needed for Pfizer pill...

The CNBC Investing Club is now the official home to my Charitable Trust. It's the place where you can see every move we make for the portfolio and get my market insight before anyone else. The Charitable Trust and my writings are no longer affiliated with Action Alerts Plus in any way.

 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. See here for the investing disclaimer.

 (Jim Cramer's Charitable Trust is long ABBV, BA, CVX, CRM, LLY, NVDA.)

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