We’re not fretting two downgrades of high-flying GE Vernova. Here’s why
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 Monday’s key moments. 1. The stock market is muted Monday following Washington’s trade deal with the European Union announced by President Donald Trump on Sunday. This is on the heels of last week’s strong performance, which sent the S & P 500 to fresh record highs. “The market is somewhat tepid, and it’s giving us an opportunity to get in,” said Jim Cramer. The Club is capitalizing on the opportunity and earlier Monday bought shares of both Cisco and Honeywell . We’re also keeping an eye out for a potential buys on Dover and Capital One. 2. The trade agreement with the EU is “very important,” but as of now, it’s “not fleshed out enough as far as I’m concerned,” Jim said. Some of the details we know now: Most imports from the EU, including cars, will be subject to a 15% tariff rate. The bloc also agreed to buy $750 billion worth of U.S. energy, triggering the Club’s trimming of Eaton as the company hit another record high on the news. Meanwhile, American and Chinese trade officials arrived in Sweden for trade negotiations. U.S Trade Representative Jamieson Greer said on CNBC that he’s not expecting an “enormous breakthrough” just yet. It’s possible the Aug. 12 tariff deadline with China could be extended as a result of these meetings, Director of Portfolio Analysis Jeff Marks noted. 3. GE Vernova was downgraded to neutral by Mizuho and Guggenheim, with analysts at both firms citing the stock’s valuation. Still, Mizuho revised its price target higher to account for the stock’s huge rally, going to $670 a share from $412, partially due to accelerating margin expansion. Shares, which have more than doubled off their April lows, were trading around $640 apiece Monday. Guggenheim analysts removed their price target but said the stock is still attractive for investors willing to focus on 2029 and beyond. Jim said he wants GE Vernova’s CEO Scott Strazik to expand the company’s gas turbine production capacity. “His orders are so strong and ironclad, I wish he would spend some more money,” Jim said. 4. Stocks covered in Monday’s rapid fire at the end of the video were: Nike , Texas Instruments , and Tesla . (Jim Cramer’s Charitable Trust is long CSCO, COF, HON, DOV, ETN . 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.
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