Why Eaton’s CFO change isn’t a red flag — plus, Palo Alto’s buzzy new deal
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 Thursday’s key moments. 1. The S & P 500 jumped 1.1% Thursday as the AI trade was back in full force following Nvidia ‘s blowout quarterly earnings. Shares of the chipmaker were up more than 4%, while peer Broadcom , a fellow Club name, surged nearly 6%. Wall Street also digested the delayed September jobs report , which showed that 119,000 jobs were added, well above the estimate of 51,000. The data was positive. But the October print will matter more as the Federal Reserve decides whether to cut interest rates at its December meeting. 2. Palo Alto Networks delivered a better-than-expected quarter on Wednesday evening, featuring beats across every single key metric, such as adjusted earnings per share (EPS), total remaining performance obligation (RPO), and next-generation security annual recurring revenue (ARR). ARR is important because it can demonstrate the success of the company’s subscription-based business model and its “platformization” strategy of bundling its products and services. Management also announced plans to buy cloud management and monitoring company Chronosphere for $3.35 billion. We like the deal because of Chronosphere’s ARR growth, which will make analysts even more bullish on our cyber stock. 3. Eaton announced Thursday that CFO Olivier Leonetti will leave the power management solutions provider next year as part of a planned transition. Leonetti will remain in his role until a successor is named. Management also reaffirmed Eaton’s 2025 guidance. The leadership change doesn’t impact our thesis on the industrial stock, though. It would be a red flag, Jim said, if it were a sudden transition. “You need a really long transition,” he added. Otherwise, investors will worry about the company’s stability and future. Jim continued, “You give them a year that’s really planned.” 4. Stocks covered in Thursday’s rapid fire at the end of the video were: Walmart, Abbott Laboratories, Williams-Sonoma , Block, and Jacobs Solutions . (Jim Cramer’s Charitable Trust is long NVDA, PANW, AVGO, 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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