Two weeks into the second half of the year, we review the top three performers and the bottom three in Jim Cramer’s Charitable Trust, the stock portfolio used for the Investing Club. The first week of July saw pressure on Wall Street after a winning streak. The Nasdaq has gained about 2.4% month-to-date, adding to its strong first half performance. There are new names on both the July leaders and laggards lists compared to our portfolio performance from January to June.
July leaders HAL – Halliburton stock performance since June 30 close. Halliburton, a major oilfield services company, has turned from a first-half loser to the top performer in the second half. It has gained nearly 12% month-to-date, and we took advantage of its recent rally by booking profits. We downgraded the stock to a 2 rating in anticipation of a trim. The recent rally is due to the expectation that oil and gas producers like Pioneer Natural Resources and Coterra Energy will need Halliburton’s help to boost production. We look forward to the company’s second-quarter earnings report on Wednesday.
CRM – Salesforce stock performance month-to-date. Salesforce has advanced 8.6% in July following a strong first half. The company announced price increases for its top-selling products, which is expected to contribute to top-line growth and improve cash flow. So far this year, Salesforce has reduced costs through personnel cuts and office space reduction. We expect strong second-quarter results from Salesforce in August.
META – Meta Platforms stock performance month-to-date. Meta remains a top performer, rising 7.6% in the first two weeks of July after doubling in the first half. The launch of its Twitter rival, Threads, has attracted over 100 million signups. However, there are signs of cooling activity. Investors value Meta for its leadership in generative AI and its ability to attract and retain users while offering AI-powered tools for advertisers. We anticipate a strong second-quarter performance from Meta.
NVDA – Nvidia stock performance since June 30 close. Nvidia continues its momentum, with shares up 7.5% in July. It was our top-performing stock in the first half, and we have confidence in its ability to fuel the artificial intelligence demand in the market. Nvidia is set to release earnings in August.
July laggards FL – Foot Locker stock performance since June 30 close. Foot Locker dropped about 6.5% to start the month and was our worst performer in the first half. Lower-income consumer exposure could pose challenges in the second half, but we believe in CEO Mary Dillon’s leadership to resurrect the company’s poor financials. Second-quarter results are expected in mid-August.
PANW – Palo Alto Networks stock performance since June 30 close. Palo Alto Networks dropped over 5.5% month-to-date after a strong first half. Microsoft’s expansion of its cybersecurity offerings impacted PANW’s stock, but we believe it remains the best way to play cybersecurity. PANW is expected to report earnings late next month.
LLY – Eli Lilly stock performance since June 30 close. Eli Lilly shares fell 4% in the first two weeks of July. Negative news regarding weight loss drugs and reports of patient concerns have affected the stock. However, we believe the sell-offs are overreactions and have faith in Lilly’s potential. Lilly’s quarter is scheduled to be reported on August 8.
JNJ – Johnson & Johnson stock performance since June 30 close. Johnson & Johnson fell nearly 3.5% month-to-date due to the unfavorable market sentiment toward the healthcare sector and ongoing legal disputes. The outcome of a pivotal talc trial could impact the company’s settlement offers. We are cautious about buying more of the stock until there is more clarity. J&J will be reporting earnings this coming Thursday.
(Note: Jim Cramer’s Charitable Trust holds positions in HAL, META, CRM, LLY, PANW, FL, PXD, CTRA, MSFT, NVDA, JNJ, and AAPL. Trade alerts will be provided to CNBC Investing Club subscribers before any trades are made.)