Investing Club: What we're watching Wednesday — AMD flying high, Bausch-Health's breakup and Wells stays cheap

Published Wed, Feb 9 20229:20 AM EST

What the Club is looking at Feb. 9, 2022 Chipotle (CMG) delivered yet another strong quarter with low double-digit comp growth and an earnings beat despite rising food costs and labor pressure … company increased menu prices by 4% in December and said on the earnings call that they still have the power to increase prices if needed to offset higher inflation … Yum! Brands (YUM), on the other hand, posted same-store sales growth of 5% but missed on earnings estimates due to higher costs ... BofA reiterated Nvidia (NVDA) as their top large-cap pick ahead of the company's earnings report next week and, most importantly, the GPU Tech Conference event March 21-24 … said to ignore Arm/crypto news ... we agree ... AMD flying high again: Diawa Capital Markets upgraded Advanced Micro Devices (AMD) to buy from outperform ... analyst also raised price target to $150 from $140 ... 17% increase from AMD's closing price Tuesday. Check out Jim Cramer's Investing Club interview last week with AMD CEO Lisa Su. The No. 1 name we recommended in our Monthly Meeting call — NortonLifeLock (NLOK) — is now north of $30 ... we still think it deserves to sell at at least 12x our projected $3 in annual adjusted EPS which would put it higher than here ... Club holding Wells Fargo (WFC), which we said was our No. 1 bank choice last week has STILL not reached the high it established four years ago this week ... so it remains the cheapest large-cap bank ... Bernstein lowered Virgin Galactic (SPCE) price target to $10 (par for a SPAC) from $22 after updating model for a previously announced convertible bond offering and higher discount rates … added that SPCE has few clear upside catalysts right now … Analyst cited potential risks of company's ability to retain staff and access capital—problematic and indicative of changing market appetite with these no-earnings story stocks. Club name Bausch Health Companies (BHC) announced yesterday after the bell that Solta Medical, its aesthetics unit, filed a registration statement for a proposed IPO … moves one step closer to a breakup which we have argued is worth more than the whole ... JPMorgan analyst Matthew Boss downgraded Big Lots (BIG) to underweight from neutral, slashed price target to $31 from $54. (Jim Cramer's Charitable Trust is long AMD, BHC, NLOK, NVDA, WFC. 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.

Customers wait outside of a Chipotle restaurant as they wait to enter in order to place an order as Florida continues with its Phase 1 of reopening the state during the Coronavirus (COVID-19) pandemic on May 19, 2020, in Aventura, FL.

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