Investing Club: Here's an earnings report card for all 35 stocks in our portfolio

Published Fri, Mar 11 20221:19 PM EST

With earnings season in the rear view, we felt it would be helpful to provide a rundown of the December quarter and the forward guidance given for this year. Inspired by the classic western "The Good, the Bad and the Ugly," we've put the results of all 35 companies in Jim Cramer's Charitable Trust — the portfolio for the Investing Club — into four categories. The Great: AAPL, DIS, QCOM The Good: AMZN, ABT, CSCO The Not-So-Bad: AEO, F, WYNN The Ugly: BA, FB, PYPL As members know, when volatility strikes we like to focus on the stocks of those companies that just demonstrated strong fundamentals and execution on their stated goals. This report card should help in doing just that. A lot has happened in the world since these companies reported, with Russia's war in Ukraine dominating the headlines and investors' concerns over the past couple weeks. To that point, we've booked some profits and made some buys recently in many of these companies. The following earnings cheat sheet is meant as a starting point for investors' research, and it's by no means and end the last or only input for picking stocks. Indeed, sometimes earnings are not always the most important way to evaluate stocks. We have several so-called "special situation" names, including Bausch Health Companies (BHC) and Wynn Resorts (WYNN), whose stories transcend any three months of results. The Great: AAPL, DIS, QCOM Apple (AAPL): The richest company in the world returned with a vengeance after a top-line miss the previous quarter. Consider: earnings and sales handily beat estimates — with sales setting an all-time record — while management offered equally strong guidance. A reminder that Apple is a stock you own, not trade. Advanced Micro Devices (AMD): Another brilliant quarter for the chipmaker, driven by market share gains and continued growth in the data center. Strong forecast with even greater margin expansion that previously expected. Our analysis highlighted management's ability to execute through supply chain woes, making it one of our favorite semiconductor names. Costco (COST): Beat on top and bottom lines with better-than-expected consolidated same store sales. The big-box retailer's size and scale continue to help it navigate inflationary and supply chain challenges — not so many of its peers. We noted it was worth a premium multiple, especially given potential catalysts on the horizon. Salesforce (CRM): It was a clean beat all around with better-than-expected gross margin and operating cash flow. Plus management raised guidance for fiscal 2023, indicating demand looked strong with no indication that companies accelerated IT spending during the pandemic. There was a lot to like about this quarter. Danaher (DHR): We characterized this as a solid quarter for the health care tech company, noting it was a good stock to own during volatile markets. Sure it may trade at a premium, but the mix of sales growth, expanding profit margins, and superb earnings quality supports the valuation. Disney (DIS): It hasn't been easy to own Disney over the past several months, but the company rewarded its patient investors with a blockbuster quarter . The parks were incredibly profitable, even with capacity constraints, while Disney+ subscriber growth exceeded expectations. Devon Energy (DVN): Top and bottom line beat as management executes on a disciplined shareholder return strategy. We underscored how much the company continues to prioritize shareholder returns over production growth at any cost. Marvell Technology (MRVL): All in, a very strong quarter from the semiconductor stock, with beats on the top and bottom lines and better-than-expected adjusted gross margin. Guidance for the first quarter of fiscal 2023 also came in above expectations for all three metrics. Morgan Stanley (MS): Morgan Stanley's quality report shows the transformation the bank has gone through in recent years: As a result of growing more durable revenue sources and efficiently managing expenses, management has achieved greater sustainable earnings power and will be able to effectively invest in the business. Alphabet (GOOGL): This was possibly the best quarterly release this season for Big Tech. We focused on the robust growth seen across every line item (how could you not?), especially Google Cloud. For a company this size, the rates are simply incredible. Halliburton Company (HAL): We initiated a position in this oil services giant on March 8, predicated on a supportive environment for increased drilling activity. Back in January, Halliburton reported fourth-quarter earnings and revenue that beat estimates. On the earnings call, CEO Jeffrey Miller said that "several years of underinvestment in new production is now apparent" and the need to invest is "crystal clear." Nvidia (NVDA): This was a near perfect earnings release met with forward revenue guidance that is nothing short of impressive. It only served to increase our conviction that Nvidia remains at the heart of some of the strongest secular growth trends in the world. Microsoft (MSFT): Top and bottom line beat with both gross and operating margins also outpacing expectations. Cloud app Azure continues to grow at a rapid clip despite its large size — and management expects to see more strong growth ahead. It'll also be interesting to watch Microsoft's deal to buy Activision Blizzard as it looks to close in its fiscal 2023. Qualcomm (QCOM): The only thing better than Qualcomm's numbers for the reported quarter was its outlook for the current quarter. Management guided for revenue of $10.2 billion to $11 billion, vs. $9.6 billion estimate, and they expect to earn between $2.80 and $3 per share this quarter, well above the $2.51 consensus. We initiated a position in February. United Parcel Service (UPS): The solid fourth-quarter performance and strong forward guidance speaks to the strong execut