Jim Cramer knocks down a new analyst sell rating on a medtech stock as shortsighted
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. Wall Street was mixed Monday after the Dow , the S & P 500 and the Nasdaq finished higher for the fourth straight week. With the last trading day of November on Thursday, the major stock benchmarks were tracking for monthly gains. The market came out of last week’s rally very overbought, according to the S & P 500 Short Range Oscillator , which signals to us to raise cash. 2. That’s exactly what we did Monday morning, taking some profits in Alphabet (GOOGL). Since our last trim in May, Alphabet has rallied more than 25%, outperforming the S & P 500’s gain of about 10%. Alphabet has recovered all its third-quarter earnings selloff. Outperformance has caused the position to re-swell – so trim . The sale is not reflective of a change in our longer-term thesis on Alphabet. 3. GE Healthcare (GEHC) was downgraded to sell from neutral at UBS, which also cut its price target on the stock to $66 per share from $86. The analysts believe soft order momentum and tough comps will put 2024 earnings before interest and taxes (EBIT) 4% below consensus with room for downside if China’s economy weakens next year. Jim Cramer took issue with the note, saying Monday that GEHC’s body scan machines are key in the administration of a new class of Alzheimer’s drugs. That’s a big opportunity. “It’s AI mixed with MRI” to determine who qualifies, Jim added. (Jim Cramer’s Charitable Trust is long GOOGL, GEHC. 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.
