Why Cramer thinks this retailer is the ‘ultimate trade-down play’
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 Tuesday’s key moments. Health care in focus ‘Ultimate trade-down play’ Watch the Bullpen 1. Health care in focus Club holdings Danaher (DHR) and GE Healthcare (GEHC) reported better-than-expected earnings before the bell Tuesday. Shares of Danaher were trading down around 0.25% in midmorning trading after the life-sciences firm again lowered its guidance. Jim Carmer said he knows owning Danaher has been challenging of late, but urged investors to stick with it. GE Healthcare shares, meanwhile, tumbled more than 2% Tuesday morning. “This is a mistake. Let them sell it,” Jim said, expressing faith in the multiyear story at GEHC. We’ll publish a full breakdown of both earnings releases later Tuesday. 2. ‘Ultimate trade-down play’ Investors are realizing Costco Wholesale (COST) is perfectly positioned to benefit from inflation-wary shoppers hunting for value, Jim said. That development helps explain why Costco’s stock has climbed for 11 straight sessions, rising more than 7% since July 10. Costco is in the green again Tuesday. The wholesale retailer is the “ultimate trade-down play,” Jim said. We continue to believe in Costco as a long-term investment opportunity, with potential additional catalysts like a membership-fee hike and a special dividend still on the horizon. 3. Watch the Bullpen RTX Corp. (RTX), the aerospace and defense firm formerly known as Raytheon Technologies, is becoming an increasingly attractive investment opportunity, with the stock down 14% Tuesday morning, Jim said. Shares of RTX — a stock that’s been in the Club’s Bullpen since December — are plunging after the company issued a warning about some of its engines. This is likely to be a costly problem for RTX, Jim acknowledged. “That said, I’ve been waiting and waiting and waiting to get into” RTX, he said. (Jim Cramer’s Charitable Trust is long DHR and 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.
