Our newest stock gets a boost as we await Capital One's Discover deal to close

CNBC

14-05-2025

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 Wednesday's key moments. 1. The stock market was flat in morning trading after a strong start to the week ignited by the United States pausing its trade war with China and a new partnership with Saudi Arabia. "I think today could be a reversal day," said Jim Cramer, pointing there is nothing new for the market to run higher. The S & P Oscillator is still in overbought territory, meaning stocks may be due for a pullback. This is one of the reasons we trimmed our position in Wells Fargo , which is up roughly 8% this year. 2. The Club is looking forward to Capital One closing its deal with Discover , expected on May 19. According to Bloomberg, there are 16 buys, seven holds, and one sell on the stock by Street analysts. The 12-month price target consensus is about $213.59. The big number that a lot of analysts are using is $25 in EPS power in 2028, up from the $15.75 analysts expect it will earn in 2025. That's a 3-year compound annual growth rate (CAGR) of 16.65%, noted Jeff Marks, director of portfolio analysis for the Club. Jim said he's hopeful Capital One CEO Richard Fairbank can reinvigorate Discover Network, the global payments business. 3. GE Vernova , our latest addition to the portfolio, is up nearly 4% since the Club initiated a new position on Tuesday. Susquehanna analysts raised the company's price target by $100 to $499 following its $14.2 billion gas turbine and energy solutions deal with Saudi Arabia. Jim pointed out that instead of only buying planes, countries are also purchasing to bring their trade deficits with the U.S. down. There's also a need for energy infrastructure on a global scale, said Marks. For investors who didn't buy shares yesterday, "GE Vernova has to be bought on the way down," said Jim. 4 . Stocks covered in Wednesday's rapid fire at the end of the video were: Merck & Co ., Abbvie , American Eagle Outfitters, Nucor , and Advanced Micro Devices . (Jim Cramer's Charitable Trust is long COF, GEV, 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.