Here's why Jim Cramer believes GE Vernova's big rally has more room to go

CNBC

4 hours ago

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. 1. The S & P 500 was flat Tuesday following Monday's slight pullback due to a mix of profit-taking and tariff worries. On Monday, President Donald Trump hit 14 countries with new tariff rates including some of our larger trading partners, such as Japan and South Korea, slated to start Aug. 1. "What's happening right now is that the individual investors are fine. The institutions don't like it. The institutions are selling," Jim Cramer said. "I think the institutions are wrong," he added. In monitoring trade tensions with Japan and South Korea, in particular, Jim said investors need to understand that Trump believes the auto companies in those nations have hurt American carmakers like GM and Ford , and don't do enough high-value manufacturing in the U.S. "That's just his view, and that's going to hurt those countries unless they come to the table." 2. Several big banks including JP Morgan, Bank of America and Club name Goldman Sachs were downgraded at HSBC. Analysts went to hold on Bank of America while recommending sell-equivalent ratings for JPMorgan and Goldman. Analysts say that while the group's fundamentals are healthy, valuations are "increasingly stretched." For Goldman, analysts think good news is more than priced in to the stock, leading to an unattractive risk/reward profile. The Club trimmed shares of Goldman on Monday for the first time since opening the position last December due to the stock's outperformance. That was simply a "portfolio management issue" decision, Jim noted, not "that we don't like Goldman." Meanwhile, Wells Fargo analyst Mike Mayo has a more bullish view and raised his price target on Goldman to $785 from $650. 3. Club name GE Vernova also got a price target increase at BMO Capital to $590 from $522. BMO analysts highlighted visibility "into nearly $80 billion of incremental service-related revenue that is insulated from any pullback in turbine equipment demand." Jim likes the call. "That was important. It's been overlooked," Jim said. "Because [the stock] is up so much people start saying I've missed the move." However, Jim believes GE Vernova can still see more orders — particularly from overseas customers amid trade negotiations —and accounting changes included in Trump's "big, beautiful bill" could make it more favorable for the company invest in expanding production capacity in the U.S. 4 . Stocks covered in Tuesday's rapid fire at the end of the video were: Vertiv , KeyBanc , Shake Shack , Datadog , and Hershey . (Jim Cramer's Charitable Trust is long . 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.