We're adding 2 stocks to our Bullpen watchlist because they meet these criteria
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- Stock market experienced significant declines driven by increasing oil prices and bond yields.
- U.S. Central Command's strikes on IRGC targets in Iran contributed to market losses.
- WTI crude oil reached $90 per barrel, and the 10-year Treasury yield hit its highest level since January 2025.
- Investing Club is adding Kimberly-Clark and CVS Health to their watchlist due to their defensive qualities, cheap valuations, and solid dividend yields.
- Kimberly-Clark is preferred over Procter & Gamble due to the upcoming acquisition of consumer health company Kenvue.
- CVS Health's operational improvements under David Joyner and benefits from competitors' market exits are noted.
- CVS Health's stock declined despite an earnings beat, as management's 2027 earnings outlook was in line with expectations, not exceeding them.
- Potential headwinds for CVS Health include a federal drug discount program and lower membership, but the current stock price may present a buying opportunity.
- Palo Alto Networks and Dell Technologies are set to report earnings, with the market anticipating strong results.
- The Investing Club trimmed Palo Alto Networks shares due to concerns about elevated expectations.