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Home » We’re increasing price targets on our bank stocks after their strong runs
This week

We’re increasing price targets on our bank stocks after their strong runs

adminBy adminDecember 18, 2025No Comments3 Mins Read
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Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves : The S & P 500 was making a comeback Thursday following four straight sessions of declines. Technology rebounded from recent losses after Micron signaled that strong demand for its AI memory chips will continue. Micron shares surged more than 12%. However, the AI trade was not carrying Thursday’s market. What was actually working the most was consumer discretionary. Yes, tech companies Amazon and Tesla fall into the consumer bucket, and their stocks have been rallying. Many restaurants, retail, travel, and leisure stocks were also posting big gains. The group appears encouraged by signs that inflationary pressures are easing, following a much cooler-than-expected consumer price index reading . Club name Texas Roadhouse rallied for the second day in a row. We bought additional shares at lower levels on Monday morning. Bank stocks: Our financial positions have been some of the strongest performers in the portfolio this month, prompting us to raise our price targets. We are increasing our Goldman Sachs price target to $925 from $850 and our Wells Fargo price target to $96 from $90. We are also increasing our Capital One price target to $270 from $250, but we are downgrading our rating to a 2. Additionally, we plan to trim the position as soon as we are unrestricted, which could be as early as Friday. This would be our first sale since we initiated the position in early March. The stock has had a strong year and has been on a tear since New York Fed President John Williams said on Nov. 21 that an interest rate cut at the December FOMC meeting was possible (the Fed did lower rates last week). Capital One shares have had only two down days since Williams’ comment and have rallied about 20% over this period, outperforming the S & P 500’s return of about 4%. We remain bullish on Capital One next year, as we expect greater realization of Discover-related synergies and increased share buybacks. Still, we’re mindful not to get too greedy in a large position after a big run. Up next: Club name Nike , FedEx , and KB Home report after the closing bell. Before the open on Friday, we’ll see earnings from Conagra , Lamb Weston , Paychex , and Carnival Corp . On the data side, we’ll see the University of Michigan’s consumer sentiment index and one-year inflation expectations. (See here for a complete list of the stocks in Jim Cramer’s Charitable Trust.) 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.



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