Cramer, Marks recommend FedEx, Kimberly-Clark buys after election

Jim Cramer and portfolio director Jeff Marks closed the Investing Club's fourth Annual Meeting on Friday with a review of all 31 stocks in the portfolio. The session took place at the New York Stock Exchange following a volatile week that began with Tuesday's election results. The political outcome has raised questions about the future of artificial intelligence infrastructure spending. Cramer stated that turbulence ahead for AI stocks is likely. He pointed to non-technology sectors for investors holding cash.

The pair recommended buying FedEx and Kimberly-Clark immediately. For FedEx, Cramer cited CEO Raj Subramaniam's ongoing cost cuts and focus on high-value shipments. New warehouse robotics could boost efficiency further. Management expressed optimism about the holiday season. Falling oil prices may allow FedEx to capture market share from rival UPS.

Kimberly-Clark reported third-quarter results that exceeded expectations on Thursday. The Hugges parent company completed the acquisition of Kenvue on Monday. Cramer noted that CEO Michael Hsu is expected to improve operations for the owner of Tylenol and Neutrogena. The company offers a solid dividend yield. Cramer advised investors to build a 100-share position by purchasing 25 shares at current levels.

The team advised waiting for additional selling in Johnson & Johnson and Eli Lilly before buying. Johnson & Johnson has performed well since the portfolio switched from Bristol Myers Squibb in the spring. The drugmaker possesses a strong pipeline. One of its existing cancer drugs recently received expanded FDA approval. Eli Lilly holds the leading injectable GLP-1 products and has next-generation assets in development. The pair trimmed their Eli Lilly position on Thursday but see value if the stock drops further.

Cramer characterized Apple as an own it, don't trade it stock. The iPhone maker benefits from its partnership with Alphabet. This relationship allows Apple to use AI technology without spending billions on its own data centers. Easing tariffs and potential peaks in memory prices could offer additional upside. Amazon was viewed as a strong performer due to growth in its cloud unit, AWS. The company builds its own data centers, giving it greater control over AI expansion compared to rivals reliant on indebted neocloud providers.

The portfolio added to its position in Goldman Sachs on Thursday. The bank trades at roughly 12 times earnings. Its investment banking and trading businesses should benefit from increased market volatility. Goldman Sachs is a lead underwriter for the planned IPO of Anthropic. A successful offering could help restore confidence in the AI sector. Investors added to Boeing following a post-earnings sell-off. CEO Kelly Ortberg continues to work on the turnaround. Lower oil prices and steady travel demand support aircraft orders.

Intel remains a difficult holding after the chipmaker issued disappointing guidance last week. Cramer acknowledged the position has been a mistake. The company faces challenges from a PC slowdown and a factory fire. Management must rebuild credibility with shareholders. Microsoft stands out as a hyperscaler that remains free cash flow positive. CFO Amy Hood is executing a disciplined strategy. The pair views Microsoft as a must-own name. Nvidia retains a buyback authorization of more than $200 billion. The team wants the chipmaker to use this authorization aggressively to support share prices.

Salesforce partners with leading AI labs such as Anthropic to integrate its software. These alliances position the company to benefit from AI rather than be disrupted by it. CrowdStrike and Palo Alto Networks are seen as beneficiaries of increased cybersecurity threats. CEO Nikesh Arora of Palo Alto Networks has a strong track record of strategic acquisitions. DuPont and Eaton remain in the portfolio despite exposure to data center construction. The team may trim one of these names to reduce overall exposure to the AI buildout.