The Club on Friday is updating five price targets for stocks in the portfolio to reflect recent developments at the companies and broader macroeconomic trends. We’re also adding a new stock to the bullpen, while reiterating our support for Morgan Stanley amid the recent upheaval in the banking sector. Meta We’re increasing our price target on Meta Platforms (META) to $220 per share, from $195. This new target represents about 18-times 2024 earnings estimates. Over the last two months, analysts have steadily increased their earnings estimates on Meta, and the stock has appreciated alongside those revisions to above our previous target. Since Jan. 31, the day before Meta announced fourth-quarter results , the consensus earnings-per-share (EPS) estimate for 2023 has moved up about 24%, to $10, from $8.08 per share. For 2024, the consensus EPS estimate has risen 2%, to $12.39, from $10.14 a share. The driving forces behind those analyst revisions are the company’s emphasis on improving efficiency through a second round of layoffs , controlling its costs by reducing its 2023 expenses outlook and, most recently, signs of so-called green shoots at its advertising business for its family of applications. That’s a result of the continued monetization of its Reels short-form video offering on Facebook and Instagram, along with the easing of ad-targeting headwinds. The two fundamental ingredients that drive higher stock prices are earnings and the valuation multiple investors are willing to pay for those earnings. Generally, higher earnings are our preference of the two. Sometimes multiple expansion is just a great fool theory. In essence, you are buying a stock because you think someone else will pay more for it in the future. But when earnings are up, it’s because the value of the company is increasing. With estimates pushing higher, we think the rally in META still has more room to run, prompting us to raise our price target. Nvidia We’re increasing our price target on Nvidia (NVDA) to $300 per share, from $240. This new target puts Nvidia’s valuation at a pricey 67-times the consensus EPS estimate for next year. But the chipmaker is uniquely worthy of such a premium because it is the unrivaled leader in accelerated computing and artificial intelligence (AI), which is finally at an inflection point after having what CEO Jensen Huang called its “iPhone moment.” Nvidia has previously said generative AI — which includes applications like OpenAI’s ChatGPT — has a total addressable market of $600 billion split between hardware and software. Indeed, with the channel inventory correction in gaming largely behind Nvidia and new orders for its H100 graphics processing unit (GPU) accelerating to support generative AI, it’s likely that earnings estimates this year are too low. Energy We’re reducing our price targets on Coterra Energy (CTRA), Devon Energy (DVN), and Pioneer Natural Resources (PXD) to reflect the lower prices of both oil and natural gas. For all three names, we are lowering our price targets to the consensus price, according to FactSet. That means reducing Devon Energy to $68 per share from $82, Coterra Energy to $30 per share from $40, and Pioneer to $259 per share from $300. We’re also downgrading Devon to a 3 rating , meaning we’ll look to sell shares into strength — part of a broader move to consolidate our energy holdings and free up space in the portfolio. Our rationale behind keeping Pioneer is its higher dividend yield of 11.8%, compared with Devon’s 7.6% yield. With Coterra, we support its shift to focus on share repurchases over paying out a variable dividend. Favoring buybacks over dividends make more sense to us, with the stock down more than 30% from last year’s high. Bullpen The newest addition to our bullpen is Foot Locker (FL). The sneakers and athletic-wear retailer plays a large role in the $80 billion sneaker market, which has been growing at a mid-single digit clip thanks to three big tailwinds, according to the company. The first is mass casualization, whereby hybrid work and new norms of wearing sneakers with dress clothes have boosted sneaker sales. The second is traditional and new performance sneaker brands becoming fashion statements. And the third tailwind is the rise of sneakers as a vehicle of individual expression. In the 2021 Piper Sandler Spring Teen Survey, 25% of teens identified as a “sneakerhead” or a sneaker enthusiast that is likely to own multiple pairs. But the rising tide of sneakers hasn’t lifted all ships. Foot Locker has struggled over the past few years because it was mostly thought of as a reseller of Nike (NKE), which has shifted gears to double down on its own direct-to-consumer business. Foot Locker has also been a victim of the shift to shopping on ecommerce platforms, given its large presence in malls. Foot Locker needed a change. And in September, the company appointed retail industry veteran Mary Dillon, the former CEO of Ulta Beauty (ULTA), as its new CEO. On Monday, Dillon unveiled Foot Locker’s new “Lace Up” strategy, in conjunction with its fourth-quarter results and Investor Day event, while stopping by “Mad Money” to talk with Jim Cramer. Dillon is hitting the reset button in 2023 in order to put the business on a path towards sustainable growth. To do this, management plans to diversify its brand mix to offer more sneaker choices to become less beholden to Nike; optimize its store footprint by exiting 400 underperforming stores; launch new store concepts; and accelerate investments in technology and its loyalty program. But all these actions will come at a price, with management expecting 2023 earnings to be down 30%. We don’t want to make light of how big this haircut to earnings will be, but as Foot Locker’s growth initiatives and cost savings programs play out, it should quickly return to growth in 2024. And in the years after that, management’s financial targets look very robust. In 2024 through 2026, management expects annual sales growth of 5% to 6%, with comparable sales growth of 3% to 4%, and earnings before interest and taxes (EBIT) margins reaching 8.5% to 9% by the end of 2026. For comparison, EBIT margins are expected to be 5.7% in 2023. After including share buybacks every year, Foot Locker sees its adjusted EPS growing by a low-to-mid-twenties percentage rate annually from 2024 to 2026. For a stock that currently trades at about 11-times earnings, this isn’t growth at a reasonable price, it’s growth at a very cheap price. Of course, a price-to-earnings multiple that low implies some skepticism around Foot Locker’s ability to make good on its goals. Turnarounds are never easy and the company continues to face headwinds from Nike and its traditional mall presence. So it’s now up to Dillon to deliver. But if she can do for Foot Locker what she achieved at Ulta Beauty, Footlocker’s shares can go much higher. And in the interim, the company’s current 4% dividend yield represents a solid payment to hold us over. Morgan Stanley We continue to see great value in the Morgan Stanley (MS) franchise but haven’t added to our position because we already own so much and can’t meaningfully improve our cost basis while the stock is in the $80s-per-share range. We would like to see it go a little lower, with a dividend yield closer to 4%, as we await a resolution to the troubles at First Republic Bank (FRC). Despite the challenges facing regional and community banks, Morgan Stanley should still emerge as a net winner from the ongoing turmoil. Along with other big banks, Morgan Stanley committed $2.5 billion of uninsured deposits to First Republic Bank, in a likely sign that MS saw inflows since the collapse of Silicon Valley Bank two weeks sparked the current uncertainty. Furthermore, Morgan Stanley’s business model is driven by wealth-and-asset-management fees and is less reliant on collecting deposits and issuing loans. (See here for a full 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.
An employee arranges a sneaker display at a Foot Locker Inc. store inside the South Park Mall in Strongsville, Ohio.
Luke Sharrett | Bloomberg | Getty Images
The Club on Friday is updating five price targets for stocks in the portfolio to reflect recent developments at the companies and broader macroeconomic trends. We’re also adding a new stock to the bullpen, while reiterating our support for Morgan Stanley amid the recent upheaval in the banking sector.
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
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The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.
Today’s Green Deals are closing out the week by headlining Tenways’ new 8-speed CGO600 Pro e-bike that is getting $118 in free gear while down at its $1,399 low during the brand’s New Year sale, with the other models seeing similar offers. We also have New Year savings from ALLPOWERS across a collection of power stations and bundle packages, with bonus gifts and extra 10% off promotions – all starting from $89. For folks struggling to enjoy shower time, Camplux’s 18kW and 27kW Electric Tankless Water Heaters sitting at their lowest rates from $240 for the time being. We also spotted a further drop in price on Anker’s SOLIX C200 DC 60,000mAh Power Bank Station to its all-time low of $100 too. Plus, all the other hangover Green Deals can be found in the links at the bottom of the page, like yesterday’s phase 2 of EcoFlow’s New Year sale, the $1,000 in savings on LG’s all-in-one washer/dryer combo, and more.
Tenways returns new 8-speed CGO600 Pro e-bike with free gear to $1,399 low in New Year sale ($500 off)
Tenways is wishing folks a happy 2025 by launching a New Year flash sale that is bringing back some Black Friday pricing while the month is still fresh, complete with price cuts and extra savings in promo code form. The most notable model benefitting from this sale is the new CGO600 Pro 8-speed chain-drive e-bike for $1,399 shipped, after using the promo code HAPPY2025TW at checkout to save the extra $200. This new model was released back in October carrying a $1,899 price tag, which cut down costs in the brand’s Black Friday and Christmas sales – first to the $1,399 low, next to $1,599. That same low price is returning again today for the second time, saving you $500. Tenways’ more veteran belt-drive CGO600 Pro e-bike is also down at $1,399 shipped, after using the promo code, its second-lowest rate sitting $100 above its Black Friday low. There are also extra savings for medical providers, military members, first responders, and teachers, with verification slashing an additional $150 off your purchase.
Ideal for folks who enjoy active cycling but also want the option for electric support, Tenways’ CGO600 Pro e-bike weighs in at just 37 pounds, making it very manageable in urban environments. You won’t find any throttle on this model, as the cut-down weight partly comes from the smaller 350W rear hub motor and 360Wh battery, which still provide significant support via four PAS levels (activated with a torque sensor) that cover your efforts for up to 53 miles on one charge, topping out at 20 MPH speeds.
As stated before, Tenways offers two drivetrain options for the CGO600 Pro e-bikes – either the Gates carbon belt drive for quieter operations or the new 8-speed Shimano drivetrain (which also gets the brand’s newest motor too). Aside from those big differences, you’ll enjoy the same features elsewhere on the bikes, with internally routed cables for a streamlined look, LED lighting, puncture-proof tires, Tektro dual-piston hydraulic brakes, and a compact OLED display for controls. You’ll also be getting $118 in free gear in the form of lightweight mudguards and a kickstand.
***Note: The prices below have had the additional $200 promo code factored in – but be sure to use it (HAPPY2025TW) at checkout to maximize savings!
ALLPOWERS is helping folks prep for the rest of the year with its New Year sale through January 26 that is taking up to 48% off its backup power units, with orders also getting an additional 10% struck from the price thanks to the promo code AF2025 being used at checkout, as well as some bonus gifts. One of the brand’s best-selling solar generator packages, the R2500 Portable Power Station paired with a 200W solar panel has been dropped to $1,043.10 shipped, after using the promo code AF2025 at checkout for the additional 10% in savings. This combination would normally cost you $1,599 at full price, with this sale dropping it lower than we’ve ever seen direct from ALLPOWERS. While we have seen it go lower at third-party dealers over on Amazon, this is still a solid $556 in savings, dropping it amongst the lowest tracked rates there.
As we’ve seen with similar sales, aside from the 10% off promo code for your total order, ALLPOWERS is also giving away free gifts at certain thresholds while its New Year sale continues. You’ll receive a free 100W solar panel on orders over $1,800 or a free 200W solar panel on orders over $2,800.
Ready to cover your trips out of the home or even support appliances through blackouts, ALLPOWERS’ R2500 power station offers a 2,016Wh LiFePO4 capacity housed within a streamlined formfactor. It’s capable of power output up to 2,500W regularly through its 14 port options, able to peak up to 4,000W for larger appliance needs. There are four ways to recharge the unit’s own battery, with an AC wall outlet taking 1.3 hours to refill its capacity, or you can solar charge in 2 hours with its maximum 1,000W solar input connected. That timeframe can be cut down further to just one hour if you take advantage of its dual AC and solar capabilities, or you can hook it up to your car when you’re in a bind to fill it by the other means.
***Note: The additional 10% in savings has not been factored into the prices below, as the discount takes the percentage off your cart’s entire order– don’t forget to use the code AF2025 for the best prices!
ALLPOWERS best-selling New Year sale bundles:
ALLPOWERS best New Year sale power bank/station deals:
ALLPOWERS best New Year sale expansion power deals:
ALLPOWERS best New Year sale solar generator bundles:
ALLPOWERS New Year sale add-on deals:
Keep it steamy with Camplux’s 18kW and 27kW electric tankless water heaters at lowest prices from $240
Through its official Amazon storefront, Camplux is offering its 18kW Electric Tankless Water Heater at $239.99 shipped. This unit would normally cost you $350 at full price, with discounts often keeping prices above $280, aside from the one previous drop to the $240 low at the end of summer. Today’s deal is cutting $110 off the going rate, giving you a second chance at the lowest price we have tracked.
Nothing beats a nice hot shower, especially in the middle of winter. Camplux’s 18kW unit not only ensures things stay steamy, but its compact form factor ensures far less space is taken up compared to traditional water heaters. Once installed, according to Camplux, you won’t have to “wait more than 3 seconds to get plenty of hot water,” with the fast-heating low-consumption heating rods boasting “efficiency up to 99.8% and saving 60% water heating costs for your home.” There are plenty of safety protections built right in, like against overheating, anti-dry heating, water-electricity separation, and more. Do keep in mind though that it requires a minimum 0.66GPM water flow to activate, as well as two double-pole 40A breakers, a wire gauge of 2 x 8 AWG, and a 3/4-inch NPT connection.
Of course, depending on your home’s size and the number of people expected to use the shower, or even how many water sources will be supplied from the unit, you may want to consider something bigger. Right now, you can instead grab the Camplux 27kW model down at a new low of $259.99, a drop from its usual $450. Not only does it promise round the clock hot water delivery, but it’s also rated for multiple points of use over small models.
Anker’s new SOLIX C200 DC 60,000mAh power bank station falls to $100 low
Anker’s official Amazon storefront is offering a return to the best rate on its latest SOLIX C200 DC 60,000mAh Power Bank Station going for $99.99 shipped. Normally this newer model would run you $170 at its full rate, which has seen a few discounts since releasing a few months ago, the biggest of which saw a drop to the $100 low with Cyber Monday savings. With this deal coming in today, you’re getting another shot at its Cyber Monday pricing, saving you $70 as it returns to the lowest price we have tracked. It even beats out Anker’s direct website right now, where it is priced at $110.
Anker’s SOLIX C200 DC power bank station is a smaller and more compact version of the brand’s new C300 DC and AC models, coming in with a slightly smaller 60,000mAh/192Wh LiFePO4 capacity. It delivers up to 300W of output power to your devices through its five port options (two USB-As, one 140W USB-C, one 15W USB-C, one car port). You can refill the units own battery via three ways, with its 140W USB-C port giving you an 80% charge in 1.3 hours through a wall outlet, or you can utilize up to 100W of solar input or the car port for 80% in 1.6 hours.
You’ll also find the larger 90,000mAh C300 DC and C300 AC models matching their direct Anker discounts at Amazon for $180 and $200 at the moment. Not only are you getting the expanded 90,000mAh LiFePO4 capacity here, but they also come sporting different variations of built-in lights for camping trips. You can get the full rundown on its other capabilities in our launch coverage here.
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.