Pricing power is what’s allowing many companies — including seven of our Club holdings — to support revenue growth and enhance, or at the very least protect, profitability during an earnings season marked by a still-elevated inflationary environment. When we’re talking about “pricing power,” it’s the ability of companies with strong brands to raise prices without seeing too much impact on demand. In many cases, it’s because consumers, who are also feeling the bite of inflation in their personal budgets, are willing to pay those higher prices because the products are so essential to their everyday lives. And, in times of economic uncertainty, consumers tend to take comfort in their favorite brands. For example, Club holding Procter & Gamble (PG) beat on the top and bottom lines in its fiscal third quarter as price increases enriched profit margins despite a small slip in volumes . Similarly, comparable sales at McDonald’s (MCD) increased by 13% in the first quarter and traffic increased despite increased menu prices. Strategic price hikes at Coca-Cola (KO) resulted in strong Q1 revenue and a muted effect on people’s buying habits. “Some of the best brands in America have been able to push through price increases and have seen favorable demand to where the consumer has responded without too much negativity,” Bradley Thomas, consumer and retail analyst at KeyBanc, said in an interview with CNBC. Cash-strapped Americans are “seeking value,” Thomas added. Remember, value is not always about offering the lowest price, it’s about offering the greatest bang for your buck. The pricing success at P & G, Coca-Cola, or McDonald’s comes down to consumers feeling that they are still getting that value from brands they know and love. Here’s a list of Club holdings with pricing power, starting with a closer look at P & G. PG YTD mountain Procter & Gamble’s stock performance year to date. Procter & Gamble last week delivered quarterly earnings and revenue beats while raising guidance for full-year organic sales growth. The consumer goods powerhouse raised prices across segments, lifting its gross margin by 150 basis points to 48.2% in its fiscal third quarter. P & G reported a 4% increase in fiscal Q3 sales. Organic sales, which exclude the impacts from foreign exchange, acquisitions and divestitures, rose 7%. That increase was driven by a 10% boost from higher pricing. But the Tide, Pampers and Gillette maker’s volume fell 3% as some shoppers traded down to cheaper alternatives. We aren’t concerned since some volume decline is to be expected given the magnitude of the price hikes. Management was able to strike a balance between delivering growth and the best value to customers through its premium products. JNJ YTD mountain Johnson & Johnson’s stock performance year to date. Johnson & Johnson (JNJ)exhibited pricing power during the first quarter in its consumer business, which will be separated later this year and brought public as a standalone company called Kenvue. The unit sales increased 11.4% in Q1, driven by strong pricing actions and healthy demand across its product categories including over-the-counter, skin, health and beauty, and baby care, to name a few. Management during last week’s post-earnings call said its consumer unit, post-separation will be even more competitive. The company’s pharmaceuticals and medtech divisions, which drive a majority of revenue, will remain, and they will keep the Johnson & Johnson name. LIN YTD mountain Linde’s stock performance year to date. Industrial gas giant Linde (LIN) is our way to play decarbonization in an economy focused on clean energy initiatives, and it’s another Club holding that has pricing power. The company produces, processes, and sells different kinds of gases used in a variety of industries including healthcare manufacturing, food, beverage carbonation, steel making, and aerospace. Due to the complexity of the supply chain, Linde has the distinct advantage of contractually passing on additional costs to its customers. This prevents profits from being crunched by higher energy prices and allows Linde to deliver consistent future cash flow and strengthen its earnings power. In its latest earnings, out Thursday, the company said volumes were flat but its price and mix contributed 8% to the top line. Halliburton HAL YTD mountain Halliburton’s stock performance year to date. Halliburton (HAL) on Tuesday announced strong financial performance in the U.S., and international markets in Q1. Total revenue rose 33% year over year while earnings per share more than doubled on an annual basis. The top and bottom-line beats were accompanied by strong operating margin performance and operating cash flow. The oilfield services company has benefitted from an increase in inflation, which has partly resulted from higher energy prices this year. “Pricing continues to trend up for all product lines in all regions,” Halliburton CEO Jeffrey Miller said on the call. Sustained customer demand was also a crucial factor of growth for the quarter. Halliburton has exhibited strong pricing power due to massive demand from global end markets, benefitting from years of under-investment in drilling. AAPL YTD mountain Apple’s stock performance year to date. Apple (AAPL) is another Club holding with pricing strength. In addition to premium prices on its hardware devices, the iPhone maker increased its subscription rate for its streaming service by 40% in November 2022. The monthly price for Apple TV+ rose to $6.99 from its previous $4.99. When Apple TV+ was first rolled out, it only had a few shows and movies, and the price tier was a more affordable option. A few years after its 2019 launch, the platform now has a wider selection of documentaries, films, and TV series in many categories. At that time, the company also increased prices for its Apple Music service to $10.99 from the prior $9.99, in addition to its Apple One bundle service, which hosts these plans among other services to $16.95 from $14.95. When it reported its fiscal first quarter in February, Apple delivered a new record for Services revenue of $20.8 billion despite the difficult macroeconomic backdrop. Apple is out with its latest quarterly next week. MSFT YTD mountain Microsoft’s stock performance year to date. Earlier this year, Microsoft (MSFT) announced changes to global pricing for its cloud services, effective April 1. Microsoft’s cloud offerings, which include Microsoft 365 and Azure, are 9% more expensive in the U.K., and 15% more expensive for customers in the European Union. Microsoft said this price hike is an effort to “align the pricing of our Microsoft Cloud products globally.” Looking ahead, the company will “assess pricing in local currency as part of a regular twice-a-year cadence, taking into consideration currency fluctuations relative to USD [dollar].” While its cloud growth slowed during its fiscal third quarter , rising 27% compared with 31% growth in the prior quarter, the company said Azure took market share, attracting more customers to its AI-powered applications. CAT YTD mountain Caterpillar’s stock performance year to date. During its first-quarter earnings results, out Thursday, Caterpillar (CAT) delivered solid year-over-year revenue growth in each of its product segments, along with meaningful margin expansion. Management said the strength was driven by “favorable price realization and higher sales volume.” Its Construction Industries unit saw sales up 10% and profit margins grew to 26.5% from 17.3%, fueled by stronger pricing and strong demand in both residential and non-residential markets in the U.S. Caterpillar’s latest report shows how its business is benefitting from strategic pricing, which offset costs. (Jim Cramer’s Charitable Trust is long PG, JNJ, LIN, HAL, AAPL, MSFT, CAT. 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. 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A grocery cart sits in an aisle at a grocery store in Washington, DC, on February 15, 2023.
Stefani Reynolds | AFP | Getty Images
Pricing power is what’s allowing many companies — including seven of our Club holdings — to support revenue growth and enhance, or at the very least protect, profitability during an earnings season marked by a still-elevated inflationary environment.
Mercedes-Benz Electric G-Wagon (Photo: Mercedes-Benz)
If you’ve been eyeing the all-electric G-Wagon, Mercedes-Benz just sweetened the deal – but only for a limited time.
According to a dealer bulletin, the 2025 Mercedes-Benz G 580 with EQ Technology – AKA the electric G-Wagon – now comes with $9,500 in lease cash, up from last month’s $7,500. That’s a 27% jump in savings. The move comes just weeks before the $7,500 EV lease tax credit loophole closes on September 30.
Like most EVs leased in the US, the G-Class has been able to qualify for the credit even though it’s excluded from purchase incentives. That benefit is about to disappear, which likely explains why Mercedes is boosting the offers now.
The electric G-Wagon doesn’t come cheap. With a base price of $162,650, the $9,500 incentive amounts to only a 5.8% discount. The SUV also carries a steep advertised lease: $1,869 per month for 36 months with $14,613 due at signing. Factor it all in, and you’re really paying about $2,275 a month for 10,000 miles a year. Current Mercedes deals run through September 2.
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For context, the 2025 G 580’s lease money factor now sits at 0.00180, which works out to around 4.3% APR – lower than the standard rates previously on offer.
Performance-wise, the electric G-Wagon earns an EPA rating of 62 MPGe and an electric range of 239 miles. Not groundbreaking numbers, but for buyers who want the iconic G-Wagon experience with zero tailpipe emissions, this is it.
With federal lease credits ending soon, Mercedes appears to be betting that drivers looking for a last chance at big EV savings will jump now rather than later.
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The Honda Prologue is a surprise hit. It was the second-best-selling electric SUV behind the Tesla Model Y in the second half of 2024. Now, used models are in high demand.
Honda Prologue leads used EV sales growth in July
After it delivered the first customer models last March, the Honda Prologue quickly became one of the most popular EVs in the US.
Throughout the second half of the year, Honda sold an average of over 5,000 Prologues every month. In November, it was the third best-selling EV, trailing only the Tesla Model Y and Model 3.
Honda’s electric SUV continues to be a top seller this year. Last month, it outsold the Ford Mustang Mach-E and Hyundai IONIQ 5. Since delivering the first Prologue model last March, Honda has now sold 52,500 units in the US.
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According to Cox Automotive’s latest EV Market Monitor report, used Honda Prologue EVs are selling faster than expected.
Used EV sales rose sharply in July to 36,670, up 23.2% from June and 40% compared to last year. Honda had the biggest increase in used EV sales, more than doubling (+103%) month-over-month. Hyundai (+61.3%) and Rivian (60.5%) ranked second and third.
Honda Prologue Elite (Source: Honda)
Tesla led used EV sales last month, selling 15,903 vehicles, up 18% year-over-year. GM’s Chevy (3,499 units, +28.6%), Ford (1,967 units, +25.7%), Mercedes-Benz (1,724 units, -12.3%), and Nissan (1,659 units, +19.9%) rounded out the top five.
Although its market share slipped to 43.4% from 45.2%, Tesla remained the leader by a wide margin. Other luxury brands, including BMW and Audi, reported higher used EV sales in July, with increases of 43.87% and 38%, respectively.
2025 Honda Prologue at a Tesla Supercharger (Source: Honda)
According to the report, used EV listing prices reached $35,263 last month, a 1.9% decrease from June. With a price gap of just $1,266, a record low, used electric vehicle prices are closing in on ICE vehicles.
New EV sales also picked up in July. With over 130,000 EVs sold, up 26% from June, the electric vehicle market share reached 9.1%, the second-highest to date.
Ahead of the $7,500 federal tax credit deadline, set to expire at the end of September, 11 brands posted their best EV sales of the year. The top five included Tesla, Chevy, Hyundai, Ford, and Honda. Volkswagen surged to sixth after electric vehicle sales surged 454% last month.
The Honda Prologue starts at $47,400, but with the credit, you can snag one for under $40,000 right now. Honda is also offering monthly leases as low as $159 in California and other ZEV states. In other regions, it’s still listed for as low as $229 per month.
2025 Honda Prologue trim
Starting Price*
Starting Price After Tax Credit*
EPA Range (miles)
EX (FWD)
$47,400
$39,900
308
EX (AWD)
$50,400
$42,900
294
Touring (FWD)
$51.700
$44,200
308
Touring (AWD)
$54,700
$47,200
294
Elite (AWD)
$57,900
$50,400
283
2025 Honda Prologue prices and range by trim (*Does not include $1,450 D&H fee)
Even Honda’s luxury brand, Acura, is selling more electric vehicles than expected. Through the first half of the year, the Acura ZDX outsold the Cadillac Lyriq, and it’s based on the same GM Ultium platform.
Sales are expected to continue picking up ahead of the deadline. As Cox Automotive highlighted, “July’s performance sets a strong precedent, and as policy support winds down, the market’s ability to respond to real-time demand and brand-level dynamics will be critical in shaping the next phase of growth.”
Ready to take advantage of the savings while they are still here? We’re here to help. You can use our link to find deals on the Honda Prologue in your area (trusted affiliate link).
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The waste management experts at Republic Services are committed to cleaning up the Chicagoland area — and now, that includes the air Chicagoans breathe, thanks to the deployment of new Mack LR Electric garbage trucks in the heart of America’s Second City.
Republic Services executives and partners from local utility ComEd gathered yesterday, 14AUG, to celebrate the deployment of Chicago’s first electric refuse fleet, featuring two new Mack LR Electric garbage trucks paid for, in part, by ComEd’s commercial EV rebate program.
“The Mack LR Electric is purpose-built for refuse applications, delivering zero local emissions while maintaining the durability and performance Mack trucks are known for,” reads the official Mack press release. “The electric powertrain provides quieter operation for early morning routes and helps fleet operators meet sustainability goals while supporting cleaner air quality in urban communities. With its low cab-forward design and tight turning radius, the LR Electric maintains the maneuverability essential for residential and commercial waste collection routes.”
The big Class 8 Mack Trucks are powered by a pair of electric motors putting 400 combined kW (about 536 hp) through a 2-speed Mack Powershift transmission that offers a whopping 4,051 lb-ft of peak torque output. That’s over 40% more power than the first generation Mack LR Electric released in 2019, and this iteration can charge the 376 kWh Samsung-sourced batteries fully in under two hours at 150 kW.
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Real money, real results
ComEd and Republic Svcs. executives pose with “big check,” via ComEd.
“ComEd is proud to support Republic Services in advancing zero emissions transportation for Chicago’s neighborhoods,” explains Melissa Washington, our senior vice president of customer operations and strategic initiatives. “As more customers take advantage of our EV rebate programs, we are helping empower customers to realize the air quality and energy savings benefits of EVs, and moving our communities closer to their goals for a more sustainable future.”
The new HD electric vehicles will be powered up nightly by equally new 150 kW DC fast charging stations from BP pulse, which are installed at Republic’s vehicle yard in the Little Village neighborhood. Part of the ComEd rebate money awarded to the company helped fund the make-ready infrastructure portion (effectively from the transformer to the stub) of that project, as well as at least one Ford F-150 Lightning pickup.
Look, you know me. There is absolutely ZERO chance that I’ll be able to remain objective about anything that’s putting down more than four thousand lb-ft of torque. Make that thing quieter, cleaner, and generally better for me and my community, and there’s even less of a chance of me saying anything critical about it.
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