The first half of this year was a solid but volatile period for the stock market. Some of our club holdings have made impressive comebacks from their 2025 lows. Other companies fell even further and were eventually forced to exit the frustrating situation. The S&P 500 is up about 9.5% year-to-date, despite concerns about the instability of the Iran war, a resurgence of inflation, and concerns about AI disruption. As of Tuesday’s close, the 2026 broad market index had hit 24 all-time highs. The Nasdaq is up almost 13% since the beginning of the year, setting 20 records. Of the 35 stocks in our portfolio, 18 have outperformed the S&P 500 year-to-date. Intel (up 278%), Arm Holdings (up about 224%), and Corning (up about 192%) have all seen parabolic gains. Eight of them ended the first half in the red. Two stocks, Honeywell Aerospace and FedEx Freight, were recently spun off, so their 2026 performance could not be calculated. Back in December, we identified five stocks that are poised for a 2026 rebound: Palo Alto Networks, Eaton, Starbucks, Nike, and Amazon. This is the mid-year scorecard as of Tuesday’s close. Winner Palo Alto Networks Up 85.1% Factors that were once weighing down cybersecurity stocks have lifted the stock as 2026 progresses. Earlier this year, CrowdStrike, the club’s namesake with Palo Alto, was overwhelmed by concerns that AI would disrupt enterprise software. We’ve said all along that Cyber stocks shouldn’t fall like the rest of the group. Anthropic’s introduction of Mythos and its ability to discover system vulnerabilities has reignited enthusiasm for cybersecurity and sent the stock soaring. On Tuesday, Palo Alto posted record profits. Another factor holding Palo Alto back late last year was concerns about expensive acquisitions such as CyberArk. That also turned out to be unfounded. According to Palo Alto’s latest earnings report, CyberArk’s annual recurring revenue increased 27% year over year. (Palo Alto stock rose again on Wednesday, hitting its highest price of the day.) Eaton up 33.8% Investors are finally realizing how powerful Eaton has become with AI. The industrial company is benefiting from increased spending on hyperscalers as it manufactures electrical solutions used to support AI data centers. Last year, the company’s stock price remained flat despite an increase in orders for large-scale data centers. I’m glad we’ve finally turned a corner. Another of our data center power plays is GE Vernova, which manufactures natural gas turbines that can be used to generate off-grid energy. GEV stock has risen nearly 80% since the beginning of the year. Starbucks up 21.4% Shares of coffee giant Starbucks have erased losses seen in 2025 as CEO Brian Nicol’s turnaround plan remains on track. The company was able to improve the cafe experience, increase foot traffic, and once again increase same-store sales. Although she has slowly recovered, we still believe because of Nicole’s track record. He worked some serious magic at Chipotle, where he was CEO before taking the job at Starbucks. Laggard Nike fell 35.6% This was so bad that they pulled out on Wednesday. We’ve been disappointed with Nike for some time, but Tuesday night’s lackluster earnings report pushed us over the edge. The retailer doesn’t seem to be able to solve the China problem. Realizing a 40% loss on a position is never easy. But sometimes you have to put it on your chin. We would rather get our money back in another stock than wait for a catalyst. (Nike stock fell in the early hours of trading on Wednesday, but reversed higher during trading.) Amazon gains 3.3% Despite a strong first-half finish (with a modest gain on Wednesday), Amazon couldn’t keep up with the S&P 500’s year-over-year gains. Like other hyperscalers, the stock has been regularly lower due to concerns about whether the company will be able to generate a return on investment from all its AI spending. Still, there’s no denying that Amazon’s cloud business is a behemoth. The company’s custom silicone is also solid. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
