November was a stellar month for Club stocks. The S & P 500 broke a three-month losing streak in November, rallying 8.92% to deliver the index’s biggest monthly gains since July 2022. Equities were bolstered in part by fresh signs the Federal Reserve may be done raising interest rates as part of its campaign to tame inflation. The benchmark index has increased over 19% year-to-date. And, most notably, around 42% of our holdings — 15 Club stocks — beat the S & P for the month. Here are the Club’s top 10 performers, along with our take on why each company’s shares surged in November. FL YTD mountain Foot Locker (FL) performance year-to-date Foot Locker (FL) climbed 28.3% during November, making it the Club’s No. 1 gainer for the second month in a row . The footwear retailer’s stock jumped more than 18% alone following a surprise third-quarter earnings beat this week. Jim Cramer called the results “very encouraging” and said they could indicate that CEO Mary Dillon’s “Lace Up” turnaround strategy is finally paying off. Even so, the company remains plagued by an inventory glut and more-cautious consumer. Foot Locker stock, down more than 26% year-to-date, closed 1.4% lower Thursday, at just under $27.28 apiece. CRM YTD mountain Salesforce (CRM) performance year-to-date Salesforce (CRM) shares jumped 25.4% in November, coming in second place for monthly gains. The company received another leg up on Wednesday after reporting strong quarterly results , which highlighted the enterprise-software firm’s ability to both grow sales and improve margins. We remain optimistic around Salesforce’s artificial-intelligence initiatives and encouraged by the solid demand for its products that management outlined this week. Shares of Salesforce, up more than 85% year-to-date, closed over 8% higher Thursday, at around $250 apiece. PANW YTD mountain Palo Alto Networks (PANW) performance year-to-date Palo Alto Networks (PANW) placed third in terms of gains for the month, with the cybersecurity leader’s stock jumping 21.4% in November. Palo Alto also briefly touched $100 billion in market capitalization Thursday — the first cyber firm to do so. On Wednesday, peer CrowdStrike (CRWD) posted strong third-quarter earnings, with management raising its fourth-quarter guidance. CrowdStrike stock surged, with knock-on effects for Palo Alto. Still, we prefer Palo Alto to its rivals because of its more-diverse and less-cyclical revenue streams, allowing the firm to service larger clients at greater scale. Palo Alto stock, up over 113% since the start of 2023, closed 2.9% higher Thursday, at $295 a share. DHR YTD mountain Danaher (DHR) performance year-to-date Danaher (DHR) stock surged 16.27% in November, with investors more confident that the company’s bioprocessing business is bottoming and will return to growth next year. We’re bullish on the company’s $5.7 billion acquisition of biotech firm Abcam (ABCM), which will help Danaher capitalize on the highly-lucrative protein consumables market. Management said the deal, which is set to close in early December, should be accretive to the life sciences firm on multiple levels, including earnings. Danaher stock, down 3.9% since the start of the year, closed less than 1% higher Thursday, at $223 a share. NVDA YTD mountain Nvidia (NVDA) performance year-to-date Nvidia (NVDA) — an “own it, don’t trade it” name — was the portfolio’s fifth-best performer in November. Shares of the chipmaker increased 14.69% over the month on another stellar earnings release last week, which handily beat Wall Street’s already lofty expectations. Management’s rosy outlook reassured investors, too. Nvidia stock continues its massive run – up over 225% year-to-date – amid the boom in generative artificial intelligence, which the semiconductor firm dominates due to its highly sought-after graphics processing units (GPUs). Shares of Nvidia closed 2.8% lower Thursday, at $467.7 apiece. DIS YTD mountain Walt Disney (DIS) performance year-to-date Walt Disney (DIS) stock rose 13.62% in November after posting solid quarterly results at the start of the month. The entertainment company’s earnings report delivered better-than-expected profits, while demonstrating management’s commitment to reining in costs. Meanwhile, activist investor Nelson Peltz’s renewed fight for a Disney board seat is positive for shareholders like us. Jim Cramer on Thursday urged investors who don’t own the company’s stock to “buy Disney right here, right now.” Shares of Disney, up 3.8% since the start of the year, closed slightly lower Thursday, at $92 apiece. ORCL YTD mountain Oracle (ORCL) performance year-to-date Oracle (ORCL) stock jumped 12.3% in November, coming in at No. 7 for largest monthly gains in our portfolio. The software giant’s stock was boosted by a new cloud-computing agreement with Club name Microsoft, vindicating its strategy around AI. The stock has been rebounding from a selloff following a mixed quarterly earnings release in September, which we maintain was overblown given Oracle’s long-term growth prospects. Oracle stock, up 38% since the start of the year, closed slightly lower on Thursday, at roughly $116 apiece. WFC YTD mountain Wells Fargo (WFC) performance year-to-date Shares of Wells Fargo (WFC) jumped 12.07% in November, as the broader market rally lifted financials. We remain bullish on Wells Fargo as the bank continues to execute its multi-year turnaround plan.The Club sees even more long-term growth prospects once the Fed’s $1.95 trillion asset cap is lifted, which should allow the firm to expand its balance sheet again. Wells Fargo stock, which has increased 6.7% since the start of the year, closed 1.7% higher Thursday, at $44.59 apiece. MS YTD mountain Morgan Stanley (MS) performance year-to-date Morgan Stanley (MS) stock rose 12.03% in November. We’re optimistic on Morgan Stanley, in part because of a potential pickup in the bank’s deal-making business, sparked by more mergers and acquisitions (M & A) and initial public offerings. This would boost a crucial and long-dormant part of the firm’s bottom line: investment banking. Morgan Stanley stock, which has slumped 7.4% since the start of the year, closed 1% higher Thursday, at $79.34 apiece. MSFT YTD mountain Microsoft (MSFT) performance year-to-date Shares of Microsoft (MSFT) jumped 12.01% in November, as the company continues to be a lead player in the advancement of AI. The stock notched a record high on Nov. 20 after management briefly hired ousted OpenAI CEO Sam Altman . OpenAI, known for ChatGPT and a key partner in Microsoft’s AI efforts, has since reinstated Altman as chief executive. The software giant owns a roughly 49% stake in OpenAI, harnessing the start up’s technology for numerous AI offerings, including Copilot 365 . Microsoft stock, which has surged 58% since the start of the year, closed slightly lower Thursday, at $378 a share. (Jim Cramer’s Charitable Trust is long NVDA, FL, DHR, FL, MS, MSFT, WFC, ORCL, DIS, PANW. 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. 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Traders work on the floor of the New York Stock Exchange during morning trading on Nov. 1, 2023.
Michael M. Santiago | Getty Images
November was a stellar month for Club stocks.
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