Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks were climbing on Thursday led by semiconductors and AI-related names. Taiwan Semiconductor rallied more than 5% after reporting strong fourth quarter results and forecasting higher captial spending. That strength in TSMC was lifting the chip group: Club name Nvidia and Micron were each up 3%, and portfolio holding Broadcom was up 1.5%. Financials were also getting a boost. Goldman Sachs rose 5% after beating fourth quarter earnings, though revenue came in light due to a one-time impact from the transfer of Apple Card to JPMorgan . Fellow Club name BlackRock surged 6% on its fourth quarter beat, highlighting strong base fee growth. The market entered Thursday in overbought territory, according to the S & P Short Range Oscillator , and we raised cash into strength by trimming our Dover position. Eli Lilly shares dropped 5% on a Reuters report that the Federal Drug Administration extended review deadlines on several drugs, including Lilly’s orforglipron — its experimental, once-daily GLP-1 pill to treat type two diabetes and obesity. The GLP-1 market has been driven by injectables, but the obesity pill category is expected to accelerate the category, given patients’ preference for pills. FDA approval of orforglipron would likely be a major catalyst for Club stock Eli Lilly , especially after rival Novo Nordisk jumped on becoming the first to secure FDA approval for a GLP-1 weight-loss pill. We continue to view approval for Lilly as a “when, not if,” particularly because orforglipron has advantages over Novo’s pill that could make it more appealing to patients. The drug has a target approval date of April 10, and a Lilly spokesperson confirmed approval could land in the second quarter, based on current FDA guidance. Lilly’s stock was also feeling the weight of broader health care sector volatility as the Trump administration seeks to adjust pricing for drugs and insurance companies. Wall Street is warming up to Costco again. Bernstein called the retailer the “ultimate compounder” for its ability to grow earnings and free cash flow at a steady rate in a note to investors. Analysts also think Costco shares are undervalued, citing consistent earnings per share growth and return on equity over the long term. The firm argues the growth that lies ahead justifies Costco’s price-to-earnings multiple of 45 to 50 times. Costco had been an out-of-favor retailer after losing nearly 6% last year on concerns about its elevated valuation, slipping membership renewal rates, and slower shopping trends. It’s what made us cut our Costco position in half on Dec. 16, booking a 200% gain on shares purchased in early 2020. But negative sentiment turned positive after Costco delivered stronger-than-expected December sales earlier this month. Jim Cramer has said that Costco is not done…
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