We're raising price targets on 2 cyber stocks after their hard-fought recovery
C
CNBC Finance
3 min read
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch â an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks were mixed to start the week , with the S & P 500 lower as AI-related names came under pressure. Last week featured several rotations in and out of the AI trade, and that has continued into the new week. Oil traded lower for most of the morning on Monday before reversing higher on uncertainty of a deal between the U.S. and Iran to open the Strait of Hormuz. Market interest rates were relatively unchanged, but the 10-year Treasury yield remained elevated at roughly 4.6%. CrowdStrike and Palo Alto Networks made new all-time highs despite Monday's market weakness. After terrible starts to 2026 on AI disintermediation concerns, both Club cybersecurity stocks have rightfully broken free from traditional enterprise software because AI will likely accelerate their businesses. Thanks to roughly 30% gains this year, CrowdStrike and Palo Alto have surged well past our price targets, prompting us to raise them to reflect the recent strength. We are increasing CrowdStrike to $650 per share from $500 and Palo Alto to $255 from $200. Although we think both stocks have more upside from here, especially in light of our recent sales. We trimmed our CrowdStrike position earlier in the session , and we pared back Palo Alto a few weeks ago . We will reevaluate both positions after earnings. Palo Alto reports on June 2, and CrowdStrike reports on June 3. Chinese tech giant Baidu reports earnings after the closing bell. Before Tuesday's open, we get quarterly results from Club name Home Depot . We're not expecting a whole lot from Home Depot due to high mortgage rates delaying the home improvement recovery. In other news Tuesday morning, Vertiv kicks off the first day of its two-day investor conference, and we'll be watching to see what the power and cooling equipment company has to say about data center demand. That could give us read-through to some of our AI industrial plays like Eaton , GE Vernova â and, to some extent, Dover . On the data side, pending home sales are out before Tuesday's opening bell. (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.
