We will purchase 50 shares of CrowdStrike at approximately $354 per share and 25 shares of Home Depot at approximately $390 per share. Jim Cramer’s Charitable Trust will hold 200 shares of CRWD stock following Thursday’s trade, increasing its portfolio weight from 1.5% to 2%. The trust will also hold 225 shares in HD, increasing its weighting from about 2.20% to 2.5%. Now that the stock market has stabilized — off its morning highs following Wednesday’s Fed-induced plunge — we’re going to go out on a limb and do a round of buying on the S&P 500 Short-Term Oscillator. This is the most oversold the market has been since October 3, 2023. But it turns out now is a good time to hold your nose and buy, as the S&P 500 is up 3% a month later. Oscillators correctly show that there is too much fear in the market. So, with that in mind, we added positions in CrowdStrike and Home Depot, both of which are high-quality companies. For CrowdStrike, its stock price has fallen back to its late-November losses following the release of its third-quarter earnings. We viewed this as a buying opportunity then, and we view it today as well. This divestment is an opportunity to further expand the scale of this premier cybersecurity company. For Home Depot, news that the Federal Reserve would cut interest rates less than expected next year and weak guidance from homebuilder Lennar sent housing and home improvement stocks lower. Despite the Fed easing policy, rising mortgage rates as bond yields move higher pose some challenges to our thesis. However, home transaction volumes are at a 30-year low and we are willing to wait patiently for a better year in 2025. The stock is now down 10% from its December 6 high of $431, which created a solid entry point. Tune in to our December monthly meeting at noon ET to learn more about CrowdStrike, Home Depot and other stocks in Club’s portfolio. This includes the trade alert we issued to the banking sector earlier on Thursday morning. (Jim Cramer’s Charitable Trust is long CRWD, HD. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investing Club, You will receive trade alerts before Jim Cramer trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation is created or created by any information you receive in connection with the Investment Club. No specific results or profits are guaranteed.
We’re buying two stocks that have fallen recently in the most oversold market in more than a year | Real Time Headlines
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