We're buying more of our newest stock and upgrading our rating on a financial name

CNBC Finance

3 min read

We are buying 50 shares of Cardinal Health at roughly $217.84. Following the trade, Jim Cramer's Charitable Trust will own 400 shares of CAH, increasing its weighting to 2.25% from about 2%. We're nibbling on more shares of the drug distributor and medical supplies company Cardinal Health. Shares are up in this down session for the broader market, but we continue to believe Cardinal's pullback over the past few days was undeserved due to the company's lack of sensitivity to rising oil prices, the broader economy, and geopolitical tensions. We may not have started this new position at the best level on Monday , but the volatility this week is a great lesson on why we never do all our buying all at once. We like to slowly scale into position over time, ideally working our average cost basis lower. Separately, the financial sector is the worst-performing sector in the market on Friday due to the one-two punch of rising oil prices and weak jobs data. Goldman Sachs shares are now down about 6% year to date and off 16% from their highest level in January. Our thesis in Goldman Sachs is based on a wave of M & A and IPO activity, and there's some risk that might not come to fruition if this market volatility continues. But with SpaceX, Anthropic, and OpenAI all eyeing the public markets, we do not think the thesis is derailed. Goldman's dividend now yields about 2%, and there's a consistent share buyback program here to help pay us in case of a push out. We booked profits and downgraded Goldman to a hold-equivalent 2 in the $830s last December, and took more shares off earlier this year at around $950. Following this pullback, we are upgrading our rating back to a buy-equivalent 1. (Jim Cramer's Charitable Trust is long CAH and GS. 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. 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.

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We're buying more of our newest stock and upgrading our rating on a financial name

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