We're locking in some profits in 2 rallying stocks that we still love long term

CNBC Finance

3 min read

We are making two trades Thursday. We're selling 20 shares of Eaton at roughly $403 each, decreasing the weighting in Jim Cramer's Charitable Trust to 2.55% from 2.75% and decreasing our ETN share count to 250. We're also selling 50 shares of Procter & Gamble at roughly $162, decreasing the weighting in the Trust to 1.7% from about 1.9%. and decreasing our PG share count to 425. The stock market is nearing overbought conditions, according to the S & P Short Range Oscillator , so we are booking profits in two stocks that have significantly outperformed the S & P 500 this year. Eaton shares have surged this year to new highs, prompting us to raise our price target not once, but twice, for the electrical equipment provider to data centers. Thanks to another rally on Thursday, shares are now up 27% year to date. We raised our price target Wednesday to $425 because we think the gains can continue due to the momentum in data center orders, and we're looking forward to the Mobility separation next year. But we decided to trim the position to lock in the strong gains over the past month and a half. Few expected the consumer staples group to be one of the strongest in the market in early 2026, but we were buying up Procter & Gamble late last year in anticipation of a rebound. We wanted to hedge against a rotation out of tech stocks and into this slower growing, dependable, solid dividend-paying group. This thesis played out exactly as we thought. We bought P & G when everyone hated it, and now that everyone is falling back in love with the staples, we downgraded our P & G to our hold equivalent 2 rating last week. With shares making a new 2026 high on Thursday, we're making our first sale in this stock that's up 13% year to date. From these sales, we will realize a gain of about 75% on ETN shares purchased in December 2023 and a gain of 10% on PG shares purchased in November 2025. One more point we want to note is that while the market is nearing overbought conditions, technology stocks and the Magnificent Seven look far from it. These sales will boost our cash position and give us more flexibility to selectively â not aggressively â buy into that weakness, especially in Alphabet , which remains a position we want to make bigger. (Jim Cramer's Charitable Trust is long ETN, PG, GOOGL. 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 locking in some profits in 2 rallying stocks that we still love long term

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