We're making three more trades, including the initiation of a household name
We’re making three more trades Tuesday. We’re selling 10 shares of Eli Lilly at roughly $1,034 each. Following the trades, Jim Cramer’s Charitable Trust will own 90 shares of LLY, decreasing its weighting to about 2.5% from 2.8%. We’re buying 100 shares of Nike at roughly $62, increasing our NKE position in the Trust to 1,400 shares and portfolio weighting to 2.4% from about 2.2%. And, we’re also starting a position in Procter & Gamble , buying 250 shares at roughly $146. PG will have about a 1% weighting in the portfolio. Eli Lilly trim First off, we are booking big profits in Eli Lilly, which hit an all-time intraday high in Tuesday’s session. Shares of the leader in GLP-1 medications have rallied 55% from our double upgrade on Aug. 13 and have gone parabolic since the end of October. LLY YTD mountain Eli Lilly YTD After a run like this, it’s time to lock in some gains and downgrade Lilly back to our 2 rating .The company’s rally over the past few weeks has pushed its market capitalization near $1 trillion — almost fulfilling a long-term outlook we have had ever since we heard fabled investor Ken Langone predict it in 2023. We still believe it gets there, and we are increasing our price target to $1,100 per share from $925 to reflect our view. But we always say discipline trumps conviction, and our discipline is to trim when a stock goes parabolic. From this sale, we will realize a fantastic gain of about 330% on shares purchased in 2022. Nike buy, P & G initiation We’re taking the cash raised from this Eli Lilly trim — and the Disney sale earlier Tuesday — to add to Nike and start a new position in Procter & Gamble. NKE YTD mountain Nike YTD Nike jumped 8% between Monday and Thursday of last week but has given back most of those gains over the past three sessions. We’re using this decline to add to our position again in a company that’s turning around under CEO Elliott Hill. We may be early to this story, and early is wrong, but we still think the market is underappreciating his “Win Now” strategy, which is all about prioritizing its best-performing categories across its main geographies. We previously bought Nike on Oct. 31 at around $64 per share. PG YTD mountain Procter & Gamble YTD Finally, we are initiating a new position in Procter & Gamble. We understand this is a bit of a curveball after adding Kimberly-Clark on Monday to our Bullpen list of stocks to watch. But, we’re still doing some work on the headline autism litigation risk surrounding Tylenol, which is made by Kenvue . Earlier this month, Kimberly-Clark announced a nearly $49 billion deal to buy Kenvue, the consumer group spun off from Johnson & Johnson in 2023. We are keeping Kimberly-Clark in the Bullpen but pivoting to Procter & Gamble, which we think is higher quality and the better-run company. Procter is a former Club name and was owned for many years before our exit at around $167 per share back in October 2024. Procter owns many terrific brands in Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine, & Family Care markets. Shares have lost about 12% year to date and made a 52-week low of $145.50 on Nov. 11. The broader consumer-staples group has been out of favor throughout 2025, with investors gravitating toward faster-moving AI names. But we have a working thesis that there could be a rotation back into group as the “Year of Magical Investing” comes to an end and the market regains appreciation for steady, predictable, economically resilient companies. Procter & Gamble has one of the strongest growth track records in its category. The consumer brand powerhouse behind such staples as Tide, Crest, and Gillette saw its most recent earnings result mark the 40 th consecutive quarter of organic sales growth, which kept the business on track for its 10 th straight year of core earnings per share growth. It also has a long history of returning cash to shareholders. The current annual dividend yield is about 2.9% and the company has increased the payout for 69 consecutive years. Management is also planning $5 billion worth of share repurchases in fiscal 2026. We are initiating this position with a price target of $165. (Jim Cramer’s Charitable Trust is long LLY, NKE, PG. 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.
