We're scooping up shares of 2 stocks that fell victim to a September swoon
We are buying 80 shares of Bank of New York at roughly $146.71 and 50 shares of Cardinal Health at roughly $223.58. Following the trades, Jim Cramer’s Charitable Trust will own 560 shares of BNY, increasing its weighting to about 2.1% from 1.78%. It will also own 475 shares of CAH, increasing its weighting in the portfolio to 2.7% from 2.4%. We’re making a couple of buys with the S & P Oscillator indicating an oversold market and bond yields finally falling in reaction to softer-than-expected August inflation data. Known as the personal consumption expenditures (PCE) price index, this is the Fed’s preferred measure of inflation. The cooler reading could give the Fed’s policymaking arm more reason to keep rates steady at its next meeting, which concludes Oct. 28. We already saw the odds of a hike in October drop significantly on Tuesday after New York Fed President John Williams said there is “no need for urgency” to hike again after raising rates in September. The financials were the worst performing sector in September on concerns about a flattening yield curve, and, more recently, fears that personalized finance AI agents will help consumers move cash out of low-yielding brokerage accounts and into high-yielding products, a process known as cash sorting. The latter worry — if it is even a real issue — should not materially impact BNY because its mainly an institutional and financial services company with little direct exposure to retail investors. BNY shares have dropped more than 10% since early September. We’ll also add to our Cardinal Health position after the stock’s recent pullback, also down about 10% since early September. Our positive thesis on the healthcare services and drug distributor was reinforced on Wednesday by analysts at Leerink after a meeting with the company’s CFO and investor relations team. “The meetings didn’t uncork any new themes we hadn’t significantly considered, but rather honed in on the areas that have led to recent outperformance” Leerink wrote. “Whether that was bolstering the entire specialty offering, maximizing value from [management services organizations], growing At-Home through mix of investments/acquisitions, or successful redeploying capital, we think all the pieces that have led to CAH’s success are far from the late innings.” (Jim Cramer’s Charitable Trust is long CAH and BNY. 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.
