We’re selling 100 shares of Abbott Laboratories at roughly $128. Following Thursday’s trade, Jim Cramer’s Charitable Trust will own 300 shares of ABT, decreasing its portfolio weighting to 1.05% from 1.4%. We’re also buying 60 shares of Capital One Financial around $214 and will own a total of 610 shares of COF, increasing its weighting to 3.5% from 3.2%. We’re making another sale of Abbott as the stock of this diversified healthcare company continues to crawl back from its earnings selloff two weeks ago . As we mentioned last week , we’re taking a more downbeat view on Abbott in the second half of this year, as the company works through tougher-than-expected headwinds in China that are impacting its diagnostic business. From this sale, we will realize a gain of about 13% on stock bought in March 2024. We’re taking those cash proceeds to add to our position in Capital One. This trade violates our very low cost basis, but we’re willing to break our rules because the stock has dropped from its intraday high of about $232 last week to $215 on Thursday. This 7% decline comes despite the credit card company reporting a strong adjusted earnings per share (EPS) beat in its second quarter , even with a lot of noise from its Discover integration. At roughly 13 times estimated 2025 adjusted EPS and 11 times 2026 adjusted EPS, we think the stock is too cheap with a lot of network and expense synergies, as well as significant share repurchases on the way. We’re still looking to buy Starbucks and Palo Alto Networks when we are no longer restricted from trading them. We said on Wednesday that we are buyers of both . Palo Alto shares have now dropped a staggering 14% going back to when its acquisition of CyberArk was first reported on Tuesday. It was confirmed Wednesday. Investors may have some concerns about the $25 billion purchase price and integration risk, but CEO Nikesh Arora is a bankable executive and the strategic rationale is clear: the company can accelerate its platformization strategy by bundilng CybarArk’s identity security platform with Palo Alto’s current suite of solutions. (Jim Cramer’s Charitable Trust is long ABT, COF. 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.
