We’re buying 30 shares of Estee Lauder (EL) at roughly $235.61 each, 25 shares of Palo Alto Networks (PANW) at roughly $187.35, and 25 shares of Pioneer Natural Resources (PXD) at roughly $196.87. Following Monday’s trades, Jim Cramer’s Charitable Trust will own: 300 shares of EL, increasing its weighting in the portfolio to 2.80% about from 2.52% 225 shares of PANW, increasing its weighting to 1.67% from 1.48% 150 shares of PXD, increasing its weighting in the portfolio to 1.15% from 0.96% We’re putting some of our big cash position to work Monday morning, consistent with Jim’s messaging Sunday evening . EL YTD mountain Estee Lauder (EL) YTD performance We’re buying more shares of Estee Lauder , a leader in prestige beauty and one of the best consumer plays on the reopening China after abandoning zero Covid. Despite recent weakness in Estee Lauder’s stock, recent checks into the beauty industry remain positive. On its earnings call last Thursday, Ulta Beauty (UTLA) called out double-digit growth in its prestige skincare lineup, accelerating growth in makeup, and a strong quarter in fragrances. PANW YTD mountain Palo Alto Networks (PANW) YTD performance We’re adding to our Palo Alto Networks position. One of the big data points that came out of the company’s recent blowout earnings report was how Palo Alto has now achieved GAAP profitability over its past four quarters. (GAAP stands for generally accepted accounting principles.) This achievement is worth highlighting because it makes the company eligible for inclusion in the S & P 500 . And, here’s the thing: The S & P 500 has lost a couple of constituents over the past couple of days due to regulators first taking over Silicon Valley Bank (parent company SVB Financial ) and now Signature Bank . We already know Insulet (PODD), a make of an insulin delivery system, is taking over SVB’s place, but the upcoming removal of Signature has created another open slot. We don’t know where Palo Alto Networks is in the queue, but we think its time is coming and its addition to the index would be a nice bonus for shareholders based on the history of other stocks popping in reaction to the news. PXD YTD mountain Pioneer Natural Resources (PXD) YTD performance We’re also buying an oil stock, Pioneer Natural Resources , into Monday’s energy rout and upgrading our rating back to a 1 . We’re only buying back 25 shares of the 75 recently trimmed at around $207 , but we like this energy stock for its hefty annual dividend yield that looks a whole lot better with rates down. With a break-even at $39 per barrel of West Texas Intermediate crude, Pioneer can generate a large amount of free cash flow in this environment. Even with Monday’s decline, WTI was still above $76 per barrel. Other Club buy ideas Elsewhere in the portfolio, we reiterate what we said in Monday’s extended version of the Morning Meeting: There’s nothing wrong with being defensive right now and adding to positions in health care and staples like the Johnson & Johnsons and the Procter & Gambles of the world. These are groups that have been hit hard as rates increased and the U.S. dollar strengthened, and now they may finally be able to rally because rates and the dollar are down. We include Costco (COST) in this group because this low-price wholesale retailer always tends to do well when people are concerned about the economy. We are upgrading COST back to a 1 rating. Lastly, one more buy idea on our radar list is Caterpillar (CAT). Shares have been hard in the past week over concerns about backlog growth. But, we own this for infrastructure spending, which we see as a multiyear theme due to the federal government’s commitment to rebuilding. Also, if the Fed is really close to nearing the end of its tightening cycle, then we want to have more exposure to a high-quality cycle. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
A general view of the facade of the New York Stock Exchange on January 13, 2015 in New York City.
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