We are buying 20 shares of FedEx at roughly $289 apiece. Following the trade, Jim Cramer’s Charitable Trust will own 410 shares of FDX, increasing its weighting to about 2.98% from 2.84%. FedEx is our second buy of the day, following Kimberly-Clark on Thursday morning, as we look to put money to work. As Jim Cramer explained during the Morning Meeting , we’re not looking to pour all of our dry powder into the market as quickly as possible, but plan to be selective in our picks. We understand there may be more choppiness between now and the midterm elections, but don’t want to pass up great companies at reasonable prices; we can’t perfectly time the market. Most anything not part of the AI buildout has been out of favor for weeks, but we’re beginning to see the rally broaden out into other sectors and industries. A Financial Times report on Thursday said OpenAI’s revenue run rate may be closer to $50 billion, about $20 billion less than previously, which could spur more buying in non-tech names. The AI trade has been so hot that many investors will jump at any solid reason to book profits and rotate some of that cash into undervalued names. Whether it signals the beginning of a rotation or is simply a catch-up trade, it’s time to step in and start sprinkling some money into non-tech names. We last purchased shares of FedEx at roughly $297. Since then, the stock has moved lower, bottomed out at $280 (on a closing basis), and seen a slight bounce. For the past two weeks, it has been consolidating around its current level. With shares still below our cost basis, we want to take advantage of the current weakness, driven by inflation and higher oil prices, to add to our position ahead of the company’s all-important holiday shipping season. We believe FedEx will dominate its main rival, UPS . We also want to get ahead of the stock’s next move up, which should come when oil prices fall again. FedEx can protect profits with fuel surcharges, but the higher cost of shipping can still impact overall demand. Investors want to own shares before any positive updates — most importantly, an end to the war in Iran and the reopening of the Strait of Hormuz — are reflected in energy prices. (Jim Cramer’s Charitable Trust is long FDX. 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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