We are buying 65 shares of DuPont de Nemours , at roughly $73.19 apiece. Following Thursday's trade, Jim Cramer's Charitable Trust will own 720 shares of DD, increasing its weighting in the portfolio to 1.93% from 1.76%. With the stock market still deeply oversold, according to the S & P 500 Short Range Oscillator , our strategy is to gradually put a little more money into the stocks of quality, profitable companies. And chemicals giant DuPont de Nemours is our target Thursday.
In short, management won't need to refinance debt at elevated rates. Valuation is another important factor when rates rise because multiples have a habit of compressing more on pricier stocks. But DuPont is a cheap name relative to some other higher-priced multi-industry peers. At the same time, DuPont shares should actually trade at an expanded multiple closer to peers, given the company's shift to less cyclical, higher-growth end markets like electronics and semiconductors.