Shortly after the opening bell, we will be exiting our position in Procter & Gamble, selling 325 shares at roughly $167.19. Following the trade, Jim Cramer's Charitable Trust will no longer own a position in Procter & Gamble. Shares of P & G have had a good run this year, rallying 14% on top of three dividend payments collected along the way. As we pointed out in a recent trim , P & G rose to new highs at the start of September when the market rotated into defensive stocks.
The Federal Reserve has started cutting interest rates at a time when the economic picture looks healthy – a fact on display in Friday's September jobs report . Against that backdrop, we see less need to hold onto traditional slowdown stocks like P & G that don't have enough growth to satisfy their valuations. The stock trades at roughly 24 times its earnings-per-share estimates for the next 12 months, a premium to the S & P 500 consensus of about 21.7, according to FactSet.