Cramer's Charitable Trust Buys Home Depot and BlackRock on Oversold Market

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Investing,Home Depot,Blackrock

Jim Cramer's Charitable Trust is buying Home Depot and BlackRock, citing an oversold market and the potential for these quality companies to rebound.

We're buying 25 shares of Home Depot at roughly $407 each and 14 shares of Blackrock at roughly $1,041. Following Tuesday's trades, Jim Cramer's Charitable Trust will own 200 shares of HD, increasing its weighting to 2.25% from about 2%. The Trust portfolio, used by the CNBC Investing Club, will own 75 shares of BLK after the trade, increasing its weighting to about 2.15% from about 1.75%. This is our second trade alert of the day.

We raised cash Tuesday morning by trimming our position in Broadcom to lock in triple-digit percentage gains into the stock's recent parabolic move; and also by selling Advanced Micro Devices shares on fundamental concerns. Those were sales made out of discipline. But there is another discipline we must honor: the S & P 500 Short Range Oscillator. This technical tool showed that the market became a little more oversold after Monday's session. When the market is oversold, according to the Oscillator, we view broader market weakness as an opportunity to buy stock of quality companies. That's why we are putting cash to work. HD YTD mountain Home Depot YTD One quality stock we're buying into its recent weakness is Home Depot. Shares of the home improvement retailer have pulled back about 6% from its recent high and have dipped slightly since the company reported a better-than-expected third quarter. We were very encouraged by Home Depot's earnings report, which showed the smallest decline in comparable sales in nearly two years. This was a good sign that business is bottoming and will inflect positively next year. BLK YTD mountain BlackRock YTD We're also adding to our position in the world's largest asset manager, BlackRock. Our most recent buy was last Monday shortly after the firm announced its $12 billion acquisition of HPS Investment Partners. This was a great deal for BlackRock because it will make it a leader in private credit, which is one of the fastest-growing areas of finance

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