We're trimming a big winner and buying the dip in a stock that shouldn't be down

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We're trimming a big winner and buying the dip in a stock that shouldn't be down Published Wed, May 6 202611:47 AM EDTUpdated 20 Min Ago Jeff Marks@jeffmarkscnbc We are making two trades Wednesday: Selling 15 shares of Goldman Sachs at roughly $938 each, which leaves Jim Cramer's Charitable Trust with 170 shares of GS, decreasing its weight in the portfolio to 4.15% from 4.5% Buying 65 shares of Johnson & Johnson at roughly $223, which brings the Trust's JNJ ownership to 290 shares, increasing its weight in the portfolio to 1.7% from 1.3% Goldman Sachs We're locking in big profits on our Goldman Sachs position as shares of the investment banking giant continue climbing back toward the highs reached earlier this year. The stock has moved a leg higher since we last trimmed the position after its weighting crossed above 5% in the portfolio. We're taking advantage of this latest move to further pare the position back. From this sale, we will realize a gain of about 67% on stock purchased in December 2024. Johnson & Johnson Healthcare stocks have become completely out of favor in this AI-driven market, but we're willing to be patient with high-quality companies that consistently beat earnings estimates and raise their annual outlooks. As frustrating as the group has become to own, when the market mostly only has eyes for AI and data center related names, the fact is that all three of our healthcare positions delivered bottom-line beats this earnings season and raised their full-year outlooks, giving us increased confidence in their fundamentals. Only Eli Lilly generated a positive reaction to the quarter. We're sticking with Johnson & Johnson and Cardinal Health as well. We've held off from adding to J & J for a couple of weeks, but we're ready to make our next buy because the company had positive news on Tuesday that went unnoticed. We mentioned in Tuesday's HomeStretch that the company's Ottava robotic surgery system achieved a critical milestone in its first clinical study. This important update should clear the way for the Food and Drug Administration (FDA) to approve the system for multiple procedures. This robotic system is one of many J & J new MedTech products and drugs that will support its target of double digit revenue growth by the end of the decade. (Jim Cramer's Charitable Trust is long GS, JNJ. 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.More In Trade AlertsWe're buying the post-earnings dip in an AI industrial stock with a bright futureJeff MarksWe're adding to our position in a stock that has gotten cheaper since earningsJeff MarksWe're trimming a rebounding tech stock and buying more of a catalyst-rich nameJeff MarksRead MoreSubscribe to CNBC PROSubscribe to Investing ClubLicensing & ReprintsCNBC CouncilsJoin the CNBC PanelDigital ProductsNews ReleasesClosed CaptioningCorrectionsAbout CNBCInternshipsSite MapCareersHelpContactNews TipsGot a confidential news tip? We want to hear from you.

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