During another busy week of earnings and stock market swings, we picked our spots and made six trades, including calling up a Bullpen name. We also changed two Club price targets. Here’s a day-by-day look. Monday The week started with a small Caterpillar (CAT) sale after a huge run and an initiation of a new position in DuPont (DD), which had been on our Bullpen watch list. Shortly after the opening bell, we trimmed some Caterpillar and booked some profits after the industrial giant’s blowout earnings last week. Revenue rose 22% year-over-year in the second quarter and adjusted earnings per share jumped 75%. This was, in part, due to the U.S. government’s increased infrastructure spending . Shares popped 9% on the earnings release, closing that day at a record high of $288.65. The stock was finishing this week just under that level. Jim Cramer’s Charitable Trust — the holdings we use for the Club — owns 315 shares of Caterpillar. Monday’s trade decreased CAT’s weighting to 3.03% from 3.26%. in our portfolio. Monday afternoon, we bought 375 shares of DuPont. The specialty chemical maker has a 1% weighting in the Club’s portfolio. DuPont has an attractive growth story for 2024. Management said during their second-quarter earnings call that the bottom in the company’s semiconductor business is here, a similar narrative we’ve heard in the industry landscape more broadly. We like the idea of exposure to semiconductors at a lower industrials multiple rather than the higher chip-stock multiple. Tuesday We added shares of Coterra Energy (CTRA) in the morning and purchased more Stanley Black & Decker (SWK) in the afternoon. We bought more Coterra on Tuesday’s dip, one day after the oil and natural gas producer delivered mixed quarterly results and soft guidance. We thought the decline was overdone. With West Texas Intermediate crude prices down briefly Tuesday morning due to growth scares and Coterra underperforming the group due to a mischaracterization of its quarter, we pounced on the weakness and called it an opportunity to buy small in this half oil, half natural gas production company. We own 1,550 shares of Coterra. Tuesday’s trade increased CTRA’s weighting to 1.48% from 1.1% in the portfolio. Our Stanley Black & Decker buy, which came a week after the shine came off the company’s post-earnings glow, increased the tool manufacturer’s weighting in the portfolio to 0.82% from 0.33%. With an excess of cash in the portfolio, we’re looking for stocks that are selling at a discount. Stanley Black & Decker is expected to enter 2024 with a lower cost structure, along with a clean inventory position, earning somewhere between $4 to $5 per share in 2024 from the $1 previously expected to earn next year. (On Friday, Wolfe Research downgraded SWK to underperform from peer perform (sell from hold), l argely due to valuation . Our counter is that the company is ahead of plan on its turnaround efforts.) Wednesday Wednesday was our busiest day. The…
Read More: Here are six trades and two price-target changes the Club made this