Two stocks have been added to Jim Cramer’s Charitable Trust portfolio from the Bullpen stocks-to-watch list: BlackRock and CrowdStrike. BlackRock is the world’s largest asset management manager offering a variety of investment products across different client types. The company reported strong third-quarter results with total revenues increasing by 15% year over year and a record $221 billion of net inflows. BlackRock continues to show profitability with adjusted operating margins expanding and an increased dividend payout. The company’s strategic push into alternative strategies like private markets and infrastructure is expected to positively impact its overall effective fee rate.
CrowdStrike, a cybersecurity company led by CEO George Kurtz, specializes in endpoint protection through its Falcon platform. The company experienced a setback in July due to a faulty software update but quickly recovered with excellent third-quarter results showing revenue growth and a high gross retention rate of 98%. Despite the setback, CrowdStrike’s annual Fal.Con conference received a positive reception, suggesting a strong future outlook. The stock is down from its high before the incident, presenting a potential buying opportunity with an initial price target of $350.
The addition of CrowdStrike has raised questions about diversification in the portfolio. While typically avoiding duplication in one area, the Trust believes there is room for both CrowdStrike and Palo Alto Networks, another cybersecurity company, due to position sizing. Cybersecurity is seen as a crucial investment as threats increase with advancements in technology. The Trust is also benefiting from the new SEC rules surrounding the disclosure of cybersecurity incidents, providing greater awareness of threats as a tailwind for investments in this sector.
As a CNBC Investing Club subscriber, members receive trade alerts before Jim Cramer makes a trade. Jim follows specific guidelines, waiting before executing a trade after sending a trade alert or discussing a stock on CNBC TV. The information provided by the Investing Club is subject to terms and conditions, privacy policy, and disclaimer. There is no guaranteed outcome or profit, and no fiduciary obligation or duty exists based on information received through the Investing Club. The Trust is currently long on BlackRock, CrowdStrike, Microsoft, and Palo Alto Networks. Members are encouraged to stay informed and follow the guidelines set forth by the Investing Club for successful investing.
