Shortly after the opening bell, we will sell 25 shares of Eaton at roughly $345.51. Following the trade, Jim Cramer’s Charitable Trust will own 275 shares of ETN, decreasing its weighting to 2.75% from 3%. Eaton is a growth industrial we want to own for the long run due to its exposure to red-hot markets, such as data centers, and secular growing themes including reindustrialization, electrification, and the energy transition. But we’re taking some chips off for the first time since our November 2023 initiation and locking in a 52% gain while downgrading our rating to a 2 . The electrical equipment company will report its third-quarter earnings Thursday before the opening bell. We expect another beat and raise, but the market likely sees this coming based on the stock’s outperformance this year. The stock has rallied about 43% this year compared to the 19% gain in the industrial sector. Eaton’s last couple of quarters have been met with profit-taking despite sizable earnings beats and raises, and Thursday may be no different — unless it’s a picture-perfect quarter on revenue, margins, earnings, and order growth. In other words, Eaton will need to beat a high bar for the stock to rally. Due to this setup, we wouldn’t chase the stock up here and prefer to be buyers on pullbacks. (Jim Cramer’s Charitable Trust is long ETN. 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.
