We are buying 30 shares of Palo Alto Networks at roughly $302.37. Following the trade, Jim Cramer’s Charitable Trust will own 260 shares of PANW, increasing its weighting to 2.46% from 2.18%. As stocks fall Friday on concerns about economic growth after another weak jobs report, we are dipping into our recently beefed-up cash position to take advantage of the dip. Volatility may feel scary, but it can also be your friend if you stay disciplined. One way we like to think about buying into a sea of red is remembering what our approach would be if the market was in rally mode. If the S & P 500 was up more than 2% today — instead of down 2% — you’d expect to see some sell alerts hit your inbox. So with stocks selling off, we’re looking to do some light buying of high-quality companies with great long-term prospects that we’ve been waiting for the stock prices to come down. That brings us to Palo Alto Networks, a stock we’ve trimmed three times since May at prices above $310 per share. More recently, we sold 20 shares in July at around $335. Shares are down about 10% from that sale, and yet the recent CrowdStrike outage should have opened the door for CEO Nikesh Arora to take share in the cybersecurity industry. Since the fundamentals improved within a price correction, the decline to $300 is a good spot to add back some of the stock we sold higher and upgrade our rating to a 1. And as mentioned in Friday’s Morning Meeting, we are upgrading our ratings on Nvidia , Amazon , Meta Platforms to a 1. We would be a buyer of Amazon Friday if we were not restricted from trading. This 10% sell-off in the e-commerce and cloud giant, in reaction to revenues missing expectations , is overdone. Although sales were light, the market should focus more on the incredible revenue and profit growth happening at Amazon Web Services. Outside of these tech names, there are some other stocks we may have our eyes on next week. The pullbacks in DuPont and Dover are making these industrial stocks attractive. When the market sells off hard during earnings season, we like to circle back to the companies that recently reported strong quarters, raised their full-year outlooks, and gave upbeat commentary about the future. Stocks may be falling across the board on economic growth concerns, but these management teams just signaled how great their businesses are performing. That likely didn’t change over the past few days. We like DuPont for its ongoing electronics recovery and the end of the destocking in its water business. Both were key reasons why second quarter profits came in better than expected and management lifted its full-year outlook. But this is a situation where there is more than one way to win — it’s not just off earnings growth. There is a significant sum-of-the-parts upside from the company’s breakup into three independent companies. Dover is another solid idea. Last week, the company reported a better-than-expected quarter and raised the low- and high-end of its full-year outlook. The company’s orders surged 16% year over year thanks to strong trends in thermal connectors used in data center, biopharma components, and CO2 systems for refrigeration. And with a good balance sheet, management can reshape its portfolio into faster-growing, higher-margin businesses. One more stock that we like in the sell-off is Wells Fargo . The bank did not report a good quarter and all the banks are selling off on economic concerns. But lending should pick up again after the Federal Reserve starts cutting rates. And as Treasury yields fall, the stock’s now 3% dividend looks a little more attractive. After the dividend, the bank still has plenty of excess capacity available to fund share repurchases. We trimmed a ton of stock off around $60 and are looking to buy some of that back. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
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